US open: Equities edge higher after industrial production data

US stocks edged higher early on Friday, as investors looked to extend the rallies of the previous session.

Shortly before 1500 BST, the Dow Jones Industrial Average was up 20 points to 17,161.32 while the S&P 500 and the Nasdaq were three and one point higher respectively.

Wall Street finished on the front foot on Thursday, with the Dow Jones clinching its best close since 19 August, while the S&P 500 closed above the 2,000 level to mark its highest finish since 20 August.

"We have now seen a tenth of the S&P 500 companies post their third-quarter figures and even though headlines might suggest a sluggish quarter, we have still seen just over 75% of those firms reporting better-than-expected earnings per share," said IG's senior market analyst Alastair McCaig.

"Sales figures over that same period however have been considerably less impressive.

"All of this points towards a US corporate picture telling us the same thing as economic releases, that the FOMC should be feeling no increased pressure to raise rates just yet."

US industrial output declines

With a reading on October consumer sentiment and August job openings still to come in the session, data released ahead of the bell showed industrial production in the US declined slightly less than expected in September.

According to figures released by the Federal Reserve, industrial output fell 0.2% last month from an upwardly revised 0.1% decline in the previous month and compared with analysts' expectations for a 0.3% decline.

Meanwhile, capacity utilisation fell to 77.5% from an upwardly revised 77.8% in August, marginally above the 77.4% expected.

"The decline in industrial production in September was a much smaller fall than we were expecting, but it nonetheless illustrates the impact that the stronger dollar is having on manufacturing and the impact that the slump in energy prices is having on mining output," said Paul Ashworth, chief US economist at Capital Economics.

In company news, General Electric rose 3.10% after posting better-than-expected profit and revenue before the opening bell.

Advanced Micro Devices declined 0.85% after the chip maker posted worse-than-expected earnings late on Thursday.

Elsewhere, Asian markets ended the week on an upbeat note, as Chinese stocks were buoyed by the prospect of more stimulus from the People's Bank of China, while European stocks advanced and were on course for weekly gains.

The dollar was broadly flat against the yen and the pound and fell 0.11% against the euro, while gold futures slid 0.01% to $1,182.95.

Oil prices staged a solid rebound, with West Texas Intermediate rising 2.23% to $47.44 a barrel, while Brent climbed 1.37% to $50.42 a barrel.

"The ongoing weak sentiment towards the Dollar has refused to have a positive impact on WTI which has suffered four successive days of declines this week," said FXTM research analyst Lukman Otunuga.

"The latest inventory report showed another huge stockpile and will further the continual concerns regarding oversupply."