* Chevron warning fuels broader earnings, economic jitters
* Consumer sentiment data on tap
* Futures off: S&P 7.50 pts, Dow 62 pts, Nasdaq 7.25 pts
* For up-to-the-minute market news click []
(Writes through, adds details, quote, byline)
By Leah Schnurr
NEW YORK, July 10 (Reuters) - U.S. stock index futures
pointed to a lower open on Friday after Chevron warned about
second-quarter earnings, raising the specter of a
weaker-than-expected second-half economic recovery and anemic
corporate profits.
After the bell Thursday, Chevron Corp <CVX.N> said
second-quarter earnings would be hit by a sharp decline in U.S.
refining margins and that any benefits from higher oil prices
would be largely offset by a weaker dollar. (For details, see
[])
Stocks are likely to be pushed and pulled as major
companies release financial scorecards and investors focus on
the corporate outlook for the rest of the year. Earlier in the
week, Alcoa Inc <AA.N> posted a better-than-expected loss
Wednesday, providing short-term relief.
Optimism about a burgeoning economic recovery has propelled
the broad S&P 500 up by as much as 40 percent from March's
12-year lows, but investors are reassessing how strong a
recovery might be after the worst financial crisis since the
Great Depression.
"It's pretty clear that the green shoots thesis, which a
lot of optimists were hoping would have some sway, is a
nonstarter," said Barry Ritholtz, director of equity research
at Fusion IQ in New York.
"Now people are adapting to a more realistic view of the
economy, which is ongoing weakness for the foreseeable future
and everything that means for corporate earnings."
Economic data on tap includes the preliminary reading for
July's Reuters/University of Michigan survey of consumer
sentiment, due at 9:55 a.m. EDT (1355 GMT). The data is
expected to come in at 70.5, down from 70.8 in June, according
to the average forecast of economists polled by Reuters.
S&P 500 futures <SPc1> fell 7.50 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc1> lost 62
points, and Nasdaq 100 <NDc1> futures gave up 7.25 points.
After a whirlwind 40-day reorganization, General Motors
Corp <GMGMQ.PK> prepared to exit bankruptcy Friday, saying it
was a leaner and meaner automaker ready to win back American
consumers and pay back taxpayers. []
Ritholtz said the speed with which GM emerges from
bankruptcy could provide a viable alternative for saving
companies without taxpayer bailouts.
Technology shares may get a boost after Goldman Sachs
upgraded both the software and hardware sectors to
"attractive."
On Thursday, stocks edged higher as investors bought
beaten-down technology and commodity shares and a positive
broker comment on Goldman <GS.N> boosted the financial sector.
(Reporting by Leah Schnurr; editing by Jeffrey Benkoe)
