Stock futures held mostly higher on Friday after U.S. economic growth in the first quarter slowed sharply.
S&P 500 futures were up 0.07%, Dow Jones Industrial Average futures added 0.09%, and Nasdaq futures were flat.
The U.S. economy grew at a pace of 0.7% over the first three months of the year, according to the first estimate of first-quarter GDP from the Bureau of Economic Analysis. Economists surveyed by FactSet had expected U.S. gross domestic product to rise 1.2%. The U.S. economy grew at a 2.1% pace in the fourth quarter.
The first-quarter slowdown was largely tied to conservative consumer spending. Spending rose just 0.3% from January to March, the smallest increase since 2009.
Employment costs increased 0.8% in the first quarter, while the employment cost index rose 2.4%, its best growth rate since 2008. Benefits rose 0.7%.
Wall Street ran at two speeds on Thursday with better-than-expected earnings from PayPal (PYPL) - Get PayPal Holdings Inc Report driving the Nasdaq to new records, while a slump in crude oil kneecapped any big gains for the rest of the market. The Nasdaq ended 0.39% higher at a new record close of 6,048.
Alphabet (GOOGL) - Get Alphabet Inc. Class A Report rose 4% in premarket trading after besting analysts' estimates on the top- and bottom-lines. Earnings of $7.73 a share soared past consensus by 35 cents a share. Revenue climbed 22.2% to $24.75 billion and exceeded estimates by $530 million. CFO Ruth Porat said the company continues to benefit "from our ongoing investments in product innovation."
Amazon (AMZN) - Get Amazon.com, Inc. Report climbed 3% after reporting a double-digit percentage increase in quarterly earnings on strength in its North America business. Earning of $1.48 a share came in 35 cents higher than expected. Sales climbed 23% to $35.7 billion, $400 million more than anticipated. Sales in North America grew 24%, while international sales increased 16%.
Industry peers Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report and Intel (INTC) - Get Intel Corporation (INTC) Report did not perform quite as well. Microsoft fell in premarket trading after missing consensus on its top-line. Adjusted earnings of 73 cents were a dime higher than a year earlier and 3 cents higher than expected. However, revenue of $22.1 billion fell short of estimates of $23.6 billion.
Intel declined 4% after quarterly sales came in short. Revenue rose 7% to $14.8 billion, though fell just shy of a target of $14.81 billion. Adjusted earnings of 66 cents a share beat estimates by a penny. Overall earnings increased 45% thanks to sales of its high-end processor chips.
General Motors (GM) - Get General Motors Company (GM) Report added more than 2% on Friday after reporting a double-digit increase in net income as sales of its trucks and SUVs boosted overall results. Net income increased 34% to $2.6 billion, a record for the first quarter. Revenue climbed 11% to $41.2 billion, coming in higher than expectations of $40.3 billion.
Expedia (EXPE) - Get Expedia Group, Inc. Report moved lower on Friday as narrower quarterly losses missed analysts' estimates. The travel bookings site reported a net loss of 57 cents a share compared to a loss of 72 cents a share a year earlier. Adjusted earnings of 5 cents a share came in a penny below estimates. Gross bookings increased 14%, while room nights stayed grew 12%. Revenue of $2.19 billion came in above consensus of $2.14 billion.
Exxon Mobil (XOM) - Get Exxon Mobil Corporation Report added more than 1% after a better-than-expected first quarter. Net income more than doubled to 95 cents a share. Analysts anticipated earnings of 88 cents a share. However, revenue of $63.3 billion came in below a target of $66.4 billion. Its upstream business made a comeback in the quarter, earning a profit of $2.3 billion after a loss of $76 million a year earlier.
Starbucks (SBUX) - Get Starbucks Corporation Report declined after revenue and comparable sales fell short of estimates. Second-quarter revenue climbed 6% to $5.29 billion, $120 million below consensus. Global comparable store sales increased 3%, missing a target of 3.6% growth. Sales in the Americas and U.S. increased 3.5%, also missing a target of 3.5%. Earnings were in-line with expectations.
Other earnings reports out Friday include Barclays (BCS) - Get Barclays PLC Sponsored ADR Report , Chevron (CVX) - Get Chevron Corporation Report , Colgate-Palmolive (CL) - Get Colgate-Palmolive Company Report , Goodyear Tire (GT) - Get Goodyear Tire & Rubber Company Report , Honda (HMC) - Get Honda Motor Co., Ltd. Sponsored ADR Report , Phillips 66 (PSX) - Get Phillips 66 Report , Royal Caribbean (RCL) - Get Royal Caribbean Cruises Ltd. Report , UBS (UBS) - Get UBS Group AG Report , VF Corp (VFC) - Get V.F. Corporation Report , and Weyerhaeuser (WY) - Get Weyerhaeuser Company Report .
Qualcomm (QCOM) - Get QUALCOMM Incorporated Report fell 2% after slashing its earnings guidance, warning that it will likely not see any revenue from patent licenses from the iPhone after its lawsuit with Apple (AAPL) - Get Apple Inc. (AAPL) Report . The chipmaker anticipates diluted earnings of 52 cents to 62 cents a share for its current quarter, down from previous guidance of 67 cents to 92 cents a share.
Time (TIME) lost one-fifth of its value in premarket trading after its board made the decision to not explore a sale of the company. The board had examined interest from potential buyers, but decided against selling the company.
Congress will work to avoid a government shutdown on Friday by pushing through a continuing resolution. House Speaker Paul Ryan said on Thursday that he was confident Congress would pass a "short-term extension" to ensure the government avoids a shutdown.
Donald Trump had a more laissez-faire attitude, telling Reuters, "We'll see what happens. If there's a shutdown, there's a shutdown." The deadline for a spending bill to fund the government through to September is midnight Friday.
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