Stock Futures Edge Higher Ahead of GDP Revisions
New York (May 27) Stock futures edged higher on Friday morning ahead of the first revision to first-quarter economic growth estimates.
S&P 500 futures were up 0.11%, Dow Jones Industrial Average futures gained 0.11%, and Nasdaq futures increased 0.21%.
The second estimate of first-quarter GDP is expected to be revised up to 0.9% growth after the first estimate's 0.5% increase. A stronger U.S. dollar, weaker global growth and chaotic financial markets weighed on the U.S. economy, though likely not as badly as initially feared.
Wall Street may get more clues on monetary policy from Federal Reserve Chair Janet Yellen's appearance at Harvard on Friday, when she's interviewed by Professor Greg Mankiw and receives the Radcliffe Medal. It's unlikely she will say anything explicit about interest rates, though investors will look for hints.
Crude oil prices moved further away from the $50-mark on Friday after briefly topping the level for the first time since in seven months a day earlier. Crude got a pick-up earlier in the week on more signs reduced U.S. production was eating into domestic inventories.
West Texas Intermediate crude oil was down 0.9% to $49.05 a barrel on Friday morning.
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Thermo Fisher (TMO) agreed to buy FEI Co. FEIC in an all-cash deal worth $4.2 billion. Thermo agreed to pay $107.50 a share for FEIC, representing a 14% premium to Thursday's close. The acquisition is expected to close in early 2017.
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A U.S. jury ruled in Alphabet's (GOOGL) favor on Thursday evening after finding that Google's use of Java programming in Android was in fair use. Oracle (ORCL) had brought the lawsuit against Google, arguing the use of the software infringed upon their patents. The court battle has been ongoing since 2010 and Oracle expects to appeal the decision.
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GameStop (GME) sank in premarket trading after disappointing same-store sales in its first quarter. The video-game retailer reported a 4.4% decline in sales to $1.97 billion, while sales in stores open at least a year fell 6.2% compared to an 8.6% increase a year earlier.
Palo Alto Networks (PANW) slumped 11% after forecasting slower growth in its fourth quarter. The online security company said it expects fourth-quarter earnings between 48 cents and 50 cents a share, slightly weaker than analysts had expected. The company has "anticipated for some time that seasonality would evolve in the business," chief financial officer Steffan Tomlinson said in a statement.
Source: TheStreet
