Stock Futures Mixed at End of Rough Week

U.S. stock futures were mixed on the final day of a difficult week, with Dow industrials component American International Group likely to get a boost from its new payout policy but computer maker Dell likely to struggle on its downbeat outlook.

S&P 500 futures were down just 0.4 of a point at 1,404.50 and Dow industrial futures were off just 3 points, while Nasdaq 100 futures dropped 3.75 points at 1,754.00.

U.S. stock markets declined Thursday, but were well off session lows, with manufacturing sentiment data helping to steady nerves about the broader economy. The Dow industrials dropped 34 points, the Nasdaq Composite lost 11.9 points and the S&P 500 fell 3.6 points.

Markets have seen a turbulent week amid concerns over a wide range of issues, from the Chinese stock market to the U.S. subprime mortgage market.

International stock markets also saw a mixed picture on Friday. The Shanghai Composite rose 1.2 percent and the Hang Seng rose in Hong Kong, while the Nikkei 225 dropped 1.4 percent in Tokyo. European stock markets wobbled between positive and negative territory.

The dollar fell modestly against the yen, off 0.2 percent at 117.54 yen. The yen’s recent strength has been a concern to stock market investors, as many hedge funds borrow in yen to fund trades made elsewhere in the world. Should the yen appreciate too rapidly, the "carry trade" could unwind.

The key economic indicator on Friday is the final release of the University of Michigan consumer confidence poll for February, due out about half-hour into trading. St. Louis Fed President William Poole will be speaking about energy prices and the economy.

Oil futures rose 20 cents to $62.20 a barrel, while gold futures rose $1.50 to $666.60 an ounce.

Of companies in focus, Dell Inc. shares dropped 2.7 percent in Frankfurt after reporting a 33 percent profit decline on a worse-than-forecast revenue decline. Dell said in a statement that its earnings and gross margins would be under pressure for several quarters as it implements restructuring efforts, and it didn’t give any exact earnings or revenue forecasts.

Novell Inc. dropped 4 percent in overseas trading after surprisingly swinging to a quarterly loss and reporting a 5 percent revenue decline.

Insurance giant American International Group Inc., on the other hand, rose 1 percent after reporting a jump in net income and a big share buyback and dividend plan. The buyback plan will allow AIG to repurchase up to $8 billion in stock, and the insurer plans to buy back $5 billion worth in 2007. As part of the new dividend policy, AIG will lift its common stock dividend by roughly 20 percent a year, under "normal" circumstances, the company added.

Gap Inc. reported a 35 percent profit decline after a year of sales turmoil and executive shake-ups and lowered its forecast.

Immersion Corp. is due to soar after the maker of touch sensation technology settled a patent dispute with Sony in a deal that will have its products used in PlayStation products.

Zurich Financial agreed to buy Bristol West Holdings Inc. for $712 million in cash, or $22.50 a share, which is a 39 percent premium to Thursday’s close.