This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Stock Futures Mixed After Tepid GDP Report

Stocks in this article: SBUXAMZNEXPEF


NEW YORK ( TheStreet) -- Stock futures were pointing to a mixed open early Friday after an advance read on first-quarter gross domestic product came in weaker than expected.

Futures for the Dow Jones Industrial Average up 8 points, or 11 points below fair value, at 13,168. Futures for the S&P 500 were up less than a point at 1400, and futures for the Nasdaq were ticking nearly 11 points higher, or slightly below fair value, at 2731.

The major U.S. equity indices finished with respectable gains on Thursday as data showing progress in the housing market offset a handful of high-profile earnings misses and another disappointing read on weekly initial jobless claims. The Dow gained for a third straight session Thursday.

On Friday, the Department of Commerce reported a disappointing advance gross domestic product growth estimate of 2.2% for the first quarter, a slip from the 3% expansion reported for the fourth quarter. Economists polled by Thomson Reuters, on average, expected growth of 2.5%. P/>Still, the disappointing numbers may fueled hopes that Federal Reserve Chairman Ben Bernanke has more ammunition to push for another round of quantitative easing.

The final University of Michigan read on consumer sentiment is also to be revealed Friday. It's likely to remain steady at 75.7, according to a Thomson Reuters survey of economists. The report comes out at 9:55 a.m.

In Europe, London's FTSE was up 0.2% and Germany's DAX was flat after Spain's credit rating was downgraded by Standard & Poor's. Hong Kong's Hang Seng fell 0.33% and Japan's Nikkei Average closed 0.43% lower.

Earnings will be another big driver for the market's direction on Friday as reports continued to pour in from high-profile companies.

Ahead of the open, U.S. automaker Ford (F) reported earnings of $1.4 billion, or 35 cents a share, on revenue of $32.4 billion, down 2% from a year earlier. Adjusted earnings in the quarter were 39 cents a share.

The results beat the average expected earnings of 35 cents a share on revenue of $31.5 billion, according to a Thomson Reuters poll, promoting shares to edge up 0.5% in premarket trading.

Starbucks (SBUX) and Amazon (AMZN) both beat on both the top and bottom line after Thursday's closing bell. However, Starbucks shares promptly slid over some concern about its same-store sales numbers.

Shares of the world's largest coffee-shop chain were also selling off in premarket trading Friday, sliding nearly 5%. Starbucks said fiscal second-quarter profit rose 18% and it raised its forecast for the year.

Starbucks said global same-store sales rose 7% in the period. Same-store sales in China and the Asia Pacific jumped 18%. Sales rose 8% in the Americas, but fell 1% in the region encompassing Europe, Middle East, Russia and Africa.

Online retailer Amazon topped analysts' earnings estimates and said profit margins held steady. Amazon's margins in the first quarter were 1.45%, in line with the fourth quarter's 1.5%. Year-over-year, gross margin widened to 24% from 22.8%. Shares were jumping nearly 15%.

Amazon posted earnings of 28 cents a share as revenue rose 34% to $13.2 billion, thanks in part to strong Kindle Fire sales. Analysts expected Amazon to report earnings of 7 cents a share on revenue of $12.9 billion. Amazon provided second-quarter revenue guidance, with the midpoint slightly below Wall Street estimates.

In other corporate news, Expedia (EXPE), the online travel company, posted a first-quarter loss, but profit excluding certain costs in the period beat expectations.

In commodity markets, the June crude oil contract was falling 35 cents to trade at $104.20 a barrel. The June gold contract was down $5.40 to $1,655.10 an ounce.

The benchmark 10-year Treasury was rising 4/32, pushing the yield down to 1.927. The greenback was trading sideways against a basket of currencies, according to the dollar index.


-- Written by Andrea Tse in New York.



>To contact the writer of this article, click here: Andrea Tse.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs