Stock Futures Headed to Flat Open

NEW YORK - Wall Street headed for a flat open Monday before a report expected to show home resales slipped in May, data that would suggest that the Federal Reserve won't have to raise interest rates.

Investors expect the National Association of Realtors to report existing home sales totaled 5.97 million in May, down from April's level 5.99 million. If May's results match projections, they would reflect a drop of 0.3 percent from April, and 10.6 percent from the same month last year. The report is released at 10 a.m. EDT.

On Tuesday, the Conference Board releases its June consumer confidence index and the Commerce Department's on new home sales for May. The latest batch of economic indicators comes before the Federal Reserve meets on Wednesday to discuss interest rates. Central bankers are widely expected to keep the benchmark rate stead at 5.25 percent, while Wall Street will be braced for any clues about future moves.

Investors sent stocks lower Friday as concerns grew that major U.S. financial institutions will be hurt by losses from mortgage-backed securities. Bear Stearns Cos. recently announced it would help to rescue two of its hedge funds that are near collapse, and caused concern others might be next.

Last week, the Dow Jones industrial average lost 2.1 percent, while the Standard & Poor's 500 fell 2 percent and Nasdaq composite index lost 1.4 percent.

Dow futures expiring in September rose 9 points, or 0.07 percent, to 13,515, before Monday's open while S&P 500 futures rose 0.30, or 0.02 percent, to 1,520.80. Nasdaq 100 index futures rose 5.00, or 0.26 percent, to 1,953.75.

There was little in the way of corporate news Monday. General Motors Corp. will likely move higher after Goldman Sachs upgraded the automaker to a "buy" from "neutral." Goldman said there was little downside for the company's stock, and that it could rise sharply depending on how discussions with labor unions end.

Rupert Murdoch was said to be near a pact to guarantee editorial independence of the Wall Street Journal if News Corp. acquires Dow Jones & Co., according to newspaper reports on Sunday.

Drugstore operator Walgreen Co. reported fiscal third-quarter profit rose nearly 20 percent, helped by sales growth at established stores and an increase in prescription sales.

Oil futures dropped 68 cents to $68.42 in premarket trading on the New York Mercantile Exchange. A U.S. Senate subcommittee wants strong energy market oversight after Amaranth Advisors lost $6 billion on bad bets in the U.S. natural-gas market.

Overseas, Japan's Nikkei stock average fell 0.56 percent, while the sometimes-volatile Shanghai Composite Exchange fell 3.7 percent. Britain's FTSE 100 fell 0.24 percent, Germany's DAX index fell 1.03 percent, and France's CAC-40 fell 0.78.

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