U.S. stock index futures were lower Friday, a day after the Dow and the S&P 500 rallied to fresh closing and intraday highs, pressured by some disappointing earnings reports.
(Read More: Microsoft, Google disappoint; shares pay the price)
Some of the overall weakness was offset by General Electric earnings, which came in a penny better than estimates. Shares gained in pre-market trading.
Honeywell edged higher after the diversified manufacturer posted better-than-expected earnings and lifted the low end of its 2013 outlook. And Schlumberger rallied after the oilfield services company topped earnings expectations as drilling activity outside North America touched a 30-year high.
Barry Knapp, head of equity portfolio strategy at Barclays noted that domestically orientated U.S. stocks have outperformed this quarter.
"This quarter, domestic revenues are starting to go up, which makes perfect sense given those stocks have been telling you that for six months. Companies with foreign-derived revenues remain under pressure," he said.
"What we do know with more certainty is that in September the Fed is going to slow its asset purchases," said Knapp.
Investors will be watching to see the reaction in the municipal bond market after the city of Detroit filed for the largest-ever municipal bankruptcy filing in U.S. history, late on Thursday.
Kevin Orr, a bankruptcy expert hired by Detroit in March, made the Chapter 9 filing in a federal bankruptcy court. The city has struggled with a slow decline in population and auto manufacturing. Automakers Ford and Chrysler Group, who have car factories in Detroit, pledged continued support and investment for the auto industry there.
(Read more: Detroit bankruptcy could hit millions of retirees)
Beyond the U.S., markets will also watch a meeting of G-20 finance ministers in Moscow on Friday and Saturday to see if global policy makers can do anything further to calm recent volatility and boost global growth.
Treasury Secretary Jack Lew will be in attendance. Ahead of the meeting, Lew said the U.S.was once more a "source of strength" in the global economy.
"The U.S. is again a source of strength in the world economy, only five years after it was the center of a global crisis. This has not happened by accident," said Lew in an opinion piece published by the Financial Times. "In many parts of the world, such as Europe, growth is too weak to drive job creation, and it is critical to take steps to bolster private hiring."
Meanwhile, the Nikkei fell from a two-month peak on Friday, as investors unwound long positions in the futures and cash market ahead of upper house elections over the weekend. Other Asian stocks also reversed gains, with the Shanghai Composite easing over 1.5 percent and Australia's S&P ASX 200 index retreating further from the 5,000 mark.