U.S. stock futures rose Friday morning, indicating U.S. stocks are set for a higher open on the last trading session of the month. While momentum from the previous rally helped, stocks were also buoyed by a rally in oil prices and news of green shoots in overseas markets. Some more positive news regarding General Motors also helped support markets as investors awaited economic data.Following rising yields that stoked fears in the market, solid demand to a government debt auction on Thursday eased fears that borrowing costs could rise as bonds gained. While overseas markets built on Wall Street's momentum, evidence the global recession may be easing also buoyed overseas stocks. Japan's industrial production jumped the most in 56 years in April and India's economy expanded more than economists forecast in the first quarter. A surprise jump in U.K. house prices only helped already positive sentiment.
Of course, a sustained rise in oil prices also supported stocks. Oil extended gains above $65 a barrel Friday to reach a fresh six-month high after the U.S. reported a fall in oil inventories and as further signs of economic improvement had traders hoping for higher demand.
Two economic data points will be released this morning:
- Preliminary Q1 GDP will be released at 8:30 AM -- The preliminary GDP is expected to have fallen 5.5% in the first quarter, according to Briefing.com. This is only a slight improvement from the government's earlier estimate of a 6.1% decline.
- May Chicago PMI at 9:45 AM
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