GO
Loading...

Futures Lower; Chevron Adds to Market Gloom

Futures pointed to a modestly lower open for Wall Street on Friday as Chevron's earnings warning added to investors' uncertainty on corporate health.

In the morning's economic news, the trade deficit narrowed unexpectedly to $26 billionin May, its lowest in 10 years. Meanwhile, import prices rose 3.2 percent in May, while export prices rose 1.1 percent.

Still to come: A report on consumer sentiment is due out at 9:55 am ET.

Chevronissued a profit warninglate Thursday, saying second-quarter earnings would be hit by a sharp decline inUS refining margins and that any benefits from higher oil prices were largely offset by a weaker dolla

As a result, the oil and gas sector on the DJ Stoxx 60 was 0.4 percent lower.

Chevron shares fell nearly 2 percent in premarket trading.

Lower oil prices and energy stocks dragged Asian and European markets down.

General Motors announced that it's out of bankruptcymuch sooner than expected— the process has taken just 40 days, even faster than rival Chrysler's 42-day whirlwind trip in and out of Chapter 11.

The new GM, 61-percent owned by the government, will be much leaner, with only its strongest brands, including Chevrolet, Cadillac, GMC and Buick.

Techs will again be in the spotlight following news that Cisco s cutting between 1,500 to 2,000 jobs.

And IBM fell 1.5 percent as Big Blue prepares to report earnings next week and Goldman Sachs downgraded the company to "neutral" from "buy."

AIG is looking for the government's permisssion to resume paying out retention bonuses, on the heels of a warning from Citi that AIG's equity could be worthless. AIG shares fell more than 4 percent premarket.

Alcoa shares fell another 1.6 percent as the company's better-than-expected earnings report couldn't outweight worries over an expected weakness in construction likely to hurt the aluminum giant.

- Peter Schacknow, Senior Producer at CNBC.com, contributed to this report