* Investors await housing data
* GM heads toward bankruptcy
* Futures Dow down 11 pts; S&P down 1.70 pts, Nasdaq off
4.75 pts
* For up-to-the-minute market news click []
By Chuck Mikolajczak
NEW YORK, May 27 (Reuters) - U.S. stock index futures
pointed to a lower open on Wednesday as General Motors inched
closer to bankruptcy and investors await a key report on the
housing market.
Sales of existing homes are expected to have risen at an
annual rate of 4.66 million units, according to the median
forecast of 66 economists polled by Reuters, as low interest
rates, low home prices and government stimulus stir buying
interest. The report is due at 10 a.m. [].
"There is hope that the worst in the decline in the global
economy is past us and we should begin to see improvement in
global economic activity," said Peter Cardillo, chief market
economist at Avalon Partners in New York.
"The real focus obviously will be on existing home sales so
any slight improvement in the existing home sales data will
extend the rally."
S&P 500 futures <SPc1> fell 1.70 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones Industrial Average futures <DJc1> were off
11 points, while Nasdaq 100 <NDc1> futures were off 4.75
points.
General Motors Corp <GM.N> shares slumped 16.7 percent to
$1.20 in premarket trade as the largest U.S. automaker prepared
for the fallout from a failed debt exchange which pushes the
company closer to a bankruptcy filing expected by the end of
the month. For details, see []
U.S. front month crude prices <CLc1> rose to $62.75 and
broke above the 200-day moving average on Wednesday, lending
support to the view that oil has a new price floor at $60 a
barrel.
European shares rose in early trade on Wednesday, lifted by
banks and tracking gains in overnight markets as U.S. consumer
confidence data raised hoped of an economic recovery.
[]
Asian shares hit a seven-month high on Wednesday and oil
prices lingered near their highest level since November, as the
consumer confidence reading in the U.S. reinforced a view the
global recession has bottomed. []
Office products retailer Staples <SPLS.O> reported adjusted
first-quarter earnings that were a penny above Wall Street
forecasts, boosted by cost savings in its Corporate Express
unit. Shares rose 6.7 percent to $21.75 in premarket trading.
Other corporate earnings expected for Wednesday include
AutoZone Inc <AZO.N> and Polo Ralph Lauren Corp <RL.N>. Through
Tuesday, 97 percent of S&P 500 companies had reported earnings,
with 65 percent topping Wall Street estimates.
Also on the housing front, the Mortgage Bankers Association
said that the highest home loan rates in more than two months
drained demand for refinancing last week, dragging total U.S.
mortgage applications to the lowest level since early march.
[]
U.S. stocks climbed more than 2 percent on Tuesday as data
showing the biggest monthly jump in consumer confidence in six
years lifted hopes of an economic rebound while a brokerage
upgrade of Apple Inc <AAPL.O> drove sharp gains on the Nasdaq.
The Dow Jones industrial average <> rose 196.17 points,
or 2.37 percent, to 8,473.49. The Standard & Poor's 500 Index
<.SPX> gained 23.33 points, or 2.63 percent, to 910.33. The
Nasdaq Composite Index <> climbed 58.42 points, or 3.45
percent, to 1,750.43.
Tuesday's gains enabled the blue-chip Dow to reclaim nearly
90 percent of its declines from the previous four sessions.
Since reaching a low in early March, the Dow has gained
more than 29 percent and the S&P 500 has risen nearly 35
percent.
