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. Gold for December delivery was tacking on $3.80 to $1,729.80 an ounce at the Comex division of the New York Mercantile Exchange, while December crude oil contracts were down 39 cents at $84.70. The benchmark 10-year Treasury was rising 7/32, lowering the yield to 1.595%. The dollar was up 0.20%, according to the
>To contact the writer of this article, click here: Andrea Tse. Follow @Commodity_Bull
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV