Market Summary

The blue chips made it 6 losses out of 9 on Thursday, as stocks gave up modest early gains in futures trading to turn hard to the negative. The Dow fell 115.70, or 1.1 percent, to 10,120.46. The Standard & Poor’s 500 index fell 12.97, or 1.2 percent, to 1,084.53, with the broad benchmark now down 2.7 percent for the month. The tech heavy Nasdaq was the hardest hit, falling 42.41, or 1.9 percent, to 2,179.00. A weaker outlook from technology maker Qualcomm Inc (QCOM) dragged the sector lower. The Russell 2000 index of smaller companies fell 10.45, or 1.7 percent, to 607.93.

Morning Outlook

After a sharp decline on Thursday, Wall Street is pointing to a higher opening Friday. Dow Jones industrial average futures rose 27, or 0.3 percent, to 10,089. Standard & Poor’s 500 index futures gained 2.80, or 0.3 percent, to 1,082.00, while Nasdaq 100 index futures advanced 2.50, or 0.1 percent, to 1,773.00.

Traders are awaiting preliminary numbers on fourth quarter GDP, while Ben Bernanke was reappointed to a second term helming the Fed. Markets have been hammered over the past two weeks, and today’s GDP data better meet expectations.

Currencies and Commodities

The dollar rose 0.3114% at 90.20 yen in the currency market. The euro depreciated 0.0927% to $1.3958 while the pound dropped 0.0801% to $1.6125. Gold rose 50 cents to $1085.30 an ounce, while silver climbed 0.60% at $16.31. The front month March contract for light, sweet crude added 16 cents to $73.80 per barrel on the NYMEX; a 0.22% advance.

Economic Calendar

8:30 AM
4th Quarter Gross Domestic Product: The market will receive initial figures for GDP in the last 3 months of 2009. Economists are looking for a 4.5 percent annual growth rate, which would be the fastest pace in nearly four years on massive government fiscal and monetary stimulus efforts. We saw a 2.2 percent final reading in Q3.

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 final reading for January is 73, up from the prior reading of 72.8. Reflecting continued concern by households over high unemployment and few signs of hiring, the index has held in a very narrow and depressed range in recent months. Based on a recent rise in initial jobless claims and even a pullback in equities, sentiment could edge back down in the final reading for January.