U.S. stock futures drifted lower Friday as investors focused their gaze on Citigroup, which received its third rescue package from the government, as well as health-care stocks on concerns over government spending. S&P 500 futures slipped 3.9 points to 748.10 and Nasdaq 100 futures fell 5.75 points to 1,126.50. Dow industrial futures slipped 28 points. U.S. stocks moved lower on Thursday, as health-sector stocks dropped in wake of President Obama's move toward health-care reform, which helped offset advances in the banking sector. The Dow Jones Industrial Average fell 88 points, the S&P 500 lost 12 points and the Nasdaq Composite fell 33 points. The Dow industrials is down over 2% this week. "Friday's session could prove to finally show which side of the fence sentiment is lying on," said Chris Hossain, senior sales manager at ODL Securities in London. Health-care stocks continued to see pressure, with Merck and AstraZeneca trading lower in pre-market action. Citigroup and the U.S. government reached a deal in which the U.S. government will convert up to $25 billion of preference shares into common equity. The deal could take U.S. government ownership up to 36%, and existing shareholders would own 26%. Existing preference holders like the Government of Singapore Investment Corp. and Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud will also convert preference share into common stock. In pre-open deals, Citi shares rose 4.1% to $2.56. It's a busy day on the economic front, with the first revision to fourth-quarter GDP, a Chicago-area manufacturing survey and a second look at February's consumer confidence due for release. The dollar dropped sharply vs. the Japanese yen, and gold futures edged up about $7 an ounce. Oil futures fell $1.31 a barrel. Dell may be active after the computer maker reported a worse-than-forecast 48% fourth-quarter profit drop. After pressure through the week, Dell shares rose 2% in pre-open trade. Gap also may attract attention after reporting a 12% profit fall. "Gap is doing the right things in the current environment by cutting costs, reducing inventories, and closing stores," said analysts at Jefferies & Co. Overseas, a package of $31.2 billion in aid was announced by the World Bank, the European Bank for Reconstruction and Development and the European Investment Bank to support Eastern Europe's bank sector. Separately, Erste Bank is raising as much as $3.4 billion from Austria's government and existing shareholders. Lloyds Banking Group meanwhile plunged 20% in London trade as it didn't ink an agreement with the British government to insure assets. Lloyds stock had surged in the prior session after the Royal Bank of Scotland did reach such a deal. The Nikkei 225 ended 1.5% higher in Tokyo, while the FTSE 100 fell 2.2% in London.

Source