Stock futures fell slightly Friday, but were off their lows after Bank of America and General Electric provided fresh signs that the economy is getting stronger.
Bank of America Corp. and General Electric Inc.'s first-quarter results follow a trend that has taken hold throughout the week of companies topping earnings forecasts. Nonetheless, stocks have risen in each of the past six sessions so investors might be ready for a pause.
Stocks have been steadily rising in recent months on growing signs that the economy is recovering, albeit slowly.
Asian markets retreated on concerns that strong economic growth could lead to inflation and higher interest rates. European markets were mixed.
Futures were lower earlier in the day as investors were concerned about rising costs at Google Inc. The Internet giant reported strong earnings after the market closed Thursday, but a jump in spending has investors worried about future growth.
Unlike Google, investors found results from GE and Bank of America uplifting. The pair are considered bellwethers for the manufacturing sector and health of consumers.
GE said losses are beginning to moderate in its battered lending division, GE Capital.
Bank of America said strong trading revenue helped offset ongoing consumer loan losses. However, it did note those loan losses -- which have cost banks hundreds of billions of dollars -- are starting to ease.
Ahead of the opening bell, Dow Jones industrial average futures fell 4, or less than 0.1 percent, to 11,092. Standard & Poor's 500 index futures fell 1.10, or 0.1 percent, to 1,207.30, while Nasdaq 100 index futures dropped 5.50, or 0.3 percent, to 2,029.25.
Google shares fell $25.30, or 4.2 percent, to $570.00 in premarket trading. GE shares rose 54 cents to $20.04. Bank of America shares rose 36 cents, or 2 percent, to $19.86.
Investors looking for fresh economic reports for insight into the economy will turn their attention to a Commerce Department report on housing construction that is expected to show housing starts and permits to build new homes both rose in March.
Economists polled Thomson Reuters expect housing construction rose 6.1 percent in March to a seasonally adjusted annual rate of 610,000 units. Applications for building permits, a good gauge of future activity, likely rose 2.9 percent to a seasonally adjusted annual rate of 630,000 last month. The report is due out at 8:30 a.m. EDT.
Data on housing has been mixed in recent months, indicating the sector that helped push the country into recession is still struggling to find its footing.
The University of Michigan's consumer sentiment index likely improved this month. A strong, healthy consumer is considered vital to a sustained recovery. There have been signs in recent months, such as rising retail sales, that consumers are becoming more comfortable with their finances.
Stocks rose Thursday after UPS Inc. provided an encouraging earnings forecast and manufacturing data showed continued growth in the sector. The manufacturing sector has shown consistent growth in recent months, unlike the housing market, which has struggled to rebound.
The Federal Reserve said industrial production rose for the ninth straight month in March and two regional manufacturing reports showed growth as well.
Meanwhile, bond prices rose Friday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.82 percent from 3.84 percent late Thursday.
The dollar was mixed against other major currencies. Gold and oil both fell.
Overseas, Japan's Nikkei stock average fell 1.5 percent, while Hong Kong's Hang Seng fell 1.3 percent. Britain's FTSE 100 fell 0.1 percent, Germany's DAX index dipped 0.1 percent, and France's CAC-40 rose 0.3 percent.
