U.S. stocks are expected to open lower Friday, taking a breather after this week’s rally.

In today’s economic news, U.S. consumers spent at a slower rate in February as their incomes fell and they saved money to cushion against the recession.

Personal consumption rose 0.2% and personal income fell 0.2%. Personal saving as a percentage of disposable income was 4.2%, the Commerce Department said. It was 4.4% in January.

Later today, U.S. President Barack Obama is meeting with senior executives from the largest U.S. banks and Wall Street firms.

Here at home, the Canadian dollar opened at US81.06¢, down 0.31 of a cent from Thursday’s close.

In earnings news, U.S. home builder KB Home said its fiscal first-quarter loss narrowed sharply amid fewer write-downs. The company reported a 26% rise in net orders amid a big drop in cancellations.

In Canadian earnings news, Magellan Aerospace Corp. said it may be unable to continue as a going concern despite erasing losses in both the full year and fiscal fourth quarter of 2008.

The Toronto-based company reported net income of $7.4 million, or 39¢ a share, for the quarter ended Dec. 31, 2008, reversing a year-earlier loss of $4.9 million, or 29¢ a share.

In commodities news, crude oil fell 91¢ to US$53.43 a barrel in electronic trading on the New York Mercantile Exchange.

Overseas, Japan’s Nikkei stock average fell 0.1%. In midday trading, Britain’s FTSE 100 rose 0.4%, Germany’s DAX index fell 0.1%, and France’s CAC-40 fell 0.3%.

Toronto stocks advanced Thursday after two days of losses as energy issues rose in tandem with oil prices.

The S&P/TSX composite index jumped 198.06 points, or 2.25%, to finish at 8,995.50,

The benchmark index is now up by about 0.1% for the year, after being under water since January.

The junior S&P/TSX Venture composite index rose 24.98 points, or 2.63%, to 974.02.

In New York, U.S. stocks rallied for a second straight session after the government reported economic data that was less dire than expected.

Final fourth-quarter GDP numbers, weekly jobless claims data released Thursday were roughly in line with Wall Street’s expectations.

The Dow Jones industrial average jumped 174.75 points, or 2.25%, to 7,924.56. The S&P 500 rose 18.98 points, or 2.33%, to 832.86.

The Nasdaq composite index surged 58.05 points, or 3.80%, to 1,587.00, taking it back into positive territory for the year.

IE