Futuros EUA ligeiramente negativos: Stocks on inflation watch again

[notiCIas]

Stock futures point to flat to mixed open ahead of personal income and spending report which gives latest look at inflationary pressures.
May 26, 2006: 6:17 AM EDT


NEW YORK (CNNMoney.com) - Stocks were again in an early-morning holding pattern Friday as investors awaited the latest economic and inflation readings.

U.S. stock futures were down in early trading, although a comparison to fair value indicated a flat or mixed open for U.S. markets.

The Commerce Department is due to report personal income and spending figures at 8:30 a.m. ET, and economists and investors are awaiting that report for its overall number, as well as its measure of price increases for goods purchased by consumers other than energy and food.

The so-called core PCE deflator came in at an annual 2.0 percent increase in the March report, at the high end of the range preferred by the Federal Reserve. If that number rises in the April report, it could spark a sell-off in stocks and bonds on fears of further Fed interest rate hikes. If the number stays at 2.0 or declines, it could help spark a rally on raised hopes of that the Fed will be able to pause in its course of rate hikes at its June 29 meeting.

Overall, economists surveyed by Briefing.com expect a 0.7 percent increase personal income, up from a 0.5 percent rise in the March report. Spending by consumers is expected to see a 0.6 percent gain, the same as posted in March.

Soon after the market opens the University of Michigan issues its revised reading on consumer confidence. Economists are looking for that index to stay at a 79.0 percent reading.

Oil prices were higher ahead of the long holiday weekend in the United States and Britain.

The June light crude futures contract for NYMEX was up 33 cents to $71.65 in electronic trading, while the July contract for Brent crude gained 44 cents to $71.15.

Major markets in Asia closed higher Friday on the U.S. gross domestic product report that also lifted U.S. stocks in Thursday trading. Major European markets were up in early trading. Luxembourg steelmaker Arcelor SA Friday agreed to a $16.6 billion merger with a Russian steelmaker, an effort to block a hostile bid from Mittal Steel (Research).

Treasury prices were little changed, leaving the yield on the benchmark 10-year note near the 5.07 percent level reached late Thursday. The dollar was higher against the yen but lower against the euro.

Treasury Secretary John Snow, whose future in the Bush administration has been the subject of heated speculation in recent months, is likely to step down in mid- to late June, according to numerous published reports late Thursday.

In corporate news, Internet search engine Google (Research) and No. 1 personal computer maker Dell (Research) said late Thursday that computer maker will install Google software on its systems.