Wall Street Turns Cautious Ahead Of Long Weekend

(RTTNews) - Early indications suggest that Wall Street stocks may open Friday's session modestly lower as commodities turn southward. Among the global markets, Asian stocks ended mostly higher amid the release of negative inflation data from Japan. The European markets are seeing volatility, although they are slightly higher by early afternoon trading. The dollar is mostly higher. With Monday's Memorial Day holiday looming, trading activity could be light. The markets could also track economic data on first quarter GDP and consumer sentiment, a speech by Fed Chair Janet Yellen and the communiqué from the meeting of G7 leaders in Japan.

As of 6:15 am ET, the Dow futures are down 13 points, the S&P 500 futures declining 1.75 points and the Nasdaq 100 futures are moving down 1.50 points.

U.S. stocks closed a lackluster session on Thursday on a mixed note amid the release of some strong data and the retreat in oil prices.

On the economic front, the Commerce Department is set to release its preliminary estimate of first quarter GDP at 8:30 am ET. Economists expect an upward revision to GDP growth estimate to 0.9 percent.

At 10 am ET, the University of Michigan is scheduled to release its final U.S. consumer sentiment index for May. The consensus estimate calls for a small downward revision to the mid-month reading to 95.5.

Yellen will receive an award from the Radcliffe Institute for Advanced Study at Harvard University and speak with Harvard Professor Gregory Mankiw at 1:15 pm ET.

In major corporate news, updating its June quarter guidance to reflect the SanDisk acquisition, Western Digital (WDC) said it expects non-GAAP earnings of 65-70 cents per share, down from its earlier guidance of $1 to $1.10 per share. The company raised its revenue guidance to $3.35 billion to $3.45 billion from $2.6 billion to $2.7 billion.

GameStop (GME) reported better than expected first quarter non-GAAP earnings per share but its revenues fell 4.3 percent year-over-year. However, the company's second quarter and full year guidance is lackluster.

Deckers Brands (DECK) said Dave Powers will assume the role of CEO following the retirement of Angel Martinez, effective May 31st, 2016. The company reported better than expected fourth quarter non-GAAP earnings per share and an11.2 percent sales growth. The company's first quarter and full year 2017 guidance is weak.

Waste Connections (WCN) announced shareholder approval of its previously announced acquisition by Progressive Waste.

The Asian markets advanced, ignoring a lackluster showing by Wall Street stocks overnight. The Indian and Singaporean markets advanced notably, while the Chinese market bucked the downtrend with a marginal loss.

The Japanese market rose as the yen trading was subdued following tame inflation data that led to expectations that the government will delay a proposed sales tax hike.

The Nikkei 225 average ended up 62.38 points or 0.37 percent at a 1-month high of 16,835. Australia's All Ordinaries hovered in positive territory throughout the session, ending 17.80 points or 0.33 percent higher at over a 9-month high of 5,470.

Hong Kong's Hang Seng Index ended at 20,577, up 179.66 points or 0.88 percent, while China's Shanghai Composite settled down 1.40 points or 0.05 percent at 2,821.

On the economic front, a report released by Japan's Ministry of Internal Affairs and Communications showed that annual core consumer price inflation came in at -0.3 percent in April, the same rate as in March. Economists expected a -0.4 percent rate for the month. Core consumer prices for the Tokyo region, considered a leading indicator for the trend in the whole of Japan, fell 0.5 percent in May following a 0.3 percent drop in April. Economists expected a -0.4 percent rate for the month.

Data released by the Chinese National Bureau of Statistics showed that industrial profits in China rose 4.2 percent year-over-year in April, slower than the 11.1 percent increase in March.

European stocks opened lower as the G7 heads of states meet for the second and final day today at Hiroshima, Japan. Weakness in commodity prices and apprehension ahead of a public appearance by the Fed Chair also dented optimism. The French CAC 40 Index and the German DAX Index have recovered by early afternoon trading and are modestly higher, while the FTSE Index is seeing volatility.

In major corporate news, Philips Lighting, the splinter group of Dutch consumer electronics giant Philips (PHG), saw its shares rally on its debut.

On the economic front, the results of a survey by the GfK Group showed that U.K. consumer confidence remained depressed in May despite improving from the previous month. The index came in at -1 compared to the reading of -3 for April and the -4 expected by economists.

French consumer confidence unexpectedly strengthened to its highest level in more than fifteen years in May, as households were less pessimistic regarding their future financial situation and saving intentions for the next 12 months, data from French statistical office INSEE showed. The consumer confidence index rose to 98 from 94 in March and April. Economists had expected the measure to remain steady.