NEW YORK (Reuters) – Wall Street hopes for more Fed action and clear signs European leaders will follow through on their new urgency to tackle the euro zone debt crisis if U.S. stocks are to build on their best week since early July.

Investors expect the Federal Reserve to take steps to pull down long-term interest rates when policymakers meet on Tuesday and Wednesday to help revive the persistently weak U.S. economy.

Fed Chairman Ben Bernanke, speaking in Jackson Hole, Wyoming, on August 26, said the Fed's Open Market Committee would meet for two days in September instead of the scheduled one day to discuss ways to boost the recovery.

But even with expectations of more intervention to boost the economy, investors will keep a close eye on developments in Europe.

The Standard & Poor's 500 index (.SPX) posted a 5.4 percent gain last week, its best since early July. The Nasdaq composite index (.IXIC) gained 6.3 percent for the week while the Dow Jones industrial average (.DJI) rose 4.7 percent

Any lack of progress or backsliding on efforts to get the currency bloc's fiscal house in order will renew worries the crisis could seriously damage the world financial system and major economies.

"The Fed is really going to dominate next week," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

"But the market has been trying to work its way higher here, trying to feel if maybe the European thing won't cascade out of control."

Treasury Secretary Timothy Geithner, at a meeting of euro zone finance ministers in Poland on Friday, urged them to leverage their bailout fund to better tackle the debt crisis, but there was no agreement on what steps to take.

While the Standard & Poor's 500 (.SPX) has been moving upward over the past week, the benchmark index has been stuck in roughly a 100-point range over the last six weeks.

It is likely to run into resistance near the 50-day moving average of about 1,228, with analysts also pointing to the 1,250 level as the next significant hurdle.

"This is really a consolidation phase, which is normal after the kind of early August swoon that we had. So far this trading range is developing in a very positive and healthy way," said Gail Dudack, chief investment strategist at Dudack Research Group in New York.

"Longer term, the market is looking better but we are getting very close to that resistance at 1,250, which would be pretty surprising if we can break above that at this early juncture. It could take a little more time, people shouldn't be disappointed."

This week's economic calendar includes reports on the beleaguered housing market along with weekly initial jobless benefits claims.

Housing "is dead and it will stay dead, and I don't expect anything out of unemployment either," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey. "The biggest event is Bernanke."

Companies due to post earnings this week include homebuilder Lennar Corp (LEN.N), Nike Inc (NKE.N), General Mills Inc (GIS.N) as well as technology companies Adobe Systems (ADBE.O), Red Hat Inc (RHT.N) and Oracle Corp (ORCL.O).

FedEx Corp (FDX.N), the No. 2 U.S. package delivery company, which is seen as a proxy for how the economy is performing, is also scheduled to report quarterly results.

Though earnings have managed to hold up in the face of a lackluster recovery, analysts worry this might not last if the financial system suffered the shock of a Greek debt default.

But while many feel Bernanke has telegraphed the plans for the Fed meeting, the euro zone debt crisis remains an uncertainty that could knock the market lower.

"It's absolutely the wild card because Europe's problems may be similar to what we saw in 2008, but they are much more difficult to deal with because country debt is far more difficult to deal with than mortgage debt," Dudack said.

She added that having so many countries that are part of a committee trying to solve the problem only added to the complications.

(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)

NEW YORK (Reuters) – Wall Street hopes for more Fed action and clear signs European leaders will follow through on their new urgency to tackle the euro zone debt crisis if U.S. stocks are to build on their best week since early July.

Investors expect the Federal Reserve to take steps to pull down long-term interest rates when policymakers meet on Tuesday and Wednesday to help revive the persistently weak U.S. economy.

Fed Chairman Ben Bernanke, speaking in Jackson Hole, Wyoming, on August 26, said the Fed's Open Market Committee would meet for two days in September instead of the scheduled one day to discuss ways to boost the recovery.

But even with expectations of more intervention to boost the economy, investors will keep a close eye on developments in Europe.

Any lack of progress or backsliding on efforts to get the currency bloc's fiscal house in order will renew worries the crisis could seriously damage the world financial system and major economies.

"The Fed is really going to dominate next week," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

"But the market has been trying to work its way higher here, trying to feel if maybe the European thing won't cascade out of control."

Treasury Secretary Timothy Geithner, at a meeting of euro zone finance ministers in Poland on Friday, urged them to leverage their bailout fund to better tackle the debt crisis, but there was no agreement on what steps to take.

While the Standard & Poor's 500 (.SPX) has been moving upward over the past week, the benchmark index has been stuck in roughly a 100-point range over the last six weeks.

It is likely to run into resistance near the 50-day moving average of about 1,228, with analysts also pointing to the 1,250 level as the next significant hurdle.

"This is really a consolidation phase, which is normal after the kind of early August swoon that we had. So far this trading range is developing in a very positive and healthy way," said Gail Dudack, chief investment strategist at Dudack Research Group in New York.

"Longer term, the market is looking better but we are getting very close to that resistance at 1,250 which would be pretty surprising if we can break above that at this early juncture. It could take a little more time, people shouldn't be disappointed."

The week's economic calendar includes reports on the beleaguered housing market along with weekly initial jobless benefits claims.

Housing "is dead and it will stay dead, and I don't expect anything out of unemployment either," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.

"The biggest event is Bernanke."

Companies due to post earnings next week include homebuilder Lennar Corp (LEN.N), Nike Inc (NKE.N), General Mills Inc (GIS.N) as well as technology companies Adobe Systems (ADBE.O), Red Hat Inc (RHT.N) and Oracle Corp (ORCL.O).

FedEx Corp (FDX.N), the No. 2 U.S. package delivery company, which is seen as a proxy for how the economy is performing, is also scheduled to report quarterly results.

Though earnings have managed to hold up in the face of a lackluster recovery, analysts worry this might not last if the financial system suffered the shock of a Greek debt default.

But while many feel Bernanke has telegraphed the plans for the Fed meeting, the euro zone debt crisis remains an uncertainty that could knock the market lower.

"It's absolutely the wild card because Europe's problems may be similar to what we saw in 2008, but they are much more difficult to deal with because country debt is far more difficult to deal with than mortgage debt," Dudack said.

She added that having so many countries that are part of a committee trying to solve the problem only added to the complications.

(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)

U.S. stock futures are following world markets lower after closely-watched speeches by Federal Reserve Chairman Ben Bernanke and President Barack Obama.

Bernanke said that weak consumer spending is hurting the economy. He offered no new details about plans to spur growth. Stocks slid after Bernanke spoke Thursday afternoon.

Thursday evening, President Obama unveiled a $447 billion package of tax cuts and new spending to stimulate job growth. Its chances of passing Congress are uncertain. Republicans control the House and many of them oppose any new spending.

Two hours before the market opens, S&P 500 futures are down 7 points, or 0.6 percent, at 1,173. Dow Jones industrial average futures are down 50, or 0.5 percent, at 11,173. Nasdaq 100 futures are down 13, or 0.6 percent, at 2,199.

BANGKOK – Asian stocks swung between gains and losses Friday as traders weighed news China’s inflation moderated slightly against disappointment that Fed chief Ben Bernanke offered no immediate support for the ailing U.S. economy.

Oil prices rose near $90 a barrel as investors bet a new U.S. jobs package unveiled by President Barack Obama will help boost demand for crude. The dollar weakened against the yen and the euro.

Japan’s Nikkei 225 index fell 0.4 percent to 8,759.06 after spending part of the day in positive territory. The government reported that the country’s economy contracted in the April-June quarter at an annual rate of 2.1 percent, worse than the initial estimate of 1.3 percent.

But the result was not unexpected, given the scope of the damage done by the March earthquake and tsunami that destroyed many of northeastern Japan’s factories and businesses. Economists expect the world’s No. 3 economy to pick up in the months ahead.

South Korea’s Kospi fell 1.2 percent at 1,822.79. Australia’s S&P/ASX 200 rose 0.7 percent to 4,216.50 and Hong Kong’s Hang Seng was 0.2 percent higher at 19,957.18.

Mainland China’s Shanghai Composite Index rose 0.1 percent to 2,502.26 after the government said increases in consumer prices had moderated in August. Prices rose 6.2 percent from a year earlier, easing from a 37-month high of 6.5 percent in July.

That raised the possibility of China easing its tight monetary policies — or at least putting further interest rate hikes on hold — and helping it to ward off the impact of a slowing global economy.

“It was a mild relief to markets,” said Ric Spooner, chief market analyst at CMC Markets in Sydney. “Particularly if pork and food prices continue to come off, that puts the Chinese government and monetary authorities in a position to do what is being done around the rest of the world — to stop tightening and take it as a ‘steady as it goes’ approach.”

Another good sign, according to Spooner: American consumer borrowing rose nearly $12 billion in July as demand for school and auto loans fueled the increase. Borrowing is usually a sign of confidence in the economy because consumers tend to take on more debt when they feel wealthier.

On Wall Street, stocks closed sharply lower Thursday after Bernanke in a speech closely watched by investors said the Fed will consider a range of steps at its Sept. 20-21 meeting.

The Dow Jones industrial average lost 1 percent to 11,295.81. The Standard & Poor’s 500 index fell 1.1 percent to 1,185.90. The Nasdaq composite shed 0.8 percent to 2,529.14. Each index had posted gains earlier in the day.

Also Thursday, President Barack Obama, looking to jolt the U.S. economy back to health, proposed a $447 billion plan for creating jobs in a nationally televised speech before Congress late Thursday. Obama will likely have a hard time getting much of his plan through Congress since Republicans control the House of Representatives.

Concerns about the U.S. economy have pushed stocks lower each month since April. Many traders now say the stock market is factoring in the assumption that the economy is in a recession, meaning limited job growth and weaker corporate profits.

In energy trading, benchmark oil for October delivery was up 14 cents to $89.19 in electronic trading on the New York Mercantile Exchange. Crude fell 29 cents to finish at $89.05 on Thursday.

In London, Brent crude for October delivery was down 20 cents at $114.35 on the ICE Futures exchange.

In currencies, the dollar slipped to 77.45 yen from 77.54 yen late Thursday in New York. The euro was higher at $1.3906 from $1.3876.

Credit Agricole CIB said that the debt crisis swirling around smaller European countries was finally being felt by the euro, which had been showing persistent strength against the greenback.

The euro “broke below the psychologically important 1.40 level as peripheral tensions are finally beginning to take their toll on the currency,” the bank said in a report.

BERNANKE: Stocks gave up their morning gains after Federal Reserve Chairman Ben Bernanke offered no specific stimulus plans in a closely-watched speech on Thursday. Investors have been hoping the Fed will take additional steps to support the economy.

MIXED SIGNS: First-time applications for unemployment benefits rose more than economists were expecting. But in a hopeful sign for the economy, U.S. exports reached an all-time high.

THE INDEXES: The Dow fell 119 points, or 1 percent, to 11,296. The S&P 500 lost 13 points, 1.1 percent, to 1,186. The Nasdaq dropped 20 points, 0.8 percent, to 2,529.

NEW YORK (Reuters) – Stocks closed sharply lower on Thursday after Federal Reserve Chairman Ben Bernanke gave no indications of new stimulus measures to boost the flagging economy in a keenly awaited speech.

Investors have been looking to Bernanke, who gave his outlook on the U.S. economy on Thursday, and other policymakers to address a host of concerns from slowing global growth to Europe's debt crisis.

A rise in jobless claims reported earlier in the day underscored the weakness in the U.S. economy and came ahead of a speech by President Barack Obama. Obama is due to speak at 7 p.m. and is expected lay out a plan for creating jobs.

"The Fed hasn't come out with more options or tools that the market wants or was expecting," said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York. "The market was disappointed because this wasn't a game changer."

Banks were the biggest decliners after sharp gains on Wednesday. They have been one of the most turbulent sectors in the volatility that has engulfed equity markets this summer. The KBW Bank Index (.BKX) fell nearly 3 percent.

The Dow Jones industrial average (.DJI) dropped 119.05 points, or 1.04 percent, to 11,295.81. The Standard & Poor's 500 Index (.SPX) fell 12.72 points, or 1.06 percent, to 1,185.90. The Nasdaq Composite Index (.IXIC) lost 19.80 points, or 0.78 percent, to 2,529.14.

Among bank shares, JPMorgan (JPM.N) fell 3.8 percent to $33.51, the biggest decliner on the Dow. Bank of America Corp (BAC.N) fell 3.7 percent to $7.20. The S&P 500 financial sector index (.GSPF) lost 2.3 percent.

The VIX volatility index (.VIX), a measure of expected market turbulence, rose 2.8 percent to 34.32. Although down from levels seen in August, it is still elevated compared with early in the year.

Volume on the NYSE, the Nasdaq and Amex was 7.46 billion shares, 13 percent below the 20-day moving average, a sign that participation is weakening after the high volume sell-off in August. About 76 percent of NYSE shares fell.

The current market conditions mean that short-term views are dominating and company fundamentals are taking a back seat.

"All of a sudden everybody is a trader, now, nobody is an investor," said Sam Ginzburg, a senior trader at First New York Securities. "Everything is trading macro, everything is trading on psychology, and everybody is staring at charts."

Stocks of health insurers fell The Morgan Stanley Healthcare payor index (.HMO) fell 2.4 percent, while Aetna Inc (AET.N) fell 1.9 percent to $39.19.

A U.S. appeals court on Thursday overturned a lower court ruling that the federal government could not compel people to buy health insurance or face paying a penalty. The appeals court ruled only that Virginia did not have standing to challenge the federal law. It did not rule on whether the mandate itself was constitutional.

The S&P 500 struggled to hold up the 1,200 mark although it broke above that level earlier in the day, which could mark a significant resistance level for the market.

On the upside, Yahoo shares (YHOO.O) rose 6.1 percent to $14.44 after a top shareholder, Third Point LLC, demanded that Yahoo overhaul its board of directors.

Shares of SanDisk Corp (SNDK.O) , a flash memory maker, jumped 2.4 percent to $38.52.

Separately, the government said the U.S. trade deficit narrowed considerably in July, a positive signal for economic growth in the third quarter after a sluggish first half.

(Reporting by Edward Krudy; Editing by Leslie Adler)

NEW YORK – Stocks slid Thursday after Federal Reserve Chairman Ben Bernanke offered no hints that the central bank may take steps to help the ailing economy.

Some investors have anticipated that the Fed will soon take additional steps to stimulate the economy at its two-day meeting that begins Sept. 21.

The Dow Jones industrial average was down 71 points, or 0.6 percent, to 11,344 at 1:45 p.m., 15 minutes after Bernanke started speaking. The Dow and other indexes moved between small gains and losses in earlier trading.

The Standard and Poor’s 500 index fell 9, or 0.7 percent, to 1,190. The Nasdaq composite dropped 12, or 0.5 percent, to 2,537.

Cisco Systems led the 30 Dow stocks with a 2 percent gain. JPMorgan Chase, Bank of America Corp and Boeing each fell 3 percent to pull the average lower.

Bernanke’s was one of two speeches that will be closely watched on Wall Street Thursday. President Obama will lay out his jobs plan at a joint session of Congress tonight. He is expected to announce a $300 billion package that includes tax cuts, additional state aid and spending on infrastructure.

Investors received mixed economic data before the market opened. First-time applications for unemployment benefits rose last week to 414,000. Economists had expected 405,000. The prior week’s estimate of new claims was also revised higher.

The weekly report on unemployment applications is an important economic signal for investors. Rising claims can add to concerns that the job market is stalled and the U.S. economy is headed for another recession. Applications need to fall below 375,000 to indicate sustainable job growth. Last week the government reported there was zero job growth in the U.S. economy in August.

Not all of the economic news Thursday was negative. American exports of cars, airplanes and other goods reached an all-time high in July, the Commerce Department reported. Economists said the jump in exports suggest future growth in the U.S. economy.

“The market is sitting around and trying to piece it all together, “said Rob Stein, the founder and global head of asset management at Astor Asset Management. “For all the volatility that we’ve had recently, the market is going nowhere.”

In corporate news, Google rose 0.1 percent, to $534.89, after it announced that it will acquire dining guide Zagat.

NEW YORK – Stocks drifted between small gains and losses Thursday ahead of speeches on the economy by Federal Reserve Chairman Ben Bernanke and President Barack Obama that will be closely watched on Wall Street.

Bernanke will detail his outlook for the economy in a speech beginning at 1:30 p.m. EST. Some investors are anticipating that the Fed will soon take additional steps to stimulate the economy at its two-day meeting that begins Sept. 21.

President Obama will lay out his jobs plan at a joint session of Congress tonight. He is expected to announce a $300 billion package that includes tax cuts, additional state aid and spending on infrastructure.

Investors received mixed economic data before the market opened. First-time applications for unemployment benefits rose last week to 414,000. Economists had expected 405,000. The prior week’s estimate of new claims was also revised higher.

The weekly report on unemployment applications is an important economic signal for investors. Rising claims can add to concerns that the job market is stalled and the U.S. economy is headed for another recession. Applications need to fall below 375,000 to indicate sustainable job growth. Last week the government reported there was zero job growth in the U.S. economy in August.

Not all of the economic news Thursday was negative. American exports of cars, airplanes and other goods reached an all-time high in July, the Commerce Department reported. Economists said the jump in exports suggest future growth in the U.S. economy.

“The market is sitting around and trying to piece it all together, “said Rob Stein, the founder and global head of asset management at Astor Asset Management. “For all the volatility that we’ve had recently, the market is going nowhere.”

At noon, the Dow Jones industrial average was up 2 points, or less than 0.1 percent, to 11,415. The Standard & Poor’s 500 index fell 2, or 0.1 percent, to 1,197. The Nasdaq composite rose 3, or 0.1 percent, to 2,552.

Microsoft Corp. and Cisco Systems Inc. were the biggest gainers in the Dow, rising 2 percent. JPMorgan Chase & Co. and Boeing Co. fell the most, 2.5 percent.

BERNANKE: Federal Reserve Chairman Ben Bernanke said in a speech that said the U.S. is headed for long-term economic growth. Bernanke did not announce any new economic stimulus measures, as some investors had hoped. He left open the possibility of more action if another recession seems likely.

COME ON IRENE: Trading volume was relatively light, a sign that many traders were leaving the New York area ahead of Hurricane Irene.

THE INDEXES: The Dow rose 134 points, or 1.2 percent, to close at 11,284. It was up 4.3 percent for the week, its first weekly gain out of the last four.

NEW YORK (Reuters) – Wall Street posted its first weekly gains in more than a month on Friday as Fed Chairman Ben Bernanke raised hopes for more stimulus for The economy at its September meeting.

The Dow Jones industrial average (.DJI) was up 134.64 points, or 1.21 percent, at 11,284.46, according the latest available figures. The Standard & Poor's 500 Index (.SPX) was up 17.50 points, or 1.51 percent, at 1,176.77. The Nasdaq Composite Index (.IXIC) was up 60.22 points, or 2.49 percent, at 2,479.85.

For the week, the Dow rose 4.3 percent while the S&P added 4.7 percent and the Nasdaq climbed 5.9 percent.

(Reporting by Ryan Vlastelica; Editing by Kenneth Barry)