Wall Street was set to drop at the open on Friday after disappointing quarterly results from Dow components General Electric Co (GE.N) and Bank of America Corp (BAC.N) dragged stock futures lower.
GE's lower profit and Bank of America's loss show U.S. businesses and consumers continue to struggle as the economy slowly recovers from the worst recession in decades.
The results also are a reality check for investors wowed by some strong corporate results earlier in the week.
To see GE's revenue down so much really says something about the economy and really has to make you question what kind of recovery is taking place here, said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
It's not a good morning to say the least, he said.
S&P 500 futures SPc1 were down 4.30 points and were below 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 DJc1 were down 26 points, while Nasdaq futures NDc1 fell 4.75 points.
Bank of America's loss stemmed from consumer credit losses, and it blamed continued weakness in the U.S. and global economies and stress on the consumer.
Bank of America's shares fell 2.8 percent to $17.60 while GE dropped 1.4 percent to $16.56 in premarket trade