MORNING WATCH, Aug. 23

Stocks might open mixed Friday morning ahead of a report on new home sales. Thirty minutes before the opening bell on Wall Street, stock index futures indicated that both the Dow Jones Industrial Average () and the NASDAQ () would open the trading session little changed.    

Stock index futures moved out of the red Friday morning after a report on durable goods came in much better than expected. According to the Commerce Department, orders for goods meant to last several years rose 5.9 percent last month. Economists were looking for a 1 percent rise. Excluding transportation, orders jumped 3.7 percent, compared to expectations for a .6 percent gain.    

A report on new home sales will come into focus a bit later this morning. The report, which is due out at 10:00 a.m. Eastern time, is expected to show sales falling to an annual rate of 825,000 homes in July, down from 834,000 the month before.  

Among the stocks to watch, Ann Taylor () is out with quarterly earnings of 50 cents a share, which beat by a penny. However, revenues fell short of expectations. Marvell Technology () is trading lower after reporting 6 cents per share for the most recent quarter. Home Depot () is expected to see early action after Dow Jones Newswires reported that the home improvement retailer might receive $1.2 billion less than the $10.3 billion it had expected for a wholesale distribution arm.

Meanwhile, bonds are seeing modest selling following the strong economic data.  The benchmark ten-year Treasury bond (September) is down another 2/32^nd and its yield is now 4.64 percent. Crude oil sits unchanged at $69.80 a barrel.

Yesterday, stocks held steady in morning trade until Countrywide Financial CEO Angelo Mozilo said he believes the housing slump will lead the economy into recession. However, today, the strong durable goods report might help to offset those fears. The housing data will also have an impact on early trading.  Outside of that, there is not much news to guide the market Friday morning and early indications point to a mixed open.     

Frederic Ruffy
Senior Writer & Index Strategist
Optionetics.com ~ Your Options Education Site
Visit Fred Ruffy’s Forum