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U.S. stocks point lower for May 26 - But market surged

Marketwatch.com

Futures fell a bit more after a report showing home prices fell 2.2% in March. U.S. home prices fell a record 19.1% in the first quarter compared with a year earlier, according to the national Case-Shiller home price index released Tuesday. On a month-to-month basis, prices in 20 selected cities fell 2.2% in March and were down 18.7% in the past year.

S&P futures fell by 5.3 point to 879 and Nasdaq futures fell 8.2 points to 1,352, while futures on the Dow Jones Industrial Average fell 42 points to 8,218.

(MarketWatch) -- U.S. home prices fell a record 19.1% in the first quarter compared with a year earlier, according to the national Case-Shiller home price index released Tuesday.

On a month-to-month basis, prices in 20 selected cities fell 2.2% in March and were down 18.7% in the past year.

Consumers' confidence surges on brighter job view
A reading on U.S. consumer confidence jumped to 54.9 in May from an upwardly revised 40.8 in April as expectations for jobs improved, the Conference Board reported Tuesday.
The gain is the fourth-largest in the 32-year history of the survey, and the index is at its highest level in eight months. Economists were expecting the index to hit 43.

"Expectations are that business conditions, the labor market and incomes will improve in the coming months," said Lynn Franco, director of the Conference Board's Consumer Research Center. "While confidence is still weak by historical standards, as far as consumers are concerned, the worst is now behind us."

There was also a confidence surge in April.

For May, consumers' expectations rose to 72.3 from 51 as those expecting business conditions to improve rose to 23.1% from 15.7%, and those expecting more jobs rose to 20% from 14.2%. Consumers' appraisal of the present situation rose to 28.9 from 25.5, though many still view business conditions as "bad."

An improved economy is almost a "default" occurrence, given how tough times have been, wrote Dan Greenhaus with the equity strategy group at Miller Tabak, in a research note.

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