Stock futures slip ahead of personal spending data

[June 26, 2009]  NEW YORK (AP) -- Investors are trading warily again as the average consumer moves back into focus.

Stock futures moved lower ahead of data on personal spending and consumer sentiment. The market expects the Commerce Department to report a modest rise in May spending, and the University of Michigan to report that sentiment was unchanged in June.

The readings will arrive after a strong day on Wall Street. The Dow Jones industrial average on Thursday rose nearly 173 points, or 2.1 percent -- the largest daily gain for the index since June 1.

The advance was driven by better-than-expected financial results from Lennar Corp. and Bed Bath & Beyond Inc., as well as Federal Reserve Chairman Ben Bernanke's ability to fend off accusations before a House committee that he forced Bank of America Corp. to buy Merrill Lynch.

The market's gain, however, also followed four straight days of losses. As the second half of 2009 draws to a close, investors are growing more nervous about whether the economy can bounce back later this year.

Before the market's open Friday, Dow futures fell 18, or 0.2 percent, to 8,396. Standard & Poor's 500 index futures fell 2.70, or 0.3 percent, to 913.90, and Nasdaq 100 index futures fell 4.25, or 0.3 percent, to 1,468.75.

Asian and European markets rose modestly, boosted in part by a rise in energy prices. Higher oil prices can hurt consumer spending, but they lift the revenues of energy companies.

Crude oil rose 76 cents to $70.99 a barrel in premarket trading on the New York Mercantile Exchange.

Financial stocks are also in focus Friday after UBS AG said it expects to raise $3.5 billion and forecast a loss for the second quarter.

Government bond prices slipped in early trading. The yield on the benchmark 10-year Treasury note, which moves opposite its price, edged up to 3.58 percent from 3.54 percent late Thursday.

The dollar fell against other major currencies. Gold prices rose.

Overseas, Japan's Nikkei stock average rose 0.8 percent. In midday trading, Britain's FTSE 100 rose 0.4 percent, Germany's DAX index rose 0.4 percent, and France's CAC-40 rose 0.1 percent.

[Associated Press; By MADLEN READ]

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