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Stock Market Today: Futures Dip; S&P 500 Still Eyes Weekly Gain

NEW YORK (TheStreet) -- U.S. stock futures were pointing to the first dip in the broader market in three days. Investors took a breather, digesting some soft data out of Europe and awaiting next week's July job report, U.S. second-quarter GDP estimates, and the latest Federal Reserve policy update. The market remains optimistic on the second-quarter earnings outlook, steadily raising earnings growth predictions.

Futures for the S&P 500 (^GSPC) were down 3.75 points, or 4.68 points below fair value, to 1,977, with the index still on pace to settle higher for the week. The S&P 500 booked its 72nd closing all-time high Thursday for this bull market since the market bottom on March 9, 2009, as analysts hiked their growth outlook for the second-quarter earnings season. Futures for the Dow Jones Industrial Average (DIA) were slumping by 26 points, or 43.80 points below fair value, to 16,972. Nasdaq (QQQ) futures were behind by 14.3 points, or 17.79 points below fair value, to 3,957.5.

Despite a handful of disappointments, including Amazon's (AMZN - Get Report) earnings miss Thursday, S&P Capital IQ wrote that second-quarter S&P 500 earnings growth is now expected to come in at 8.1% year-over-year, with earnings per share of $29.11. That's up from the prior day's estimate of 7.3% year-over-year growth, with EPS of $28.89.

Amazon shares were plunging 9.96% to $322.89 in premarket trading after reporting Thursday evening quarterly results that were in line with revenue estimates but missed on earnings per share.

Starbucks (SBUX) was sliding 2.61% to $78.35 amid worries that the coffee giant's store expansion plans and increasing prices of ingredients will hurt its bottom-line growth.

Pandora (P) shares were tumbling by 9.09% to $26.11. Although the online radio company's earnings report was slightly better than expected, a drop in users concerned Wall Street.

Xerox (XRX - Get Report) was down 2.8% to $12.48 after reporting that second-quarter net income attributable to Xerox dipped 2% to $266 million, as revenues fell 2% on its weaker printer business sales.

Widely-watched corporate headlines Friday also include those on Zillow (Z), Trulia (TRLA), 21st Century Fox (FOXA) and McDonald's (MCD).

The Chinese tainted meat scandal is still in the headlines. While Yum! Brands (YUM) has dropped the offending supplier, Shanghai Husi Food, and its U.S.-based owner, OSI, McDonald's has stuck with the company out of necessity.

Rupert Murdoch isn't just convulsing American media markets with his 21st Century Fox bid for Time Warner TWX. His BSkyB (BSYBY) British TV company is looking to spend $9 billion to buy Fox's pay-TV stations in Germany and Italy.

Real estate site Zillow is seeking to buy out rival Trulia for up to $2 billion in cash and stock. Both companies collect fees from real-estate agents as well as advertising revenue on a combined 85 million unique visitors in June alone.

The UK FTSE 100 was down 0.14% and the DAX in Germany was down 0.51% after the German Ifo business climate index dropped to a nine-month low of 108 amid escalating geopolitical tensions.

The headline U.S. June durable goods orders reading rose by a more-than-expected 0.7% in June, the Commerce Department reported Friday. However, underlying components to the number indicated tepid capital goods interest and very weak core shipments with a downward revision, which CRT Capital strategist David Ader said will extract from second-quarter GDP.

"We'd say this is a bit more disappointing as a result," Ader said in a note.

-- By Andrea Tse in New York

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