With a bailout for the automakers still in limbo, Wall Street will turn its focus to the Federal Reserve and earnings from one of its own Tuesday, trying to rebound from an inauspicious start to the week.  Stocks started higher before faltering, and shaved their losses into the close, but the day's persistent feeling was one of investors sitting on their hands. It would be hard to blame traders for their caution, considering the wave of economic and corporate news that is on its way.  Before the opening bell rings Tuesday, investors will be absorbing a key inflation measure from the Labor Department, another round of data on the housing market and the fourth-quarter earnings report from Goldman Sachs (nyse: GS - news - people ). The brokerage is expected to report its first loss since going public in 1999 due to the credit crisis and financial system meltdown, which have wreaked havoc on its books. Analysts expect Goldman lost $3.50 a share, about $1.4 billion, during the quarter, and the firm's shares lost $1.28, or 1.9%, to $66.46 Monday. Peer Morgan Stanley (nyse: MS - news - people ), which reports results Wednesday, lost 21 cents, or 1.5%, to $13.64.  Later Tuesday, the Fed is due to wrap up its two-day monetary policy meeting, with traders expecting another half-point cut that would take its benchmark fed funds rate down to 0.5%. More importantly, the Fed's statement may suggest further easing policy unrelated to rate cuts, such as investments in Treasury debt. Yields inched lower Monday, as investors moved out of stocks and into the perceived safety of government debt. The two-year note returned 0.75%, down from 0.77% Friday, while the 10-year note offered 2.51%, from 2.57%. The iShares Lehman 10-20 Year Treasury Bond Fund (nyse: TLH - news - people ), which tracks a range of long-term bonds, rose 75 cents, or 0.6%, to $118.63.  The Dow Jones industrial average finished the day down 65 points, or 0.8%, to 8,565; the S&P 500 fell 11 points, or 1.3%, to 869; and the Nasdaq was off 32 points, or 2.1%, to 1,508. (See "Wall Street Sluggish On Auto Angst.")  General Motors (nyse: GM - news - people ) and Ford Motor (nyse: F - news - people ) were among the day's limited gainers, as investors mull a possible Bush administration rescue of the domestic automakers. GM and Chrysler, which is privately held, are in desperate need of financing just to survive. Ford is on sturdier footing, but has requested a government line of credit as a hedge against any further deterioration of the economy. Shares of GM gained 14 cents, or 3.6%, to $4.08; Ford was up 14 cents, or 4.6%, to $3.18.  Two notable economic reports will greet traders Tuesday morning: the Labor Department's Consumer Price Index for November and the Census Bureau's monthly report on housing construction.  Inflation has become less of a concern over the past several months thanks to the cheaper price of oil and the ongoing economic turbulence, so the CPI has lost some of its cachet as a key economic report. The reading is expected to come in at negative 1.2%, but is likely to be brushed off in anticipation of Wednesday's meeting of the Organization of Petroleum Exporting Countries. OPEC is widely expected to slash output levels in light of flagging global demand. Crude surrendered early gains Monday, losing $1.77 to settle at $44.51 a barrel.  The more important economic news due Tuesday morning is the November figures on housing starts, completions and new building permits. All three readings are expected to decline as the U.S. housing market continues to feel for a bottom. Between plunging prices and the lack of available credit, declines in these readings may continue even beyond when the economy finally begins to recover. On Monday, the National Association of Home Builders said its housing market index remained at a record low, with December's reading matching November's 9.0. Readings over 50.0 are considered positive; the index has scuffled below 20.0 since April.
After a droopy start to the week, earnings from Goldman Sachs and the Fed's rate decision will take some of the focus off the auto industry.