Stock futures point to lower Wall Street open
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Friday, July 10, 2009; 9:10 AM
-- The stock market headed toward a lower start Friday as investor anxiety about the economy increases.
Markets around the world pulled back as traders decided to sell amid the uncertainty about upcoming earnings reports and what they'll say about the economy. News that Chevron Corp.'s refining margins fell in the second quarter added to the uncertainty early Friday. Oil futures prices headed lower Friday with a key contract dipping below $60 a barrel.
The market looked past the Commerce Department's report that the U.S. trade deficit narrowed to $26 billion in May, the lowest level in more than nine years. Exports posted a small gain while the weak American economy pushed imports down for a 10th straight month.
But investors are nervous ahead of a fresh reading on consumers' sentiment during July, coming out Friday morning. The Reuters/University of Michigan index of consumer sentiment comes a day after the nation's retailers reported generally weak sales for June. The market is concerned that consumers, whose spending drives the economy, will keep cutting back as they worry about their job security.
Dow Jones industrial average futures were down 53, or 0.7 percent, at 8,081. Standard & Poor's 500 index futures were down 6.20, or 0.7 percent, at 872.70, while Nasdaq 100 index futures were down 8, or 0.6 percent, at 1,405.50.
Meanwhile, oil prices resumed their fall below $60 a barrel, down sharply from last week's highs. The drop in the price of crude has sent stocks falling as investors anticipate that a weaker world economy will mean less demand for energy.
A barrel of crude traded at $59.11, down $1.30, in pre-opening trading on the New York Mercantile Exchange.
Overseas, Japan's Nikkei stock average fell 0.04. In afternoon trading, Britain's FTSE 100 was down 0.7 percent, while Germany's DAX index and France's CAC-40 were down 0.6 percent.
Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.35 percent from 3.41 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.18 percent from 0.17 percent late Thursday.
The dollar rose against other major currencies, while gold prices were down.
