Stock futures point to a weak start on Wall Street Friday after a lackluster finish yesterday as investors digested a batch of mixed corporate earnings and economic reports. While the dollar found support from a higher-than-forecast increase in core inflation numbers and solid durable goods orders data, first-time unemployment benefits rose significantly last week, indicating uneven progress in the labor market.
The dollar index is on the back foot Friday, taking a breather after surging to a one-month high against a basket of currencies the previous day, supported by comments from Federal Reserve officials that bolstered the case for the Fed to raise interest rates this summer.
Investors look forward to the release of another batch of economic reports today, with a special focus on the second reading of fourth-quarter GDP data after preliminary estimates released in January showed America's growth lost momentum at the end of 2014.
A slew of reports on consumer sentiment, pending home sales and Chicago-area business activity as well as a raft of speeches by Fed officials will also give investors further clues on the economic growth outlook. Meanwhile, the Senate is scheduled to vote on a homeland security funding bill ahead of a Friday midnight deadline.
Asian stocks ended mixed as a sharp pullback in oil prices overnight and a set of disappointing data on the Japanese economy dampened investors' risk appetite. Both Brent and U.S. crude prices are currently up more than 2 percent following Thursday's sharp pullback, while gold prices drifted lower.
The European markets are subdued, erasing early gains, as investors paused for breath following a two-month rally that has propelled regional indexes to 7-year highs.
On the economic front, French consumer spending grew for the third straight month in January, defying expectations for a fall, and the eurocoin indicator, which measures the current economic situation in the euro area, rose for the third successive month in February, while German import prices fell to a more than five-year low in January, separate reports showed.
German lawmakers are expected to approve a four-month extension of Greece's bailout in a parliament vote later today despite irritation among some lawmakers over recent comments by Greek officials. Parliaments in several other European countries must also accept the aid proposals before the current bailout program expires Saturday.
In domestic corporate news, technology outsourcing and consultancy company Accenture Plc. announced that it has won a public tender and signed a four-year framework agreement with the Finnish State Treasury.
Autodesk, Inc. reported better than expected fourth-quarter results, benefiting from its move to switch to a subscription-based revenue model for its computer-aided design software.
Apparel-focused retailer Gap, Inc. announced a new $1 billion share repurchase program after reporting fourth-quarter profit above Wall Street expectations.
Discount apparel and home fashion retailer Ross Stores Inc. also unveiled a $1.4 billion stock buyback program after reporting forecast-beating fourth quarter results.
Department-store operator J.C. Penney Co. reported a lower than expected adjusted profit for the holiday quarter and weight management services provider Weight Watchers International, Inc. forecast 2015 earnings well below analysts' current consensus estimate, while Wi-Fi equipment maker Aruba Networks, Inc. reported second quarter revenue and earnings above analysts' expectations.
Snack manufacturing firm Mondelez International, Inc. said that, as part of its efforts to focus its portfolio on snacking products, it has reached an agreement to sell its 50 percent interest in Ajinomoto General Foods, Inc. to its joint venture partner, Ajinomoto Co., Inc.
Vitae Pharmaceuticals Inc., a clinical stage biotechnology company, announced that its partner Boehringer Ingelheim has voluntarily placed BI 1181181, an orally-active beta secretase (BACE) inhibitor being evaluated in phase 1 clinical trials for the treatment and prevention of Alzheimer's disease, on a temporary clinical hold, and has notified regulatory agencies of its decision.
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