U.S. stock futures point to pull back from record highs, GDP on tap
Wall Street futures pointed to a slightly lower open after the and closed at record highs a day earlier, while investors looked ahead to a long holiday weekend and waited for economic reports set for release ahead of the open.
The blue-chip slipped 19 points, or 0.09%, at 6:57AM ET (10:57GMT), the gave up 3 points, or 0.11%, while the tech-heavy dipped 4 points, or 0.07%.
Before traders head out for a three-day weekend with Wall Street closed next Monday for Memorial Day, futures slipped as stocks faced record highs and market players waited for a revised reading of first quarter gross domestic product (GDP), along with a gauge for factory activity at the start of the second quarter.
The U.S. is to release at 12:30GMT Friday. The data is expected to show that the economy grew at a 0.9% annual rate in the first three months of the year, upwardly revised from a preliminary estimate of 0.7%.
However, markets may well focus more on the release of for April. The headline number is expected to decline by 1.2%, while the is expected to rise 0.5%.
Also on tap, the University of Michigan will provide an updated version of its May with a small downward revision to 97.5 forecast.
While waiting for the data, the on Friday.
With no Federal Reserve (Fed) officials on tap for Friday’s session, St. Louis Fed president said after the previous U.S. market close that the trend in inflation since 2012 has .
According to Investing.com's , markets were currently pricing in the odds a June rate hike at around 78%, but put the possibility of a second increase by the end of the year at only 33%.
Market players may also keep an eye on U.S. President Donald Trump’s meeting with the group of 7.
Trump tweeted early Friday that his first official trip outside of the U.S. had been “successful” so far.
“We made and saved the USA many billions of dollars and millions of jobs,” he proclaimed.
He further promised to “engage G7 leaders on many issues including economic growth, terrorism, and security.”
In a light day for company news, Big Lots reported earnings-per-share of $1.15, beating forecasts by $0.16, although revenue came in under expectations.
Meanwhile, after the prior session as the decision by major oil producers to without an increase in levels disappointed markets.
gained 0.29% to $49.04 at 10:57GMT, while traded up 0.39% to $51.66.
Investors also looked ahead to latest weekly data from Baker Hughes on U.S. drilling activity. Last week, the energy services provider said that the U.S. , increasing by 8 to and extending an 11-month drilling recovery to the highest level since April 2015.
Elsewhere, sterling was under selling pressure on Friday as a YouGov poll showed that the Conservative Party’s lead over the Labour Party in the June 8 snap elections narrowed to just 5 points. Concern over a hung Parliament, took to a two-week low on Friday, while the pound also hit a two-month low against the .
The drop is sterling allowed London's to outperform other , that were broadly lower, as British exporters benefit when bringing profit back home.
Earlier, Asian shares pulled back from two-year highs with China's ending near the unchanged mark. Japan's closed down 0.61% as in April and the dollar weakened against the .
Patrick Shmidt analyst Vertical Markets