* Housing data, ISM manufacturing on tap
* Futures off: Dow 52 pts, S&P 5.0 pts, Nasdaq 6.25 pts
* For up-to-the-minute market news, click STXNEWS/US
(Updates to early morning)
By Edward Krudy
NEW YORK, Sept 1 (Reuters) - U.S. stock index futures
pointed to a lower open on Tuesday as ongoing concerns over the
strength of an economic recovery looked set to eclipse a report
expected to show U.S. manufacturing expanded in August.
Some investors say the the global rally in stocks, which
has pushed the S&P 500 index up about 50 percent since early
March, has run too far ahead of the recovery and may be due for
a pullback. Recent falls in China's stock market have added to
worries.
The Institute for Supply Management's survey follows
similar reports in China and Europe that showed manufacturing
around the world continues to stabilize. Stocks rose in Asia
overnight but headed lower by as much as 1 percent in Europe.
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As investors look for signs the nascent housing recovery is
gathering steam, data is also expected to show U.S. pending
home sales probably rose 2.0 percent in July, a slowing from
June's 3.6 percent.
"There are concerns mounting that the market has got ahead
of itself, and as investors look to China it appears that they
are running into a bout of concern regarding their own
economy," said Andre Bakhos, president of Princeton Financial
Group in Princeton, New Jersey.
Looking ahead to the data releases, he said: "The market
has to be certain there is no economic weakness, especially
with the concerns in China - that would totally pull the rug
from under the market."
S&P 500 futures <SPc1> fell 5.0 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc1> lost 52
points and Nasdaq 100 futures <NDc1> dropped 6.25 points.
The ISM's manufacturing index, due at 10 a.m. (1400 GMT)
along with the housing data, will likely show a reading of
50.5, up from 48.9 in July, according to forecasts of the 78
economists polled by Reuters. That would be the first positive
reading since just after the recession began. A reading below
50 points to contraction while a reading above 50 points to
expansion.
Following a familiar pattern, financials and
commodity-related stocks sold off before the market opened.
Freeport-McMoRan Copper & Gold Inc <FCX.N> lost 0.4 percent
while Citigroup Inc <C.N> fell 2.8 percent. These so-called
earlier cyclical stocks are sensitive to fears of economic
weakness.
Bank of America Corp <BAC.N> is offering to repay part of
the U.S. government bailout money, starting with the $20
billion it received in January to help with the acquisition of
Merrill Lynch & Co, the Wall Street Journal reported on its
website late on Monday. But the shares fell 0.4 percent before
the bell. []
Shares of on-line auction and services company eBay Inc
<EBAY.O> rose 1.8 percent to $22.54 after the New York Times
said eBay will sell its online telephony unit Skype to a group
of private investors.
(Reporting by Edward Krudy; Editing by Padraic Cassidy)
