futures flat, indexes on track to close week lower
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[June 13, 2014] By
(Reuters) - U.S. stock index futures were little changed
on Friday, though recent weakness was enough to put the
Dow and S&P 500 on track for their first weekly decline
after three consecutive weeks of gains.
* While both the Dow and S&P hit a series of record highs this week,
Wall Street has lately been pressured by concerns of slowing global
growth and ongoing violence in Iraq, which has taken oil prices to
their highest since September.
* The S&P has fallen for three straight days, its longest streak of
declines since early April. However, it has dropped just 1.1 percent
over that period, and many view the market's recent trend upward as
* Technology shares will be in focus a day after Intel Corp raised
its full-year revenue outlook, citing stronger-than-expected demand
for personal computers used by businesses. Shares of the Dow
component rose 4.7 percent to $29.27 in premarket trading.
* Another positive catalyst may come at 9:55 a.m. EDT (1355 GMT),
with the preliminary read on June consumer sentiment from the
Thomson Reuters/University of Michigan Surveys of Consumers. The
index is seen rising to 83 from 81.9 in the previous report.
* S&P 500 futures fell 2.9 points and were below fair value, a
formula that evaluates pricing by taking into account interest
rates, dividends and time to expiration on the contract. Dow Jones
industrial average futures fell 29 points and Nasdaq 100 futures
slid 3.25 points. * For the week, the Dow is down 1.1 percent, the
S&P is down 1 percent, and the Nasdaq is down 0.6 percent. The Dow
and S&P have risen for three straight weeks; Nasdaq has risen for
* The CBOE Volatility index is up 10.2 percent on the week, its
first weekly rise following eight weeks of declines. Despite the
spike, the so-called 'fear index' remains well below its historical
* Crude prices will continue to be in focus, rising 0.6 percent to
$107.12 per barrel on Friday. While the price of oil has spiked 2.6
percent over the past three days, most analysts said it would need
to be sharply above $115 per barrel for a protracted period before
it becomes a major headwind to economic growth. Still, energy
companies may attract more action as prices fluctuate.
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* In Iraq, Islamist rebel fighters captured two more Iraqi towns
overnight as they moved towards Baghdad. U.S. President Barack Obama
responded by threatening military strikes, adding to the market's
geopolitical concern; selling accelerated on Thursday after his
* In company news, Tesla Motors Inc late Thursday said it would
allow others to use its intellectual property in the hopes of
speeding up development of electric cars by all manufacturers.
Shares rose 0.7 percent to $205 before the bell.
* Finisar Corp plunged 22 percent to $19.75 in premarket trading a
day after forecasting weaker-than-expected earnings, citing higher
capital expenditure in China.
(Editing by Bernadette Baum)
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