Stock index futures were little changed on Friday as Caterpillar's profit missed estimates, offsetting a strong report from GE and an agreement on a Greece rescue package.
Dow component Caterpillar Inc
On the plus side, General Electric Co
GE should continue to help the overall markets. It's one of the world's major companies and people own it across the board, said Robert Pavlik, chief market strategist at Banyan Partners LLC in Palm Beach Gardens, Florida. The fact that it's trading higher is good news for the overall market and is another sign earnings season will be strong.
Euro zone leaders agreed on a second rescue package for Greece that could trigger a temporary default and would give a financial rescue fund broader powers to try to prevent a spread of market instability.
Worries that euro-zone debt contagion could reach regions where U.S. banks have more exposure have pressured equities in recent weeks.
The deal removes one of the concerns related to the overall market, and while it doesn't end thing, it shows that EU finance ministers understand the risk associated with a possible default and that they're willing to step up and support weaker countries, said Pavlik/
Verizon Communications Inc
S&P 500 futures rose 1.2 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dipped 3 points, and Nasdaq 100 futures took off 3.5 points.
Equities have also been pressured by the drawn-out wrangling to reach a deal to raise the U.S. debt ceiling. Efforts to raise the ceiling and avoid a U.S. default are in crunch time, with U.S. President Barack Obama and top lawmakers engaged in a sometimes chaotic drive to reach a sweeping deficit-reduction deal.
Advanced Micro Devices Inc
The Justice Department is looking into allegations a News Corp
Stocks climbed on Thursday as signs of progress on the U.S. debt talks and concrete action from Europe on its own debt crisis heartened investors.
(Editing by Jeffrey Benkoe)