Russell 2000 to decline
The Russell 2000 (NYSE: IWM) futures are slightly lower and the small-cap index is likely to stumble due to bad housing news.
Stocks are poised to open in negative territory following news that Lennar Corp. (NYSE: LEN), the second largest U.S. homebuilder, reported a third-quarter net loss. The Miami-based company suffered a loss of $513.9 million, or $3.25 a share, compared with a profit of $206.7 million, or $1.30 a share, a year earlier.
CEO Stuart Miller blamed the deteriorating U.S. housing market for the negative result.
Investors will be paying attention to data on existing home sales for August, set to be released at 10 a.m. ET, with economists widely expecting the numbers to show a monthly decline.
Elsewhere, U.S. retail sales fell 1% for the week ended Sept. 22, according to the International Council of Shopping Centers Inc. and UBS Securities LLC. That’s a worrying sign that consumer spending, which makes up about 70% of gross domestic product, has slowed due to the high cost of gasoline and never-ending housing slump.
The Conference Board’s index of consumer confidence will be released at 10 a.m. ET, with observers expecting a decline.
