Stock index futures fall

Traders work on the floor at the New York Stock Exchange, April 11, 2013. REUTERS-Brendan McDermid

(Reuters) – Stock index futures fell on Friday, a day after Wall Street scaled fresh heights, as investors awaited a round of economic data and quarterly results from major banks.

The Dow and benchmark S&P 500 closed at record highs on Thursday, extending this year’s rally to a 13.4 percent gain for the Dow and 11.7 percent for the broader S&P.

The advance in equities in recent months has been partly due to the Federal Reserve’s economic stimulus efforts, and analysts are viewing the first-quarter earnings season as a test for whether those gains are justified by corporate performance.

“I haven’t seen good enough news to warrant this huge rise in the market,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

“This is a big earnings season because it would be nice to have (the) market’s overall view sync up with a picture of the economy that is improving, not just not getting worse.”

Earnings for S&P 500 companies are expected to grow at a modest 1.2 percent in the first quarter, down from more than 4 percent forecast in January, according to Thomson Reuters data.

JP Morgan Chase (JPM.N) reported higher first-quarter profits, though its stock was off 0.9 percent to $48.88 in premarket trading shortly after the results.

Wells Fargo (WFC.N) will report results later in the morning.

S&P 500 futures fell 4.7 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 were down 38 points, and Nasdaq 100 futures lost 10.25 points.

A report on retail sales, due at 8:30 am EDT, is expected to show sales flattened in March after a strong February. Consumer spending accounts for about two-thirds of economic activity.

Other data due Friday include producer prices, consumer sentiment and business inventories.

Investors have been rattled by indications the economy is cooling, particularly after last week’s disappointing jobs number, though that has not derailed the market rally so far.

Shares of J.C. Penney (JCP.N) fell 1.6 percent to $14.63 after sources said Thursday the troubled retailer has hired Blackstone Group LP’s (BX.N) financial advisory arm to explore how best to position the firm financially.