Fed chief may give Enron clue

WALL Street will this week focus on testimony by Alan Greenspan and a wealth of economic data this week, most of which is expected to confirm the US is recovering from the trough of recession.

The Federal Reserve chairman will deliver a monetary policy report to Congress on Wednesday and say whether he sees any likelihood of a ripple effect from the collapse of failed energy giant Enron.

His testimony comes a day after the Conference Board reports consumer confidence figures for February. The key gauge is expected to drop to 97 from 97.3, but another measure that provides a more timely reading - the Michigan Sentiment Survey, due on Friday - is seen showing a rise to 91.5 from 90.0 in response to the better economic news of recent days.

On Wednesday, durable goods orders for January, a barometer of factory activity, should rise 1% following a 1.7% leap the prvious month. Two days later, the market will get the ISM Index, the most up-to-date pulse on the beleaguered manufacturing sector. Economists expect only a tiny improvement, if any, from the 49.9 recorded the previous month.

Personal incomes, reported on Friday, are expected to be flat for January, with consumption up a modest 0.3%.

Data supplied by Thomson Global Markets