* Stocks point to flat opening
* Jobless claims, spending data confirm grim outlook
* Wal-Mart settles wage lawsuits
* Europe, Asia stocks lower
* For up to the minute market news, please click on
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By Chuck Mikolajczak
NEW YORK, Dec 24 (Reuters) - U.S. stocks headed for a flat
open on Wednesday, with futures little changed ahead of an
abbreviated holiday session, as investors digested a mixed bag
of data to gauge the extent of deterioration in the economy.
A government report showed U.S consumers cut spending for
the fifth straight month in November and their incomes shrank,
pointing to deeper recessionary pressures. Spending fell by 0.6
percent and income slipped by 0.2 percent where Wall Street
analysts surveyed by Reuters had expected a spending drop of
0.7 percent and forecast flat incomes. For details, see
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Durable goods orders fell 1 percent for November, less than
the 3 percent decline forecast by analysts surveyed by Reuters
[]. Another government report measuring initial
applications for unemployment benefits showed a 30,000 jump
last week to a 26-year high of 586,000 versus the 556,000 in
the prior week. []
"I don't think we are going to have any major reassessment
of the U.S. economic situation based on today's data," said
Daniel Katzive, Director of Global Foreign Exchange at Credit
Suisse in New York. "We had a slightly better-than-expected
durables report but higher weekly (jobless) claims. All in all,
the scenario remains pretty weak."
S&P 500 futures <SPc1> rose 2.5 points and were above 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> gained 19
points, and Nasdaq 100 <NDc1> rose 0.5 point.
In corporate news, Wal-Mart Stores Inc <WMT.N> said late
Tuesday that it had settled 63 class action lawsuits that
accused the world's largest retailer of wage violations for a
minimum of $352 million but no more than $640 million.
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Insurer American International Group <AIG.N> said it would
halt the merger between its two Japanese life insurers, AIG
Star Life Insurance and AIG Edison Life Insurance as it plans
to sell shares in the companies under its global restructuring.
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February crude futures slid 4.1 percent on Wednesday, ahead
of data expected to show an increase in oil stocks.
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European shares edged lower in early trade on Wednesday,
tracking losses on Wall Street after grim U.S. economic data in
the previous session, but volumes were expected to remain thin
in the shortened session ahead of the Christmas break. Asian
shares finished lower, relinquishing earlier gains that
analysts attributed more to picking up of sold-off shares than
solid conviction.
U.S stocks fell in thin trading on Tuesday on data showing
further deterioration in the housing market, while worry over
weak consumer spending weighed on retailers in the final
stretch of the key Christmas shopping season. The S&P and Dow
closed at their lowest levels in nearly three weeks.
Volume was expected to be light throughout the week
shortened by the Christmas holiday and markets will close early
on Wednesday.
With just five trading days remaining in the year, the
broad S&P 500 is down more than 41 percent for the year. The
annual decline is surpassed only by the 47.1 percent fall in
1931 during the Great Depression.
(Additional reporting by Vivianne Rodrigues, Editing by Chizu
Nomiyama)
