Lower oil prices and
strong results from computer maker Dell helped point U.S. stocks to a good
start Friday, ahead
of a batch of economic readings. Stocks finished Thursday's session higher as
investors cheered a more than $4 a barrel drop in crude prices.
Oil prices extended declines Friday. U.S.
crude for July delivery recently traded down $1.19 at $125.43 a barrel.
Before the bell reports showed consumer spending
and personal spending both increased at a slow pace in April, in line with
analyst expectations. Personal spending by individuals in current dollars rose
0.2% in April, in line with the 0.2% increase expected by economists. March's
gain was a revised 0.4%. Personal income increased 0.2% in April, also in line
with the 0.2% increase expected by economists. March's gain was 0.3%.
Other economic reports on tap include the
Chicago PMI, which is a regional manufacturing survey, and a revised reading on
consumer sentiment from the University
of Michigan. Both those
are due just after the market opens.
In corporate news, Dell posted an unexpected rise in
first-quarter earnings. Shares of Dell gained 5% in after-hours trading
Thursday on the report.
Apparel retailer J. Crew Group posted strong
sales after the close of trading Thursday, but shares fell on disappointing
second-quarter and full-year guidance from the company.
United Airlines has ended merger talks with US
Airways, according to published reports. Some reports suggest United might now
look to an alliance with Continental Airlines.