U.S. stocks were seen opening little changed on Friday, recovering from overnight losses, after data showed first quarter U.S. economic growth was faster than expected, but earnings from Intel and Exxon Mobil disappointed investors.
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Stock futures contract prices were hit early by poor earnings from Intel and Exxon Mobil and an outlook cut by American Airlines, though the tech-heavy Nasdaq index was seen supported by better than expected earnings from Amazon late Thursday.
The S&P 500 index is up 16.7 percent this year after the Federal Reserve decided to hold off on further interest rate rises this year.
First-quarter gross domestic product grew 3.2 percent, the Commerce Department said Friday morning, beating estimates for 2.5 percent growth, compared to a 2.2 percent increase in the last quarter of 2018. First quarter GDP growth was the fastest in six years.
Shares were lower in Asia overnight after data showed a fall in Japanese industrial production.
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Exxon fell more than 2 percent in pre-market trade after reporting quarterly earnings that missed analyst expectations. Intel fell more than 7 percent after a poor outlook for revenue.
Amazon shares traded higher after results topped expectations late Thursday.
Other companies that reported between Thursday afternoon and Friday morning include Ford Motor, Mattel, Starbucks and American Airlines.
U.S. Treasury yields fell though after strong first-quarter GDP data was offset by weak inflation data. The 10-year Treasury note yield slipped to 2.52 percent. The headline inflation rate fell to a 1.4 percent annually in the first quarter, from 1.9% in the previous period.
The Federal Reserve is not expected to change its policy of refraining from further interest rate rises this year despite the strong GDP data. The U.S. central bank meets again next week to discuss the outlook.
Oil prices slipped early Friday after rising to six month highs in the wake of President Trump’s decision to restrict Iranian oil exports further.
