Caution Writ On Wall Street Ahead Of GDP, Consumer Sentiment Data

(RTTNews.com) - Wall Street seems to be toeing a cautious line, as indicated by the U.S. index futures, which point to a modestly higher opening on Friday. Even as there is no disconcerting development in Europe, there has been no progress either, intensifying the uncertainty surrounding the situation there. Against this backdrop, the markets may react to the advance U.S. fourth quarter GDP data, a consumer sentiment report and another flurry of mixed batch of earnings reports.

As of 6:30 am ET, the Dow futures are rising 32 points, the S&P 500 futures are gaining 2.90 points and the Nasdaq 100 futures are adding 9.50 points.

Despite seeing early strength on Thursday on the back of lingering Fed optimism, the major averages gradually gave back their gains over the course of the session, falling below the unchanged line by the mid-session. The averages declined further before stabilizing in late trading and closed moderately lower.

The Commerce Department is set to release the first read of its fourth quarter GDP estimate at 8:30 am ET. The domestic economy is estimated to have expanded at a trend-like pace of 3.1 percent in the fourth quarter following a 1.8 percent expansion in the previous quarter.

The Reuters/University of Michigan's final report on the consumer sentiment index for January is scheduled to be released at 9:55 am ET. The consumer sentiment index is expected to be maintained unchanged at the mid-month reading of 74.

In corporate news, Juniper Networks (JNPR) reported fourth quarter non-GAAP earnings that beat estimates, while its revenues were slightly shy of estimates. However, the company issued a very bleak guidance for the first quarter.

Starbucks (SBUX) reported better than expected first quarter results. The company raised the low end of its 2012 earnings per share guidance.

Ryland's (RYL) fourth quarter earnings were better than expected.

Synaptics (SYNA) reported better than expected second quarter results, while its revenue guidance was below consensus estimate.

KLA-Tencor (KLAC) reported second quarter non-GAAP earnings and revenues that exceeded estimates.

Storage equipment maker Emulex (ELX) reported solid second quarter results and issued an upbeat guidance for its third quarter.

Motorola Mobility (MMI), which has agreed to be acquired by Google (GOOG) reported better than expected fourth quarter results.

Rambus (RMBS) reported a sharp drop in its non-GAAP earnings for the fourth quarter to 8 cents per share from 28 cents per share, as revenues declined to $83.36 million from $90.24 million last year.

Altria Group (MO), Chevron (CVX), Dominion Resources (D), DR Horton (DHI), Ford (F), Honeywell (HON), Legg Mason (LM), Newell Rubbermaid (NWL), Procter & Gamble (PG), T Rowe Price Group (TROW) and Verigy (VRGY) are among the key companies due to release their quarterly results before the markets open.

The major Asian markets experienced uneasy trading before closing mostly higher, although the Japanese market ended modestly lower. The Chinese and Taiwanese markets continued to be closed on account of the Lunar New Year holiday.

Japan's Nikkei 225 average moved nervously across the unchanged line in a narrow range in the morning before seeing a reprieve in the mid-session. However, stock declined in the afternoon, with the index closing down 8.25 points or 0.09 percent at 8,841, as traders digested disappointing earnings from blue chips including NEC and Nintendo.

Australia's All Ordinaries closed 19.40 points or 0.45 percent higher at 4,349 and the Hang Seng Index of Hong Kong closed at 20,502, up 62.53 points or 0.31 percent.

In economic news, a report released by Japan'sMinistry of Internal Affairs and Communication showed that Japan's core consumer price index declined 0.1 percent year-over-year in December. In November, the decline was a steeper 0.2 percent. Meanwhile, a separate government report showed that retail sales in Japan rose 2.5 percent year-over-year in December.

The European markets are seeing lackluster sentiment, with the French CAC 40 Index and the U.K. FTSE 100 receding modestly, while the German DAX Index is up 0.3 percent.

Meanwhile, Italy successful auctioned 11 billion euros worth of treasury bills in two tranches at relatively benign credit terms.

Crude oil futures are holding up, while gold futures are seeing a pullback, while the dollar is on the backfoot.

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