By RTT News, October 18, 2013, 08:57:00 AM EDT
(RTTNews.com) - Stocks are likely to move to the upside in early trading on Friday, extending the upward trend seen over the past few sessions. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 32 points.
The continued upward momentum for the markets comes as traders continue to express relief after lawmakers reached an agreement to reopen the government and raise the debt ceiling.
While the temporary nature of the extension could lead to another protracted fight in a few months, traders are currently enjoying the brief respite.
The resolution of the latest fiscal crisis in Washington has also allowed traders to pay more attention to the earnings news from big-name companies.
Shares of Google ( GOOG ) are moving sharply higher in pre-market trading after the online search giant reported third quarter adjusted earnings of $10.74 per share on revenues of $14.9 billion. The results exceeded analyst estimates.
General Electric ( GE ) and Morgan Stanley ( MS ) are also likely to see early strength after reporting better than expected third quarter earnings.
Positive sentiment has also been generated by a report from the Chinese National Bureau of Statistics showing that Chinese GDP saw a faster rate of growth in the third quarter.
The report said China's third quarter GDP rose 7.8 percent year-over-year, in line with estimates and faster than the 7.5 percent growth in the second quarter.
Stocks saw a significant turnaround over the course of the trading day on Thursday after showing a notable move to the downside at the open. The gains on the day extended the rally that was seen over the course of the trading day on Wednesday.
While the Dow ended the day just below the unchanged line, the broader Nasdaq and S&P 500 climbed firmly into positive territory.
The Dow edged down 2.18 points or less than a tenth of a percent to 15,371.65, while the Nasdaq rose 23.71 points or 0.6 percent to 3,863.15 and the S&P 500 advanced 11.61 points or 0.7 percent to 1,733.15.
With the gains, the S&P 500 reached a new record closing high and the Nasdaq set another new thirteen-year closing high.
Meanwhile, the loss posted by the Dow reflected steep drops by IBM ( IBM ), UnitedHealth (UNH), and Goldman Sachs ( GS ), which all came under pressure after reporting disappointing third quarter results.
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