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New York - US stock index futures were flat on Wednesday, following a sharp decline in the previous session, as investors looked ahead to a read on GDP expected to show the economy shrank in the first quarter.
* The final read on first-quarter gross domestic product was due a short while ago and is seen showing a contraction of 1.7%, wider than the previous read of -1%.
* A negative read, which largely reflects the impact of harsh winter weather throughout the early months of the year, is likely priced into markets, but other economic indicators could drive trading. Durable goods orders are seen as flat in May, while a June read on service sector business activity from financial data firm Markit is seen as essentially unchanged from May.
Air bases
* The S&P 500 hit an intraday record in early trading on Tuesday, boosted by some positive economic data, but enthusiasm waned in the final hours of trading as concerns over Iraq returned to the forefront. The Dow posted its biggest daily decline in over a month.
* S&P 500 e-mini futures rose 2 points and were above 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 e-mini futures rose 9 points and Nasdaq 100 e-mini futures rose 0.5 points.
* Geopolitical tensions will remain in view. In a mounting Sunni insurgency, militants in Iraq attacked one of the country's largest air bases. Separately, the first US teams arrived to assess Iraqi security forces and decide how to help counter the violence.
Extended period
* Investors are concerned about the impact prolonged turmoil in Iraq could have on oil prices, which are already up 3.8% this month. US crude futures rose 0.6% to $106.64 per barrel in early trading. Many analysts have speculated that prices above $115 per barrel for an extended period will weigh on economic activity.
* The CBOE Volatility index spiked more than 10% on Tuesday, coinciding with the market's pivot lower, the biggest one-day pop for the "fear index" since April. Still, at 12.13 the VIX remains at very low levels from an historical basis.
* Bristol-Myers Squibb Co late Tuesday said a late-stage trial testing its immunotherapy nivolumab in advanced melanoma patients was halted early after it was determined that the drug was likely to prolong survival.
