Stocks were poised for a higher open on Friday after government data hinted the recession may be abating, putting the S&P 500 on pace for its third straight monthly gain, its longest streak since late 2007.
A Commerce Department report showed that the economy contracted at 5.7 percent annual rate, slightly less than initially estimated by the government in the first quarter, while corporate profits rebounded.
Wall Street estimates were for a 5.5 percent contraction.
The numbers seem to be fairly consistent with the earlier forecast and especially with the projection that they were going to revise it slightly down, said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co. in San Francisco.
All in all, nobody was expecting any big surprises out of the first-quarter revision so this is decent in terms of getting this number behind us.
Other economic data for Friday includes the May index of manufacturing activity from the Institute of Supply Management Chicago due for release 9:45 a.m. and the Reuters/University of Michigan Surveys of Consumers final May consumer sentiment index set to be released at 9:55 a.m..
S&P 500 futures rose 4.40 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 added 41 points, while Nasdaq 100 futures gained 4.25 points.
As General Motors
The automakers shares rose 2.7 percent to $1.15 in premarket trade.
Analysts have been concerned about the far-reaching implications a GM bankruptcy could have on the auto industry and the global economy.
Auto parts supplier Delphi Corp
As earnings season draws to a close, Dell Inc
Also on the earnings front, the upscale jeweler Tiffany & Co
Through Thursday, 98 percent of S&P 500 companies had reported earnings, with 65 percent topping analysts' estimates.
On Thursday U.S. stocks climbed, with the Dow Jones industrial average <.DJI> up 1.25 percent and the S&P 500 <.SPX> rising 1.5 percent, as higher oil prices drove up energy shares and falling yields in the bond market eased concerns that higher borrowing costs would hinder economic recovery.
Since hitting a 12-year low in early March, the Dow has gained more than 28 percent and the S&P 500 has risen 34 percent.