Futures Add to Losses After Economic News

Stock futures remained mired in negative territory, even after government data showed a jump in personal income and a surge in both saving and buying in May.

The report showed savings at 6.9 percent, a 15-year high. Futures briefly pared losses after the data release but quickly headed negative.

Investors shifted back into riskier assets in the last few days of the second quarter after the Federal Reserve indicated on Wednesday it would keep interest rates low for a while.

Stocks had their best performance in three weeks Thursday, but some analysts said Wall Street may pause for a bit of profit-taking.

JPMorgan Securities said in a research note that the Standard & Poor's 500 was facing a correction that likely would take it to between 830 and 875, which would represent a 5 to 10 percent drop from its current level.

A rally likely would follow the drop and take the S&P to 950 to 1,000 by the end of the year, JPMorgan said.

On Thursday the Fed extended some of its emergency funding facilities and its currency swap lines with global central banks to provide ample dollar funds, Reuters reported.

Helping the Nasdaq, technology stocks were up after earnings from smart-phone maker Palm and chip manufacturer Micron Technology both beat expectations when reporting after the closing bell Thursday.

Palm shares gained about 12 percent in premarket trading Friday.

But Boeing faced another setback with its Dreamliner model after Australian airline Qantas scrapped and deferred orders for 30 new planes.

General Motors also may face further difficulty selling its Hummer unit after areport said China's planning agency is likely to block Sichuan Tengzhong Heavy Industrial Machinery's acquisition of the carmaker.

GM CEO Fritz Henderson urged speed for the automaker's bankruptcy exit late Thursday, saying it could hurt many of its suppliers.

Oil prices rose above $71 a barrel, largely in part to Exxon Mobil's announcement that its huge Baytown refinery suffered an operational glitch that triggered concerns the largest U.S. oil refiner could tighten gasoline stockpiles during this summer's peak demand driving season, according to Reuters.

UBS said it was planning to raise $3.5 billion in capital, a move that analysts said would be positive even as they speculated about how long it would take for the bank to stabilize. Shares fell 5 percent premarket.

The University of Michigan's final June consumer sentiment index out at 9:55 am New York time and expected to show an improving outlook for the U.S. economy.

The government will release May personal income and spending data at 8:30 am. Both those measures are expected to rise 0.3 percent. A fresh measure of inflation is out at the same time, with both the PCE deflator and its core rate expected to rise 0.1 percent for May.

Dallas Fed President Richard Fisher speaks on the economy at 1:30 pm in Dallas.

Earnings reports out include KB Home ahead of the opening bell.

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