NEW YORK (CNN/Money) - Stocks headed for a weak open Friday, as investors found disappointment in a profit posting from Oracle and a weaker-than-expected report on retail sales before the start of trading.

Just after 8:30 a.m. ET, futures pointed to a flat to lower start for the major indexes.

Before the bell, Oracle posted fiscal first-quarter earnings of 8 cents a share, in line with analysts' average estimate, according to Briefing.com, and up a penny from the same quarter last year. But the company said its new software license sales slipped 7 percent, to $525 million, in the quarter.

Oracle's comments will be carefully monitored for signs of strength in the software sector and for indications of a change in the company's hostile bid for rival PeopleSoft (PSFT: Research, Estimates). Among U.S. stocks trading in Europe, Oracle (ORCL: Research, Estimates) shares fell 5.2 percent in pre-market trading on Instinet.

Also on the tech front, Credit Suisse First Boston raised its target price on Cisco (CSCO: Research, Estimates) to $24 from $20 a share, saying there's a higher probability it can hit the upper end of CSFB's earnings per-share-estimate sometime in 2004 or 2005. Shares of Cisco tipped higher in pre-market trading.

Meanwhile, Merrill Lynch upgraded Qualcomm (QCOM: Research, Estimates) to "buy" from "neutral." Shares of the company jumped 2.7 percent ion Instinet.

Tech stocks have been the newsmakers this week, driving the Nasdaq composite index in both directions. Thursday the direction was up, by a solid 1.2 percent, after software maker Adobe Systems' better-than-expected earnings. The Nasdaq needs to gain a little more than 12 points Friday to finish the week higher.

The Dow Jones industrial average was a more moderate 0.4 percent higher Thursday. The Dow is about 43-1/2 points in the hole going into the week's final session.

Investors also will be eyeing several economic reports

Before the opening bell, the government said retail sales rose 0.6 percent in August, after a 1.3 percent rise in the prior month but missing economists' forecasted jump of 1.5 percent, according to a survey by Briefing.com.

Separately, the government said producer prices, a measure of inflation on the wholesale level, rose 0.4 percent in August after a 0.1 percent climb in July. Economists had expected a rise of 0.3 percent. Excluding often volatile food and energy prices, the prices rose 0.1 percent, in line with analysts' average estimate and down from 0.2 percent in the prior month.

Shortly after the markets' open, the University of Michigan's preliminary consumer sentiment report for September is also due. The index is expected to rise to 90.4 from 89.3 in August.

Stocks have soared this year on hopes for an economic recovery in the second half of 2003, and investors continue to look for signals of a reviving economy. But in recent weeks investors have been disappointed by reports showing that the labor market continues to lose jobs, a key aspect of an economic recovery.

Traders have said that investors are particularly looking for signs of hiring as well as business and consumer spending. Today's retail sales report, particularly, will be watched closely to get a reading on consumers.

Asian-Pacific stocks ended higher Friday, with Tokyo's Nikkei driven up 1.6 percent by strength in automakers. European markets were mostly higher in afternoon trading there. (Check the latest on world markets.)

Treasury prices were higher, with the 10-year note yield down to 4.28 percent from 4.31 percent late Thursday. The dollar turned weaker against the euro and the yen.

Brent oil futures advanced 2 cents, to $26.90 a barrel in London, where gold was higher.

Among the other stocks to watch Friday is Dow component Walt Disney (DIS: Research, Estimates). The sudden death of comic actor John Ritter comes as a blow to the media company, on whose ABC network Ritter's hit show "8 Simple Rules for Dating My Teenage Daughter" aired. Ritter was 54. Disney shares rose 8 cents, to $20.68, Thursday,