On tap for Tuesday: May Philly......>

US DATA PREVIEW: On tap for Tuesday: May Philly Fed Nonmfg Index; Redbook retail

sales m/m; April existing home sales.

- After last month's decline, Morgan Stanley economists expect home sales to

rebound "+2.6%, up to a 5.344 million unit pace," approximately "8% above the

temporary trough in January." MS sees "softer mortgage rates as a supportive

factor" while "inventory levels also rose in the March release, with total

housing inventory up 2.4% on a year-over-year basis."

- Barclays forecast existing home sales "to increase by 2.5% m/m to 5.34mn in

April, making up some of the softness of the previous month. In recent months

existing home sales have been at levels we consider healthy, albeit modest

compared with the early stages of the housing recovery when pent-up demand for

homes and high inventory levels supported sales activity."