Wall Street On Pause Friday Morning Ahead of New Home Sales Report

10:39 GMT

Jul 2008

(RTTNews) - Stock futures were indicating a lackluster start Friday after steep losses in the previous session, as investors looked ahead to another key report on the embattled housing market.

As of 6:20 am ET, the S&P Futures were down 4 points, the NASDAQ Futures were down 2 points, and the Dow Futures were down 20 points.

Stocks plunged on Thursday following the release of some troubling economic data that reignited concerns over the health of the economy. The data prompted investors to lock in profits from the rally seen in the past several days.

Stocks weakened after the National Association of Realtors reported that existing home sales fell more than expected in the month of June, with many potential home buyers waiting on the sidelines.

Friday morning, the government will report new home sales for June after the opening bell. Economists expect the annual sales rate to slide to 500,000 from 512,000 in May.

The markets may also be affected when the Department of Commerce releases its durable goods data, which reflects new orders for good meant to last at least three years. Economists are expecting durable goods to show a decline of 0.4 percent in June.

Additionally, the Commerce Department will release its data on new home sales for the month of June, while the University of Michigan will release a revised reading on its consumer sentiment index for July.

Stocks to watch include Lehman Brothers (LEH), which is reported mulling the sale of its Neuberger Berman asset management unit. According to the Wall Street Journal, the deal may bring in $8 billion.

Wachovia Corp (WB), the fourth largest U.S. bank, said Thursday that its Chief Financial Officer Thomas Wurtz plans to leave the company after a successor is named. The company said it will commence an immediate search for Wurtz’s replacement.

Japanese automaker Honda Motor Co., Ltd. (HMC) reported an 8.1% rise in its first-quarter profit, helped by higher other income and equity in income of affiliates. Revenue was down 2.2% on sales declines in Japan, North America and Europe. The company expects a year-over-year fall in net income for fiscal 2009.

Infineon Technologies AG (IFX) reported a wider net loss in its third quarter, impacted by higher loss from discontinued operations and charges related to Qimonda.

The price of oil was up above $126 a barrel in early electronic dealing Friday morning, moving away from a 7-week low. Gold bounced back, picking up $9 to $931 an ounce.

Asian stocks fell on Friday, as the Hang Seng of Hong Kong lost 347 points, while Tokyo’s Nikkei lost 268 points.

In European intraday dealing, the FTSE of the UK was down 56 points, the CAC of France was down 40 points, and the DAX of Germany was down 93 points.

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Posted in Categories: Economy, Releases.