A little anxiety

[notiCIas]

A little anxiety

Concern about inflation, economy keeps futures from surging on drop in oil prices.

October 6, 2005: 6:17 AM EDT

NEW YORK (CNN/Money) - Continued concern about inflation and the economy could keep U.S. stocks from getting too much of a lift from the continued retreat in oil prices when trading begins Thursday.

U.S. stock futures were little changed in early trading, although a comparison with fair value indicated a flat to slightly higher opening for stocks.

The drumbeat of economic concerns continued late Wednesday when Kansas City Federal Reserve president Thomas Hoenig said that rising wages and commodity prices should keep central bankers wary of inflation. Fed officials have been pounding this message all week -- with stocks taking a beating Wednesday as a result.

Oil prices continued their recent declines in early trading, as Brent oil futures dropped below the $60-a-barrel benchmark.

The November light crude futures contract for NYMEX lost 65 cents to $62.14 a barrel in electronic trading, while the November contract for Brent crude fell 75 cents to $59.37.

But even with the drop in oil, major markets in Asia closed lower Thursday. Major European markets also were lower in early trading.

Major retailers are set to report September sales and give investors a view on the impact of the hurricanes and record gasoline prices on purchases of other goods. Economists surveyed by First Call forecast that sales at stores open at least a year, a closely watched retail measure known as same-store sales, gained 3.4 percent in September, down from the 3.6 percent rise seen in August but better than the 2.4 percent rise posted in September 2004.

Treasury prices eased slightly, with the 10-year note yield rising to 4.35 percent from 4.34 percent late Wednesday. The dollar lost ground against on the euro and the yen.