Wall Street was set for a higher open on Friday after two days of declines as strong earnings from General Electric and Google boosted investor optimism.

General Electric Co , the world's biggest maker of electric turbines and jet engines, reported better-than-expected earnings, helped by the recovery of its finance arm and a rise in revenue at its industrial units, including a sharp pickup in sales of locomotives.

GE shares rose 3.3 percent to $19.05 in premarket trade.

But shares of Bank of America Corp fell 2 percent to $14.25 after the largest U.S. bank by assets reported a second straight quarterly loss, driven by a $2 billion write-down in its mortgage business.

The banks are not doing so well so far in this reporting run, said Mike Lenhoff, chief strategist at Brewin Dolphin in London. On the other hand if you look at the nonfinancial sector, on balance, the results are not bad, so I don't think the markets are going to get carried away with some poor results from the banks.

Google Inc shares were up 2.4 percent at $642.03 in premarket trade after the company reported better-than-expected net revenue for its fourth quarter, after markets closed on Thursday.

S&P 500 futures rose 5.8 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 33 points and Nasdaq 100 futures gained 13 points.

U.S. stocks fell for a second day on Thursday as lackluster earnings from technology and materials companies didn't live up to heighten expectations. The Standard & Poor's 500 Index <.SPX> ended down 1.66 points, or 0.13 percent, at 1,280.26.

The S&P 500 is below its 10-day moving average for the first time since November 30, said Joseph Hargett, analyst at Schaeffer's Investment Research based in Cincinnati, Ohio.

The index has support in the 1,270 region, though, with its 20-day trend line rising into the region. Resistance remains at 1,290, with the 1,300 creating a longer-term hurdle overhead, he said.

Shares of Schlumberger Ltd gained 2.6 percent to $87.50 in premarket trade after the world's largest oilfield services company posted a higher-than-expected profit, boosted by strong demand in North America.

Hewlett-Packard Co is shaking up a board criticized by many as dysfunctional, bringing in five new directors, including former eBay Inc chief Meg Whitman, as new CEO Leo Apotheker remakes the company.

In Europe, stronger bank and oil company shares helped indexes bounce back on Friday from losses in the previous session on worries about further monetary tightening by China.

(Editing by Padraic Cassidy)