REFILE-US STOCKS-Futures fall on credit, financial sector woes

Tue Aug 19, 2008 1:02pm BST
 
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* Credit concerns fuel global equity sell-off

* More writedowns seen at Lehman Brothers

* Home Depot beats profit estimates

* PPI, housing starts on tap (Fixes wording in first paragraph)

By Ellis Mnyandu

NEW YORK, Aug 19 (Reuters) - U.S. stock index futures fell on Tuesday as fears that the U.S. housing slump will spawn more losses for the financial sector caused investors to pare back risk.

As a result, Wall Street was poised to extend declines seen in Asia and in Europe.

Adding to gloom about the financial sector was a forecast by JPMorgan Securities that Lehman Brothers LEH.N, a U.S. investment bank, will likely take a further $4 billion of write-downs in the third-quarter due to losses stemming from sour mortgage-related investments.

Additionally, worries about the stability of home finance providers Fannie Mae (FNM.N) and Freddie Mac (FRE.N) persisted.  Continued...

 

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