U.S. Stock Futures Edge Higher

U.S. stock futures rose Friday, a day after the Dow industrials dropped to the lowest level since late April.

Stocks slumped overseas as news that the U.S. had authorized airstrikes in Iraq added to concerns about the European economic recovery and ongoing turmoil in Ukraine and the Middle East. European stocks fell, with the Stoxx Europe 600 down 0.5%. In Asia, Japanese stocks hit a two-month low, netting their worst daily decline in nearly four months.

Dow Jones Industrial Average futures rose 11 points, or 0.1%, to 16332.

S&P 500 index futures added three points, or 0.1%, to 1908 and Nasdaq-100 futures gained four points, or 0.1%, to 3861. Changes in stock futures don't always accurately predict stock moves after the opening bell.

Futures had been down earlier.

Stocks fell Thursday, with the Dow falling 0.5% to 16368.27. The S&P 500 fell 0.6% to 1909.57.

Stocks had been moving higher this year, hitting a number of records as improving data and low interest rates attracted investors. But that turned around in mid-July, with investors now weighing heightened geopolitical tensions with economic data to see if the recent swoon in stocks will be temporary. Also in play are corporate earnings, which investors say have been healthy so far and could be supportive of stock-market gains in the longer run. The Dow has now fallen 4.5% from its July 16 closing high of 17138.20, as of Thursday's close.

"The backdrop of an improving economy in the U.S. has presented itself both in economic data and corporate earnings. For now, that improving economic picture in the U.S. has been usurped by the uncertain global macro picture," said Art Hogan, chief market strategist at Wunderlich Securities.

Assets that are typically thought of as safe havens gained on Friday. Gold futures rose 0.3% to $1,315.80 an ounce. The yield on the 10-year Treasury note, which moves inversely with its price, fell to 2.393%, according to FactSet. The Japanese yen strengthened, with the dollar buying Yen101.93.

Later Friday morning, data is expected to show wholesale inventories rose 0.7% in June.

In corporate news, Lululemon Athletica Inc. founder Dennis "Chip" Wilson agreed to sell half his stake in the company to a private-equity firm for $845 million. Shares rose 5.2% premarket.

Zynga Inc. shares fell 9.6% in premarket trading. The videogame maker reported a wider second-quarter loss and lowered its financial outlook for the year.

Crude-oil futures rose 0.4% to $97.73 a barrel.

Write to Saumya Vaishampayan at [e-mail]

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