wall st poised for soft start ahead of data deluge

Wall St poised for soft start ahead of data deluge
20:13, Tuesday, 1 August 2006

By Sophie Hares

LONDON, Aug 1 (Reuters) - Wall Street stocks are set to open
a touch lower on Tuesday as investors keenly await a batch
heavyweight earnings and economic data, including the Personal
Consumption Expenditure (PCE) index, as the outlook for interest
rates continues to dominate.

By 0954 GMT, U.S. stock futures were pointing to opening
down 0.1-0.2 percent for the three main indexes
, after inflationary concerns and a handful of
disappointing earnings knocked stocks lower on Monday.

"Earnings are one of the bright spots, but I think the
markets are still preoccupied with rising interest rates and the
language coming out of the Fed," said Christian Holland, fund
manager at Cavendish Asset Management.

"It's not as dovish as people would have hoped for."

The Dow Jones industrial average <.DJI> closed down 0.3
percent at 11,185.68, while Standard & Poor's 500 Index <.SPX>
ended 0.2 percent lower at 1,276.66 and the Nasdaq Composite
Index <.IXIC> closed down 0.1 percent at 2,091.47.

Oil prices should continue to add pressure to the market, as
crude held steady near $75 as geopolitical tensions
continued in the Middle East and heat waves in the United States
and Europe triggered a surge in natural gas prices.

Israel ignored growing concerns for a ceasefire and pounded
eastern and southern Lebanon from the air on Tuesday as it
planned to push further into Lebanese territory.

Companies including Eastman Kodak , Hilton Hotels
, Loews and TXU are scheduled to report
earnings on Tuesday.

Altiris may jump after rallying in after-hours
trade following its results, while Affymetrix Inc. is
set to slide after its losses exceeded analysts' forecasts.



DATA RUSH

Economic data will be carefully scrutinised as investors
look for clues to the pace of U.S. interest rate rises ahead of
the Federal Reserve's Aug. 8 policy meeting.

PCE, a closely watched inflation measure, is due for release
at 1230 GMT.

The core index, which excludes volatile food and energy
prices, is predicted to rise 0.2 percent in June, after a gain
of 0.2 percent in May, according to a Reuters poll.

Personal income is seen up 0.6 percent in June after a gain
of 0.4 percent in May, while personal consumption is forecast to
rise 0.4 percent in June, matching May's 0.4 percent gain.

The Institute for Supply Management's index of U.S.
manufacturing activity, due for release at 1400 GMT, is expected
to dip to 53.7 in July from June's 53.8.

U.S. domestic car and truck sales for July, which will be
posted through the day, are expected to have picked up speed
from June, according to a Reuters poll.