US open: Stocks open higher amid another flurry of data releases

Stocks opened higher on Friday as investors worked their way through another day full of data releases and promising news coming from trade talks with China, following some solid GDP figures the day before.

At 1530 GMT, the Dow Jones Industrial Average was up 0.33% to 26,002.39, while the S&P 500 had moved ahead 0.39% to 2,795.28 and the Nasdaq traded 0.36% firmer at 7,559.78.

The Dow opened 86 points higher as sentiment got a boost after White House economic adviser Larry Kudlow told CNBC on Thursday that there had been "fantastic" progress in trade talks between the US and China last week.

"We’re making great headway on non-tariff barriers and tariffs regarding various commodities such as soybeans and energy and beef," he said. "We have mechanisms with regard to enforcement, which is - I think - unparalleled."

On the data front, faced with a partial shutdown of the US federal government and volatility in capital markets, Americans reined in their spending at the end of 2018, opting to put aside a surge in disposable income as savings.

According to the Department of Commerce, personal incomes jumped by a full percentage point in comparison to the month before, whereas the consensus had only been expecting an increase of 0.3%.

November's increase was also revised up, by a tenth percentage point to 0.3%.

Elsewhere, the seasonally adjusted IHS Markit final US Manufacturing Purchasing Managers’ Index came to 53.0 in February, down from the 54.9 recorded at the start of the year.

According to the survey compiler, production increased further in February, albeit at a slower pace but a slower rise in new business reportedly led to softer growth in buying activity.

On the prices front, input cost inflation eased to an 18-month low.

Still in manufacturing news, economic activity in the manufacturing sector expanded in February as the overall economy grew for the 118th consecutive month, according to the Institute for Supply Management.

The February PMI registered 54.2%, a decrease of 2.4 percentage points from the January reading of 56.6%.

Lastly, the University of Michigan consumer sentiment index faded in February, with a 93.8 reading versus the initial 95.5 reading.

However, the reading was still above January's 91.2 reading as a result of the bulk of the government being shut down. Long-term inflation expectations remained near the lowest level in the last 50 years.

On the corporate front, Tesla shares were down 7.82% at the open after the electric car maker said on Thursday that it was shutting down its retail sales operations and moving everything online to save on costs.

Elsewhere, enterprise software maker VMware was 4.25% higher in early trade after its fourth-quarter earnings and revenue beat expectations.

GAP shot up 17.32% following the bell after the clothing retailer said on Thursday that it was closing 230 stores and splitting off its Old Navy brand.