ftse sliding, page-17

futures in a funk Futures in a funk
After a weak close for stocks Tuesday, futures again point to lower open ahead of key economic, oil readings.
May 24, 2006: 6:12 AM EDT


NEW YORK (CNNMoney.com) - The recent woes for stocks could continue as investors await the latest readings on real estate and economic strength and U.S. fuel supplies.

U.S. stock futures were up in early trading, although a comparison to fair value indicated lower open for U.S. markets ahead of the government reports, with the tech-heavy Nasdaq pointing lower than the blue chip S&P.

Oil prices were lower ahead of the 10:30 a.m. ET report on U.S. fuel inventories, following a sharp run-up in oil prices Tuesday that helped take U.S. stocks lower in late afternoon trading. A build in gasoline supplies is expected in the report, which could take oil and gasoline prices lower.

The July light crude futures contract for NYMEX was down 56 cents to $71.20 in electronic trading, while the July contract for Brent crude lost 29 cents to $70.71

At 8:30 a.m. the government reports on durable goods orders, and economists surveyed by Briefing.com are forecasting the first drop in demand for those big ticket items in three months, with estimates of a 0.5 percent decline in April orders following a 6.4 percent gain in March.

At 10 a.m. ET the Census Bureau reports on new home sales, with economists looking for the annual sales pace to drop to 1.14 million in April from 1.21 million in March. Most readings have indicated a slowdown in housing in recent months.

Major markets in Asia closed mostly higher Wednesday, while major European markets were down in early trading.

Treasury prices were little changed, leaving the yield on the benchmark 10-year note at the 5.02 percent level reached late Tuesday. The dollar was higher against the euro but down against the yen.

In corporate news, Vonage, a pioneer in phone service over the Internet, has its initial public offering start trading Wednesday, after it priced its IPO shares in the midpoint of its earlier range. MasterCard could price its IPO later Wednesday.

For a more detailed look at the markets before the open, click here.