US STOCKS-Wall St set to open lower as dollar rises

  • Reuters
  • Stock Market News
US STOCKS-Wall St set to open lower as dollar rises
Credit: © Reuters.

* Business spending rises in April

* Dollar hits one-month high

* Time Warner Cable up on Charter deal

* Futures down: Dow 41 pts, S&P 7 pts, Nasdaq 14.25 pts (Adds details, comments, updates prices)

By Tanya Agrawal

May 26 (Reuters) - Wall Street was set to open lower on Tuesday after the dollar jumped to a one-month high on data showing that U.S. business investment spending plans increased solidly for a second straight month in April.

Federal Reserve Chair Janet Yellen said on Friday that the central bank could raise interest rates this year if the economy keeps improving as expected. ID:nL1N0YD1IH

The dollar was hovering at an eight-year high against the yen JPY= and a one-month peak against a basket of other big currencies .DXY .

"It isn't normal to see such large moves in currencies," said Adam Sarhan, chief executive of Sarhan Capital in New York.

"Such moves heightens volatility in the market."

Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, rose 1.0 percent last month, a hopeful sign for manufacturing activity after a recent long spell of weakness. ID:nLNNQGEBAW

Investors will be keeping a keen eye on data through the day for signs that the economy is recovering after hitting a soft patch in the first quarter.

S&P 500 e-mini futures ESc1 were down 6.75 points and their fair value - a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract - indicated a lower open.

Dow Jones industrial average e-mini futures 1YMc1 were down 41 points and Nasdaq 100 e-mini futures NQc1 were off 14.25 points.

The Conference Board releases its index of consumer attitudes, which is expected to show consumer spending fell slightly in May from April. The data is due at 10:00 a.m. ET.

New home sales data at 10:00 a.m. ET (1400 GMT) is expected to show sales increased to an adjusted annual rate of 510,000 units in April from 481,000 units in March.

The S&P/Case Shiller composite index of home prices in 20 metropolitan areas is expected at 9:45 a.m. ET.

Charter Communications ' CHTR.O shares were up 0.6 percent to $176.36 in premarket trading after it agreed to buy Time Warner Cable TWC.N for $55.8 billion. Time Warner Cable rose 5.4 percent to $180.39, well below Charter's cash and stock offer of $195.71. ID:nL3N0YH3DV

Ctrip.com CTRP.O gained 4.3 percent to $88.27 after Priceline PCLN.O said it will invest an additional $250 million in the Chinese online travel company. Priceline was down 0.8 percent at $1,198.35. ID:nL3N0YH3CO

LivePerson LPSN.O shares were up 13.7 percent at $10.16 after an Israeli website reported software provider Nice Systems NICE.O was in talks to acquire the chat software firm. Nice was down 2.7 percent at $63.30. ID:nL5N0YH1J1

(Editing by Savio D'Souza)

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100

Related Articles