Wall Street To Open Lower As Markets May Follow Global Downturn

December 19, 2008 7:36 a.m. EST

New York, NY (AHN) - U.S. stock market futures turn red after major technology companies posted weak earnings outlook as consumer demand continue to decline.

Wall Street is set to open lower on Friday as investors shift their focus on auto sector, which failed to recieve the U.S. Senate's approval on the $14 billion rescue bill last week.

At 7:00 a.m. EDT in New York, S&P futures were trading lower by 6.70 points or 0.75 percent at 885.80 points, NASDAQ futures was moving down by 9.00 points or 0.73 percent at 1,216.50 points.

While, the Dow was trading down at 45.00 points or 0.52 percent at 8,633.00 points at the same time.

Crude rates expected to hit another record low level on Friday after declining below $37 per barrel on the New York Mercantile Exchange on Thursday.

The market analysts are forecasting that oil prices to fall below $25 a barrel next year and gas prices could drop lower than $1 in most regions of the markets as the recession expands to China.

A light sweet crude-oil futures for January delivery was moving down by 51 cents to $35.71 a barrel in electronic trading on Friday.

On Thursday, the contract for January delivery slumped in New York and closed lower by 9.6 percent, or $3.84, to $36.22 a barrel on the New York Mercantile Exchange.

In economic reading, the Labor Department is expected release report on regional and state employment, which could put pressure on Wall Street markets as economy worsens.

Palm tumbled in Frankfurt trading by 7.3 percent to $2.04 on Friday after posting a second-quarter net loss of $4.64 a share on rising taxes and increasing competition from its rivals Research In Motion Ltd. and Apple Inc.

In the auto sector, shares of General Motors jumped by as much as 5.7 percent to $3.87 in Frankfurt trading on Friday. Ford was also moving up by 2.1 percent to $2.90 in European markets. Chrysler LLC does not trade in Europe.

In currency trading, the yen advanced as it changed hands at 88.76 yen per U.S. dollar in Asia on Friday, after it closed at 89.20 yen per dollar late Thursday in New York.