Ahead Of The Bell: ISM Service Sector Index

The National Association of Realtors on Tuesday said the number of Americans contracted to buy used homes posted its biggest monthly jump in April in nearly eight years. The Realtors last week said home sales rose 2.9 percent in April from the previous month to an annual rate of 4.68 million units — though still 4.6 percent below the same time last year.

The recent uptick in housing activity, especially in areas hard-hit by foreclosures such as Florida and California, is a boon to the industry's hurting brokers and real estate agents, as well as bank lenders.

Still, the country's restaurants, shops, brokers, shippers and information technology companies aren't out of the woods yet.

Retailers report May sales figures on Thursday, and analysts expect a drop in revenues.

Jewelry seller Tiffany & Co. said last week that its first-quarter profit sank 60 percent. It maintained its profit outlook for the year, however, saying it had helped offset sliding sales by cutting 10 percent of its staff, or 900 people.

The unemployment rate currently stands at a 25-year high of 8.9 percent. Economists estimate the rate climbed to 9.2 percent in May, and joblessness is expected to hit double digits later this year or early in 2010.