Stocks May Open Higher Following Upbeat GDP Data - U.S. Commentary

(RTTNews) - Following the release of third quarter GDP data, stocks may move modestly higher in early trading on Friday. The major index futures are currently pointing to a slightly higher open for the markets, with the Dow futures up by 23 points.

A report recently released by the Commerce Department showed that economic activity increased by more than expected in the third quarter.

The report said real gross domestic product climbed by 2.9 percent in the third quarter after rising by 1.4 percent in the second quarter. Economists had expected 2.5 percent growth.

The Commerce Department said the stronger than expected growth reflected positive contributions from consumer spending, exports, private inventory investment, federal government spending, and non-residential fixed investment.

Shortly after the start of trading, the University of Michigan is scheduled to release its revised report on consumer sentiment in the month of October.

The consumer sentiment index is expected to be upwardly revised to 88.5 from the preliminary reading of 87.9, although it would still be below September's final reading of 91.2.

On the earnings front, energy giant Exxon Mobil (XOM) reported better than expected third quarter earnings but on revenues that came in below analyst estimates.

Rival Chevron (CVX) reported third quarter results that exceeded expectations on both the top and bottom lines.

After the close of trading on Thursday, Google parent Alphabet (GOOGL) reported better than expected third quarter earnings and revenues. Aggregate paid clicks rose 33 percent, while cost per click fell 11 percent.

Amazon's (AMZN) third quarter earnings per share trailed estimates, while its sales exceeded expectations. The company's fourth quarter revenue guidance was in line.

Stocks fluctuated over the course of the trading session on Thursday before ending the session mostly in negative territory. The lower close on the day came on the heels of the mixed performance seen on Wednesday.

The major averages all closed in the red, although the tech-heavy Nasdaq underperformed its counterparts. While the Nasdaq slid 34.29 points or 0.7 percent to 5,215.97, the Dow edged down 29.65 points or 0.2 percent to 18,169.68 and the S&P 500 fell 6.39 points or 0.3 percent to 2,133.04.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index advanced by 0.6 percent, while Hong Kong's Hang Seng Index dropped by 0.8 percent.

The major European markets have also turned mixed on the day. While the French CAC 40 Index has crept up by 0.2 percent, the U.K.'s FTSE 100 Index is just below the unchanged line and the German DAX Index is down by 0.3 percent.

In commodities trading, crude oil futures are falling $0.45 to $49.27 a barrel after climbing $0.54 to $49.72 a barrel on Thursday. Gold futures are currently trading at $1,263.50 an ounce, down $6 from the previous session's close of $1,269.50 an ounce. On Thursday, gold rose $2.90.

On the currency front, the U.S. dollar is trading at 105.27 yen compared to the 105.29 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0926 compared to yesterday's $1.0897.