Stock index futures extended losses on Friday, signaling a lower Wall Street open, as crude oil hovered near session lows and gold retreated amid a rise in the U.S. dollar.

* Financials were set to be another drag after Banc of America/Merrill Lynch slashed second-quarter earnings estimates for Goldman Sachs Group Inc , Morgan Stanley and JPMorgan Chase & Co .

* U.S. front-month crude dropped 2.5 percent to $70.89 in electronic trade, a day after hitting an intraday high above $73 a barrel.

* New York gold gold futures fell to a 3-week low under $940/oz.

* S&P 500 futures fell 5.40 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 dropped 20 points, while Nasdaq 100 futures were off 6 points.

(Reporting by Ellis Mnyandu; editing by Jeffrey Benkoe)