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Markets look to remain jittery
Stocks set for lower open as profit, rate concerns continue.
August 1 2006: 6:08 AM EDT

NEW YORK -- U.S. stocks looked to meander lower at the start of trading Tuesday amid the concerns that have plagued the markets in recent weeks: profits and interest rates.

At 6 a.m. ET, Nasdaq and S&P futures were down, indicating a lower start for the major indexes.

A report on personal income and spending in June, due at 8:30 a.m. ET, could help set the tone for Tuesday's market. Many experts say the report's so-called core PCE price reading is closely watched by the Federal Reserve.

A slew of other reports are also due. The Institute of Supply Management's index on the manufacturing sector in July as well as June construction spending figures are due after the market open.

With the next Fed meeting just a week away, investors will be monitoring each data release for clues about what central bank policymakers will do when they meet Aug. 8.

Market watchers are uncertain whether the Fed will raise rates for the 18th straight time next week or put the brakes on its interest rate-raising campaign. The Fed has raised the fed funds rate, a short-term overnight bank lending rate target, to 5.25 percent from 1 percent.

Also on tap: The Big Three U.S. automakers will release their sales results for July.

In earnings news, fast food retailer Burger King (Charts) is set to report its first set of quarterly results since going public in May before the market open.

Organic foods retailer Whole Foods (Charts) reported sales late Monday that fell below Wall Street estimates.

Oil prices were mixed, with U.S. light crude up 20 cents in electronic trading to $74.60 a barrel, while Brent crude traded in London was 35 cents lower at $74.80.

Treasury prices eased, with the yield on the 10-year note at 5 percent, up from 4.98 percent late Monday. Bond prices and yields move in opposite directions.