Stock futures flat ahead of housing data By JOE BEL BRUNO, AP Business Writer

Stock futures flat ahead of housing data By JOE BEL BRUNO, AP Business Writer
7 minutes ago



NEW YORK - Stock futures were little changed Friday after a better-than-expected durable goods report, but Wall Street still remained cautious ahead of data expected to show further trouble in the housing market.

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Futures, which were down most of the premarket session, got some lift after the Commerce Department reported demand surged for expensive goods during July. The broad-based increase topped projections in a key barometer of capital spending by businesses.

Orders for durable goods rose by 5.9 percent last month to a seasonally adjusted $230.70 billion. Durables — goods designed to last at least three years — rose 1.9 percent in June, revised from a previously estimated 1.3 percent advance.

However, investors were still hesitant ahead of a Commerce Department report expected to show further slowing of new home sales and a drop in home prices during July. Economists surveyed by Thomson Financial predicted, on average, that sales of new single-family homes will have fallen in July to a seasonally-adjusted annual rate of 825,000 units, down from 835,000 in June.

The report will be closely watched by some economists who feel the U.S. is moving toward a recession because of the ongoing housing slump.

The housing data will also be scrutinized by the Federal Reserve. Many on Wall Street hope the Fed will cut the benchmark fed funds rate to ease the impact of a tightening of the credit market due to troubles in subprime mortgages.

Wall Street snapped a five-day advance on Thursday as investors had lingering worries about the impact of credit problems on the economy.

Dow futures expiring in September rose 4.00, or 0.03 percent, to 13,265, while Standard & Poor's 500 futures edged up 0.90, or 0.05 percent, to 1,467.20. Nasdaq 100 index futures dropped 0.50, or 0.03 percent, to 1,939.00.

Investors globally also seemed hesitant to put money into the market ahead of the U.S. open. Overseas, Britain's FTSE 100 fell 0.03 percent, Germany's DAX index shed 0.39 percent, and France's CAC-40 was unchanged. In Asia, Japan's Nikkei stock average closed down 0.41 percent. Hong Kong's Hang Seng Index fell 0.20 percent.

In corporate news, retailer Gap Inc. late Thursday posted a 19 percent rise in quarterly earnings and announced plans for a $1.5 billion share buyback. However, rival Aeropostale Inc.'s quarterly results came in below Wall Street estimates.

H.J. Heinz Co. said the introduction of new products and a surge in marketing helped push first-quarter profit up about 6 percent from the year-ago period. Results came in well above Wall Street projections.

Meanwhile, Burger King Holdings Inc. said longer store hours and new menu items pushed its fiscal fourth-quarter to a profit after a year-earlier loss.

Oil prices rose 6 cents to $69.89 in premarket trading on the New York Mercantile Exchange. Crude prices have fallen after it appeared there was no major damage to oil rigs as Hurricane Dean pushed through Mexico.