Before the bell: Stocks to put on the breaks following BAC, GE reports

Posted Jul 17th 2009 8:08AM by Melly Alazraki
Filed under: Before the Bell, International Markets, Earnings Reports, Google (GOOG), General Electric (GE), Market Matters, International Business Machines (IBM), Citigroup Inc. (C), Bank of America (BAC), CIT Group (CIT), Economic Data, Oil, Housing

U.S. stock futures were lower Friday morning following earnings reports from Google and IBM late Thursday and Bank of America and General Electric this morning. Stocks rallied Thursday after JPMorgan Chase reported better-than-expected profit, but it seems positive momentum has put on the breaks as investors also await two housing reports this morning and continue to be concerned about the fate of CIT Group (CIT).

Bank of America (NYSE: BAC) and General Electric (NYSE: GE) both reported smaller profit declines. Google (NASDAQ: GOOG) and IBM (NYSE: IBM) also topped forecast, but all four reports highlight the tough environment and challenges the companies have more than others so far. Citigroup (NYSE: C) is also due to report.

On the economic front, the beleaguered housing sector will be in the spot light this morning as June housing starts are due at 8:30 a.m. Eastern from the Census Bureau. Starts are expected to have dipped to a 530,000 unit annual rate from a 532,000 unit annual rate in May, according to Briefing.com. At the same time, June building permits, a measure of builder confidence, are expected to have risen.

Overseas, Asian stocks ended higher, and European markets advanced in midday trading. Oil prices slipped below $62 a barrel Friday, as investors considered mostly positive second quarter earnings reports against signs of sluggish crude demand.

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