Real estate sales data expected

The stock market has been rising undaunted, and Wall Street is curious whether this week’s readings on durable goods and home sales will cause anyone to flinch.

Recently stocks -- particularly those of large companies -- have advanced even in the face of reports showing economic fragility.

Robust data have been read as a good sign the consumer will keep spending, while weak data have been interpreted as a reason for the Federal Reserve to lower interest rates -- a move that could lift the market further by freeing up more cash.

The Dow Jones industrial average has steadily advanced about 1,200 points since the beginning of April. Last week, it rose 1.7%; the Standard & Poor’s 500 index rose 1.1%, and the Nasdaq composite index slipped 0.2%.

The Commerce Department reports on durable goods orders Thursday. According to the median estimate of economists surveyed Friday by Thomson Financial, those orders are expected to have increased in April by 0.4%, a smaller gain than the 3.4% rise in March.

The department also reports on new-home sales Thursday, and the National Assn. of Realtors releases data on existing-home sales Friday.

The market estimates that new-home sales rose in April by 860,000, a slightly larger increase than in March, and that existing-home sales jumped by 6.115 million, a gain similar to that in March.

In many respects, economic data have taken a back seat to takeovers by big public companies such as Microsoft Corp. and private equity firms such as Blackstone Group.

The huge deals show that the marketplace is awash in cash, and investors probably will be awaiting another flood of deals this week.

Still, it’s important to remember that negative data on durable goods and the housing market were two major factors behind the sell-off of late February and early March, so investors will be closely monitoring this week’s releases.

The schedule for releasing economic data is fairly slim ahead of the Memorial Day holiday next Monday. The bond market will close early Friday.

This week brings quarterly profit results from several retailers, which could help investors gauge the financial health of U.S. consumers.

Home improvement goods chain Lowe’s Cos. releases its first-quarter earnings today. Analysts surveyed by Thomson Financial are anticipating a profit of 49 cents a share. Lowe’s closed at $32.67 on Friday, at the upper end of its 52-week range of $26.15 to $35.74.

On Tuesday, BJ’s Wholesale Club releases its first-quarter earnings, and analysts forecast a profit of 20 cents a share. The nation’s third-largest retail warehouse club closed at $35.78 on Friday, at the upper end of its 52-week range of $25.18 to $37.35.

Target Corp. releases its first-quarter earnings Wednesday, and analysts predict that the discount retailer will post a profit of 71 cents a share. Target closed at $58.15 on Friday, in the upper half of its 52-week range of $44.70 to $64.74.

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At a Glance

Today

Treasury bill auction.

Earnings reports due from Campbell Soup, Lowe’s and Saks.

Tuesday

Earnings reports due from BJ’s Wholesale Club, Staples and Zale.

Wednesday

Commerce Department reports on housing starts for April.

Federal Reserve reports on industrial production for April.

Quarterly earnings reports due from Limited Brands and Target.

Thursday

Commerce Department reports on new-home sales and on durable goods orders, both for April.

Labor Department reports on weekly jobless claims.

Freddie Mac reports on mortgage rates.

Quarterly earnings reports due from Barnes & Noble, Gap and Toll Bros.

Friday

National Assn. of Realtors reports on existing-home sales for April.

From Times Staff and Wire Reports