Stocks fell Friday, ending the week lower despite consumer sentiment rising to an eight-month high in May. The improvement is a good sign as sentiment rebounds from a low in November which could translate to improved consumer spending. All three major averages closed negative, with the Dow Jones industrial average falling 62.68, or 0.8 %, to 8,268.64. The broader Standard & Poor’s 500 index lost 10.19, or 1.1 %, to 882.88, and the Nasdaq composite index declined 9.07, or 0.5 %, to 1,680.14.

For the week, the Dow fell 3.6 %, the S&P 500 index lost 3.4 % and the Nasdaq slid 5 %.

Morning Outlook

Corporate news overnight sent the world’s 2nd largest economy sharply lower as Japan’s Nikkei 225 closed down 2.4 % at 9,038.69. Hong Kong’s Hang Seng recovered early losses to gain 232.21, or 1.4 %, to 17,022.91, while South Korea’s benchmark shed 0.4 % to 1,386.68. Shanghai’s index rose 0.3 %.

Europe sold off following the decline in Japan before turning positive in late morning trading. Germany’s DAX was down 1.1 %, now flat on the day at 4,740.38. Britain’s FTSE 100 is positive by 36.26 points, or 0.83% to 4,384.37. France’s CAC 40 rose 1.8, or 0.06 % to 3,170.85.

The weaker than expected backward looking indicators have stalled the market rally as investors see the economy has further to climb back into any measurable growth territory in the 2nd half of the year.

As equities in Europe turned around, so did U.S. futures. Wall Street points to a higher opening to start the week, with Dow Jones industrial average futures rising 38, or 0.5 %, to 8,305. Standard & Poor’s 500 index futures are positive by 5.50, or 0.6 %, to 888.50, while Nasdaq 100 index futures gained 6.75, or 0.5 %, to 1,361.00.

On the Corporate Front

Lowe’s (LOW), the nation’s second biggest home improvement chain, reported its fiscal first-quarter profit fell 22 % as consumers continue to scale back on pick ticket items. Earnings dropped to $476 million, or 32 cents per share, from $607 million, or 41 cents per share, a year ago; beating Wall Street estimates of 25 cents per share. Sales fell 2% to $11.83 billion, however still topping analyst expectations of $11.63 billion on the top line.