Oil could foul stocks

[notiCIas]

Oil could foul stocks

Futures lower as crude bumps back toward $55-barrel, possibly thwarting rally momentum.

April 22, 2005: 6:39 AM EDT

NEW YORK (CNN/Money) - A day after one of the biggest rallies in years, U.S. stocks looked to open lower Friday as new oil price pressure threatened to weigh on markets.

Futures were down, indicating a lower opening for stocks after the Dow industrials nabbed its best day in more than two years Thursday and stocks surged on upbeat economic news and several solid earnings reports.

Oil prices were higher Friday, pushing back toward $55 a barrel, as traders expressed concern that sustained demand and refinery outages could strain U.S. gasoline supplies ahead of the peak summer driving season.

The June light crude contract gained 31 cents to $54.51 a barrel in electronic trading, while the June contract for Brent crude rose 60 cents to $54.61.

After the market close Thursday, influential Internet leader Google (Research) reported quarterly results that beat forecasts on an earnings and revenue basis, and grew from a year ago, sending shares sharply higher in after-hours trade.

Also after the close, SanDisk (Research), which makes computer memory cards, reported quarterly earnings that rose from a year ago and topped estimates, as well as gross profit margins that beat estimates.

Earnings reports due Friday include International Paper (Research) and Eastman Kodak (Research).

Asian stocks finished higher Friday, with Tokyo's Nikkei index up 0.6 percent. European markets gained ground in early trading.

In currency trading, the dollar retreated against the euro and yen. Gold was slightly higher.