Stocks are poised to erase yesterday's losses after China's
central bank stepped in to ease the liquidity crunch in its banking
sector, and the US gets some positive economic data on housing,
business investments, and consumer confidence.
Durable goods orders handily beat expectations, rising 3.6% in May
after rising 3.5% in April. Excluding transportation, orders
increased by 0.7%. Economists expected non-transportation orders to
The People's Bank of China said that it will ensure that
money-market rates stay at a "reasonable range" to stem a cash
crunch in the country. The reversal of Monday's more hawkish
statements soothed the markets. Shares in the country surged back
after the announcement, but ended the day lower. European markets
also recovered today.
After a fourth straight day of losses yesterday,
(INDEXDJX:.DJI) futures were up 0.43% at 14,650. Futures contracts
(INDEXSP:.INX) gained 0.50% to 1,574.00 after hitting a nine-week
(INDEXNASDAQ:.IXIC) futures climbed 0.53% to 2,859.00.
Investors also look forward to picking apart a lot of housing data
later this morning. The rate of new home sales are projected to
rise to a seasonally adjusted 460,000 in May, up from 454,000.
Economists expect the Case-Shiller home price index to rise 1.5% in
April. On a yearly basis, home prices likely increased by 10.9% in
the 20 cities that the index covers. The Federal Housing Finance
Agency's house price index is also likely to rise 1.2%.
), the third largest US homebuilder, is one company that is
capitalizing on the housing recovery. Lennar's second-quarter
earnings of $0.43 per share beat estimates by a dime. Revenue of
$1.43 billion also exceeded expectations. The company was up 6.1%
in pre-market trading.
The Conference Board's June consumer confidence survey is also due
out today. The consensus is that the index might drop 1.2 points to
75 this month.
In corporate news,
) announced a partnership with
). Their cooperation will ensure support for Oracle's database
software for companies that use Microsoft's Azure cloud platform.
Both tech firms are trading higher this morning.
Research In Motion Ltd
) is up 2.7% before the bell. The Canadian mobile company launched
a program today that will allow enterprise clients to secure
) iPhones and
(GOOG) Android devices. The Secure Work Space allows corporate IT
departments to control devices made by BlackBerry's competitors.
This marks a shift toward services for the smartphone company.