U.S. stock futures drifted lower on Friday, with fresh bear-market lows seen on tap ahead of what could be the worst monthly employment in nearly 60 years. S&P 500 futures fell 2.7 points to 683.40 and Nasdaq 100 futures dropped 7.25 points to 1,075.70. Dow industrial futures dropped 31 points. U.S. stocks got walloped on Thursday, with Citigroup dropping during part of the day below $1 for the first time in its history on concerns the government will take a still greater stake in the bank that used to be the world's largest. Disappointment that China didn't announce a new stimulus plan also hit markets. The Dow Jones Industrial Average dropped 281 points, the S&P 500 fell 30 points and the Nasdaq Composite fell 54 points. There are many who think further losses could come. "There is likely to be one further major downturn in global equities before the focus turns to the prospect of economic recovery in 2010 -- provided next month's G20 achieves agreement on the need to minimize the introduction of protective tariffs," said economists from the Bank of Ireland. The Labor Department will release its latest snapshot of the job market on Friday at 8:30 a.m. Eastern. Economists are predicting nonfarm payrolls fell by 650,000 in February, the largest one-month job loss in almost 60 years, and the unemployment rate may reach 8%. The question, then, will be how the market reacts. RDQ Economics analysts say a figure that's not as bad as forecast may have greater impact than one which is worse than estimates. "However, 'less weak' data may be quickly discounted as an anomaly," they pointed out. Consumer credit data and a pair of speeches from Federal Reserve presidents also will be on the docket. "On a three-month moving average, consumer credit is falling the most since the early 1990s," noted economists at Barclays Capital. "The incredibly tight credit conditions suggest an even bigger contraction ahead." The dollar lost ground vs. rivals, notably the Japanese yen which rallied 1.4%. Gold futures rose about $12 an ounce, and oil futures also rose. Overseas stock markets were mixed, with the Nikkei 225 sliding 3.5% in Tokyo while the FTSE 100 advanced 0.4% in London. Of stocks in the spotlight, Marvell Technology may rise as the company's fourth-quarter results were better than forecast and the chipmaker outlined plans to cut 15% of its workforce. H&R Block and Ann Taylor Stores highlight a thin earnings release calendar.

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