Stock futures dip on Google; GE, BofA earns curb losses

NEW YORK (Reuters) - U.S. stock index futures edged lower on Friday after Google earnings failed to meet lofty expectations, but strong results from GE and Bank of America stemmed declines.

GOOGLE (GOOG.NQ)Inc , the Internet search giant, reported a 23 percent jump in quarterly revenue on a rebound in Web advertising, but the stock shed 4.4 percent to $569 in premarket as the results disappointed investors accustomed to blowout results.

General Electric Co advanced 1.5 percent to $19.80 after reporting a profit that was sharply higher than Wall Street estimated and said it sees potential upside to its earlier full-year forecast.

"The events today that are going to drive the market are earnings, earnings and then there are earnings," said Kim Caughey, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

Google, really is more consumer (based) and ad related, and they do have an odd, broad swath of the world. But it's chunky because it's missing all of China. So I wouldn't say they are a good proxy for what is going on in the economy. I look to companies more like GE."

Bank of America Corp climbed 2.1 percent to $19.88 premarket after first-quarter earnings topped expectations.

S&P 500 futures shed 2.8 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 lost 8 points, and Nasdaq 100 futures dropped 5.25 points.

Mattel Inc gained 3.2 percent to $24.50 in light trade after the No. 1 toymaker surprised Wall Street with a quarterly profit versus a year-ago loss on strong demand in both its classic and newer products.

Continental Airlines Inc has restarted merger talks with United Airlines parent UAL Corp two years after nearly sealing a deal, according to a source.

Economic data scheduled for Friday include March housing starts and University of Michigan sentiment data for April.

European stocks ticked higher as industrials gained after strong results from SKF , the world's biggest bearings maker, though miners fell on weak gold prices.

Asian stocks pulled back from 22-month highs and higher-yielding currencies fell as investors booked profits after risky assets ran up in recent sessions on the strength of solid economic data.

U.S. stocks posted a sixth straight day of gains on Thursday as an encouraging profit forecast from United Parcel Service Inc lifted transportation shares, though concerns about a rise in weekly jobless claims limited the advance.

(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)