LDN - Business

Futures flat after six-day winning streak; GDP data awaited

[May 26, 2017] (Reuters) - U.S. stock index futures were little changed on Friday, coming off six straight days of gains and ahead of data that is likely to show the economy grew slightly more than previously thought in the first quarter.

A second reading on the gross domestic product is expected to show the economy grew at a 0.9 percent pace between January and March, slightly higher than the 0.7 percent growth estimated earlier. The data is due at 8:30 a.m. ET.

While recent economic data has been mixed, with data showing a dip in consumer spending and sentiment, a surge in business investment and wage growth suggests activity will regain momentum as the year progresses.

Earlier this week, minutes from the Federal Reserve's May meeting showed the central bank's policymakers believed the economic slowdown was transitory and indicated they were on track to raise interest rates next month.

A report at 10 a.m. ET is expected to show that a final reading on consumer sentiment index in May dipped to 97.5 from a preliminary reading of 97.7.

The S&P 500 <.SPX> and Nasdaq Composite <.IXIC> closed at record highs on Thursday, following gains in the consumer discretionary sector after strong reports from retailers.

Wall Street's six-day winning streak is its longest since February, buoyed by a strong earnings season. First-quarter reports at S&P 500 companies are estimated to have risen the most since 2011, according to Thomson Reuters I/B/E/S.

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 17, 2017. REUTERS/Brendan McDermid

However, with stocks at record levels and second-quarter earnings more than a month away, analysts say the market needs to see progress on President Donald Trump's pro-growth policies, for the market to make further meaningful gains.

Trump, who is on his maiden presidential foreign visit, has been embroiled in a political turmoil back home in relation to the firing of the FBI chief and his campaign's Russia ties.

Trading on Friday could be muted, with investors taking to the sidelines ahead of a long weekend due to the Memorial Day holiday on Monday.

Among stocks, shares of GameStop <GME.N> fell 4.7 percent to $22.50 in premarket trading, as the videogames and gaming consoles retailer left its full-year earnings forecast unchanged after quarterly profit beat estimates.

Big Lots <BIG.N> was up 5.1 percent at $50.85 after the discount retailer raised its full-year profit forecast.

(Reporting by Tanya Agrawal in Bengaluru; Editing by Savio D'Souza)

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