Stocks flat in early trading Friday on data showing continued improvement in the global economy. After starting the month in a bearish mood, traders have since pushed stocks to 2009 highs. The bulls are taking a breather in early trading, but the major market indices are set to rise during the first week of a historically tough month of September.

Stocks in Asia rose Friday on reports that industrial output rose 12 percent during the month of August with retail sales rising 15 percent. After snapping a seven-session winning streak Thursday, stocks in Asia moved were positive, capping a strong week for equities. Japan also helped the cause after the country saw its GDP growth 0.6 percent in the second quarter.

Import prices rose more than expected in August, up 2.0 percent, nearly double expectations. However, this was mainly due to a 10.5 percent rise in crude prices. When petroleum is excluded, import prices were up a more benign 0.4 percent. Export prices rose 0.7 percent during the month as prices for agriculture goods rose. On a year on year basis, exports were down 6.1 percent with import prices still off 15.0 percent.

Treasury Secretary Geithner provided positive comments at a town hall meeting when he said that the Fed has to be careful not to put the breaks on too early. He also noted that the government would like to rid itself of stakes in financial companies, but that they have to be careful not to not let this happen if these firms should be using this capital for more pressing issues.

FedEx (FDX) has provided positive sentiment this morning after the company raised its outlook for its fiscal first quarter. The package delivery company stated that better than expected international shipments, along with cost cutting, should push earnings above prior estimates. FDX now expects earnings of 58 cents a share, well above prior estimates for a profit between 30 cents and 45 cents. Nonetheless, earnings are still set to fall more than 50 percent from the year ago period. FDX shares are up more than four percent to a price above $76.

Crude prices are up Friday on the view the global economy is improving. Crude is up nearly one percent in early trading at a price near $72.50 a barrel. The oil services sector also got good news this morning when Goldman Sachs raised its rating on Schlumberger (SLB) to a "Buy" and reiterated its view on the entire sector. Shares of SLB are up more than four percent to a price just below $61.

Jody Osborne
Senior Staff Writer & Options Strategist
Optionetics.com ~ Your Options Education Site