Futures dipped Friday after Caterpillar's earnings missed estimates, erasing earlier gains froM GE and an agreement on a new Greek rescue deal.
European banks and insurers rose on Friday after Greece’s private sector creditors agreed to take a 21 percent loss on their debt holdings as part of the Greek rescue plan.
With the clock ticking toward an August 2 deadline to raise the US debt ceiling, the focus shifts to Washington on Friday where efforts to avoid a US default enter crunch time.
The main obstacle remains the issue of tax increases that Obama's Democrats demand and Republicans vehemently oppose.
Caterpillar slumped after the Dow component posted earnings that fell short of estimates, despite reporting revenue that topped expectations and raising its forecast for the year to reflect the acquisition of Bucyrus.
Among other Dow giants, GE reported a robust rise in profit, helped by strong international demand its heavy equipment including jet engines and electric turbines.