Stocks started lower Friday as the U.S. trade deficit narrowed; the world's largest insurer, AIG (AIG), reported a $7.8 billion loss; and oil once again traded at record levels.
Also, Citigroup (C) plans to sell about $500 billion of "non-core assets," about 22% of total assets, over the next several years. Chief executive Vikram Pandit says the sales will improve the quality of earnings.
The U.S. trade deficit narrowed 5.7% to $58.2 billion in March, from $61.7 billion in February. Imports fell 2.9% and exports fell 1.7%, while the trade deficit with China narrowed to $16.1 billion, from $18.4 billion the month before. "The data are better than expected and should give some support to the dollar," Action Economics says.
AIG plans to raise about $12.5 billion in capital to replenish a balance sheet damaged by the recent credit crisis. The insurance firm reported a loss of $1.41 per share, vs. earnings of $1.68 per share a year ago. Net premiums written were flat.
Worries over violence in Nigeria helped oil continue its rapid, record-breaking ascent. On the NYMEX, crude oil for June delivery was trading $1.64 higher to $125.33 per barrel.
On Friday morning, the Dow Jones industrial average was down 104.13 points, or 0.81%, to 12,762.65. The broader S&P 500 index lost 10.32 points, or 0.74%, to 1,387.36. The tech-heavy Nasdaq composite index fell 14.66 points, or 0.60%, to 2,436.58.
Among other stocks in the news Friday, Priceline.com (PCLN) posted earnings of 37 cents per share, vs. a 44-cents loss a year ago, as revenue rose 34%. Piper Jaffray analysts raised their target price for the stock.
Harris Corp. (HRS) is reportedly considering putting itself up for sale. The Wall Street Journal says the electronics and defense firm is still early in the process.
Leap Wireless International (LEAP) reported a 27-cents per share loss, vs. a 36-cents loss a year ago, as revenue rose 19%.
Major European indexes were lower Friday. In London, the FTSE 100 index lost 1.3% to 6,189.50. Paris' CAC 40 index fell 2.16% to 4,946.13, and Germany's DAX index dropped 1.3% to 6,979.80.
In Asia, Japan's Nikkei 225 lost 2.06% to 13,655.34, and Hong Kong's Hang Seng index fell 1.52% to 25,063.17.
Treasury market
Treasuries were higher Friday. The ten-year note rose 12/32 to 101-06/32 for a yield of 3.73%, and the 30-year bond was up 24/32 to 98-00/32 for a yield of 4.5%.