U.S. stock futures point to tentative start ahead of data. UBS (UBS) on Monday warned it may record further losses on real-estate holdings

By Daniel | May 27, 2008

U.S. stock futures flat after three-day break

By Steve Goldstein, MarketWatch

Last Update: 9:07 AM ET May 27, 2008

NEW YORK (MarketWatch) — U.S. stock futures were near flat on Tuesday in
tentative trading ahead of economic data that could show home prices and new-home
sales on the decline while crude-oil futures strengthened once more.

“The overall sales outlook remains bleak as the fall-out from credit market
turmoil is expected to further weigh on activity through mid-year,” said analysts
at Action Economics.

S&P 500 futures were up 0.6 points to 1,374, and Nasdaq 100 futures rose 5.25
points to 1,963.5. Dow industrial futures gained 1 point to 12,472.

U.S. stocks dropped Friday for the third time in four sessions, as a report
showed the number of unsold U.S. homes piled up a 23-year high in April. The Dow
industrials ended 145 points lower, the S&P 500 fell 18 points and the Nasdaq
Composite fell 19 points. All three indexes lost between 3% and 4% on the week as
oil prices surged.

Besides crude — up 25 cents to $132.44 a barrel in electronic action — traders
also will eye releases on the S&P/Case-Shiller home price index for March, May
consumer confidence and April new-home sales, with those statistics expected
between 9 a.m. and 10 a.m. Eastern.

There also are speeches from Federal Reserve Governor Randall Kroszner, speaking
on banking and financial risk in Brazil, while non-voting San Francisco Fed
President Janet Yellen is scheduled to address the economic outlook.

The dollar was stronger against the Japanese yen, while gold futures fell $8.90
an ounce.

Among stocks in the spotlight, Standard Pacific Corp. (SPF) soared 28% in
pre-market action on word a private equity group had agreed to invest more than
$530 million in the homebuilder.

Altria Group Inc. (MO) holding SABMiller rose in London trade on speculation that
if InBev fails to land Anheuser-Busch (BUD), it may try to buy the Anglo-South
African brewer instead. InBev declined to comment.

Banc of America Securities cut the second-quarter earnings estimates for Morgan
Stanley (MS), Lehman Brothers (LEH) and Goldman Sachs Group (GS). Lehman shares
skidded in pre-open trade.

UBS (UBS) on Monday warned it may record further losses on real-estate holdings
outside the U.S.

Vodafone Group (VOD) returned to profitability in the year to March 31 with a
better-than-forecast $13.4 billion profit and said Arun Sarin will be leaving as
chief executive in July.

Infineon Technologies (IFX) also announced that its chief executive, Wolfgang
Ziebart, was leaving, with the German chipmaker citing differences between the
CEO and the chairman.

The Nikkei 225 rose 1.5% in Tokyo after losses on Monday. The FTSE 100 fell 0.4%
in London after a three-day break.

Did you like this? If so, please bookmark it,

$\\$

about it, and subscribe to the blog RSS feed.

Possibly Related Posts: