Stock futures little changed as investors cautious

[August 25, 2010]  NEW YORK (AP) -- Stock futures were little changed Wednesday as investors approached with caution another key housing report and data on durable goods orders.

Major indexes have been hit hard in recent days because of ongoing concerns about the pace of economic recovery. The Dow Jones industrial average has fallen 3.6 percent during its current four-day losing streak.

Traders will be closely watching a report Wednesday about sales of new homes to see if it confirms Tuesday's data that the housing market continues to falter. Tuesday's report showed sales of previously occupied homes fell to a 15-year low in July, adding to concerns that the economy could fall back into recession.

Sales of new homes were likely flat in July compared with the previous month, according to Thomson Reuters. June sales rebounded to an annual rate of 330,000, topping forecasts, after hitting a record low in May.

The Commerce Department report is due out at 10 a.m. EDT.

Home sales have been particularly weak since a home buyer tax credit expired at the end of April. High unemployment has kept people from buying homes because they are worried about their jobs. Banks have also been cautious in making new loans after taking huge losses in recent years from failed mortgages.

A separate report on durable goods orders is expected to show sales of goods that are expected to last at least three years rose 2.8 percent in July compared with the prior month. Excluding volatile transportation orders, sales likely rose 0.5 percent. The report is due out at 8:30 a.m. EDT.

That would be a positive sign for the manufacturing sector, which has shown weakness in recent weeks. A regional manufacturing report last week showed activity in the Mid-Atlantic shrank. Manufacturing had been among the most consistently strong sectors of the economy during the first half of the year when growth was stronger.

Ahead of the opening bell, Dow Jones industrial average futures fell 2, or less than 0.1 percent, to 10,021. Standard & Poor's 500 index futures were unchanged at 1,049.80, while Nasdaq 100 index futures fell 3.75, or 0.2 percent, to 1,770.00.

Bond prices fluctuated in a narrow range. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was unchanged at 2.49 percent compared with late Tuesday.

Overseas, Britain's FTSE 100 fell 0.4 percent, Germany's DAX index fell 0.3 percent, and France's CAC-40 fell 0.6 percent. Japan's Nikkei stock average fell 1.7 percent.

[Associated Press; By STEPHEN BERNARD]

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