By Anora Mahmudova and Victor Reklaitis, MarketWatch

Shares of energy giants fall after earnings

U.S. stock futures turned higher before the opening bell Friday after data showed a measure of labor costs decelerated sharply in the second quarter, suggesting the Federal Reserve could be patient with raising interest rates this year.

Investors sold shares of energy giants Exxon Mobil and Chevron after their earnings missed expectations.

S&P 500 futures were last up 3 points, or 0.1% at 2,107 after being down ahead of the data, while those for the Dow Jones Industrial Average were flat at 17,687. Nasdaq 100 futures added 12 points, or 0.3%, to 4,608.

The benchmark S&P 500 is on track for a weekly advance of 1.4% and a July rise of 2.2% as of Thursday's close. The Dow is on pace for weekly and monthly gains of 1% and 0.7%, respectively, while the Nasdaq is up 0.8% for the week and 2.9% for July.

On Thursday, the U.S. stock market finished about flat (http://www.marketwatch.com/story/us-stock-futures-dip-into-the-red-ahead-of-gdp-report-2015-07-30) after erasing early losses.

What strategists are saying: "Today, traders need to be cautious; as we approach the end of the month the markets may experience notable volatility due to month end flows," said Nour Al-Hammoury, chief market strategist at ADS Securities, in a note Friday.

Other markets: Chinese stocks closed lower and notched their biggest monthly drop in nearly six years (http://www.marketwatch.com/story/china-shares-headed-for-worst-month-in-over-two-years-2015-07-31), while European equities seesawed but were poised for weekly and monthly gains (http://www.marketwatch.com/story/european-stocks-nudge-higher-ahead-of-inflation-data-2015-07-31).

Oil prices fell on Friday, with the commodity set to post its worst monthly showing of the year (http://www.marketwatch.com/story/crude-poised-for-worst-monthly-performance-of-2015-2015-07-31) so far. Gold futures were also lower, and the dollar (http://www.marketwatch.com/story/dollar-dips-versus-yen-euro-ahead-of-us-data-2015-07-31)weakened (http://www.marketwatch.com/story/dollar-dips-versus-yen-euro-ahead-of-us-data-2015-07-31).

Economic reports: Investors are watching for a reading on July business conditions in the Chicago area that's due at 9:45 a.m. Eastern, as well as a figure for consumer sentiment that's expected at 10 a.m.

The wages and benefits that companies, governments and nonprofit institutions pay their employees rose a record-low 0.2% in the second quarter, according to the employment cost index released by the Labor Department on Friday. That was well below the 0.7% gain in the first quarter and came as a surprise to economists surveyed by MarketWatch, who had expected a 0.6% gain.

Read:Sharp deceleration in employment costs gives Fed a reason to delay rate hike (http://www.marketwatch.com/story/sharp-deceleration-in-employment-costs-gives-fed-a-reason-to-delay-rate-hike-2015-07-31)

Check out:

Movers & Shakers: Exxon Mobil Corp. (XOM) shares fell 2.2% after the biggest U.S. oil company reported a 52% drop in profit for its second quarter, as higher profit from its refining and chemical operations couldn't offset plunging earnings in its exploration and production business amid lower crude prices.

Chevron Corp. (CVX) slumped 1.9% in premarket trade Friday, after the oil giant reported a sharp decline in second-quarter profit and sales, hurt by lower crude prices and one-time charges.

Coca-Cola Enterprises Inc. (CCE) jumped nearly 9% following news it's in merger talks with other Coke bottlers (http://www.marketwatch.com/story/coca-cola-enterprises-in-advanced-talks-over-tie-up-with-other-coke-bottlers-2015-07-31).

Expedia Inc. (EXPE) was another big S&P advancer, rising 8% premarket after its quarterly earnings topped forecasts (http://www.marketwatch.com/story/expedia-profit-tops-expectations-2015-07-30-174852319) late Thursday.

Hanesbrands Inc. (HBI) fell almost 7% after quarterly revenue missed estimates (http://www.wsj.com/articles/hanesbrands-misses-estimates-on-revenue-1438294406).

Read more in the Movers & Shakers column (http://www.marketwatch.com/story/exxon-mobil-chevron-royal-caribbean-earnings-in-focus-2015-07-30)

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