The major averages have moved in and out of positive territory Friday morning and are sporting modest losses midday.

GM is weighing down the Dow Jones Industrial Average. Shares of the automaker are down 20.5 percent to 89 cents per share ahead of the looming bankruptcy deadline Monday.

The day's economic news didn't help much either. A report released pre-market showed GDP falling 5.7 percent in the first quarter (below estimates of -5.5 percent). The latest Chicago Purchasing Manager's Index fell to 34.9 in May, from 40.1 (42 consensus). The U of Michigan was the bright spot, up to 68.7 in late May, up from 67.9 (68 consensus).

In the end, the day's news really didn't offer investors too many reasons to bid stocks higher heading into the weekend. The Dow is down 25 points and the NASDAQ has given up 7.

Trading has been in a narrow range so far. Consequently, the CBOE Volatility Index (.VIX) is down .51 to 31.16. Approximately 2.2 million puts and 3.1 million calls changed hands during the first two hours, a ratio of 71.

iShares Long-term Bond Fund (TLT) June 96 calls are active, as bonds rally on today's weak economic numbers. The benchmark ten-year Treasury note is up 14/32nd and yields 3.56 percent. TLT gained $1.25 to $93.05 and 10.2K June 96 calls traded so far.

Some of the gold names are seeing interest as the precious metal rallies more than $16 and moves towards $980. Call volume picked up in Gold Fields (GFI), Barrick Gold (ABX), and the SPDR Gold Trust (GLD).

GM June 1 put is the most actively traded contract for a second day. Buyers are paying 61 cents at current prices and stand to make 39 cents if the automaker falls into bankruptcy and the stock falls to zero.

iShares Emerging Markets Fund (EEM) is seeing a second day of active trading. The activity is similar to trades seen yesterday, but at different strike prices. Today, one trader bought 15000 September 29 - 23 put spreads, while selling 15,000 September 37 calls. The short calls financed the put spread and this trader came out even.

Bearish trading also picked up in Pool Corp (POOL), Arris (ARRS), and Cardionet (BEAT). Meanwhile, bullish trading surfaced in Savient (SVNT), ViroPharma (VPHM), and NVidia (NVDA).