3 Min Read
* Green Mountain Coffee Roasters to join Nasdaq 100
* Nordstrom adds to list of weak retail revenues, shares fall
* Consumer sentiment data due
* Futures up: Dow 28 pts, S&P 3 pts, Nasdaq 8 pts
By Rodrigo Campos
NEW YORK, Aug 16 (Reuters) - U.S. stock index futures edged higher on Friday, after the largest decline on Wall Street in nearly two months a day earlier set major indexes on course for their first back-to-back weekly declines since late June.
Investors are concerned the economic recovery is slower than they had hoped as corporate revenue growth has disappointed even as companies' bottom-lines have hit the mark.
"We haven't seen the revenue growth the market was anticipating," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.
"We are unlikely to see a large-scale correction in the market right now, but it certainly is losing the momentum that took it to strong highs earlier this year," he said.
From Wal-Mart and Gap to Macy's and McDonald's, chains that cater to middle- and lower-income Americans are feeling the pinch of an uneven economic recovery.
Nordstrom Inc reported lower-than-expected revenue in its second quarter Thursday, prompting the luxury department store chain to trim its full-year sales and profit forecasts. Its shares fell 2.9 percent in premarket trading.
The Thomson Reuters/University of Michigan Surveys of Consumers will release the preliminary August consumer sentiment index at 9:55 a.m. (1355 GMT). Economists surveyed by Reuters expect a reading of 85.5 compared with 85.1 in the final July report.
S&P 500 futures rose 3 points and were above 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 rose 28 points, and Nasdaq 100 futures added 8 points.
Benchmark U.S. Treasuries yields jumped to two-year highs Thursday after strong data reinforced the view that the Federal Reserve is close to winding down its $85 billion a month in bond purchases. LibertyView's Meckler said the sharp adjustment in interest rates has made equity investors more cautious.
Data on Friday showed U.S. housing starts and permits for future home construction rose less than expected in July, suggesting that higher mortgage rates could be slowing the housing market's momentum.
U.S. nonfarm productivity rose in the second quarter after a surprise decline in the first one, separate data showed.
Chip gear maker Applied Materials said it expects foundry customers to hold back spending in the current quarter as they switch to making smaller chips. The stock fell 1.1 percent in thin premarket trading.
Green Mountain Coffee Roasters shares rose 1.9 percent in light premarket trading after Nasdaq OMX said the company will replace Life Technologies in the Nasdaq 100 index on August 22.
Pandora Media shares jumped 6.7 percent in premarket trading following a bullish call on the stock from Goldman Sachs.