Spending, inflation data to hit Wall Street this week

Wall Street will face a slew of data this week: on Americans' spending, inflation at the producer level, home sales and manufacturing.

Last week, the Dow inched up 0.27 percent, the Standard & Poor's 500 index rose a modest 0.23 percent and the Nasdaq composite index dipped 0.79 percent. The three indexes are all down sharply for the year, and there's no sign yet of a true rebound in the stock market.

The National Association of Realtors reports Monday on sales of existing homes last month. According to the median estimate of economists surveyed Friday by Thomson Financial/IFR, existing home sales expected to have slipped by about 1 percent in January from December. Then on Wednesday, the Commerce Department reports on sales of new homes, which are anticipated to have slipped modestly in January.

On Tuesday, the Labor Department issues its reading on prices at the wholesale level. The Producer Price Index is expected to have risen 0.3 percent in January after falling 0.1 percent in December, and the core index, which excludes food and energy, is expected to have risen 0.2 percent, the same as the prior month.

Wednesday, the Commerce Department reports on orders of durable goods, which are expected to drop about 3.5 percent after rising 5.2 percent in December. And the Chicago Purchasing Manager's Index _ considered a precursor to the Institute for Supply Management's U.S. manufacturing report next week _ is expected to show that activity was flat, perhaps even contracting, in February.

What Fed Chairman Ben Bernanke implies the central bank's monetary policy during his testimony to Congress on Wednesday and Thursday could provide some short-term direction.

The government releases its readings on consumer spending and income on Friday, with both expected to rise by 0.2 percent. Anything below those levels could raise red flags for investors.

(Agencies)