U.S. stock futures trimmed earlier losses Friday, as investors weigh the latest corporate earnings against a stronger-than-expected report on U.S. economic growth.
Gross domestic product, the broadest measure of economic activity, rose at a 2% annual rate in the third quarter, according to government data. The figure was higher than the 1.7% rate economists surveyed by CNNMoney had forecast and came after GDP grew 1.3% in the second quarter.
Investors were also digesting the latest reports on corporate sales and earnings in the third quarter.
Apple(AAPL), one of the most widely held stocks in the S&P 500, reported quarterly results that missed expectations, despite predictions for a strong fourth quarter. Additionally, Amazon(AMZN) reported a narrower-than-expected loss but missed on sales.
As quarterly results continue to roll in, investors have been sidelined by weaker-than-expected sales growth and tepid guidance for the current quarter. In addition, traders have become risk-averse ahead of the U.S. presidential elections, while concerns about the fiscal cliff continue to weigh on the market.
Later in the morning, the University of Michigan will release the final version of its consumer sentiment index for October.