U.S. stock futures declined Friday morning, indicating stocks are set for a lower open, as concerns about the economic recovery grew, and with it worries over corporate profits. Today, several economic reports will be in focus, including data on international trade and consumer confidence.Meanwhile, the new GM is expected to exit bankruptcy today. It will emerge cleansed of massive debt and contracts and will be 61% owned by the U.S. government. Many still question its ability to operate in this tough environment and doubt whether it will be able to return the taxpayers' money any time soon.
Several economic releases are due out today including the May trade balance at 8:30 a.m. It expected the has widened to $30 billion from $29.2 billion on weaker exports. At the same time, June import and export prices from the Labor Department are also due out. Then, at 9:55 a.m., the University of Michigan will release its initial July reading on consumer sentiment, which is expected to have dipped to 70 from 70.8 in June.
Overseas, Asian markets ended mixed with Japan's Nikkei stock average dipping slightly for its eighth straight day. Chinese exports dropped 21% in June, though that was a slower rate of decline than in prior months. European stock markets fell modestly Friday following Wall Street's lackluster performances.
Oil prices slid below $60 a barrel Friday ahead of company earnings reports next week that should give better idea about crude demand. Still, the IEA predicts a 1.7% rebound in demand by next year.
Meanwhile, a Bloomberg survey of economists actually showed that even as Wall Street started doubting the recovery, they expect the U.S. economy will expand faster than previously forecast in the second half of this year and in 2010 as a revival in consumer spending signals an end to the recession.
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