Stock futures fluctuated on Friday as a financials-triggered selloff a day earlier bled into global markets.
S&P 500 futures were flat, Dow Jones Industrial Average futures slipped 0.03%, and Nasdaq futures fell 0.03%.
Deutsche Bank (DB) - Get Report triggered a Wall Street selloff on Thursday on reports a number of hedge funds that do derivatives business with the bank had reduced their exposure. The bank's liquidity has been in question since the U.S. Justice Department proposed a $14 billion fine earlier this month over residential mortgage-backed securities.
"The bank's systemic significance is undeniable," Stephen Guilfoyle, chief market economist atStuart Frankel & Co., wrote in a note. "With an estimated 46 trillion euros ($51.5 trillion) worth of gross derivative exposure, any kind of doubt over counter-party risk must be taken seriously. That's why those hedge funds in the news yesterday did what they did. Purely a business decision that seems understandable."
U.S.-listed Deutsche Bank shares rebounded 1% in premarket trading, after slumping to an all-time low on Thursday. The bank stumbled more than 4% on the German Xetra exchange on Friday.
Global markets moved sharply lower on Friday. Germany's DAX slumped 1.4%, the CAC 40 in France declined 1.3%, Japan's Nikkei closed 1.5% lower, and the Hang Seng in Hong Kong dropped 1.9%.
U.S. personal income inched higher in August, in line with estimates, according to the Bureau of Economic Analysis. Income rose 0.2% last month, half the increase seen in July. Consumer spending was flat, weaker than an anticipated 0.2% increase. Fewer sales of new vehicles countered an increase in spending on education and health care.
Crude oil stabilized on Friday as big swings tied to a deal among Organization of Petroleum Exporting Countries calmed down. OPEC agreed to limit oil production to 32.5 million barrels a day following a three-day energy meeting in Algeria. Members had shown reluctance to agree to any deal and cede market share.
West Texas Intermediate crude oil fell 0.3% to $47.71 a barrel on Friday after closing at a one-month high a day earlier.
Costco (COST) - Get Report climbed 1% as lower credit card fees helped to boost quarterly profit. Profit rose 1.6% to $779 million over the quarter. Per-share earnings of $1.77 beat estimates by 4 cents. Same-store sales were flat in its August-ended quarter, though rose 3% when excluding currency exchange and lower fuel prices.
McCormick & Co. (MKC) - Get Report was slightly lower despite a better-than-expected quarter and higher full-year forecasts. The spices company earned an adjusted $1.03 a share over its third quarter, above estimates of 94 cents. Sales rose 3%, boosted by a string of acquisitions including herbs company Gourmet Garden in April.
Cognizant Technology Solutions (CTSH) - Get Report tumbled more than 6% before the bell after disclosing an internal investigation into whether it had violated the U.S. Foreign Corrupt Practices Act. The investigation is tied to a number of payments related to facilities in India. The company has notified the Department of Justice and Securities and Exchange Commission.