U.S. markets will be looking to data on residential housing and retail earnings as Tuesday trading kicks off, following a turbulent start to the week that saw the Dow Jones Industrial Average plunge 184 points before recovering to a small gain. The euro currency had tanked to a four-year low against the dollar on Monday, but then rebounded, as traders worried about the fallout of a massive financial rescue for European economies.
The Dow finished Monday with a gain of six points, or 0.1%, to 10,626 while the S&P 500 was up a point, or 0.1%, to 1,137. The Nasdaq rose seven points, or 0.3%, to 2,354. At noon the major indexes had fallen nearly 2% but they rallied late in the session to post gains.
Likely to guide equity prices in the morning are figures on housing starts and building permits for April. Analysts think starts increased from March while permits are expected to remain flat. Investors are worried that recent gains in residential building could prove short-lived after the expiration of a government tax credit for homebuyers that many think boosted demand in the last few months. Shares of home builders were mostly up on Monday with
Inflation watchers will also be looking to the monthly wholesale prices report, out before trading begins, for signals on how the U.S. financial bailout and economic recovery are affecting the dollar's value. Analysts expect a subdued reading with prices up just 0.1% in April. Consumer price data come out Wednesday morning.
Electronics testing company
Retail earnings season kicks into high gear Tuesday with morning reports from a slew of big national chains. Abercrombie & Fitch is expected to report another quarterly loss, of 14 cents, though that would be narrower than last year's loss of 31 cents a share.
Also in apparel, department store
Construction bellwether
The technology sector will garner attention late in the day as chip company
The Associated Press contributed to this report.