By Tomi Kilgore
U.S. stock futures pared some losses after data showing housing
starts rose more than expected.
About 55 minutes ahead of the open, Dow Jones Industrial Average
futures eased 13 points, or 0.1%, to 16406. Just prior to the
release of the data, Dow futures were down 27 points.
S&P 500 index futures slipped two points, or 0.1%, to 1865
and Nasdaq 100 futures gave up three points, or 0.1%, to 3560.
Changes in stock futures don't always accurately predict stock
moves after the opening bell.
New residential construction for April climbed 13% to a
seasonally adjusted annualized rate of 1.07 million, well above
expectations of 975,000. Building permits grew 8% to an annual rate
of 1.08 million, the most since June 2008, and above forecasts of
1.01 million.
After the open, the preliminary May reading of the
Thomson-Reuters/University of Michigan consumer sentiment index,
due out at 9:55 a.m., is forecast to tick up to 84.3 from April's
82.6.
The yield on the 10-year Treasury note inched up to 2.508%,
after settling at a near seven-month low of 2.502% late
Thursday.
The early weakness in stock futures was an extension of sharp
losses in the previous session, in which the Dow Jones Industrial
Average suffered the biggest one-day point and percentage drop in
five weeks.
Upbeat corporate news helped alleviate some stress for
investors. Abbott Laboratories advanced 1.4% after the drug maker
announced an agreement to buy Latin American generics company CFR
Pharmaceuticals for $2.9 billion.
Dow component Verizon Communications rose 1.7% after billionaire
investors Warren Buffett, Daniel Loeb and John Paulson disclosed
late Thursday that their firms picked up stakes in the
telecommunications giant.
J.C. Penney soared 19% after the department store chain reported
late Thursday a narrower-than-expected loss and a
bigger-than-expected rise in sales during the fiscal first quarter.
It also announced a new credit pact that gives it $500 million more
in borrowing capacity.
At 8:30 a.m. Eastern, new residential construction for April is
expected to rise to a seasonally adjusted annualized rate of
975,000 from 946,000 in March. Building permits are seen increasing
to a 1.01 million rate from 990,000.
After the open, the preliminary May reading of the
Thomson-Reuters/University of Michigan consumer sentiment index,
due at 9:55 a.m., is forecast to tick up to 84.3 from April's
82.6.
The yield on the 10-year Treasury note inched up to 2.504%,
after settling at nearly a seven-month low of 2.502% late
Thursday.
Gold futures were little changed at $1,293.60 an ounce, while
crude-oil futures gained 0.2% to $101.66 a barrel. The dollar edged
higher against the euro, but lost ground against the yen.
European markets extended recent declines, with the Stoxx Europe
600 down 0.2% and headed for a third-straight loss, and for the
first weekly loss in five weeks. Germany's DAX 30 index declined
0.3%, France's CAC 40 fell 0.1% and the U.K.'s FTSE 100 lost
0.2%.
Asian markets were mixed. Japan's Nikkei Stock Average shed
1.4%, as a stronger yen weighed on exporter shares, while China's
Shanghai Composite gained 0.1% to snap a three-session losing
streak.
Meanwhile, Indian shares rallied as India's pro-business
opposition party looked to be headed for a major victory in
national elections.
In other corporate news, Nordstrom rallied 11% after the
high-end department-store operator exceeded fiscal-first-quarter
earnings and revenue forecast and maintained its full-year
outlook.
World Wrestling Entertainment tumbled 45% after investors
expressed disappointment over a long-term TV agreement announced
late Thursday with Comcast's NBCUniversal.
Write to Tomi Kilgore at tomi.kilgore@wsj.com