Source: The Canadian Press

North American stock markets appear set to open lower after a batch of disappointing earnings reports out of the United States offset good news from General Electric and BP.

Google Inc.’s second-quarter profit of US$1.84 billion missed analysts’ expectations due to higher expenses and currency-related fallout from the European debt crisis. The Internet search leader gets about one-third of its revenue from Europe.

And Citigroup’s net income dropped 10% to US$2.7 billion even as its loan losses fell. Citi, like the other U.S. banks, also had a decline in trading revenue because of the stock market’s plunge this spring.

Stock futures in New York traded lower ahead of the opening bell, indicating that those weak results will offset upbeat earnings from General Electric, which posted its first quarterly profit gain since late 2007.

On Thursday, the Toronto stock market closed higher Thursday as good news on BP’s oil spill in the Gulf of Mexico and talk of a settlement between Goldman Sachs and U.S. regulators sparked buying in the final minutes of the session

The S&P/TSX composite index had been flat most of the day on weak U.S. and Chinese economic data. But it closed up 121.61 points at 11,741.77 after BP said late in the afternoon that oil from its broken well has stopped gushing into the Gulf of Mexico for the first time since April.

Stocks also rallied after Goldman Sachs & Co. agreed to pay US$550 million to settle civil fraud charges that the Wall Street giant misled buyers of mortgage-related investments.

The August crude contract on the New York Mercantile Exchange slipped nine cents to US$76.53 a barrel. Oil has traded around $77 this week as mixed signals from second-quarter U.S. corporate earnings reports and economic indicators suggest an uneven recovery.

The August bullion contract on the Nymex fell $3.80 to US$1,204.50 an ounce.

The Canadian dollar was down 0.49 cent at 95.77 cents US.

In economic news, U.S. consumer prices fell for the third straight month, providing some bargains to American shoppers.

The Consumer Price Index, the government’s most closely watch inflation barometer, dipped 0.1% in June. Less expensive energy bills were a big factor behind the drop. Prices for some food items and airlines fares also fell last month, but so-called “core” consumer prices, which strip out volatile energy and food, rose 0.2% in June.

In Canadian corporate news, Quadra FNX Mining Ltd. (TSX:QUX) has increased its equity stake in Gold Wheaton Gold Corp (TSX:GLW) to 34.5%.