US STOCKS-Futures point to lower open, on track for weekly drop
* Small-cap stocks in focus after Russell 2000 selloff
* J.C. Penney soars in premarket after results
* Verizon shares up in premarket on Berkshire stake
* Futures down: Dow 16 pts, S&P 2.3 pts, Nasdaq 7.25 (Updates prices, adds housing data)
By Ryan Vlastelica
NEW YORK, May 16 (Reuters) - U.S. stock index futures pointed to a lower on Friday, indicating the Dow and S&P 500 could extend their decline to a third day as investors continued to be wary of weakness in small-cap names.
* Small-caps weighed on Wall Street on Thursday, as the Russell 2000 briefly hit correction territory before pulling back. Investors are concerned prolonged weakness in small names could be a precursor of broader losses.
* The Dow and S&P 500 had their biggest daily decline in a month on Thursday, and the S&P closed under its 50-day moving average for the first time since April 15. In a sign of increased investor caution, the CBOE volatility index had its biggest one-day bounce in a little over a month on Thursday, and the spread between the spot VIX and the 3-month VIX at one point tightened to its smallest since April 15.
* The Russell index will continue to be in focus on Friday. It is currently 9.3 percent away from its early March record of 1,208.65 - less than the 10 percent decline that marks a correction - but has closed below its 200-day moving average in the past two session, a sign of weak momentum. Continuación...