Market Expects Rise in Sales of New Homes, Durable Goods
By wchung | 07 May, 2025

Stocks headed for a modestly higher open Thursday as investors expect two economic readings to suggest the economy is stabilizing.

U.S. stock futures edged up in premarket trading ahead of Commerce Department reports on new home sales and durable goods orders. Economists surveyed by Thomson Reuters predict that sales of new homes rose in April for the second month in a row, and that durable goods orders rebounded last month.

A retreat in Treasury yields also relieved investors. Wall Street sank Wednesday on worries about rising yields on government debt, which tend to lift interest rates on mortgages and other loans. Higher borrowing costs for individuals and businesses could hamper the economy’s recovery.

Before the market’s open, Dow Jones industrial average futures rose 30, or 0.4 percent, to 8,327. Standard & Poor’s 500 index futures rose 2.80, or 0.3 percent, to 895.30. Nasdaq 100 index futures rose 5.00, or 0.4 percent, to 1,409.00.

Government bonds saw buying pick up in early trading. The yield on the benchmark 10-year Treasury note, which moves opposite its price, pulled back to 3.70 percent from 3.75 percent late Wednesday. The 10-year yield has been hitting six-month highs.

While many investors are betting the economy will rebound later this year, companies across various industries are still hurting.

The discount retailer Costco Wholesale Corp. said its most recent quarterly profit sank 29 percent, due partly to lower sales of big-ticket discretionary items. Costco shares slipped in premarket trading.

And auto parts supplier Visteon Corp. said it has filed for Chapter 11 bankruptcy protection. The news followed Wednesday’s announcement from General Motors Corp. that a debt exchange offer failed, making bankruptcy appear almost certain for the automaker.

The dollar was mixed against other major currencies. Gold prices fell.

Light, sweet crude rose 16 cents to $63.61 a barrel on the New York Mercantile Exchange.

Overseas, Japan’s Nikkei stock average edged up 0.1 percent. In afternoon trading, Britain’s FTSE 100 fell 1.2 percent, Germany’s DAX index fell 1.2 percent, and France’s CAC-40 fell 1 percent.

5/28/2009 7:54 AM MADLEN READ AP Business Writer NEW YORK