U.S. MARKET AVERAGES

Ahead of the release of the advance second-quarter GDP report, the futures continue to sit slightly above the flat line, following broad gains Thursday amid a deluge of corporate earnings, which took the Nasdaq and S&P 500 to new multi-year highs.

Investors continue to digest another slew of positive earnings results from noteworthy companies like Constellation Energy, Baker Hughes, Lloyds, American Electric Power Co. and automaker Volkswagen AG.

Chevron is expected to post earnings before the bell Friday. Analysts forecast per-share earnings of $1.69. Also slated to report Friday are American Electric Power, Anadarko Petroleum and ITT Industries.

Late Thursday, life insurer MetLife Inc. posted second-quarter net income of $2.25 billion, more than doubling its year-earlier earnings, due to gains from the sale of Manhattan office buildings.

ECONOMIC NEWS

The first reading of second-quarter Gross Domestic Product is scheduled to be released before the opening bell Friday. Economists expect GDP to rise by 3.5% in the second quarter, following a 3.8% increase for the first 3 months of the year.

The University of Michigan is due to release its consumer sentiment index at around 9:45 a.m. Economists expect a reading of 96.5, up vs. the final June reading of 96.0, but flat with the preliminary July reading.

Association of Purchasing Management-Chicago is expected to release its regional manufacturing index for July at 10:00 a.m. Economists forecast a reading of 55.0, up versus 53.6 for June.

The Labor Department is due to release its employment cost index at 8:30 a.m. Economist forecast the ECI reading to have jumped by 0.9% in the second quarter versus a 0.7% increase in the prior quarter.

INTERNATIONAL MARKET NEWS

Asian markets closed mostly higher on Friday, as traders focused on earnings, positive economic releases and gains in U.S. equities. Tokyo's Nikkei Average finished at 11,899.60, up 0.4%, by the end of the day, after reaching the 11,900 mark early in the trading session for the first time since March. Sony Corp. and Kyocera Corp. led the decliners after reporting disappointing quarterly results after the closing bell Thursday. Hong Kong's Hang Seng Index closed 0.4% higher at 14,866.75 and Australia's All Ordinaries Index closed up 0.4% at 4,346.70. Seoul's Kospi Index added 0.6% to 1,111.29, and Singapore's Straits Times added 0.2% to end at 2,350.61.

Before the opening bell in Tokyo, the Japanese government reported that the unemployment rate declined to 4.2% in June versus 4.4% in May and industrial output advanced a seasonally adjusted 1.5% in June vs. last month. The Ministry of Economy, Trade and Industry announced spending by households headed by salaried workers increased in the period, and deflationary pressure declined.

European shares climbed to 3-year highs on Friday, helped by continuing rosy earnings flood and gains in oil stocks. The FTSEurofirst index added 0.4% to a new 3-year high, while the FTSE 100 jumped 0.6% to its highest level since March 2002, bolstered by U.S. market gains fueled by strong earnings and lower than expected jobless numbers.

ENERGY, METALS AND CURRENCIES MARKETS

The dollar dipped versus the yen and the euro on Friday as economic data showed Japan's jobless rate dropped to its lowest in seven years and a gain in industrial production. The greenback quoted at 112.15 yen Friday afternoon in Tokyo, down 0.48 yen vs. late Thursday but above the 112.12 yen it bought in New York later that day. The euro climbed to $1.2128 versus $1.2047 late Thursday.

Crude-oil futures settled up nearly a dollar Thursday, as a refinery fire in Louisiana awakened supply concerns that pushed prices above $60 a barrel for the first time in more two weeks. Light, sweet crude oil futures for September dropped below the $60 a barrel level, ending at $59.94, up 83 cents on the New York Mercantile Exchange. Heating-oil futures for August added 2.83 cents at $1.6455 a gallon. Gasoline futures gained 0.62 cent at $1.7220 a gallon. August natural gas climbed 10.2 cents to close at $7.680 a million British thermal units.

August gold settled at $427.40 an ounce, up $2.60. September silver quoted at $7.20 an ounce, adding 16 cents. The September copper contract gained 2.20 cents to $1.6490 per pound, hitting a contract high of $1.6540.

Bond prices edged lower, raising the yield on the 10-year treasury to 4.21% from 4.19% late Thursday.

EARNINGS NEWS

Constellation Energy (CEG: chart) reported a second-quarter profit of 66 cents per share, excluding one-time items, up vs. 54 cents per share last year and above the 62 cents per share, seen by analysts. The company backed its target for the full year of $3.35-$3.60 per share.

Baker Hughes (BHI: chart) released earnings for the second quarter of 64 cents per share, including a contribution of about 5 cents per share from certain item. This was up versus the 35 cents per share the company earned last year. Analysts had forecasted a profit of 53 cents per share. Quarterly revenues came in at $1.78 billion, up 18% vs. last year's $1.5 billion.

Archer Daniels Midland (ADM: chart) is among the other important companies due to release earnings reports Friday. Analysts expect the company to earn 28 cents per share in the quarter, up versus $0.23 per share last year.