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Futures Turn Lower, Stocks to Post Drop in June

U.S. stock index futures reversed their earlier gains to turn lower on the final trading day of the month and quarter, after major averages logged a three-day rally.

Futures took a leg lower after Fed Governor Jeremy Stein highlighted the upcoming September policy meeting as a possible time when the central bank may need to consider paring back its QE program, adding that the Fed consider the overall economic improvements since it launched the stimulus instead of giving undue weight to the most recent round of tepid economic data.

(Read More: Buckle Up! Expect More Market Volatility This Year)

Stein's comments contradict comments from other Fed policymakers who have suggested the central bank will bide its time before scaling back its bond purchases.

Menawhile, Richmond Fed President Jeffrey Lacker said markets should brace for more volatility as they digest news the Fed will scale back bond buying later this year, but the swings will not derail growth. Lacker said he expects U.S. growth to remain around 2 percent for the "foreseeable future."

Cleveland Fed President Sandra Pianalto and San Francisco Fed President John Williams are also scheduled to speak throughout the day. Williams's speech may attract particular interest, as he has previously advocated tapering back bond purchases as early as this summer.

(Read More: Fed Out in Force as Markets Stabilize)

On the economic front, the Chicago PMI for June will be reported at 9:45 am ET. Economists in a Reuters survey forecast a reading of 56.0, from 58.7 in May. And the Thomson Reuters/University of Michigan will release the final June consumer sentiment index. Economists polled by Reuters expect a reading of 82.8 against 82.7 in the preliminary June report.

Meanwhile, Japan's benchmark stock index hit a three-week high on Friday on the back of positive economic reports that include much stronger than expected industrial output and retail sales numbers.

"We had better job market numbers, better production numbers, and even consumer prices are picking up. So data-wise, today is a pretty good day for Japan," said Takuji Okubo, principal and chief economist at Japan Macro Advisors.

BlackBerry reported an unexpected loss of 13 cents a share that, while better than last year's 37 cent loss, still sent shares reeling.

Nike posted earnings that beat forecasts, but shares declined after the sports apparel retailer said it expects lower China revenue during the first half of its new fiscal year and sees first-quarter gross margins to be "essentially flat."

Traders will closely watch gold prices, as the precious metal dipped below a key level of $1,200 per ounce. Analysts warned that miners could be severely affected if prices remain this low.

(Read More: Three Reasons Gold Will Go to $800)

—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)

Coming Up This Week:

FRIDAY: Chicago PMI, consumer sentiment, Fed's Pianalto speaks, Fed's Williams speaks

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