Stocks May Extend Upward Move In Early Trading - U.S. Commentary

(RTTNews) - Stocks may move to the upside in early trading on Friday, extending the upward move seen over the course of the two previous sessions. The major index futures are currently pointing to a modestly higher open for the markets, with the Dow futures up by 9 points.

The markets may benefit from a positive reaction to quarterly results from Hewlett-Packard (HPQ), with the tech giant posting a slim gain in pre-market trading.

After the close of trading on Thursday, HP reported second quarter earnings that were in line with estimates, although its revenues came in below expectations. The company also revealed plans to cut 16,000 more jobs.

Brocade Communications (BRCD) could also see early strength after the reporting in line second quarter earnings on revenues that beat estimates. The networking solutions company also said its board approved the initiation of a quarterly dividend.

On the other hand, shares of Gap (GPS) are moving modestly lower in pre-market trading even though the apparel retailer reported better than expected first quarter results and issued in-line earnings guidance for the full-year.

Not long after the open, trading could also be impacted by the Commerce Department's report on new home sales in the month of April.

Economists expect new home sales to jump 9.4 percent to an annual rate of 420,000 in April after plunging 14.5 percent to a rate of 384,000 in March.

Nonetheless, trading activity may be somewhat subdued on the day as some traders look to get a head start on the long Memorial Day weekend.

After moving sharply higher over the course of Wednesday's trading, stocks saw some further upside during trading on Thursday. While buying interest was somewhat subdued, the Nasdaq still managed to reach its best closing level in a month.

The major averages ended the day in positive territory but off their highs for the session. The Nasdaq rose 22.80 points or 0.6 percent to 4,154.34, while the Dow inched up 10.02 points or 0.1 percent to 16,543.08 and the S&P 500 edged up 4.46 points or 0.2 percent to 1,892.49.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index advanced by 0.9 percent, while Hong Kong's Hang Seng Index edged up by 0.1 percent.

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

In commodities trading, crude oil futures are rising $0.36 to $104.10 a barrel after receding $0.33 to $103.74 a barrel on Thursday. Meanwhile, gold futures are slipping $4.60 to $1,290.40 an ounce. In the previous session, gold climbed $6.90 to $1,295 an ounce.

On the currency front, the U.S. dollar is trading at 101.91 yen compared to the 101.74 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.3627 compared to yesterday's $1.3656.