U.S. stock index futures declined Friday after a disappointing Chinese trade report and following a five-day winning streak on the S&P 500.
China's July exports rose just 1 percent from a year earlier, disappointing estimates by a wide margin and adding expectations that the Chinese central bank will take further policy stepsto support an economy that has seen declining growth for six-consecutive quarters.
The S&P 500 closed above 1,400 for a third day in the previous session, logging a five-day rally as investors continue to bet a soft global economy will trigger intervention from central banks around the world.
Also on the economic front, import prices fell 0.6 percent in July for the fourth straight month, according to the Labor Department. Analysts had expected a gain of 0.1 percent. The unexpected decline could give the Federal Reserve more reason to ease monetary policy.
JCPenney tumbled after the retailer reported a wider-than-expected quarterly loss and added it won't meet its previous 2012 earnings guidance.
Nvidia rallied after the chipmaker beat quarterly results and handed in a better-than-expected current-quarter revenue guidance. In addition, at least 13 brokerages boosted their price targets on the firm.
Yahoo slumped after news the Internet company is rethinking a plan to return to shareholders the cash generated from a deal to sell its stake in Chinese internet company Alibaba, according to an SEC filing. In addition, Bank of America/Merrill Lynch downgraded the stock to "neutral" from "buy."
Also on the economic front, the Treasury department releases its monthly budget at 2pm ET.
English soccer team Manchester United is expected to make its market debuton the NYSE under the ticker symbol "MANU." Shares will price at $14, below the company’s expected $16 to $20 target range.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
On Tap Next Week:
MONDAY: Kodak patent auction winners announced; Earnings from Sysco
TUESDAY: NFIB small biz optimism index, PPI, retail sales, business inventories, 13-F filings due; Earnings from Home Depot, TJX
WEDNESDAY: Weekly mortgage apps, CPI, Empire state mfg survey, Treasury int'l capital, industrial production housing market index, oil inventories, Fed's Kocherlakota speaks, credit card default rates reported, Facebook lock-up expiration, Forest Labs shareholders mtg; Earnings from Deere, Target, Cisco, Applied Materials
THURSDAY: Housing starts, jobless claims, Philadelphia Fed survey, e-commerce retail sales, Fed's Kocherlakota speaks; Earnings from Wal-Mart, Dollar Tree, Aeropostale, Gap
FRIDAY: Consumer sentiment, leading indicators; Earnings from Ann, JM Smuckers
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