U.S. stock futures gave up earlier gains and were pointing to a weaker start for Wall Street on Friday, under the cloud of another heavy earnings session and key economic data including gross domestic product and consumer sentiment.
S&P Futures were last down 2.8 points to 840, while Nasdaq 100 futures fell 5 points to 1,201 and Dow industrial futures slipped 31 points to 8,081.
Stocks tumbled on Thursday after a record 14.7% plunge in December new home sales, along with disappointing corporate results, sent markets into a tailspin. The Dow Jones Industrial Average ) fell 226.44 points, the S&P declined 28.95 points and the Nasdaq Composite fell 50.5 points.
Analysts said the economic reports confirmed weak housing and a struggling economy. Many forecasters are looking ahead to next Friday's January jobless data with much trepidation. "There's a continuing drumbeat of layoff announcements every day. Everyone is bracing for a bad one," said Jack Ablin, chief investment officer at Harris Private Bank.
Friday's economic line-up includes fourth-quarter gross domestic product and employment cost-index figures, both due at 8:30 a.m. The Chicago purchasing managers index for January is due at 9:45 a.m. and consumer sentiment data for January is due at 10 a.m. All times are Eastern.
Economists at Tullett Prebon G7 Economics said the market could get an unexpected shock from GDP data. "The economist consensus has already 'discounted' a 5.5% decline in annualized Q4 GDP growth, which would mark a sharp deterioration versus the previous quarter's contraction of 0.5% and the weakest reading since 1982. However, the risk is that the consensus might not prove bearish enough," they said in a note to investors.
A handful of companies reported early Friday including Procter & Gamble , which reported earnings for the second financial quarter at $1.58 vs. 98 cents a year ago. Honeywell International reported fourth-quarter sales at 97 cents vs. 91 cents a year ago.
ExxonMobil and Chevron are still to come, amid others.
Amazon.com, Inc. could be in focus after it reported late Thursday a surprise gain in earnings for the fourth quarter amid strong sales during the crucial holiday shopping period.
European shares fell in a volatile session on Friday as deal-related gains for BNP Paribas , Rio Tinto and Switzerland's Roche were balanced by continuing fears over the economy as euro-area unemployment rose to 8% in December, a two-year high. The Dow Jones Stoxx 600 index was last down 0.1%.
BNP rose in Paris after agreeing to a new deal to acquire parts of Fortis after the Belgian group's shareholders won a court battle to challenge an earlier deal.
Rio Tinto was higher after it announced a $1.6 billion deal to offload a potash project in Argentina and an iron-ore facility in Brazil to Companhia Vale do Rio Doce .
Meanwhile, Roche lowered its takeover offer for Genentech to $42.5 billion and took the offer direct to shareholders. Shares were up slightly in Switzerland.
Asian shares fell on dismal economic data and corporate earnings. The Nikkei fell 3.3% after a record 9.6% plunge in December industrial output, while shares of Toyota Motor Corp. fell after saying its net profit sank 90% in the October-December quarter.
Crude-oil futures are down 0.02 cents at $41.42, while gold futures gained $17 to $923.50.
The dollar was firmer against the euro, changing hands around $1.282 and trading around 89.76 against the Japanese yen.
