U.S. stock futures fell as increasing worries of a potential government shutdown overshadowed strong results from Nike (NKE) and consumer spending data.
About 20 minutes ahead of the open, the Dow Jones Industrial Average futures fell 47 points, or 0.3% to 15,214, giving back the gains made Thursday to end a five-session losing streak.
Nike, which became a Dow component earlier this week, rose 7.1% in premarket trading after the company reported late Thursday fiscal first-quarter earnings that surpassed expectations amid strong sales growth in the U.S. and Europe and wider gross margins.
Standard & Poor's 500 index futures fell seven points, or 0.4% to 1,685.5, and Nasdaq 100 futures dropped 12.5 points, or 0.4% to 3,213.5. Changes in stock futures don’t always accurately predict stock moves after the opening bell.
On Thursday, the S&P 500 closed higher for the first time in six sessions, ending its longest losing streak since December 2012.
In Washington, tensions over budget and debt-ceiling negotiations have mounted, leading investors to climb a wall of worry this week. On Thursday, House Speaker John Boehner said the House would not accept a short-term spending bill likely to be approved by the Senate on Friday, which would help avoid a partial government shutdown starting Oct. 1.
Meanwhile, data released Friday morning showing that consumer spending rose 0.3% in August – meeting economists' expectations — did little to bolster stock indices.
Other data is due later today. After the open, the final reading of the Thomson-Reuters/University of Michigan consumer sentiment index for September is expected to be revised up to 78.0 from a preliminary reading of 76.8. The final August reading was 82.1.
And at 2 p.m., New York Federal Reserve president William Dudley will speak at Syracuse University.
The yield on the 10-year Treasury note slipped to 2.63% from 2.643% late Thursday. Yields move inversely to prices.
Crude oil futures slipped 0.3% to $102.77 a barrel. October gold futures rose 1.01% to $1,337.5 an ounce. And the U.S. dollar declined against the euro.
In Europe, worries over U.S. budget talks offset encouraging confidence data, sending the Stoxx Europe 600 falling down 0.4%. Asian markets, however, were mostly higher.
In corporate news:
J.C. Penney (JCP) slid 8.2% to $9.57 after the troubled retailer announced late Thursday a public offering of 84 million shares of common stock. On Friday, the company said it priced its offering at $9.65 a share, which is 7.4% below Thursday’s closing price and 4.6% below Wednesday’s 13-year closing low.
Lumber Liquidators (LL) plunged 9.5% to $102.62. A report by the AP says the hardwood company’s offices have been searched by federal authorities, yet no word on why or when this took place.
Blackberry (BBRY) edged up 1.4% to $8.06. The smartphone maker reported fiscal second-quarter losses and revenue that were in line with the sharply-reduced outlook it provided last week. Earlier this week, the company agreed to be taken private by one of its biggest shareholders for $4.7 billion.
J.P. Morgan Chase (JPM) fell 0.7% to $51.55 after the bank’s audit committee head admitted to mistakes that have placed the firm in numerous legal and regulatory battles. On Thursday, CEO Jamie Dimon met with U.S. Attorney General Eric Holder to discuss a settlement to end investigations into its mortgage lending practices.
Arch Coal (ACI) fell 3% to $4.37 after Goldman downgraded the stock to a Sell.
Finish Line (FINL) rose 8% to $24.20 on upbeat earnings.
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