GM seen posting profit, analysts remain cautious

(Reuters) - Still, analysts remained cautious about the weakness in the
U.S. housing market, which could weigh on GM's results through
the remainder of the year, and about sustainable profitability
in its North American operations.




Analysts, on average, expect GM to post on Tuesday a
second-quarter net profit of $1.10 a share, compared with a net
loss of $5.98 a share a year earlier. The per-share profit
estimates range from $1.00 to $1.28.


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New home sales fall, durable goods orders weak

(Reuters) - Major U.S. stock indexes ended down more than two percent on signs of further deterioration in the U.S. housing market, a jump in oil prices and a worsening climate for financing corporate takeovers. That caused the New York Stock Exchange to impose curbs on computer program trading.




The Dow Jones Industrial Average closed down 311 points and the Standard & Poor's 500 Index closed down 35 points.


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Dollar down broadly on US financial sector woes

(Reuters) - The dollar fell broadly and the yen and Swiss franc rallied on Monday as concerns about U.S. housing market woes spilling into the wider economy dented risk appetite and led investors to buy low yielding currencies.

Concerns about the U.S. subprime mortgage market -- amplified in recent week by trouble at two Bear Stearns-managed hedge funds -- have dented investors' appetite for risk.


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U.S. construction spending up 0.9 percent in May

(Reuters) - Spending on private homebuilding, however, fell 0.8 percent
to a seasonally adjusted $549 billion annual rate, the 15th
consecutive monthly decrease as U.S. housing market troubles
continue.




On the non-residential side, private construction spending
was up 2.7 percent in May. Public spending was up 2.2 percent,
the department said.


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Brazil Real Declines on Worry About CPI Target, U.S. Hedge Funds, Housing

(Bloomberg) -- Brazil's currency fell as a slowing
U.S. housing market and concerns with losses in subprime
mortgages increased aversion to riskier, emerging market assets.

``The scenario in the U.S. is worrisome, with news about
the Bear Stearns funds starting to damp market mood last week,
and now worse-than-expected housing data,'' said Luiz Carlos
Barroso Simao, partner and chief strategist at Questus Asset
Management in Rio de Janeiro.


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Bear Stearns not planning to bail out second fund

(Reuters) - NEW YORK, June 26 - Bear Stearns Cos. Inc. does not plan to bail out a second struggling fund that invests in repackaged debt securities, a source familiar with the matter said on Tuesday, while a company the investment bank set up to invest in the securities withdrew plans for an initial public offering.



The hedge fund is one of two managed by Bear Stearns that are suffering from investments in repackaged subprime mortgages, which have suffered from rising defaults as a downturn in the U.S. housing market has proven deeper and lasted longer than expected.


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Lennar posts quarterly loss on lower revenue

(Reuters) - Analysts on average had forecast earnings of 1 cent a share, according to Reuters Estimates.




The U.S. housing market has been suffering from a steep downturn for more than a year, as high prices and climbing interest rates have repelled prospective buyers. Speculators, who bought homes to quickly sell, also have retreated from the market, unloading their investments.


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Treasuries Gain for Fourth Day, Longest Rally Since February, on Housing

(Bloomberg) -- Treasuries rose for a fourth day,
the longest rally since February, before a report on mortgage
applications that may add to evidence of a housing slowdown.

Yields on benchmark 10-year notes have fallen 11 basis
points this week as reports showed house construction declined
for the first time in four months and confidence among
homebuilders dropped to the lowest since 1991. Bonds have risen
on speculation a slowdown in the U.S. housing market will keep
the Federal Reserve from increasing interest rates.


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GLOBAL MARKETS-Stocks stall amid China volatility, yen soft

(Reuters) - LONDON, June 5 - Global stocks stalled after
hitting a record peak for a fourth day running on Tuesday as
wild trade in China shares sounded a note of caution, but still
buoyant risk appetite pushed the yen to fresh lows.




The dollar extended losses while U.S. Treasuries edged off
their lows after comments on the U.S. housing market and economy
from Federal Reserve chairman Ben Bernanke.


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