U.S. stocks began 2009 mildly higher with investors attempting to toss aside one of the worst years on record while awaiting a reading on manufacturing activity and watching the price of crude fall.

U.S. stock market futures point slightly lower Friday ahead of the first trading session of 2009, with a sharp drop in oil prices in focus and data on manufacturing activity due after the market opens.

Russia has sent its assurances to several European Union countries that they wonâ??t face any disruption in natural-gas supplies amid a dispute over unpaid bills and pricing to the Ukraine.

TEL AVIV (MarketWatch) -- Among the companies whose shares are expected to see active trade in Friday's session are Abigail Adams National Bancorp, Citigroup, Gazprom, Janus, Microsoft and Walter Industries.

U.S. stock market futures are mixed ahead of the first trading session of 2009 as investors eye a sharp drop in crude-oil prices and look ahead to a reading on manufacturing activity.

Filed under: Analyst upgrades and downgrades

MOST NOTEWORTHY: Oil and gas explorers and producers, GSI Commerce and Gazprom Neft were today's noteworthy downgrades:

• Credit Suisse downgraded Devon Energy (NYSE:DVN) and Forest Oil (NYSE:FST) to Neutral from Outperform following a reduction in the firm's 2008 natural gas outlook.
  
• Jefferies downgraded shares of GSI Commerce (NASDAQ:GSIC) to Hold from Buy as they have become more cautious on margins given the company's increasingly heavy online discounting through this holiday season.
  
• Gazprom Neft (OTC:GZPFY) was downgraded to Sell from Hold at Deutsche Bank on valuation, as they believe the recent rally is not supported by fundamentals.

OTHER DOWNGRADES:

• Banc of America downgraded Marshall & Ilsley (MI) to Neutral from Buy.
  
• Goldman downgraded Murphy Oil (MUR) to Neutral from Buy.
  
• Mettler-Toledo (MTD) was downgraded to Neutral from Outperform at Baird.

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Filed under: Newspapers, Magazines, Walt Disney (DIS), Federal Natl Mtge (FNM), Mattel, Inc (MAT), Dow Jones and Co (DJ), First Data (FDC)

MAJOR PAPERS:

• In an effort to stem the flow of weaponry into Iraq, the Pentagon is planning to build its first base near the Iraq-Iran border, reported the Wall Street Journal (subscription required).
• Kohlberg Kravis Roberts & Co. is expected to make concessions with the investment banks putting together $24B in debt for its purchase of First Data Corporation (NYSE: FDC), something it had previously been unwilling to do, reported the Wall Street Journal.
• The Bush administration wants to limit the role of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) in the home mortgage crisis, but a number of Democrats, led by New York Senator Schumer, want to increase the authority of both firms by loosening growth constraints, and increase the size of mortgages they can buy in high cost areas, reported the Wall Street Journal.
• While the Nasdaq Stock Market Inc (NASDAQ: NDAQ) said it extended the deadline earlier this week, the "self-imposed deadline" for an LSE bid passed without a single firm bid, reported the Financial Times (subscription required).

OTHER PAPERS:

• The U.K. Times reported that Russian state-controlled energy company Gazprom (OTC: GZPFY) considered making a rival $5B offer for business news company Dow Jones and Company Inc (NYSE: DJ), according to a source.
• The New York Times reported that after three separate recalls of Mattel Inc (NYSE: MAT) toys, Disney (NYSE: DIS) said it would begin testing toys featuring Disney characters, including ones already on store shelves.

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