NEW YORK ( TheStreet) -- U.S. stock futures were pointing lower early Friday despite strong earnings reports from two of the big banks.
Speculation about a stronger than anticipated GDP report from China that failed to come to pass was overshadowing the good news from JPMorgan Chase, Wells Fargo (WFC). Instead of an upside surprise, China reported its slowest pace of economic growth in three years.
Futures for the Dow Jones Industrial Average were tumbling 68 points, or 44.6 points below fair value, at 12,882. Futures for the S&P 500 were down 7.4 points, or 4.9 points below fair value, at 1379. Futures for the Nasdaq were falling 11.3 points, or 8.9 points below fair value, at 2728.
Stocks soared Thursday as optimism about China and stimulus-friendly commentary from Federal Reserve officials revived the risk-on trade.China's first-quarter gross domestic product slowed to 8.1% from a year earlier, the slowest rate of growth in nearly three years, from 8.9% the previous quarter. That was a big miss on the 9% figure traders were passing around Thursday and put a damper on hopes that the report would offset concerns over signs of a slowing U.S. economic recovery and the stresses in Europe. The slowdown was attributed to weakness in export growth and the construction sector, while investment and domestic consumption supported growth. Commodities were sliding and the 10-year Treasury was climbing after the report. May oil futures were down 40 cents to $103.24 a barrel, while June gold futures were losing $6.30 at $1,674.30 an ounce. The benchmark 10-year Treasury was up 10/32, diluting the yield to 2%, while the U.S. dollar index advanced 0.2%. North Korea's launch of a long-range rocket was adding to the edginess of the markets. The rocket exploded as it took off and failed to deliver a satellite into orbit. London's FTSE was falling 0.4% and Germany's DAX was giving up 0.7%. In Asia, however, Japan's Nikkei Average settled 1.2% higher and Hong Kong's Hang Seng index closed up 1.8% despite the disappointing China GDP data, with those markets focusing instead on the country's surging bank lending figures.
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