NEW YORK (CNNMoney.com) - Investors were cheered by some tame inflation news and a retreat on oil prices Friday.

Stock futures, which were down in early trading, turned higher after a government report on personal income and spending showed less inflationary pressure in February than in the previous months' report. But the uptick in futures still only pointed to a flat open for U.S. stocks.

The report also showed income and spending gains slowing from January, as the income gain was a bit less than forecasts and the spending rise a bit stronger.

Oil fell in early trading Friday as concerns about Nigerian supplies eased.

The May light crude futures contract for NYMEX fell $1.15 to $66.21 a barrel in electronic trading, while the May contract for Brent crude rose 30 cents to $66.16.

Major markets in Asia closed mixed Friday, with Japan's Nikkei edging higher and Hong Kong's Hang Seng slipping slightly. Major European markets were down in early trading.

Treasury prices were higher, cutting the yield on the benchmark 10-year note to 4.85 percent from the nearly two-year high of 4.86 percent reached late Thursday. The dollar was higher against the euro and the yen.

Investors will also be watching developments at bankrupt auto parts maker Delphi (Research), which is threatening to ask a bankruptcy court judge to void current labor deals after failing to reach a new deal with the United Auto Workers union.

The union has threatened to strike if the contracts are voided, a move that could halt production at Delphi's former parent General Motors (Research). Some analysts fear a prolonged strike could even tip GM to follow Delphi into bankruptcy. Shares of GM were down nearly 3 percent in Frankfurt trading early Friday.

Investors will also be looking for news on a possible sale of the GM finance arm GMAC, which numerous reports say is close to being completed.

GM is seeking to sell a majority stake in its most profitable unit in an attempt to return it to an investment-grade credit rating and give it easier access to lower-cost capital. But a credit analyst at rating agency Standard & Poor's said Thursday that GMAC might retain its junk bond status if it is sold to a consortium instead of a single credit-worthy financial buyer.

Microsoft (Research) continued its legal battle against daily 2 million fines proposed by the European Commission, which accuses the software provider of not complying fully with a 2004 European antitrust decision involving its Windows operating system.

Microsoft and its competitors such as IBM (Research) and Oracle (Research) were to set to take the stand at the closed-door hearing Friday. The Wall Street Journal reported Friday that the federal government weighed in on Microsoft's behalf to say it has "substantial concern" about Europe's case. Shares of Microsoft were down slightly in Frankfurt trading Friday.

The Journal also reported that JP Morgan Chase (Research) is reportedly in discussions to acquire about 300 branches from Bank of New York (Research) in return for a portion of its corporate-trust business. There has been speculation for some time that Bank of New York is interested in pulling out of its retail banking business.

________________

For a more detailed look at the markets before the open, click here.