Looking Ahead: Week of October 21 to October 25
Market News International surveys between 15 and 20 Wall Street economists each week for their forecasts of economic indicators.

Monday
The Conference Board's index of leading indicators is expected to decrease 0.2 percent in September after edging down by similar amounts in July and August. While this index does not necessarily predict a double dip recession, it does point to an anemic pace of manufacturing activity. (Forecast range: -0.3 to +0.1 percent)

(Release date for this indicator not yet confirmed by the government agency.) Economists are predicting that the U.S. Treasury will report a budget surplus of $42 billion in September. Over the past six years, the Treasury has averaged a surplus of $47 billion for the month of September. If the forecast were realized, the fiscal year's budget deficit would amount to roughly $160 billion, the largest federal budget deficit since fiscal year 1995. (Forecast range: $38 to 45 billion)

Wednesday
Market players will be anxiously anticipating the Fed's Beige Book that will cover anecdotal evidence on the 12 Federal Reserve districts through roughly October 11. Market players will be looking for signs of labor market improvement as well as increased consumer spending.

Thursday
Economists are predicting that new jobless claims will decrease 6,000 in the week ended October 19 from last week's level of 411,000. Generally, economists associate levels below 400,000 as consistent with moderate gains in nonfarm payrolls. (Forecast range: -21,000 to +15,000)

Friday
Durable goods new orders are expected to decline 2 percent in September, after registering a 0.4 percent drop in August. In September, a drop in aircraft orders is principally behind the fall. Keep in mind that new orders surged 8.5 percent two months ago and the trend should remain on the upswing. (Forecast range: -3.5 to +0.3 percent)

Economists are predicting that new home sales will post a 0.6 percent drop in September to 990,000, after rising 1.9 percent in August. The surge in single-family starts for the month suggests that home sales should remain robust for the next few months. (Forecast range: 960,000 to 1,030,000-unit rate)

The market consensus for existing home sales show a 2.3 percent hike to a 5.40 million-unit rate. Existing home sales had posted a drop in August, in contrast to new home sales, which had risen for the month. Historically the two series have moved in tandem, but over the past two years, we are seeing that existing and new home sales tend to move in opposite directions in many months. In any case, low interest rates should bode well for new and existing home sales. (Forecast range: 5.25 to 5.60 million-unit rate)

Economists are looking for a slight gain from the mid-month reading in the University of Michigan's consumer sentiment index. In early October, the index had dropped to 80.4 from a September level of 86.1. At the end of the month, economists are predicting a level of 81. (Forecast range: 80.5 to 82.0)