U.S. Stocks Open Mixed, With Early Data Offsetting Unease

NEW YORK (MarketWatch) - U.S. stocks on Friday opened mixed, with positive economic data offering some appeasement to underlying worries about where the economy is headed.

"The friendly inflation data should provide some support to Treasuries, while the solid consumption gain should also support equities and the dollar," said analysts at Action Economics.

Ahead of the open, the Commerce Department reported the largest monthly increase in consumer spending in two years, with core inflation retreating the most in three years. .

The Dow Jones Industrial Average were down 5.8 points at 13,907.2.

S&P 500 futures fell 0.65 points to 1,530.73 and the Nasdaq Composite climbed 2.66 points to 2,712.25.

Data scheduled for release after the opening bell include readings on consumer spending, the Chicago purchasing managers' index and a poll on consumer sentiment.

Crude oil edged higher, with the November contract up 17 cents at $83.05.

The day also brings speeches from Federal Reserve officials, with Atlanta Federal Reserve President Dennis Lockhart and St. Louis Federal Reserve President William Poole among those speaking.

Alan Greenspan also helped rattle investor nerves in telling the BBC in an interview Friday that he's increasingly pessimistic about the global economy, although still believes chances of a recession remain less than 50-50.

Also casting a more bearish view was Goldman Sachs' chief economist Jim O'Neill, who wrote in a note that signs of weakness have emerged in the U.S. labor market. Chances of Japan lapsing into an outright recession have climbed to two in three, O'Neill said.

In broker news, Deutsche Bank upgraded Luminent Mortgage Cap Inc. to hold from sell, saying the company's portfolio is showing signs of stabilization.

On the earnings front, Accenture Ltd reported an 8.6% decline in fourth-quarter profits, but still beat street expectations.

Engineering construction firm Shaw Group Inc. said it tallied second-quarter net losses of $62.6 million, or 78 cents a share, from net income of $21.8 million, or 26 cents a share, a year ago.

Gold futures rose sharply in early trade, buoyed by the dollar's plunge to the latest in a dramatic string of all-time lows set against the euro. Gold futures for December delivery climbed $10.70 to $750.6 an ounce. .

By Kate Gibson