US STOCKS-Wall St set for weak open on earnings, strong dlr

* Stable dollar, weak earnings weigh on futures

* Home prices fall in August

* Futures off: S&P 6.1 pts, Dow 48 pts, Nasdaq 8.5 pts

* For up-to-the-minute market news see [STXNEWS/US]
(Recasts, adds details)

By Leah Schnurr

NEW YORK, Oct 26 (BestGrowthStock) – Wall Street was set for a
lower open on Tuesday, the day after hitting a five-month high,
pressured by a stronger dollar and lackluster corporate
results.

Texas Instruments Inc (TXN.N: ) fell in premarket trade after
it warned that fourth-quarter revenue will be hurt by slowing
demand, while United States Steel Corp (X.N: ) tumbled after
posting a loss and warning of a fourth-quarter deficit due to
the uncertain economy in North America and Europe. For details,
see [ID:nN25274454] and [ID:nN26115819]

Texas Instruments slipped 1.5 percent to $28.55, while U.S.
Steel slumped 5.8 percent to $39.80.

Equities continued to take their cue from the U.S. dollar,
which steadied with investors wary of pushing it lower. The
dollar index (Read more about the global trade. ) (.DXY: ) was up 0.6 percent.

Stocks and the greenback have formed an inverse
relationship, exacerbated by expectations the U.S. Federal
Reserve will embark on another round of economic stimulus. For
a Q+A, see [ID:nN2199257]

Rick Meckler, president of investment firm LibertyView
Capital Management in New York, noted the dollar-equities
relationship could start to unravel if the greenback falls too
far.

“You’re definitely starting to see a situation where people
are hoping the Fed can find a way to keep rates about where
they are today and keep it from being a deflationary economy
without weakening the dollar much further,” said Meckler.

“How they find a way to walk that tightrope is a real
problem for the market,” he added. “You can’t continue to bring
the currency down and ultimately have successful financial
markets.”

In a speech Monday at Cornell University, William Dudley,
president of the New York Fed, said the Fed cannot “wave a
magic wand” to fix the economy overnight, but it can provide
“essential” support, [ID:nN25295144]

S&P 500 futures (SPc1: ) dipped 6.1 points and were below
fair value, a formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures (DJc1: ) fell 48
points, and Nasdaq 100 futures (NDc1: ) gave up 8.5 points.

Futures added to losses after a report showed single-family
home prices fell in August, hovering near recent lows after the
expiration of popular homebuyer tax credits. [ID:nNLLPLE6LC]

Later in the morning, data is expected on October consumer
confidence and forecast rising to 49.2 from 48.5 the month
before. [ECI/US]

Lower-than-expected quarterly profit sent Kimberly-Clark
Corp (KMB.N: ) down 3.4 percent to $64.19. Regions Financial Corp
(RF.N: ) slumped 6.8 percent to $6.55 after the bank reported a
bigger-than-expected third-quarter loss. [ID:nN26284542] and
[ID:nN26113606]

Stocks rose to a five-and-a-half month high on Monday as a
falling dollar, partly driven by expectations of further Fed
stimulus, prompted investors to buy riskier assets.
(Editing by Jeffrey Benkoe)

US STOCKS-Wall St set for weak open on earnings, strong dlr