Posted By: Eugene Taylor

By Ellis MnyanduFri Nov 10, 9:13 AM ET

NEW YORK (Reuters) - Stock futures pointed to a flat start
on Wall Street on Friday as news China was looking to diversify
its trillion-dollar currency reserves offset a drop in oil
prices and a major contract for Boeing Co. (NYSE:BA - news).
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The Chinese reserves plan hit the dollar (^DXY - news) and raised
the possibility that investors may shy away from U.S. assets.

In addition, Bank of China Governor Zhou Xiaochuan said the
Chinese economy was already showing signs of slowing.

"When you look at an investor base as large as China saying
they're going to pare back any U.S. investments, it causes some
concerns," said Arthur Hogan, chief market analyst, Jefferies &
Co. in Boston.

U.S. crude for December delivery dropped 54 cents to $60.62
a barrel in electronic trade after the International Energy
Agency cut its outlook for 2006 global oil demand.

S&P 500 futures rose 0.9 points, above fair value, a
formula that evaluates pricing by taking into account interest
rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures were up 1 point
and Nasdaq 100 futures slipped 0.25 point.

Investors could draw comfort from news Boeing (BA.N), a Dow
component, won a U.S. Air Force helicopter contract valued at
$15 billion through 2019. Before the bell, Boeing shares jumped
1.5 percent to $86.40 in electronic trading.

Walt Disney Co. (NYSE:DIS - news), however, could also prompt some
caution a day after the No. 2 U.S. entertainment company, also
in the Dow, posted a stronger-than-expected quarterly profit
but fueled concerns about sustainability of earnings growth.

Disney shares slipped 2.6 percent before the bell to
$32.70.

The dollar hit 2-1/2-month lows against the euro and an
18-month low against sterling after more talk from China's
central bank chief that the bank is looking to diversify its
trillion-dollar currency reserves.

With the bulk of the People's Bank of China's reserves
thought to be in dollar-denominated assets, many interpreted
Governor Zhou's comments as meaning China might buy fewer
dollars or trim current dollar holdings.

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