By Anora Mahmudova and Carla Mozee, MarketWatch

NEW YORK (MarketWatch) -- U.S. stock futures edged higher on Friday, after the producer price index signaled inflation pressure remains low.

Investors still face more data points in reports on industrial production and consumer confidence as well as a speech by Federal Reserve Bank of Minneapolis President Narayana Kocherlakota.

Futures for the Dow Jones Industrial Average (DJU4) rose 42 points, or 0.3%, to 16,724, while those for the S&P 500 index (SPU4) gained 4 points to 1,957.60. Futures for the Nasdaq 100 index (NDU4) tacked on 12.25 points, or 0.3%, to 3,980.25.

U.S. producer prices inched up in July, a second consecutive month of gains, led by services such as transportation and warehousing, the government reported Friday. That is one of several recent inflation gauges that show price growth isn't running too hot for the Fed.

A reading on consumer sentiment from the University of Michigan/Thomson Reuters is due at 9:55 a.m. Eastern Time. The mood is expected to have improved in August; economists polled by MarketWatch expect a preliminary reading of 82.3, compared with 81.8 in July. Analysts look at sentiment surveys to get a feel for the direction of consumer spending, the key driver of the U.S. economy.

"Recent stock gains and the steady weekly decline in gasoline prices at the pump likely buoyed August sentiment," wrote Crédit Agricole's chief economist for North America Michael Carey.

The Federal Reserve's July report on industrial production and capacity utilization is due at 9:15 a.m. Eastern Time. Economists project slight increases for each measure, with industrial production likely to increase a seasonally adjusted 0.3%.

At 10:45 a.m. Eastern, Kocherlakota, the Minneapolis Fed president, will talk about the economy and the state of community banking at the Independent Community Bankers of Minnesota's annual meeting. Kocherlakota, one of the Fed's leading doves, is a voting member of the Fed policy committee this year.

U.S. stocks on Thursday closed modestly higher, leaving the S&P 500 index (SPX) up 0.4%.

Crédit Agricole's Carey noted that geopolitical tensions in Ukraine and the Middle East have put a strain on market sentiment in recent weeks.

In Ukraine on Friday, border guards and customs officers began inspecting a convoy of trucks that Russia says contains humanitarian aid for war-torn eastern Ukraine. Ukraine has said the convoy could be used as a prelude to a Russian invasion.

Stocks in focus

Before the opening bell, shares of cosmetics maker Estee Lauder (EL) rose 1% as profit came in better than anticipated.

Monster Beverage (MNST) shares leapt 21% in premarket trade on Coca-Cola's (KO) move to acquire a 17% ownership stake in the energy drink company, as part of a long-term partnership deal. Coke will make a $2.15 billion cash payment and transfer its global energy drink business to Monster.

Achillion Pharmaceuticals (US-ACHN) rallied 18% in heavy volume following positive results from a clinical trial related to sovaprevir, the company's experimental hepatitis C treatment.

Applied Materials Inc. (AMAT) shares picked up 4.4% premarket, after the chip-making equipment provider's quarterly sales and earnings report topped Wall Street expectations.

SeaWorld Entertainment (SEAS) is set to announce plans to expand its killer-whale habitats, The Wall Street Journal reports. Read more about the day's notable movers here.

In other markets, oil futures (CLU4) edged higher and gold futures (GCZ4) fell $4 an ounce. In Asia, the Hong Kong Hang Seng index finished at its best level in more than three years. European stocks were higher.

More must-reads from MarketWatch:

Does George Soros know something we don't?

How to choose between a pension and a 401(k)

It took 4 days for Twitter to blow up over Ferguson

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Applied Materials (NASDAQ:AMAT)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Applied Materials Charts.
Applied Materials (NASDAQ:AMAT)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Applied Materials Charts.