Futures point to lower Wall Street start

LONDON (Reuters) –

Stock index futures pointed to a lower

opening on Wall Street on Tuesday as investors, rattled by

renewed worries over the health of the financial sector, brace

for U.S. housing data. By 1009 GMT (6:09 a.m. EDT), S&P 500

futures, Dow Jones futures and Nasdaq 100 futures were all down

0.2 percent.

* U.S. economic indicators due for release on Tuesday

include Producer Price Index for July, as well as Housing

Starts and Building permits for July, due at 1230 GMT.

* Producer prices probably rose more modestly in July than

in June, according to a Reuters poll, helped by moderating oil

prices that have helped ease fears about inflation to some

degree.

* U.S. housing starts are estimated to have slipped in July

as builders try to cut inventory to counter weak demand.

Economists polled by Reuters estimated that on a seasonally

adjusted, annualized basis, housing starts totaled 960,000 in

July, down from 1.066 million in June. Building permits, a

leading indicator for housing starts, are also estimated to

have fallen — to 970,000 in July from 1.138 million in June.

* Companies reporting earnings on Tuesday include

Hewlett-Packard Co (HPQ.N), Target Corp (TGT.N), and Home Depot

(HD.N). The home improvement industry leader, which is expected

to post lower earnings, has already said full-year profit could

fall as much as 24 percent this year as consumers pull back

from big-ticket remodels.

* Banks will again be in the spotlight. Sources told

Reuters U.S. investment bank Lehman Brothers Holdings Inc

(LEH.N) is considering options, such as selling all or part of

its asset management unit, with an aim of reaching a deal by

the time it releases third quarter earnings.

* The worst of the global financial crisis is yet to come

and a large U.S. bank will fail in the next few months as the

world’s biggest economy hits further troubles, former IMF chief

economist Kenneth Rogoff said on Tuesday.

* On the commodities front, Tropical Storm Fay moved ashore

over southwest Florida on Tuesday without strengthening into a

hurricane, bringing heavy rains to the south of the peninsula,

the U.S. National Hurricane Center said.

* Oil prices fell to around $112 on Tuesday as the storm

avoided oil and gas installations.

* On the M&A side, General Dynamics (GD.N) said it agreed

to acquire Zurich-based Jet Aviation, a privately held provider

of business aviation services, for about $2.25 billion in cash.

(Reporting by Blaise Robinson)