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 The president is expected to tell a gathering of economists in New York that the economy is slowing but nonetheless is fundamentally sound and poised to return to higher growth. The speech is not expected to unveil new initiatives, according to the White House press office. But Bush may be able to provide soothe the anxieties of investors who increasingly are worried that the U.S. already is in recession.
The February consumer price report also has the potential to offer some cheer to investors worried about the economy. The Consumer Price Index is expected to post a 0.3 percent advance, which would show a slight moderation in inflation from the 0.4 percent increase in January, according to Thomson/IFR. Excluding volatile food and energy prices, February CPI is expected to increase by just 0.2 percent.
If the monthly consumer price report comes in as expected, it may lessen worries that inflation is heating up at the same time the economy is slowing. The prospect of simultaneous higher prices and lower economic activity is a kind of worst-case scenario for the economy and the Federal Reserve. That situation would place the central bank under simultaneous pressure to raise rates to slow inflation and to cut rates to stimulate the economy.
Ahead of the data report and the speech, the futures contract for the Dow Jones industrial average was down 24 points, or 0.2 percent, at 12,127. The futures contracts for the S&P 500 fell 1.30 point, or 0.1 percent, to 1314 while the Nasdaq 100 contracted gained 0.50 point, or 0.03 percent, to 1,756.25.
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 On Thursday, an anxious stock market rebounded from an early plunge to finish moderately higher, after Standard & Poor's predicted financial companies are nearing the end of the massive asset write-downs that have pummeled the stock and credit markets for months. The S&P projection gave investors some hope that the seemingly unrelenting losses from the mortage and credit crisis might indeed be bottoming out.
Stock market investors Friday will have to keep an eye on the dwindling dollar and events in the soaring commodities market, after both gold and oil futures set new records on Thursday and the dollar hit a record low versus the euro.
There is mounting speculation in the foreign currency markets that global central banks are set to intervene to prop up the ailing dollar. Many analysts are growing convinced that concerted intervention is the only remedy for the currency's continuing slide.
Investors also will want to learn the latest news about Carlyle Group's $22 billion Carlyle Capital fund. On Thursday the fund moved closer to collapse and the co-founder of Carlyle Group, David Rubenstein, pledged to compensate investors.
In overseas trade, Tokyo's Nikkei closed down 1.54 percent. But there were gains on European bourses, where London's FTSE 100 rose 0.45 percent, Frankfurt's DAX gained 0.57 percent and Paris' CAC advanced 0.53 percent.
[Associated Press; By LESLIE WINES]
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