US stocks edge up, indices set for strong week

New York - US stock index futures edged up on Friday, following a sharp rally in the previous session that returned the S&P 500 and Nasdaq to positive territory for the year and put major indexes on track to break a three-week streak of declines.

•Thursday's advance came after the European Central Bank (ECB) detailed a bond-buying program to boost the region's sagging economy and fight deflation. The program was larger than expected and will last through September 2016.

•The rally took the S&P 500 above its 50-day moving average, a metric of near-term momentum that the benchmark index hasn't closed above since January 8.

•With the ECB stimulus details known, US corporate earnings will likely be the primary driver of trading over the next few weeks. With 15% of S&P 500 companies having reported, 73.7% have topped earnings expectations while 53.9% have beaten on revenue, according to Thomson Reuters data. That compares with the long-term average of 63% for earnings and 61% for revenue.

•General Electric posted a rise in fourth-quarter earnings, boosted by its power-generating turbines and jet engines divisions, though sales fell in its oil and gas unit. Shares of the Dow component rose 0.5% before the bell.

•Starbucks rose in premarket trading a day after the coffee chain reported same-store sales growth that was better than expected in its Americas region.

•Crude oil prices will continue to be in focus, with additional uncertainty coming in the wake of the death of Saudi Arabia's King Abdullah. While the country's oil policies are expected to be unchanged, the commodity has been extremely volatile of late, with its value dropping by more than half over the past six months. Oil rose 1% on Friday but is on track for its 15th negative week out of the past 17.

•While the drop in crude prices is seen pressuring the profits of energy shares this quarter, it could lift stocks in the transportation, retail and industrial sectors.

•For the week, the Dow is up 1.7%, the S&P 500 is up 2.2% and the Nasdaq is up 2.5%. All three are coming off three straight negative weeks.

Futures snapshot at 6:49 a.m.

•S&P 500 e-minis were up 2 points with 110 429 contracts changing hands.

•Nasdaq 100 e-minis were up 3.5 points in volume of 17 603 contracts.

•Dow e-minis were up 34 points with 16 275 contracts changing hands.