S&P 500, Dow set to open slightly higher

By Ankur Banerjee and Anya George Tharakan

REUTERS - The S&P 500 and the Dow Jones Industrial Average looked set to open slightly higher on Friday after consumer spending data for May showed steady economic growth as the second quarter draws to a close.U.S. consumer spending rose modestly in May and inflation cooled, pointing to a slow-but-steady economic expansion that could still lead the Federal Reserve to raise interest rates by the end of the year.

The S&P 500 and the Dow recorded their worst daily percentage drop in about six weeks on Thursday as a recent decline in technology shares deepened and outweighed strength in bank shares.

"It would not surprise me to have a lot of volatility, considering the financials were particularly strong yesterday and technology was particularly weak," said Andre Bakhos, managing director at Janlyn Capital LLC.

"We have what appears to be some sector rotation going on, and its occurring at the end of the quarter and its adding to the volatility."

Towards the end of the second quarter, the market witnessed a few volatile days. On Wednesday, the tech-heavy Nasdaq posted its best day since Nov. 7.

Tech stocks, which have led the S&P 500's 8-percent gain this year, pulled back recently as some investors questioned the sector's high valuations.

Dow e-minis were up 34 points, or 0.16 percent, at 8:41 a.m. ET with 34,703 contracts changing hands. S&P 500 e-minis were up 3 points, or 0.12 percent, with 217,782 contracts traded. Nasdaq 100 e-minis were down 5.5 points, or 0.1 percent, on volume of 56,522 contracts.

Crude oil futures on Friday were on track for their biggest weekly gain since mid-May, ending five weeks of losses with prices underpinned by a decline in U.S. output.

The euro came off yearly highs on Friday but was still set for its strongest quarter in six years as investors piled into the currency on a brightening euro zone economy and its implications for monetary policy in the bloc.

The final reading of University Of Michigan Surveys Of Consumers Sentiment for June is due at 10:00 a.m. ET (1400 GMT)

On the stocks, Nike shares were up 6 percent after the world's largest footwear maker said on Thursday it would launch a pilot program with Amazon.com Inc to sell a limited product assortment on its website.

Shares of Cara Therapeutics Inc plunged 29 percent after the biotech reported disappointing pain treatment data from a key study.

Micron shares were up 2 percent after the chipmaker forecast better-than-expected profit and revenue for fourth quarter

(Reporting by Ankur Banerjee in Bengaluru; Editing by Arun Koyyur)