Stock futures were mixed to lower this morning, indicating investors await data and earnings to better determine the state of the economy and whether it is on a brink of recession as former Federal Reserve chairman Allan Greenspan said late Thursday. Thursday, U.S. stocks sold off, breaking a three-session winning streak following current Fed chairman Bernanke's testimony. While Bernanke hinted at more rate cuts ahead, he also said that economic outlook had worsened in the last three months. The Dow industrials dropped 175 points, or 1.4%, the S&P 500 lost 18 points, or 1.34%, and the Nasdaq Composite dropped 41 points, or 1.74%.
Several economic readings are due out today:
- At 8:30 a.m. EST, the Labor Department will report January import and export prices.
- At the same time, the Empire State Index will be released, giving an idea of the region's manufacturing activity.
- At 9:15 a.m. EST, January industrial production and capacity utilization will be released.
- At 10:00 a.m. EST, the University of Michigan will give its preliminary reading on consumer confidence in February.
Overseas, Asian shares finished mostly higher, but European markets have declined so far this session. As Japan's central bank kept interest rates unchanged Friday, in Europe, Natixis SA, France's fourth-largest bank by market value, plummeted 13% following announcement of U.S. subprime-related writedowns.
Earnings:
- Reporting today arefood companies Campbell Soup (NYSE: CPB) and Hormel Foods (NYSE: HRL) as well as Abercrombie & Fitch (NYSE: ANF).
- Chipotle Mexican Grill (NYSE: CMG) share dropped over 13% in after-hours Thursday and may drop this morning after the restaurant owner reported fourth-quarter earnings that didn't grow as fast as forecast.
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