Futures Pointing To Modestly Lower Open On Wall Street

(RTTNews) - After moving notably lower over the course of the two previous sessions, stocks may see some further downside in early trading on Friday. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 23 points.

The continued downward momentum for the markets is partly due to concerns about the situation in Iraq, where Islamic militants have seized control of two major cities in Iraq and are on the march toward Baghdad.

While both Iran and the U.S. have indicated that they will offer aid to the Iraqi government, the escalating violence has raised concerns about crude oil supplies.

On the economic front, the Labor Department recently released a report showing an unexpected decrease in U.S. producer prices in the month of May, with the drop partly reflecting a notable decrease in prices for trade services.

The Labor Department said its producer price index for final demand dipped by 0.2 percent in May after climbing by 0.6 percent in April. Economists had expected prices to inch up by 0.1 percent.

Meanwhile, a positive reaction to upbeat guidance from semiconductor giant Intel (INTC) may help to limit any early downside for the markets.

Citing stronger than expected demand for business PCs, Intel said it now expects second quarter revenues of $13.7 billion, plus or minus $300 million, up from its previous guidance of $13 billion, plus or minus $500 million.