Stock futures were mixed on Friday morning after second-quarter economic growth in the U.S. fell short of economists' expectations.
S&P 500 futures were down 0.15%, Dow Jones Industrial Average futures slid 0.21%, and Nasdaq futures rose 0.06%.
The U.S. economy grew just 1.2% in the second quarter, according to the Bureau of Economic Analysis, far short of estimates of 2.6% growth. First-quarter growth was also reduced to 0.8% from 1.1%. U.S. exports climbed 1.4% over the quarter, while U.S. imports dropped 0.4%.
Amazon (AMZN) - Get Report rose more than 2% in premarket trading after reporting another quarter of record profit. The e-commerce giant earned $1.78 a share, handily beating estimates of $1.11 a share. Its Amazon Web Services division, which rents enterprise cloud space and computer power, drove growth with a sales increase of nearly 60%.
Alphabet (GOOGL) - Get Report increased 5% as ad revenue drove growth on its top-line. The company reported a 21% increase in revenue, largely thanks to growth in Google's ad business. Adjusted earnings of $8.42 a share beat estimates of $8.04.
"What can we say? This was a fantastic quarter, with core Google's dominance and (Chief Financial Officer) Ruth Porat's capex discipline on full display," said TheStreet's Jim Cramer, manager of the Action Alerts PLUS Charitable Trust Portfolio, and research director Jack Mohr.
Media network CBS (CBS) - Get Report topped quarterly estimates on its top- and bottom-lines. The New York-based company earned 93 cents a share over the quarter on revenue of $3.29 billion. Analysts had expected earnings of 86 cents a share and $3.21 billion in sales. CBS' board also raised its quarterly dividend by 20% to 18 cents a share.
Merck (MRK) - Get Report added 2% before the bell after exceeding analysts' estimates in its recent quarter thanks to growth in top-selling drug Januvia. Sales of the diabetes treatment rose 2% to $1.63 billion, topping estimates of $1.61 billion. The drugmaker also met consensus with its full-year guidance.
Cigna (CI) - Get Report fell 4% after cutting its full-year forecasts and issuing disappointing second-quarter earnings. The health-insurance provider earned $1.97 a share over the quarter, down from $2.26 a year earlier. Adjusted earnings of $1.98 a share fell short of $2.39 consensus. The company said a headwind in its group disability and life division had pressured overall results.
Xerox (XRX) - Get Report topped profit forecasts in its recent quarter, though failed to improve upon sales estimates. The printing company earned an adjusted 30 cents a share, a nickel better than expected. Revenue slid 4% to $4.4 billion, in-line with consensus. The company also noted it is gaining traction in its plan to split into two publicly-trading companies.
Newell Brands (NWL) - Get Report increased in premarket trading after reporting that its acquisition of Jarden doubled quarterly revenue. Revenue jumped to $3.86 billion from $1.56 in the recent quarter, up from $3.76 billion. The company also said it was on track to introduce cost savings of $500 million through to 2020 thanks to its Jarden purchase.
AbbVie (ABBV) - Get Report added 2% after besting quarterly estimates and upping its full-year guidance. The drugmaker earned an adjusted $1.26 a share, 6 cents above estimates. Revenue rose to $6.45 billion, driven by a 17.4% increase in sales of Humira, and exceeded consensus of $6.21 billion. Its full-year adjusted profit outlook of $4.73 to $4.83 a share reflects "expected continued positive trends," the company said.
UPS (UPS) - Get Report fell even as quarterly profit rose on increased average daily shipments in the U.S. The delivery company reported earnings of $1.43 a share, up from $1.35 a share a year earlier. Profit was in-line with expectations.
Exxon Mobil (XOM) - Get Report declined in premarket trading as lower oil prices continued to ravage its top- and bottom-line in its recent quarter. The oil company earned 41 cents a share, down from $1 a share a year earlier. Analysts had expected earnings of 64 cents a share. Revenue declined by 22% to $57.69 billion and fell short of expectations.
General Electric (GE) - Get Report CEO Jeff Immelt purchased an additional 50,000 shares of the company. The purchase was worth roughly $1.57 million and brings his total holdings to 2.2 million shares.
Microsoft (MSFT) - Get Report detailed plans overnight to lay off 2,850 employees, 900 in global sales which have already been completed. The layoffs tie into restructuring of the sales group announced earlier in July. Microsoft expects to complete the remainder of the job cuts by the middle of next year.
The Bank of Japan made no moves to adjusted interest rates or its current bond-buying program, disappointing those who had hoped for further monetary stimulus. The central bank did announce minor changes to combat deflation, including plans to up the purchase of exchange-traded equity funds from 3.3 trillion yen a year to 6 trillion yen ($57 billion) a year.
In the U.S., the first estimate of second-quarter gross domestic product will be released before the markets open. Economists forecast growth of 2.6% compared with first-quarter growth of 1.1%.