Futures little changed ahead of opening

Stock futures are giving up modest gains after a new report shows the economy grew at a slower pace in the third quarter than first anticipated.
NOV 24, 2009
Stock futures are giving up modest gains after a new report shows the economy grew at a slower pace in the third quarter than first anticipated. The Commerce Department says the economy grew at an annual pace of 2.8 percent in the third quarter, below the 3.5 percent initial estimate given last month. Economists were predicting the rate would indicate 2.9 percent growth. Investors are also awaiting readings on consumer confidence and home prices later Tuesday. Dow Jones industrial average futures are down 5, or 0.1 percent, at 10,417. Standard & Poor's 500 index futures are up 0.50, or 0.1 percent, at 1,104.30, while Nasdaq 100 index futures are down 1.50, or 0.1 percent, at 1,789.75. Overseas markets were mostly lower. THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below. NEW YORK (AP) — Stock futures are little changed ahead of Tuesday's opening as investors await a report that is expected to show the economic recovery in the third quarter was not as fast as initially estimated. Readings on consumer confidence and home prices are also set for release. Overseas markets were mostly lower as China's central bank warned commercial banks in the country to control their lending. Investors are entering trading cautiously as the updated report is expected to show the nation's economy did not grow as fast in the third quarter as previously estimated — fresh evidence that while a recovery is under way, it is likely to be slow and bumpy. Economists expect the figure to show the nation's economy grew by an annual rate of 2.9 percent during the quarter ended Sept. 30, according to Thomson Reuters, compared with a previous government estimate of 3.5 percent. Slow consumer spending, weakness in commercial construction and the nation's trade gap all likely contributed to the lower growth expectation. The report is due out at 8:30 a.m. EST. Consumer spending accounts for more than two-thirds of all economic activity and a rebound in shopping is considered vital for a strong recovery. A report from the Conference Board is expected to show consumers are still nervous about the economy. The group's Consumer Confidence Index for November was likely unchanged at 47.7, compared with October. A reading above 90 would signal the economy is on solid footing. The report is due out at 10 a.m. EST. Ahead of the opening bell, Dow Jones industrial average futures rose 12, or 0.1 percent, to 10,434. Standard & Poor's 500 index futures rose 2.60, or 0.2 percent, to 1,106.40, while Nasdaq 100 index futures rose 0.50, or less than 0.1 percent, to 1,791.75. Investors will also get a reading on home prices Tuesday. The S&P/Case-Shiller home price index is expected to show prices declined 9 percent in 20 of the nation's largest metropolitan markets in September. Prices declined 11.3 percent a month earlier. A slowing pace of price declines would provide further evidence that the housing market is beginning to recovery from a collapse that helped push the economy into recession. An upbeat report on existing home sales in October helped stocks snap a three-day losing streak on Monday. A weakening dollar also helped major indexes rally. Major indexes rose more than 1 percent. The National Association of Realtors said October home sales rose more than 10 percent, easily topping the 1.4 percent increase predicted by economists. A weakening dollar has bolstered commodities and stocks of energy and materials companies, helping drive shares higher in recent weeks. The dollar was mostly higher Tuesday against other major currencies, while gold prices also rose. Meanwhile, bond prices rose modestly. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.35 percent from 3.36 percent late Monday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.05 percent from 0.03 percent. Overseas, China's Shanghai index fell 3.5 percent, its biggest decline in three months, while Japan's Nikkei stock average fell 1 percent. Britain's FTSE 100 rose 0.3 percent, Germany's DAX index gained 0.1 percent, and France's CAC-40 fell less than 0.1 percent.

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