Stocks look to recoup portion of losses

[November 13, 2009]  NEW YORK (AP) -- Stock futures are signaling a higher open Friday on Wall Street after a sharp sell-off a day earlier.

The gains in stock futures came as the dollar resumed its decline against other currencies, helping to push commodities like gold and oil higher.

A surprise profit from The Walt Disney Co. late Thursday also helped to boost futures.

On Friday, investors will get data on how much demand for U.S. goods and services has picked up when the government releases its report on the U.S. trade deficit at 8:30 a.m. Eastern time. Economists expect the trade deficit to have widened in September, after unexpectedly dipping in August.

Markets are reversing their trade from Thursday, when the Dow Jones industrials dropped 93 points, breaking a six-day winning streak as oil prices tumbled on fresh signs of weak energy demand and a stronger dollar.

The dollar has had a strong pull over financial markets. The dollar's steady decline since March, spurred by record-low interest rates, has encouraged investors to move their money out of the dollar and into higher-yielding assets like stocks and commodities. A weak dollar makes U.S. exports and dollar-denominated commodities cheaper for foreign buyers, which should help boost corporate profits down the line.

Foreign governments, however, have begun to express concern about the country's weakening currency, for fear that their own economies could suffer as the falling dollar makes their currencies stronger and exports more expensive. Investors also fear that a continual steep decline in the dollar could lead to inflation.

Ahead of the market's open, Dow Jones industrial average futures rose 28, or 0.3 percent, to 10,217. Standard & Poor's 500 index futures gained 3.80, or 0.4 percent, to 1,091.10, while Nasdaq 100 index futures rose 5.75, or 0.3 percent, to 1,779.50.

The ICE Futures US dollar index, which measures the dollar against other currencies, fell 0.3 percent. Gold prices added $2 to $1,109, while oil prices rose 41 cents to $77.35 a barrel in electronic premarket trading on the New York Mercantile Exchange.

In earnings news, Disney said improved revenue at its cable, broadcast and movie studio units helped it post a stronger-than-expected 18 percent increase in fourth-quarter earnings.

The yield on the benchmark 10-year Treasury note was unchanged at 3.45 percent. Other government bonds were slightly lower, pushing yields higher. The government wrapped up $81 billion in bond auctions for the week on Thursday, issuing $16 billion of 30-year notes.

Overseas, Japan's Nikkei stock average slipped 0.4 percent, while Hong Kong's Hang Seng index gained 0.7 percent. In late morning trading, Britain's FTSE 100 was up 0.3 percent, Germany's DAX index was up 0.2 percent, and France's CAC-40 fell 0.2 percent.

[Associated Press; By SARA LEPRO]

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