Before the bell 9-25-06: EBAY, GOOG, MSFT, YHOO

It seems that until investors get a better feel as to the state of the economy, the market will continue to trade on daily economic data, data that could help gauge the direction of the economy. Without much earnings to be reported this week but a slew of economic reports, investors are expected to mull over housing market, consumer sentiment and overall economic activity data that is due out.

Despite all that, the story this morning is oil. Stocks look poised to rally after oil prices fell below $60 a barrel for the first time since March. Also affecting oil prices was BP that said Friday it moved up its plans to restart a portion of its Prudhoe Bay eastern operations. Reports of Iran being prepared to talk were taken as a positive sign as well.

The week of economic data starts today with a report of August existing home sales at 10:00 a.m. Economists forecast an annual rate of 6.25 million. Stocks could take a hit despite the low oil prices if the numbers show considerable slowdown.

On Tuesday, September consumer confidence index is due, and on Wednesday, August durable goods orders as well as August new home sales will be reported. Thursday we will have final Q2 GDP and on Friday the figures for August personal income and consumption as well as the September Chicago purchasing managers' index.

H-P is still at the top of corporate news after last week's scandalous corporate espionage style affair. In other corporate news, Nissan and GM plan to meet this week.

Bonds continued their rally this morning with the yield on the 10-year Treasury down to 4.57% from 4.59% late Friday.

Overnight, markets were mixed in Asia Monday, while European markets are higher at the moment.