Wall Street was set to open higher on Friday, lifted by robust earnings from Google-owner Alphabet and Intel, and data that showed the US economy slowed lesser than expected in the second quarter.
The Commerce Department said GDP increased at a 2.1% annualized rate in the second quarter, higher than a 1.8% rate that economists polled by Reuters forecast.
“This is just what the market needed, not so soft that the economy is slowing down precipitously and not so strong that the Fed is going to reverse course,” said Art Hogan, chief market strategist at National Securities in New York.
“We expected bad earnings and bad GDP numbers, but an upside on both is something markets are going to embrace today.”
Alphabet Inc jumped 8.5% after its quarterly results beat estimates, easing investor concerns about growth challenges faced by its Google advertising business.
Intel Corp gained 4.2% after the chipmaker gave an upbeat current-quarter forecast and raised its full-year revenue guidance, allaying concerns about a global chip slowdown and curbs on US sales to China’s Huawei Technologies Co.
The S&P 500 posted its first loss of the week on Wednesday after European Central Bank President Mario Draghi adopted a less dovish tone than investors had anticipated, even though he all but pledged to ease policy further.
Hopes that the Fed will cut rates by at least 25 basis points at its policy meeting at the end of this month have powered a solid run in stocks this month, lifting the main indexes to record highs.
At 8:53 a.m. ET, Dow e-minis were up 75 points, or 0.28%. S&P 500 e-minis were up 8 points, or 0.27% and Nasdaq 100 e-minis were up 24 points, or 0.3%.
Two weeks into the second-quarter earnings season, about 75% of the 185 S&P 500 companies that have reported so far have topped profit estimates, according to Refinitiv data.
Among other stocks, Twitter Inc jumped 6.6% after it posted better-than-expected second-quarter revenue and an uptick in daily users who see advertisements on the site.
Amazon.com Inc fell 1.5% after the online retailer reported its first profit miss in two years and said income would slump in the current quarter.