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Futures Pare Losses After GDP Report

CNBC.com with Reuters
Friday, 26 Oct 2012 | 8:41 AM ET

U.S. stock index futures eased off their lows Friday after a report showed the economy grew more than expected in the third quarter, but disappointing earnings rom Apple and Amazon.com continued to weigh.

Economic growth ticked up in the third quarter, with the gross domestic product expanding at a 2.0 percent annual rate, according to the Commerce Department, easily beating expectations for a 1.9 percent growth rate. The economy grew at a 1.3 percent pace in the second quarter.

Dow component Merck reported quarterly results that topped expectations and said it continues to expect full-year revenue to be at or near 2011 levels on a constant currency basis.

Comcast posted earnings that met analysts' expectations, while revenue edged past forecasts. Comcast is the parent company of NBCUniversal.

Apple's outlook for the holiday season fell short of forecasts and iPad sales in the third quarter also disappointed. Amazon.com reported its first quarterly net loss in more than five years. The retailer was affected by the economic slowdown in Europe.

European shares were also lower after disappointing corporate earnings.

The final reading for the October University of Michigan Consumer Sentiment Index is due at 9:55 a.m. Economists in a Reuters survey expect a reading of 83.0 compared with 83.1 in the preliminary report.

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

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