U.S. stock futures advanced Friday morning to finish yet another week full of earnings just to be hit with a wave of economic data Friday morning. Ahead of the bell, investors will focus on the release of second-quarter gross domestic product data, with many hoping it would indicate a slower pace of decline and a recovery ahead to the U.S. economy.
On average, economists expect the recession likely eased in the second quarter and shrank at a 1.5% pace -- an improvement over the 5.9% decline in economic growth the previous six months -- as the stimulus programs helped the economy to revive somewhat. Now, analysts are hoping the economy no longer in free-fall. They expect to see less drastic spending cuts by businesses and an improved trade picture factor, although consumer spending has likely continued to shrink on the back on the increasing unemployment.
In light of the recent rally, a disappointing GDP report may cause stocks to retreat more than they would normally react.
Update: Futures turned lower despite GDP report coming below expectation. The economy shrank at a pace of just 1% in the second quarter of the year, the report shows, providing the strongest signal yet that the longest recession since World War II is finally winding down.
Also on tap today is the July Chicago PMI to be released no long after the market opens.
More earnings are also scheduled for today, including AutoNation (NYSE: AN) and Chevron (NYSE: CVX).
Overseas, Asian market finished higher, while European stock markets fell modestly Friday on some profit-taking following the previous day's big rally.
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