Stocks look to open flat

NEW YORK (CNNMoney.com) -- Stocks were set to open little changed Friday as investors appeared to take a wait-and-see attitude toward the markets during "quadruple witching," a day when four key types of stock contracts all expire simultaneously and can increase market volatility.

Dow Jones industrial average (INDU) and S&P 500 (SPX) futures were both down less than 0.1% and Nasdaq (COMP) futures were up less than 0.1%. Futures measure current index values against perceived future performance.

Overall, the major indexes are higher for the week going into the final session. The Dow and S&P are up more than 2% so far, while the Nasdaq has gained nearly 3%.

There are no major market-moving economic reports on the agenda for Friday. But Mark Luschini, a chief investment strategist with Janney Montgomery Scott, said he expects stocks to trend upward during the day, carrying over from this week's overall gains.

That said, Friday's trading session is also likely to be more volatile than usual due to quadruple witching, Luschini said.

The term refers to the phenomenon that takes place four times a year when several derivatives contracts expire at the same time -- those tied to market index futures, market index options, stock options and stock futures.

"Traders will be realigning their books and stepping into bullish or bearish opinions. In doing so, they bring a bit more choppiness to the session," Luschini said.

On Thursday, stocks recovered from early losses to close higher as a rally in commodity and consumer shares offset a batch of mixed economic reports. Investors also welcomed positive developments out of Europe, where an auction of Spanish bonds received strong demand.

Next week brings reports on gross domestic product, housing and durable goods. In addition, the Federal Reserve's Open Market Committee will hold a two-day policy meeting, with an announcement about interest rates due on Wednesday.

BP oil spill: After rallying more than 5% before the bell Friday, shares of BP (BP) pared those gains once Moody's Investors Service downgraded the oil giant's corporate bonds by three notches. The debt is still investment grade, however.

Earlier this week, BP said it was canceling its quarterly dividend and establishing a $20 billion fund to cover damages related to the Gulf oil spill.

When BP's chief executive Tony Hayward testified on Capitol Hill Thursday, lawmakers accused him of not cooperating with an investigation into the Gulf of Mexico oil spill.

Economy: The Labor Department will release a report on state unemployment levels at 10 a.m. ET.

World markets: European shares seesawed between minor losses and gains in early trading. At around 7:55 a.m. ET, Britain's FTSE 100 and Germany's DAX were both up slightly, but the CAC 40 in France was down.

In Asia, Japan's Nikkei ended down a few points, but Hong Kong's Hang Seng finished with a gain of 0.7%.

Dollar and commodities: The dollar inched up against the euro and British pound but was slightly down against the Japanese yen.

U.S. light crude oil for July delivery dipped 96 cents to $75.83 a barrel.

COMEX gold's August contract rose $8.70 to $1,257.40 per ounce. Gold closed Thursday at a record high of $1,248.20 per ounce.

Bonds: Treasury prices inched up, as the 10-year note's yield fell to 3.19% from 3.20% the day before. Bond prices and yields move in opposite directions.