Greenspan to Comment on the Economy

The U.S. stock market will focus on Federal Reserve Chairman Alan Greenspan’s comments on the economy before Congress this week and will pause midweek to mark the one-year anniversary of the Sept. 11 attacks.

Stock prices are expected to show little change in the first half of the week, and then react to Greenspan’s interpretation of confusing economic signals as well as new data on wholesale inflation and retail sales, traders said.

The New York Stock Exchange will delay the opening bell until 8 a.m. PDT to accommodate the thousands of financial professionals attending tributes and services for the people killed by the air attacks on the World Trade Center.

The Twin Towers were located about four blocks from the Big Board, which suffered no physical damage but was silenced for four trading days.

After the anniversary ceremony, the key event will be Thursday, when Greenspan testifies before the House Budget Committee.

Investors will be listening for his interpretation of recent, conflicting economic data, some of which has put the fear of a “double-dip recession” into the market.

As for other guideposts, there are few significant earnings announcements scheduled, although there will be several key economic releases, including the August producer price index on Friday. The PPI is a measure of inflation at the wholesale level.

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Other economic reports this week:

* Today, Federal Reserve will issue its July reports on consumer borrowing.

Commerce Department will report on July wholesale inventories.

* Wednesday, Fed will issue its regional report on economic activity, commonly known as the beige book.

* Thursday, Commerce Department will report on second-quarter current account, the broadest measure of international trade.

* Thursday, Commerce Department will report on July prices of imported goods.

* Friday, Commerce Department will report on August retail sales.

University of Michigan’s preliminary index of consumer sentiment for September.