Stock Futures Point to Weaker Open
NEW YORK ( TheStreet) -- Stock futures were pointing to a lower Wall Street open Friday as fiscal cliff and eurozone uncertainties continued to dominate market sentiment ahead of the latest U.S. consumer confidence data.
Futures for the Dow Jones Industrial Average were falling 69 points, or 55.32 points below fair value, at 12,706. Futures for the S&P 500 were slumping by 6.10 points, or 4.55 points below fair value, at 1369. Futures for the Nasdaq were down 4.25 points, or 1.06 points below fair value, at 2567.
"The euro area has seized defeat from the salivating jaws of victory, and contributed to risk aversion anxieties by raising the possibility that Greece's ongoing problems will not be resolved before the end of the month. It is just 'unnamed official' comments, but markets are in a strange mood," noted Paul Donovan, a global economist at UBS.
"Fiscal cliff concerns do not seem to have abated in the U.S., in spite of conciliatory comments from both sides in recent days. We hear from House Speaker Boehner and President Obama on the topic today, and the lame duck session of Congress returns on Tuesday. Let the squabbling commence," Donovan continued.
The Congressional Budget Office repeated its projections Thursday that if significant tax increases and spending cuts are allowed to go into effect in January they will probably cause the economy to fall back into a recession next year.
Congress is expected to work on tackling on the fiscal cliff next week.
The major U.S. equity averages endured a sharp drop Thursday as fresh worries about the eurozone and fiscal cliff overshadowed upbeat domestic labor market and trade data.
Concerns about Greece's stability returned after reports that the European Union won't decide on whether to provide the next round of bailout funds for the country until sometime next week, even though the Greek parliament on early Thursday had managed to pass by a narrow margin a new, tough austerity package.
Greece's parliamentary vote on the country's budget is expected to take place on Sunday, on the eve of a eurozone finance ministers meeting.
The read on the University of Michigan Consumer Sentiment Index for November is scheduled to be released at 9:55 a.m. EST, and is predicted by economists to rise to 83 from 82.6.
At 10 a.m., the Census Bureau is expected to say that wholesale inventories rose 0.4% in September after gaining 0.5% the previous month.
Overseas markets were weak. The FTSE 100 in London was declining by 0.88%, while the DAX in Germany was shedding 1.56%. Japan's Nikkei average settled down 0.9% on Friday and Hong Kong's Hang Seng closed behind by 0.85% even after data showing better-than-expected increases in Chinese industrial production and retail sales.