P/>NEW YORK (TheStreet) -- Stock futures were pointing to a steeply lower open Friday after data showed the economy has been growing at a sluggish pace and fears over the U.S.'s still-unresolved debt issues weighed.

Futures for the

Dow Jones Industrial Average

were down by 126 points, or 119 points below fair value, at 12,067. Futures for the

S&P 500

were lower by 12 points, or 12 points below fair value, at 1285, and

Nasdaq

futures were off by 18 points, or 17 points below fair value.

Stocks failed to hold early gains Thursday as U.S. debt concerns overshadowed momentum from some promising economic data.

Lawmakers in Washington appeared no closer to addressing the nation's debt issues. Late Thursday, the House of Representatives

delayed a vote on a budget proposal by House Speaker John Boehner to cut federal spending by nearly $1 trillion and lift the debt ceiling. The plan wasn't expected to gain support from the Senate.

The FTSE in London was losing 1.4%, and the DAX in Frankfurt was falling 1%. Hong Kong's Hang Seng shed 0.6%, and Japan's Nikkei also declined 0.6%.

The U.S. economy grew at a slower-than-expected pace of 1.3% in the second-quarter, according to the Department of Commerce's advance reading on gross domestic product. That compares with first-quarter growth of 0.4%, which was downwardly-revised from initially reported expansion of 1.9%. Economists had been anticipating second-quarter growth of 1.7%, according to Briefing.com.

At 9:45 a.m., Chicago's Institute of Supply Management will release its purchasing managers index for July. Wall Street is expecting to see that business activity in the Chicago region slowed in July to a reading of 58 from June's level of 61.1.

The University of Michigan will deliver its final reading on July consumer sentiment at 9:55 a.m. The market is anticipating no change from its previous estimate of 63.8. That compares to a reading of 71.5 in June.

Merck

(MRK) - Get Report

met analysts' profit estimates with second-quarter earnings of 95 cents a share while sales rose 7% to $12.15 billion. The market had been anticipating sales of $11.78 billion. The company also raised the low end of its 2011 non-GAAP earnings forecast. The stock was down 0.9% at $34.60 during the premarket session.

Shares of

Starbucks

(MRK) - Get Report

were rising 2.4% to $40.93 ahead of Friday's opening bell after the coffee company

surpassed analysts' profit expectations late Thursday and lifted its outlook.

Chevron

(CVX) - Get Report

is

projected to report second- quarter earnings of $3.56 a share, compared with a year-ago profit of $2.70 a share. The stock was shedding 1% to $104 in early trading.

Shares of

Newmont Mining

(MRK) - Get Report

were shedding 1.9% to $56.65 early Friday after the

gold producer said second-quarter earnings were flat from a year ago at 77 cents a share. Adjusted earnings from continuing operations were 90 cents a share and sales rose 11% to $2.38 billion. Consensus estimates were for earnings of 99 cents a share on sales of $2.51 billion.

The September crude oil contract was shedding $1.12 to trade at $96.32 a barrel. Gold for December delivery was up by $8.30 at $1,624.50 an ounce.

The benchmark 10-year Treasury rose 10/32, diluting the yield to 2.914%. The dollar strengthened against a basket of currencies, with the dollar index up by 0.4%.

.

-- Written by Melinda Peer in New York

.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.