NEW YORK (TheStreet) -- Stock futures were setting up for another day of slight losses on the final trading day of May as first-quarter GDP was revised downward.
S&P 500 futures fell 0.16%, Dow Jones Industrial Average futures slipped 0.13%, and Nasdaq futures declined 0.26%.
First-quarter GDP, originally seen up 0.2%, was revised down to negative 0.7% in a second estimate. The contraction was slightly narrower than economists had expected, though marked a stark reminder of how bad economic growth truly was at the start of the year.
The value of inventories increased by $95 billion, down from a previously estimated increase of $110.3 billion. Exports fell 7.6%, while imports were revised up to 5.6% from 1.8%, leading to a larger trade deficit which reduced GDP.
Corporate profits fell $125.5 billion in the first quarter after a $30.4 billion decline in the fourth quarter. Adjusted pretax corporate profits fell 5.9%, its biggest decline since 2008.
Economists expect the economy to bounce back in the latter half of the year, and second-quarter data including monthly housing figures support this. Second-quarter GDP is expected to rise 3%.
"Second estimates of GDP are generally "old news" and today's report falls along those lines," said BTIG Research chief strategist Dan Greenhaus. "The (Federal Reserve), market participants and just about everyone believes first-quarter issues were transitory in nature and as such, a revision into negative territory is unlikely to affect the broader debate."
Stocks closed only slightly lower Thursday, recovering from heavier losses sustained earlier in the day. Crude oil, which had been pressured earlier in the session, reversed course by the afternoon and closed higher. Click here for more.
U.S. markets weren't selling off Friday to the extent of Europe. Germany's DAX declined 0.6% and France's CAC 40 gave up 0.8% as 'Grexit' fears took focus.
Money is exiting Greek banks at a rapid pace as citizens withdraw money as fears of a potential default mount. Deposits at Greek banks fell to their lowest level since 2005 while 5.6 billion euros was pulled in April. It is looking less likely Greece will be able to fulfill a repayment to the International Monetary Fund by June 5.
Intel (INTC) is reportedly nearing a deal to buy Altera (ALTR), according to the New York Post, adding further fuel to reports of deal negotiations between the two companies. Intel could offer Altera $15 billion, a deal that would value shares at $54, a 15% premium to Thursday's close.
GameStop (GME) jumped neary 7% in premarket trading after beating analysts' estimates on its top- and bottom-lines. The company earned 68 cents a share, 10 cents higher than expected, while sales increased 8.1%.
Amazon (AMZN) is reportedly planning to expand its private-label brands tp include grocery items, according to The Wall Street Journal. The company already offers private-label batteries and diapers.
JPMorgan (JPM) shares were on watch after reports the bank is in the process of thousands of job cuts. The company could cut more than 5,000 jobs by next year, according to Dow Jones.