U.S. Stocks May See Initial Strength On Inflation Data, Upbeat Earnings News

(RTTNews) - Stocks are likely to move to the upside in early trading on Friday, extending the advance seen in the previous session. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.6 percent.

The futures advanced following the release of a closely watched Labor Department report showing consumer prices in the U.S. increased by slightly less than expected in the month of September.

The Labor Department said its consumer price index rose by 0.3 percent in September after climbing by 0.4 percent in August. Economists had expected consumer prices to rise by another 0.4 percent.

The report also said the annual rate of growth by consumer prices ticked up to 3.0 percent in September from 2.9 percent in August, although that was slower than the 3.1 percent jump expected by economists.

Excluding food and energy prices, the core consumer price index crept up by 0.2 percent in September after rising by 0.3 percent in August. Core consumer prices were expected to increase by another 0.3 percent.

The Labor Department also said the annual rate of growth by consumer prices slowed to 3.0 percent in September from 3.1 percent August. Economists had expected the pace of growth to remain unchanged.

The relatively tame inflation data is likely to increase confidence the Federal Reserve will continue to lower interest rates in the coming months.

Early buying interest may also be generated in reaction to upbeat earnings news from big-name companies like Intel (INTC).

Shares of Intel are surging by 6.0 percent in pre-market trading after the semiconductor giant reported better than expected third quarter sales.

Auto giant (F) is also jumping by 3.6 percent in pre-market trading after reporting third quarter results that exceeded analyst estimates on both the top and bottom lines.

Shares of Procter & Gamble (PG) are also seeing notable pre-market strength after the consumer products giant reported fiscal first quarter results that exceeded expectations.

Following the weakness seen during Wednesday's session, stocks moved back to the upside during trading on Thursday. The major averages all moved higher on the day, with the tech-heavy Nasdaq showing a notable advance.

The major averages pulled back off their best levels going into the end of the day but remained in positive territory. The Nasdaq jumped 201.40 points or 0.9 percent to 22,941.80, the S&P 500 climbed 39.04 points or 0.6 percent to 6,738.44 and the Dow rose 144.20 points or 0.3 percent at 46,734.61.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index jumped by 1.4 percent, while South Korea's Kospi surged by 2.5 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index is down by 0.3 percent, the U.K.'s FTSE 100 Index is up by 0.1 percent and the German DAX Index is up by 0.2 percent.

In commodities trading, crude oil futures are climbing $0.40 to $62.19 a barrel after soaring $3.29 to $61.79 a barrel on Thursday. Meanwhile, after surging $80.20 to $4,145.60 an ounce in the previous session, gold futures are slumping $40.20 to $4,105.40 an ounce.

On the currency front, the U.S. dollar is trading at 152.49 yen versus the 152.58 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1636 compared to yesterday's $1.1617.