US futures point to lower open

New York - US 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.

The US bourse is set to open higher as European leaders get ready to meet. Credit: REUTERS

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.

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.

Nordstrom Inc rose 10 percent to $67.70 after posting earnings above expectations.

Dow Jones industrial average futures fell 16 points and Nasdaq 100 futures lost 7.25 points.

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 percent.

The filings also showed prominent hedge fund managers cut their exposure to high-profile Internet names like Netflix Inc in the quarter. - Reuters