Wall Street Banking On Bargain Hunting Support

(RTTNews) - Trading in the U.S. index futures suggests that Wall Street stocks may open Friday's session on a positive note, as the major averages trade near 2-month lows. Commodities are higher, with oil getting a boost from supply concerns. The dollar is mixed. After Asia closed mostly higher, the European markets are also seeing strength, deriving support from the resource space. The domestic markets could focus on the retail earnings released after the markets closed yesterday, the existing home sales report due today and the move in commodities.

As of 6:15 am ET, the Dow futures are moving up 42 points, the S&P 500 futures are receding 4 points and the Nasdaq 100 futures are gaining 12.75 points.

U.S. stocks ended Thursday's session lower amid the retreat in commodities and the release of mostly positive economic data.

Federal Reserve Governor Daniel Tarullo is scheduled to speak about insurance company and regulation in Washington at 9 am ET. ?  The National Association of Realtors are due to release its existing home sales report for April at 10 am ET. Economists expect existing home sales to come in at a seasonally adjusted annual rate of 5.400 million units compared to a 5.330 million unit rate in March. ?  In major corporate news, Gap (GPS) reported in line first quarter earnings per share but it net sales fell year-over-year on the back of a drop in comparable store sales. The company also expressed apprehension concerning achieving the consensus earnings estimate for the full year, citing soft trend in the apparel retail environment.

Autodesk (ADSK) reported a loss for its second quarter that was in line but revenues missed estimates. The company's second quarter guidance also trailed expectations.

Mentor Graphics (MENT) reported above-consensus first quarter non-GAAP earnings per share but revenues fell year. The company's full year revenue guidance is positive. Applied Materials (AMAT) reported better than expected third quarter non-GAAP earnings per share and its revenues rose marginally. The company's fourth quarter guidance is upbeat. Brocade (BRCD) issued downbeat guidance for the third quarter after reporting in line second quarter earnings.

The major Asian markets advanced, ignoring the negative lead from Wall Street overnight.

The Japanese market rose, as the yen weakened. The Nikkei 225 average opened lower but trimmed its losses in early trading. After moving back and forth across the unchanged in a narrow range till early afternoon trading, the averages moved decisively higher and hovered in positive territory for the rest of the session. The index ended up 89.69 points or 0.54 percent at 16,736. Australia's All Ordinaries traded in positive territory for much of the session before ending up 29.60 points or 0.55 percent at 5,415.

China's Shanghai Composite Index added 18.58 points or 0.66 percent before ending at 2,826 and Hong Kong's Hang Seng Index closed at 19,852, up 157.87 points or 0.80 percent.

European stocks opened notably higher following the previous session's steep declines. After moving roughly sideways, the indexes have given back some ground and yet are solidly higher. Firming commodities are lending support to resource stocks.

In major corporate news, Richemont reported a steep drop in sales for April and warned of challenging market conditions. However, full year 2016 profits and sales rose year-over-year. Fraport said its 2016 results are expected to meet or exceed expectations.

On the economic front,  German producer prices continued to drop in April, figures from German Federal Statistical Office showed. Producer prices declined 3.1 percent in April year-over-year, the same pace of decrease as seen in March but slightly faster than the 3 percent fall forecast by economists. 

Producer prices have been falling since August 2013. The 3.1 percent decrease was the biggest since January 2010 when prices slid 3.5 percent.

A report from the European Central Bank revealed that the euro zone's current account surplus increased to hit a four-month high in March, thanks to higher exports of goods.