Stock futures trading in narrow range

[June 12, 2009]  NEW YORK (AP) -- Stock futures were trading in a narrow range Friday pointing to a mixed opening for stocks as investors weigh recent signs of economic recovery and potential concern about inflation.

Investors get a new reading on consumer sentiment Friday morning. Growing consumer confidence is important to a recovery because their spending accounts for more than two-thirds of economic activity.

The signs from overseas trading were mixed as European stocks were modestly lower at midday after Asian markets finished higher.

Ahead of the market's opening, Dow Jones industrial average futures are up 1, or 0.01 percent, to 8,752. Standard & Poor's 500 index futures rose 1.60, or 0.17 percent, to 942.10, while Nasdaq 100 index futures fell 3.75, or 0.25 percent, to 1,492.00.

On Thursday, investors welcomed a better-than-expected report on jobless claims and data showing growth in retail sales. Strong results from a 30-year Treasury bond auction also supported the market, after weak Treasury sales earlier in the week stoked fears of rising interest rates and inflation.

Stocks had closed modestly higher Thursday, an indication the market's three-month rally is slowing. The S&P has gained 39.7 percent and the Dow has jumped 34 percent since the market bottomed in early March.

Stocks had shown little movement earlier in the week as investors became concerned that rising interest rates and weakening demand for government debt could derail a potential recovery in the economy. If Washington has to raise rates to attract buyers, that could hurt the economy by boosting borrowing costs for consumers.

However, results of a bond auction Thursday helped eased some of those concerns as demand for the debt appeared strong.

On Friday, bond prices were mostly higher. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.81 percent from 3.86 percent late Thursday. The yield on the three-month T-bill rose to 0.18 percent from 0.17 percent late Thursday.

The dollar rose against other major currencies, while gold prices fell.

Overseas, Japan's Nikkei stock average rose 1.6 percent. Hong Kong's Hang Seng gained 0.5 percent. Asian markets were buoyed by reports that retail sales and industrial output grew strongly in China in May.

In afternoon trading, Britain's FTSE 100 fell 0.3 percent, Germany's DAX index declined 0.5 percent, and France's CAC-40 fell 0.1 percent.

[Associated Press; By STEPHEN BERNARD]

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