Stocks Poised to Build on Thursday's Gains

By FOXBusiness

Morning Business Outlook: 12/16

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Morning Business Outlook: 12/16

Amazon claims at least one million Kindle sales per week

Stocks are going to try to make it two days of gains in a row. Stock index futures in the U.S. are indicating a higher open on Friday.  

Stocks reversed a three-day losing streak Thursday. The Dow Jones

Consumer Price Inflation is on tap for Friday morning.  After falling slightly in October, investors are looking for a slight tick upward in November to 0.1%. At the so-called "core" rate -- which excludes volatile food and energy  -- prices are also expected to rise a modest 0.1%.  

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CPI is important because it measures inflation.  The Fed's two rounds of quantitative easing were criticized for debasing the value of the U.S. dollar and stoking inflation.  The latest inflation reports suggest that that has not happened.  Earlier this week, the dollar rose to the highest level in a year versus the euro.

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Financials are expected to be in the spotlight. Fitch has downgraded eight of the biggest banks in the world citing "increased challenges" in Europe and the U.S.  

Fitch also says that there are only eight banks that are candidates for government support -- meaning they're "too big to fail."  Those include: Morgan StanleyGoldman SachsBank of New YorkJP Morgan ChaseWells Fargo

The financial sector is often viewed as a proxy for the overall market.  In many recent days, stock indices have been seen to move following the lead of the financials.

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Research in Motionblackberry

Investors are growing frustrated, especially after RIM said its new phones -- deemed critical to its future following massive BlackBerry outages and competition from Google

To appease growing anxiety over the company's performance, its co-CEOs said they're cutting their salaries to $1 a year effectively immediately.

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The NasdaqZyngaFacebook

While luxury retailer Kors, named after iconic designer Michael Kors, also raised about $1 billion in its offering Thursday, not all analysts are convinced the IPO market is hot.

In a FOX Business interview with Kathleen Smith, a principal at Renaissance Capital, a research firm specializing in IPOs

Smith adds that "IPO investors and investors in general are discounting the future.  There is a concern over...what overall economic growth will be."  She notes the European debt crisis is spooking investors in the U.S., but also in Asia.  

The IPO of Renren, dubbed "the Chinese Facebook," has been disappointing.  It went public in May and since then, shares are down 75% from its strike price.

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Speaking of the Internet, if you are still polishing off your holiday gift lists, "Free Shipping Friday" might be your incentive.  More than 2,300 retailers have signed up for the made-up holiday at www.freeshippingday.com

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