Avoiding strike three
Avoiding strike three
26/8/2003 13:56
Durables, confidence and home sales due as investors eye possible third straight drop for stocks.

Investors will eye the latest economic numbers and try to regroup Tuesday after two days of losses on Wall Street.

Stocks looked set for a mixed opening with S&P and Nasdaq futures little changed in before-hours trading.

Stock prices fell Monday, with the Dow industrials down modestly and the Nasdaq composite ending little changed, despite a report that sales of existing homes surged to a record. (For more on Monday's market action, click on the chart).

Overseas, stocks rose in Japan but ended lower elsewhere in Asia, while share prices started higher in Europe.

Treasury prices edged lower, pushing the yield on the 10-year note up to 4.54 percent from 4.52 percent late Monday. Bond prices and yields move in the opposite direction.

The dollar edged higher against the Japanese yen and the euro.

The dollar hit a fresh one-month low against the yen Monday as traders bought the Japanese currency on signs that the world's No. 2 economy may be emerging from its prolonged slump.

Tuesday will bring reports on consumer confidence, orders for long-lasting durable goods and new home sales. The Conference Board's index of consumer sentiment probably rose to 79.6 in August, according to economists surveyed by Briefing.com, from 76.6 in July.

July durable goods orders are forecast up 1 percent following a 2.3 percent increase in June.

And July new homes are seen at an annual rate of 1.15 million, a shade below June's 1.16 million but still strong.

The government report follows Monday's report from a real estate group that existing home sales surged to a record high in July. While Monday's number came in much stronger than expected, it also probably marked the peak in the housing market as fence-sitters decided to buy before mortgage rates rise further, economists said.

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