U.S. stock futures rose Friday, a day after the Dow industrials
dropped to the lowest level since late April.
Stocks slumped overseas as news that the U.S. had authorized
airstrikes in Iraq added to concerns about the European economic
recovery and ongoing turmoil in Ukraine and the Middle East.
European stocks fell, with the Stoxx Europe 600 down 0.5%. In Asia,
Japanese stocks hit a two-month low, netting their worst daily
decline in nearly four months.
Dow Jones Industrial Average futures rose 11 points, or 0.1%, to
16332.
S&P 500 index futures added three points, or 0.1%, to 1908
and Nasdaq-100 futures gained four points, or 0.1%, to 3861.
Changes in stock futures don't always accurately predict stock
moves after the opening bell.
Futures had been down earlier.
Stocks fell Thursday, with the Dow falling 0.5% to 16368.27. The
S&P 500 fell 0.6% to 1909.57.
Stocks had been moving higher this year, hitting a number of
records as improving data and low interest rates attracted
investors. But that turned around in mid-July, with investors now
weighing heightened geopolitical tensions with economic data to see
if the recent swoon in stocks will be temporary. Also in play are
corporate earnings, which investors say have been healthy so far
and could be supportive of stock-market gains in the longer run.
The Dow has now fallen 4.5% from its July 16 closing high of
17138.20, as of Thursday's close.
"The backdrop of an improving economy in the U.S. has presented
itself both in economic data and corporate earnings. For now, that
improving economic picture in the U.S. has been usurped by the
uncertain global macro picture," said Art Hogan, chief market
strategist at Wunderlich Securities.
Assets that are typically thought of as safe havens gained on
Friday. Gold futures rose 0.3% to $1,315.80 an ounce. The yield on
the 10-year Treasury note, which moves inversely with its price,
fell to 2.393%, according to FactSet. The Japanese yen
strengthened, with the dollar buying Yen101.93.
Later Friday morning, data is expected to show wholesale
inventories rose 0.7% in June.
In corporate news, Lululemon Athletica Inc. founder Dennis
"Chip" Wilson agreed to sell half his stake in the company to a
private-equity firm for $845 million. Shares rose 5.2%
premarket.
Zynga Inc. shares fell 9.6% in premarket trading. The videogame
maker reported a wider second-quarter loss and lowered its
financial outlook for the year.
Crude-oil futures rose 0.4% to $97.73 a barrel.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
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