Early indications suggest that Wall Street stocks may open Friday's session on a nervous note, as the Greek debt impasse continues. After failing to reach an agreement, Greece and its creditors are set to meet yet again on Saturday to negotiate an agreement. Having rejected a new reform proposal from Greece, the Eurogroup seems to have tabled counter proposals and is coaxing Greece to accept those. The mood across the Atlantic has turned jittery. The dollar is mixed and most commodities are higher, although crude oil futures are modestly lower.
At 6:15 am ET, the Dow futures are declining 1.50 points, the S&P 500 futures are moving down 1.50 points and the Nasdaq 100 futures are receding 6.25 points.
U.S. stocks retreated on Thursday, extending losses for the second straight session, as the stalemate on the Greek debt talks weighed down on the averages.
On the economic front, the University of Michigan will release its final U.S. consumer sentiment index for June at 10 am ET. Economists expect the index to rise to 94.6 in June from 90.7 in May, unrevised from the preliminary estimate released in mid-June.
Kansas City Federal Reserve Bank President Esther George is scheduled to speak on the payments system in Kansas City, Missouri at 12:45 pm ET.
In corporate news, Nike (NKE) reported fourth quarter earnings and revenues that exceeded estimates. The company also said worldwide futures orders for delivery from June through November 2015 were up 2 percent year-over-year at $13.5 billion. The growth was a steeper 13 percent on a currency neutral basis.
Micron (MU) reported third quarter adjusted earnings that trailed estimates and its revenues also missed expectations. The company's fourth quarter revenue guidance was also weak. Potash Corp. of Saskatchewan (POT) confirmed that it has made a private proposal to acquire Germany's K+S.
The major Asian averages retreated, as Greek worries intensified. The Chinese market led the slide, with its key average, the Shanghai Composite Index slumping over 7 percent. On the other hand, the New Zealand and South Korean markets bucked the downtrend with modest gains.
The Japanese market succumbed to the strength of the yen, which gained ground on rising risk aversion. The Nikkei 225 average languished below the unchanged for much of the session before ending down 65.25 points or 0.31 percent at 20,706.
Oil, real estate, food, mining, pharma and export stocks were among the worst performers of the session. On the other hand, paper, chemical, telecom and financial stocks gained ground.
Australia's All Ordinaries fell sharply in early trading and then moved sideways at lower levels. The index closed 83.80 points or 1.49 percent lower at 5,536. A majority of sectors came under selling pressure, with energy, utility, industrial, material and real estate stocks among the worst decliners of the session.
China's Shanghai Composite plummeted 334.91 points or 7.40 percent before closing at 4,193 and Hong Kong's Hang Seng Index ended at 26,664, down 481.88 points or 1.78 percent.
On the economic front, a trio of reports released by the Japanese Ministry of International Affairs and Communications showed fairly positive results. Annual consumer price inflation slowed to 0.5 percent in May from 0.6 percent in April. Economists expected a tamer inflation rate of 0.4 percent. Core consumer prices were up 0.1 percent. Meanwhile, core consumer prices for the Tokyo region, considered a precursor for the whole of Japan, rose 0.1 percent year-over-year in June, in line with estimate, but slower than the 0.2 percent rate in May.
The jobless rate for Japan remained unchanged at 3.3 percent in May, in line with estimates. Meanwhile, household spending rose 4.8 percent year-over-year in May, ahead of the 3.6 percent increase expected by economists. Average income per household rose 1.5 percent compared to a 7.5 percent increase in the average consumption expenditure per household.
European stocks opened lower and have been languishing in the red, as the Greek debt talks have been pushed ahead to Saturday.
If Greece and its creditors agree something by Saturday or Sunday, the Greek and German parliaments need to ratify the package before it can be implemented. The situation remains critical, as Greece needs to unlock the last 7.2 billion euros of its EU-IMF bailout in order to pay a loan installment to the IMF on June 30. Greece's current EU bailout also expires on Tuesday.
In corporate news, U.K.'s Tesco reported a small decline in group sales, excluding fuel and VAT, for the first quarter, although the decline was less than expected.
On the economic front, a report released by the German Federal Statistical Office showed that import price in Germany fell 0.8 percent year-over-year in May compared to the 0.6 percent decline in April and the 0.4 percent decline expected by economists. Import prices have been declining since January 2013. On the other hand, export prices rose 1.4 percent, slower than the 1.6 percent increase in April.
Money supply growth in the eurozone slowed unexpectedly in May and loans to the private sector increased, the European Central Bank reported. TheM3 money supply advanced 5 percent year-over-year, slower than the 5.3 percent growth seen in April. It was expected to improve to 5.4 percent.
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