Filed under: Before the bell, Earnings reports, Market matters, IAC/InterActiveCorp (IACI), American Express (AXP), Dow Chemical (DOW), Economic data, Housing, Federal Reserve

Stock futures were higher this morning, indicating Wall Street could start on a positive note, continuing yesterday’s late-session rally as investors hope for further rate cuts. Investors will also examine more economic data and earnings today.

In what has become usual on Wall Street, the bleak new-home sales numbers reported Monday actually helped push stocks higher as it reignited speculation that the Federal Reserve will cut interest rates by a half-point this week. The Dow industrials finished up 176 points, or 1.45%, the S&P 500 was up 23 points, or 1.76%, and the Nasdaq Composite rose 23 points, or 1.02%.

The Federal Reserve is scheduled to open the two-day Federal Open Market Committee meeting Tuesday afternoon. The decided policy announcement usually comes at the conclusion of the meeting, that is tomorrow at 2:15 p.m. EST. The key rate now stands at 3.5% after the Fed had cut rates by three-quarter-point in an emergency meeting last week. Many economists believe the Fed will lower its key rate by as much as one-half percentage point to 3%. Banks will then lower the prime rate, helping lenders get loans at lower rates.

A number of economic readings Tuesday include some more housing data:

• RealtyTrac already reported foreclosure data. The number of foreclosures soared by 75% in 2007, with 405,000 households losing their home, with total foreclosure filings soared 97% in December alone compared with December of 2006.
• At 8:30 a.m. EST, December durable goods orders is due.
• At 9 a.m., the S&P/Case-Shiller Home Price Index for November is released.
• At 10 a.m. January consumer confidence will be reported. The Census Bureau will also give its report on fourth-quarter home ownership and the number of vacant homes for sale on the market.

Continue reading Before the bell: Futures higher on rate-cut hopes; earnings, data ahead

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This entry was posted on Tuesday, January 29th, 2008 at 10:34 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.