Stocks May Open Higher Amid Focus On Developments Overseas - U.S. Commentary

(RTTNews) - After turning lower over the course of the previous session, stocks are likely to move back to the upside in early trading on Friday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 35 points.

Stocks may benefit from a report from Russian news agency RIA Novosti indicating that Russia wants to de-escalate the crisis in eastern Ukraine.

RIA Novosti cited Nikolai Patrushev, secretary of the Russian Security Council, as saying Russia is ready to mediate talks between the Ukrainian government and pro-Russian separatists.

"We are interested in peace in Ukraine and in bringing the sides to the negotiating table so that they could settle their disputes," Patrushev told RIA in an interview. "Russia will continue to make every effort for the soonest de-escalation of tensions."

He added, "As for mediation, of course, we are ready to assist in the process of the discussion and we have said so on numerous occasions."

The news out of Russia has helped to ease concerns generated by news that President Barack Obama authorized U.S. airstrikes against Islamic militants in northern Iraq in an effort to protect American interests and personnel in the region.

In a brief nationally televised speech Thursday evening, Obama said that U.S. action - taken at the request of the Iraqi government - will also include what he called humanitarian relief in the face of genocide.

On the economic front, the Labor Department recently released a report showing that labor productivity increased by more than anticipated in the second quarter, contributing to a smaller than expected increase in labor costs.

The report said labor productivity climbed by 2.5 percent in the second quarter compared to economist estimate for an increase of 1.5 percent.

The Labor Department also said unit labor costs edged up by 0.6 percent in the second quarter, well below the 1.4 percent growth expected by economists.

At the same time, the report said labor productivity in the first quarter tumbled by a revised 4.5 percent, resulting in an 11.8 percent jump in unit labor costs.

Not long after the open, the Commerce Department is scheduled to release a separate report on wholesale inventories in the month of June.

After failing to sustain an early upward move, stocks moved mostly lower over the course of the trading day on Thursday. The losses on the day extended the recent downward trend by the markets, with the Dow falling to a three-month closing low.

The major averages climbed off their worst levels going into the close but remained firmly negative. The Dow fell 75.07 points or 0.5 percent to 16,368.27, the Nasdaq slid 20.08 points or 0.5 percent to 4,334.97 and the S&P 500 dropped 10.67 points or 0.6 percent to 1,909.57.