March 20, 2012- Markets Look to Housing Data

The major U.S. index futures are pointing a lower opening on Tuesday, with sentiment still weak despite an announcement from Apple (AAPL) concerning the initiation of a quarterly dividend and a $10 billion worth of stock buyback program. That said, commodities are holding up, reflecting the prevalence of moderate risk appetite. The trading direction of the day largely hinges on the results of a homebuilder confidence survey to be released shortly after the markets open. If the index holds around current levels or show a modest increase, the markets could weather the negative sentiment despite their overbought levels. U.S. stocks advanced solidly in the week ended March 16th, as economic data continued to be encouraging. In the process, stocks braved the nervousness over overbought levels and closed higher for the week. The major U.S. averages moved about in a listless manner last Monday amid growth and Eurozone debt worries before closing on a mixed note. Confidence returned on Tuesday, as traders reacted with verve to a positive U.S. retail sales report and the Federal Reserve’s upgraded assessment about global growth. The major averages closed up over 1 percent each, settling at fresh multi-year highs. Amid a lack of any major catalysts and in the face of recent strong advances, stocks went about in a lackluster fashion on Wednesday before closing mixed. The averages stood their ground on Thursday on the solid support provided by the U.S. jobless claims report and manufacturing readings. The major averages nervously hugged the unchanged line for the better part of Friday’s session before closing mixed.