Updated from 8:12 a.m. ET on Friday, July 28.
S&P 500 futures fell 0.26%, Dow Jones Industrial Average futures were down 0.12%, and Nasdaq futures slid 0.6%.
The Nasdaq set up for another day in the red. A surprise tech selloff, led by Twitter Inc. (TWTR - Get Report) , shook markets on Thursday, July 27. The sudden turn lower dragged the Nasdaq from record highs and soured an overall upbeat mood in the morning session. The Dow Jones Industrial Average did manage to score a new record close on Thursday, however.
Amazon.com Inc. tumbled 3.8% in premarket trading after a quarterly performance that fell well short of analysts' estimates. Earnings of 40 cents a share were a far cry from $1.41 consensus. Profit declined 77% from a year earlier. A sharp miss on the bottom-line was tied to the company's efforts to invest heavily in areas such as fulfillment, original content and international expansion.
Revenue jumped 25% year over year to $37.9 billion, however, surpassing analysts' projected $37.2 billion. Amazon Web Services, the company's cloud platform, continued to grow rapidly with sales of $4.1 billion, 42% higher than the $2.9 billion it generated in the year-earlier quarter. Wall Street expected cloud revenue of $4.08 billion.
The U.S. economy picked up significant speed in the second quarter. Economic growth came in at 2.6% from April to June, more than double the first quarter's 1.2% growth. Consumer spending increased 2.8%, while business fixed investment rose 2.2%. Analysts anticipated growth of 2.4% over the second quarter.
In a statement, the Bureau of Economic Analysis said the increase "reflected positive contributions from personal consumption expenditures (PCE), nonresidential fixed investment, exports, and federal government spending that were partly offset by negative contributions from private residential fixed investment, private inventory investment, and state and local government spending."
Employment costs increased 0.5% over the second quarter, according to the employment cost index. The rise was slightly below expected growth of 0.6%. Employment costs have increased an unadjusted 2.4% over the past 12 months.
"We felt it was an appropriate time to take the decision and begin shutting down those stores," said Starbucks CEO Kevin Johnson.
Starbucks also said same-store sales in the quarter rose rose 4% globally, while U.S. same-store sales gained 5%. The company also said it now expects revenue growth to fall to the lower end of its previous guidance of 8% to 10% for the year.
"We have grown tired of the company's inability to turn this battleship around in any sustained way, and we think that the company's weak performance could continue trending through next year," said Jim Cramer and the AAP team.
Intel Corp. (INTC - Get Report) climbed 4% after topping analysts' estimates on its top- and bottom-lines. The semiconductor company earned 72 cents a share, 4 cents above consensus. Revenue surged 9.1% to $14.76 billion and exceeded expectations by $350 million.
Expedia Inc. (EXPE - Get Report) moved higher despite a mixed quarter. The online booking site earned 89 cents a share, 4 cents short of estimates. Sales rose 17.7% to $2.59 billion and edged past expectations by $50 million.
Exxon Mobil Corp. (XOM - Get Report) was lower after missing analysts' profit estimates in its recent quarter. The oil-industry leader earned 78 cents a share over its second quarter, nearly double earnings a year earlier, though below consensus of 84 cents. Revenue of $62.9 billion came in higher than estimates of $61.3 billion.
Other earnings on Friday include Western Digital (WDC - Get Report) , AbbVie Inc. (ABBV - Get Report) , American Airlines Group Inc. (AAL) , Chevron Corp. (CVX - Get Report) , Goodyear Tire (GT - Get Report) and Merck & Co. (MRK - Get Report) .
Also on the economic calendar on Friday: the Employment Cost Index for the second quarter will be released at 8:30 a.m. ET, and the final reading on consumer sentiment for July at 10 a.m.
Crude oil prices were higher ahead of weekly drilling activity data to be released Friday afternoon. A weekly count on active oil rigs drilling for crude in the U.S. will be released by Baker Hughes at 1 p.m.
West Texas Intermediate was up 0.1% to $49.09 a barrel on Friday morning.
Senate Republican leaders early Friday took their best shot at repealing portions of Obamacare but failed on a "skinny" repeal, with the legislation being voted down 49-51. Even as the vote continued to be tallied, it became apparent the bill would be sunk as Republican Sens. Susan Collins of Maine, Lisa Murkowski of Alaska and John McCain of Arizona voted no early during the balloting.
The vote was the third time in three days that Republicans failed to coalesce around a way to repeal and replace Obamacare. Donald Trump voiced his displeasure with the vote in a tweet on Friday: "3 Republicans and 48 Democrats let the American people down. As I said from the beginning, let ObamaCare implode, then deal. Watch!"
"This is clearly a disappointing moment," said Senate Majority Leader Mitch McConnell after the voting closed. "It's time to move on."