Stocks May Move Modestly Higher In Early Trading - U.S. Commentary

(RTTNews) - After moving mostly higher over the course of the previous session, stocks may see some further upside in early trading on Friday. The major index futures are currently pointing to a modestly higher open for the markets, with the Dow futures up by 25 points.

Amid a relatively quiet day in terms of news, traders will continue to weigh yesterday's upbeat economic data against worries about the outlook for monetary policy.

The data released on Wednesday provided some signs that the economy is poised to break out of the winter doldrums, reinforcing the view that the weather-related slowdown was only temporary.

Traders reacted positively to a report from the Conference Board showing a bigger than expected increase by its index of leading economic indicators as well as a report from the Philadelphia Federal Reserve showing a significant turnaround by regional manufacturing activity.

At the same time, concerns that the Fed may begin raising interest rate sooner than previously anticipated may weigh on the markets.

New Fed Chair Janet Yellen's remarks in her post-meeting press conference on Wednesday seemed to suggest that the central bank could begin raising rates by mid-2015.

While the mid-2015 guidance is in line with the forecasts of many economists, traders will still need to come to terms with the reality that the Fed's easy monetary policy will not last forever.

Some positive sentiment may be generated by news that Fitch Ratings has affirmed the U.S.'s credit ratings at the top-notch triple-A level.

Fitch also said the outlook is stable, resolving the Rating Watch Negative on which the ratings were placed in October of 2013.

Stocks moved mostly higher over the course of the trading day on Thursday after recovering from an early move to the downside. A batch of upbeat economic data helped to offset concerns about the outlook for interest rates.

The major averages all closed in positive territory, with the Dow and the S&P 500 nearly offsetting Wednesday's losses. The Dow jumped 108.88 points or 0.7 percent to 16,331.05, the Nasdaq rose 11.68 points or 0.3 percent to 4,319.29 and the S&P 500 climbed 11.24 points or 0.6 percent to 1,872.01.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Hong Kong's Hang Seng Index advanced by 1.2 percent, while China's Shanghai Composite Index surged up by 2.7 percent. The Japanese markets were closed for a public holiday.

The major European markets are also seeing some strength on the day. While the German DAX Index has risen by 0.4 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index are both up by 0.3 percent.

In commodities trading, crude oil futures are climbing $0.36 to $99.26 a barrel after receding $0.27 to $98.90 a barrel on Thursday. Gold futures, which fell $10.80 to $1,330.50 an ounce in the previous session, are rising $7 to $1,337.50 an ounce.

Among currencies, the U.S. dollar is trading at 102.32 yen compared to the 102.39 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.3780 compared to yesterday's $1.3779.