|
|
NEW YORK – Wall Street headed for a slightly lower open Wednesday as
investors awaited more evidence on the health of the economy.
U.S. stock futures reflected the uncertainty in overseas markets, where buying
was subdued by concerns over the sustainability of a four-month rally. Key
market gauges fell almost 2 percent in London and more than 1 percent in Paris
after finishing with a small gain in Tokyo.
Interest rates on U.S. Treasury securities retreated early Wednesday and oil
futures edged below $68 a barrel in electronic trading.
Investors who have sent U.S. stocks up more than 30 percent since early March
have been encouraged by improving economic data. But many analysts warn that the
market needs to see real signs of growth before it can move much higher.
Data on factory orders for April and a reading on the service sector are
expected later Wednesday morning. Meanwhile, Federal Reserve Chairman Ben
Bernanke will testify before Congress about the state of the economy.
Investors also will get a precursor to Friday's employment data from the ADP
National Employment Report, a private-sector report on unemployment that has
become more closely watched in recent months. Unemployment has been one of Wall
Street's biggest worries about the economy.
Ahead of the market's open, Dow Jones industrial average futures fell 34, or 0.4
percent, to 8,680. Standard & Poor's 500 index futures fell 5, or 0.5 percent,
to 937.60, while Nasdaq 100 index futures dipped 6.25, or 0.4 percent, to
1,472.20.
In recent months, investors have been taking their cues largely from economic
reports, searching for confirmation that the recession will end some time this
year. A spate of upbeat reports this week on manufacturing, consumer spending
and home sales have helped send the market higher.
On Tuesday, stocks extended a four-day winning streak with modest gains
following an unexpectedly big spike in pending home sales — the latest sign that
the battered housing market is starting to turn around.
Luxury home builder Toll Brothers Inc. said Wednesday it has begun to see signs
that buyers are re-entering the new home market. Still, the company reported a
slightly bigger-than-expected loss of $83.2 million for its fiscal second
quarter as it continued to reduce the value of land and unsold homes on its
books.
Further tests of the market's resilience will come later this week. Retailers
will report May sales results on Thursday, while on Friday the Labor Department
will give its monthly jobs report — one of the most closely watched indicators
of the economy's health.
Interest rates on long-term Treasurys fell further early Wednesday after surging
last week. The yield on the 10-year Treasury note, which is used as a benchmark
for home mortgages and other consumer loans, slipped to 3.57 percent from 3.62
percent late Tuesday. |
|
|
