Stock futures slip before GDP, jobless claims data

[June 25, 2009]  NEW YORK (AP) -- Investors are looking for more evidence of a recovery after the Federal Reserve's vote of confidence in the economy.

Stock futures were narrowly mixed early Thursday, indicating a flat open on Wall Street, ahead of the government's final reading on first-quarter gross domestic product and data on last week's unemployment claims.

On Wednesday, the Fed said "sustainable economic growth" should gradually resume, and inflation will "remain subdued for some time." The statement did little to reassure investors, though, causing stocks to give up gains and finish mixed. Some were hoping the central bank would indicate how it will curb inflation.

Before the market's open, Dow futures slipped 8, or 0.1 percent, to 8,248. Standard & Poor's 500 index futures were flat at 898, and Nasdaq 100 index futures fell 2.50, or 0.2 percent, to 1,444.75.

Asian markets rose, while European markets moved lower.

The Commerce Department is expected to report that first-quarter GDP shrank by 5.7 percent, unchanged from its previous estimate, according to economists surveyed by Thomson Reuters. The Labor Department is expected to report a slight drop in initial jobless claims.

Government bond prices edged up in early trading Thursday ahead of the economic data, as well as the last big Treasury auction of the week: $27 billion in seven-year notes.

Most auctions have been attracting solid demand so far this year, but investors are looking for signs of weakness. If demand wanes, the government will have to boost yields sharply to attract buyers. Treasury yields affect consumer borrowing rates.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, dipped to 3.68 percent from 3.69 percent late Wednesday.

In corporate news, Nike Inc. reported late Wednesday that its profit dropped in its fiscal fourth quarter on costs to cut jobs. Adjusted results beat Wall Street expectations, but the athletic footwear and apparel company said orders for the next several months are down significantly from last year.

Crude oil rose 33 cents to $69 a barrel in premarket trading on the New York Mercantile Exchange.

The dollar was mixed against other major currencies. Gold prices slipped.

Overseas, Japan's Nikkei stock average rose 2.2 percent. In midday trading, Britain's FTSE 100 fell 0.9 percent, Germany's DAX index fell 1.5 percent, and France's CAC-40 fell 1.3 percent.

[Associated Press; By MADLEN READ]

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