Friday August 28th


Street set for lower opening

U.S. stock index futures fell early on Friday, as the rocky ride in global markets continued. Dow Jones industrial average futures briefly declined more than 150 points and held about 120 points lower, after the major averages closed Thursday more than 2 percent higher. The S&P had its best two days since March 2009 and the Dow had its best two days since December 2008, according to Howard Silverblatt of S&P Dow Jones Indices. Still, he noted the S&P 500 has lost $1.02 trillion in the last eight days. On Friday, the benchmark Shanghai Composite index ended 4.8 percent higher, after an exceptionally volatile weak for Chinese stocks. The index closed down 7.8 percent on the week. European trade was cautious on Friday with markets narrowly lower as investors remained cautious. Economic data due on Friday includes personal income and spending data at 8:30 a.m. ET and the Michigan sentiment index for August at 10 a.m. The final read on August consumer confidence from the University of Michigan, takes particular prominence. In comments Wednesday, New York Fed President William Dudley singled out the index as an indicator of the volatile stock market's impact on the economy. Dudley said the case for a September rate hike has become less compelling. Central bank policymakers also continue their annual meeting in Jackson Hole, Wyoming, on Friday. Asian stocks extended their recovery into the final trading day of the week as investors cheered a second day of gains in Chinese and U.S. markets. Nikkei 3% higher. Japanese stocks closed above the 19,000 mark for the first time in a week, bolstered by a spate of deal-making. Oil prices steadied on Friday after bouncing back from six-and-a-half-year lows on recovering equities markets, strong U.S. economic growth and news of low crude supplies from Nigeria. Oil saw its biggest one-day bounce since 2009 on Thursday, with North Sea Brent and U.S. light crude rising more than 10 percent. U.S. crude is on track for its first weekly gain in nine weeks and and end to its longest losing streak since 1986. Brent was down 43 cents at $47.13 per barrel by 6:50 a.m. EDT (1010 GMT). It settled $4.42 higher at $47.56 on Thursday. U.S. crude was down 25 cents at $42.31 a barrel, after ending up $3.96. Gold edged up on Friday but was on track to post its biggest weekly drop in five as strong U.S. economic data backed the case for a near-term increase in interest rates. Spot gold was up 0.4 percent at $1,129.80 an ounce by 0703 GMT, but down 2.6 percent for the week.