Stock futures rally on GDP Week could end with gains as report confirming slowing economy raises hopes of Fed pause next month. NEW YORK (CNNMoney.com) -- U.S. stock markets were poised to open higher Friday as investors, seeing signs of an economic slowdown, hope that the Federal Reserve won't raise interest rates in early August. At 8:45 a.m. ET, Nasdaq and S&P futures pointed to a higher open for the major market gauges. A report on gross domestic product, the broadest measure of the nation's economic activity, confirmed a slower economy and raised the possibility of a pause from the Fed. The Commerce Department said GDP grew at a 2.5 percent annual rate, in the second quarter down from the 5.6 percent growth logged in the first quarter. Economists surveyed by Briefing.com had forecast growth of 3 percent in the most recent quarter. (Full story) After the market opens, the University of Michigan will release its revised reading on consumer confidence in July. Economists are forecasting that index will stay at 83. Oil prices turned lower. U.S. light crude eased 43 cents in electronic trading to $74.11 a barrel. Treasury prices rallied, lowering the yield on the benchmark U.S. 10-year note to 5.01 percent, down from 5.08 percent late Thursday. The dollar was higher against the euro but up against the yen. Major markets in Asia closed mixed, with Japanese and Korean indexes higher and other major markets lower. Stocks in Europe were lower in early trading. In corporate news, Wal-Mart Stores (Charts) announced it is pulling out of Germany and taking a $1 billion charge related to the move. The world's No. 1 retailer is selling its 85 stores there to the supermarket chain Metro. Shares of the Dow component edged slightly higher in Frankfurt trading. Earnings due Friday include Chevron (Charts), the nation's No. 2 oil company, which is forecast to see second-quarter earnings rise 26 percent to $2.21 a share. |
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