Futures Pointing To A Modestly Lower Open On Wall Street

(RTTNews) - After ending the previous session mostly higher, stocks may move back to the downside in early trading on Friday. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 18 points.

The negative sentiment is partly due to the release of a report from the Commerce Department showing an unexpected drop in personal spending in the month of April.

The report said personal spending edged down by 0.1 percent in April after surging up by 1.0 percent in March. The modest decrease surprised economists, who had expected spending to rise by 0.2 percent.

The unexpected drop in spending came despite a continued increase in personal income, which rose by 0.3 percent in April following a 0.5 percent increase in March. The increase marked the fourth straight month of growth and matched expectations. While most economists are likely to continue to expect a rebound in economic activity in the second quarter, the data may still lead to some trepidation after yesterday's report showing a contraction in first quarter GDP.

Not long after the start of trading, MNI Indicators is scheduled to release a separate report on Chicago-area business activity in the month of May. The business barometer is expected to dip to 61.0, although a reading above 50 would indicate continued growth.

Thomson Reuters and the University of Michigan are also scheduled to release their revised report on consumer sentiment in May.