RTTNews - Following a strong upward move in the previous session, stocks are poised to open moderately lower on Friday. The major index futures are all in negative territory, with Dow futures down by 40 points.
The downward momentum for the markets comes as traders digest that latest batch of income and spending figures while awaiting consumer sentiment data on tap for later this morning.
A Commerce Department report showed that personal income jumped 1.4 percent in May following an upwardly revised 0.7 percent increase in April, although the growth was due in large part to increased government social benefit payments.
The report also showed that that personal spending rose 0.3 percent in May after coming in unchanged in the previous month. The moderate increase in spending came in line with economist estimates.
Shortly after the opening bell on Wall Street, traders will be presented with the Reuters/University of Michigan's revision to June's consumer sentiment index.
Economists expect the index to show a reading of 69.0, unchanged from the first half of the month. The report is scheduled to be released at 9:55 a.m. ET.
In earnings news, tech giant Palm (PALM) posted an adjusted fourth quarter loss of $0.40 per share, compared to a loss of $0.22 per share in the year-ago period. Wall Street analysts had expected the firm to report a loss of $0.62 per share.
KB Home (KBH) reported a second-quarter net loss of $1.03 per share, compared to a net loss of $3.30 per share for the same period last year. Analysts expected the company to report a loss of $0.64 per share for the quarter.
Memory chip maker Micron Technology (MU) revealed that its loss for the third quarter widened from a year ago. The firm attributed the loss to hefty charges and losses related to disposals of semiconductor equipment and other items, as well as sharp decline in quarterly sales.
Meanwhile, diversified manufacturer Honeywell (HON) announced that it has signed a definitive agreement valued at approximately $400 million to acquire Germany-based RMG Group, which specializes in the design and manufacture of natural gas control, measurement and analysis equipment.
Following a disappointing start on the heels of disheartening employment data, stocks staged a substantial recovery and posted strong gains on Thursday. The Dow finished up by 173 points at 8,472, the Nasdaq rose 37 points to 1,830 and the S&P 500 jumped 19 points to 920.
Crude oil futures are rising in early commodities trading, climbing by $0.21 to $70.44 a barrel after ending the previous session up $1.56 at $70.23 a barrel. Meanwhile, the price of gold is moving up by $8.10 to $947.60 an ounce.
On the currency front, the U.S. dollar is sliding against the major European currencies, falling to $1.4086 against the euro while dropping to $1.6488 against the pound. The dollar is also ceding ground against the yen, moving down to 95.40.
In overseas trading, stock markets across the Asia-Pacific region ended Friday's session showing moderately strong gains. Japan's benchmark Nikkei 225 Index closed up 0.8 percent, while Hong Kong's Hang Seng Index jumped 1.8 percent.
Meanwhile, the major European markets are mixed, with the German DAX Index and the U.K.'s FTSE 100 Index up by 0.5 percent and 0.4 percent, respectively, while the French CAC 40 Index is down by 0.7 percent.
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