NEW YORK, Oct 17 - U.S. stocks were set to dip on Friday as investors barely reacted to upbeat housing data and waited cautiously for consumer confidence numbers as they try to gauge the strength of the economy's recovery. "There was a muted reaction to the housing starts, stocks in trading before the bell did not move much," said Harry Michas, stock index futures trader at manmarketmonitor.com. "The market is waiting for the Michigan sentiment number or some sort of catalyst that will break this market out of this range." Stock futures were mixed in trading on Friday, below fair value, pointing to a slightly lower open. Futures crept up a little after government data showed U.S. housing starts rose unexpectedly in September, a clear signal the housing market remains strong, as low mortgage interest rates keep their allure for home buyers. Groundbreaking for new homes jumped 3.4 percent to a seasonally adjusted annual rate of 1.888 million units in the month, beating analysts' forecast of 1.82 million. Investors usually pay close attention to the number of new housing units under construction as it offers a guide on home builders' confidence they can sell homes and suggests a likely follow-on surge in consumer goods spending.
Investors are now waiting for the latest University of Michigan preliminary consumer sentiment index, due at 9:45 a.m. (1345 GMT), shortly after the market opens. There are few corporate earnings on Friday, but the height of the reporting season resumes next week with Citigroup Inc. , 3M and others.//