Stocks set to slide on new Greek worries

@CNNMoneyInvest February 10, 2012: 8:56 AM ET
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NEW YORK (CNNMoney) -- U.S. stocks were set to decline at the open Friday as investors grew concerned about the latest obstacle in Greece's ongoing debt saga.

The Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were down between 0.7% and 0.9%. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

The fresh bout of worries came after eurozone finance ministers said that the new Greek austerity deal does not go far enough. The finance ministers said they would need to see more spending cuts before signing off on a new €130 billion bailout, which is key to the debt-laden country making its payment on a €14.5 billion bond redemption next month and avoiding default.

"Despite the important progress achieved over the last days, we did not yet have all necessary elements on the table to take decisions today," said Jean-Claude Juncker, the prime minister of Luxembourg and head of the Eurogroup.

Specifically, Juncker said the reform package needs to be approved by the Greek parliament this weekend, and Greece's leaders need to pledge they'll continue to implement the measures after elections in April. He also said that Greece must cut an additional €325 million from its "structural expenditures" in 2012.

Greece: One step forward, two steps back

If Greece meets those conditions, a bailout package could be signed as early as next week, when eurozone finance ministers are due to meet again.

Meanwhile, Greece is also working to finalize a deal with its private-sector creditors to write down a portion of its debt.

U.S. stocks posted slim gains Thursday, as investors breathed a sigh of relief after Greek political parties struck a deal on the austerity measures.

World markets: European stocks were lower in afternoon trading. Britain's FTSE 100 (UKX) slipped 0.8%, the DAX (DAX) in Germany dropped 1.8% and France's CAC 40 (CAC40) fell 1.5%.

Asian markets ended mixed. The Shanghai Composite (SHCOMP) added 0.1%, while the Hang Seng (HSI) in Hong Kong shed 1.1% and Japan's Nikkei (N225) fell 0.6%.

China's trade surplus expanded in January as imports slumped 15%, sparking questions over the sustainability of China's rapid economic growth.

Economy: The December trade deficit for the U.S. expanded to $48.8 billion, from $47.1 billion the prior month.

A report on consumer sentiment is due later in the morning. In the afternoon, the Treasury Department's budget report for January will be released.

The February edition of the Michigan Consumer Sentiment Index is expected to come in at 74, down from 75 last month, while the January Treasury budget report is expected to show a deficit of $40 billion.

Companies: Alcatel-Lucent (ALU) shares spiked, after the telecom equipment maker posted an annual profit for 2011 -- its first since Alcatel and Lucent merged in 2006.

LinkedIn (LNKD) shares jumped almost 9% in premarket trading Friday, a day after the professional networking site's fourth-quarter profit surged 30% and revenue more than doubled.

Barclays (BCS) shares were also higher. The London-based bank posted an unexpected loss for the fourth quarter, but it also cut its its bonus pool by 25%. For employees at the investment bank, Barclays Capital, bonuses fell by almost a third and are capped at £65,000.

Shares of Activision Blizzard (ATVI), maker of World of Warcraft and Call of Duty, rose after the gamemaker beat fourth-quarter profit and sales estimates.

Currencies and commodities: The dollar rose against the euro, the British pound and the Japanese yen.

Oil for March delivery slipped $1.70 to $98.14 a barrel.

Gold futures for April delivery fell $32 to $1,709.20 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.98% from 2.05% late Thursday.

-- CNN's Elinda Labropoulou and Per Nyberg contributed to this report. To top of page

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