Stocks fell in Europe as it was reported that the British economy contracted by a bigger than anticipated 1.6 % in the fourth quarter of 2008. the FTSE 100 index of leading British shares was down only 2.36 points, or 0.1 %, at 3,922.84 as financials propped the market up with a Financial Times report that the Financial Services Authority was about to say that Barclays does not need a capital injection from the British government. Germany’s DAX was down 28.41 points, or 0.7 %, at 4,230.96 while France’s CAC-40 was 22.31 points, or 0.8 %, lower at 2,869.76.

In Asia, the Nikkei 225 average dipped 9.36 points, or 0.1 %, to 8,626.97; however the index gained 8.6% for the week. Hong Kong’s Hang Seng index gained 10.52 points, or 0.1 %, to 14,119.50.

U.S. Futures

Wall Street points lower ahead of the opening bell as traders look to close out a 3rd straight week of gains. Dow Jones industrial average futures fell 65, or 0.8 %, to 7,784. Standard & Poor’s 500 index futures lost 6.80, or 0.8 %, to 820.50, and Nasdaq 100 index futures dropped 9.50, or 0.8 %, to 1,263.50.

On Thursday, markets powered forward on better-than-expected earnings from big consumer brands. The Dow industrials rose 2.3 %, at 7,924.56. The S&P 500 index gained 2.3 %, to 832.86, and the Nasdaq composite index advanced 3.8 %, to 1,587.00. The Nasdaq is now in positive territory for 2009, while the Dow remains down 9.7 % for the year.

Currencies and Commodities

The dollar traded at 97.596 yen, tumbling 1.14% in the currency market. The euro lost 1.54% to $1.3318, while the pound depreciated 0.977% to $1.4312 on signs that the U.K. recession is deepening. Gold dropped $15.20 to $927.00 an ounce while silver fell 2.90% to $13.23 on the stronger dollar. Light, sweet crude for May delivery declined 2.37% to $53.05 a barrel after closing yesterday at a 4 month high.

Corporate News

Google Inc (GOOG) is cutting its sales and marketing team by roughly 200 employees in an effort to cut costs. Overall, the internet giant has nearly 21,000 employees.

Economic News

8:30 AM
Personal Income: the dollar value of income received from all sources by individuals. Consumer spending: Includes consumer purchases of durable and nondurable goods, and services.

The consensus decrease in personal income for the month of February is -0.2%. January saw an increase of 40 basis points. Consumer spending is expected to rise to 0.3% from 0.6% in January.

9:55 AM
Consumer Sentiment: Consumer sentiment is directly related to the strength of consumer spending, by questioning 500 households each month on their financial conditions and attitudes about the economy. The consensus reading for March is 56.7, up from the previous reading of 56.6.

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Global markets were moderately lower Wednesday after Wall Streeet turned negative yesterday. The Nikkei 225 stock average dipped 8.31 points, or 0.1 percent, to 8,479.99 as government figures showed exports plunged by nearly half in February from a year earlier — a record monthly drop and a realization of the lack of global demand from the exporting country; the world’s second largest economy.. Hong Kong’s Hang Seng index fell 288.23 points, or 2.1 percent, to 13,622.11. Mainland China’s Shanghai index retreated 46.86 points, or 2 percent, to 2,291.55, ending a seven-day rally.

In afternoon trading in Europe, Britain’s FTSE 100 declined 1.07 % to 3,869.63, Germany’s DAX lost 0.73 % to 4,156.75, and France’s CAC 40 fell 0.65 % to 2,855.83.

U.S. Futures

Ahead of the day’s economic reports which could really give some credibility to this rally, futures are in the green. Dow Jones industrial average futures rose 30, or 0.4 %, to 7,650. Standard & Poor’s 500 index futures rose 4.80, or 0.6 %, to 808.20, while Nasdaq 100 index futures rose 5.75, or 0.5 %, to 1,242.00.

On Tuesday, the markets saw some profit taking after the prior days surge. The Dow industrials fell 1.5 percent, to 7,660.21. The S&P 500 index fell 2.1 percent, to 806.02, and the Nasdaq composite index lost 2.5 percent, to 1,516.30. After 2 days, the markets are still positive and poised for their 3rd straight weekly gain.

Currencies and Commodities

The dollar traded at 97.642 yen, dropping 0.2238% 0.7439% in the currency market. The euro advanced 0.2283% to $1.3499, while the pound depreciated 0.7465% to $1.4572. Gold continued its descent, down $3.90 to $922.10 an ounce while silver lost 13 cents to $13.23. Light, sweet crude for May delivery plunged 2.41% to $52.68 a barrel.

Economic News

8:30 AM
Durable goods orders: Measures the month over month change in orders placed with domestic manufacturers for immediate and future delivery of factory hard goods. Usually durable goods orders follow the trend in consumer spending, and therefore, a measure of strength in the economy. The consensus estimate is for a decline in February of 2.0%, following a massive -5.2% decline in January in a battered manufacturing sector.

10:00 AM
New Home Sales: Measure the number of newly constructed homes with a committed sale during the month of February. The level of new home sales indicates trends in the housing market. Don’t expect new home sales to pick up until we can unclog the inventory of existing homes; however existing home sales rose 15.1% in the month. For February, new home sales are expected to be at a seasonally adjusted annual rate of 315,000.

10:35 AM
EIA Petroleum Status Report: The Energy Information Administration (EIA) provides weekly information on petroleum inventories in the U.S. As oil prices have ticked up as OPEC continues production cuts to meet its quota, it will be interesting to see if demand has continued to taper off as well. The FOMC decision of quantitative easing has sent oil well north of $50 as the dollar falls in the open market.

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