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AIG Weighs Down Stock Futures

Also, oil's rise above $125 a barrel rattles investors.

Stock index futures in the U.S. were pointing to a weak open for Wall Street's major averages, as another sizable loss at


(AIG) - Get American International Group, Inc. Report

and oil's continuing advance gave sellers the early advantage.

Futures on the

S&P 500

were sinking 7 points to 1385 and were 13 points under fair value. Nasdaq 100 futures were lower by 9 points at 1957 and were more than 14 points below fair value.

One of the early drags was AIG, a component of the

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Dow Jones Industrial Average

, which was falling 7.3%. The selloff came a day after the insurer said it lost $7.81 billion in its first quarter because of big writedowns on credit-default swaps and mortgage-related investments.

Also depressing sentiment was oil's extended climb into uncharted territory. In recent electronic New York trading, crude futures were up $1.64 to $125.33 a barrel. On Thursday, oil closed at a record, then went past $124 for the first time in the extended session.

Elsewhere in the commodities complex, gold was up $4.70 to $886.80 an ounce, and silver tacked on 13 cents to $17.

Meanwhile, markets overseas were sinking. Tokyo's Nikkei fell 2.1% overnight, and Hong Kong's Hang Seng shed 1.5%. Europe's major indices weren't much better. London's FTSE was losing 1.2%, and the Paris Cac was retreating 2.5%. Frankfurt's Dax was lower by 1.3%.

Treasury prices, though, were on the upswing. The 10-year note was adding 9/32 in price to yield 3.75%, and the 30-year bond was gaining 17/32 to lower the yield to 4.51%.

The dollar was weak against most of its competitors, including declines of more than 1.1% against both the yen and the Swiss franc. The euro rose 0.3% to $1.5454.

This article was written by a staff member of