* Small-cap stocks in focus after Russell 2000 selloff
* J.C. Penney soars in premarket after results
* Verizon shares up in premarket on Berkshire stake
* Futures down: Dow 16 pts, S&P 2.3 pts, Nasdaq 7.25
(Updates prices, adds housing data)
By Ryan Vlastelica
NEW YORK, May 16 U.S. stock index futures
pointed to a lower on Friday, indicating the Dow and S&P 500
could extend their decline to a third day as investors continued
to be wary of weakness in small-cap names.
* Small-caps weighed on Wall Street on Thursday, as the
Russell 2000 briefly hit correction territory before
pulling back. Investors are concerned prolonged weakness in
small names could be a precursor of broader losses.
* The Dow and S&P 500 had their biggest daily decline in a
month on Thursday, and the S&P closed under its 50-day moving
average for the first time since April 15. In a sign of
increased investor caution, the CBOE volatility index had
its biggest one-day bounce in a little over a month on Thursday,
and the spread between the spot VIX and the 3-month VIX
at one point tightened to its smallest since April 15.
* The Russell index will continue to be in focus on Friday.
It is currently 9.3 percent away from its early March record of
1,208.65 - less than the 10 percent decline that marks a
correction - but has closed below its 200-day moving average in
the past two session, a sign of weak momentum.
* J.C. Penney Co jumped 19.5 percent to $10 in
premarket trading a day after posting an adjusted quarterly loss
that was narrower than expected and sales that were above
forecasts. Nordstrom Inc rose 10 percent to $67.70 after
posting earnings above expectations.
* S&P 500 futures fell 2.3 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures fell 16
points and Nasdaq 100 futures lost 7.25 points.
* Major indexes turned lower for the week in Thursday's
decline. The Dow is currently down 0.8 percent for the week
while the S&P is off 0.4 percent and the Nasdaq is off 1.3
* Applied Materials reported revenue that was
slightly ahead of expectations, while Autodesk Inc
raised its full-year revenue view. Both results came out after
the market closed on Thursday.
* Shares of Applied Materials rose 2.2 percent to $19.10
before the bell while Autodesk was up 4.6 percent to $50.
* In the latest economic data, housing starts jumped 13.2
percent in April while building permits hit their highest level
in nearly six years, offering hope that the troubled housing
market could be stabilizing.
* Verizon Communications Inc rose 1.7 percent to
$48.78 in premarket trading a day after Warren Buffett's
Berkshire Hathaway Inc unveiled a new stake of 11
million shares in the company in a regulatory filing. The
filings also showed prominent hedge fund managers cut their
exposure to high-profile Internet names like Netflix Inc
in the quarter.
(Editing by Bernadette Baum)