US Markets

U.S. stocks set for opening rebound ahead of factory data

U.S. stock index futures rose on Friday, with Wall Street looking to bounce back after a two-day decline, as investors looked to economic data on manufacturing and talk by Federal Reserve members.

Ahead of Friday's open, Chevron shares slipped after the oil company reported a decline in third-quarter profit due to reduced refining margins, while oil and gas production rose but stayed short of its target.

Other stocks to watch include Apple, with the new iPad Air model on sale in U.S. stores, starting Friday. On Friday, Philadelphia Fed President Charles Plosser told CNBC that the central bank "clearly missed" a chance to start reducing its $85-billion-a-month asset purchasing program in September. The Fed did not make a move at its latest meeting this week, and most economists believe any tapering moves are off the table until early 2014.

Tthe ISM (Institute for Supply Management) manufacturing index for October will be the major focus, particularly following the surprisingly strong Chicago PMI print on Thursday.

"The Chicago PMI surge yesterday was hard to explain but it certainly raises the probability that the ISM today is not as bad as perhaps many fear," said Bank of Tokyo-Mitsubishi's Derek Halpenny in a morning research note.

In addition, Federal Reserve policymaker James Bullard was set to give the first of the post-Fed minute speeches, speaking on monetary policy in St Louis.

(Read more: The market is getting the Fed all wrong: Nomura)

(Read more: Asia tablet makers take a bite out of Apple)

Stocks in Asia and Europe were lifted by signs of continued economic recovery in China, with two separate readings on factory activity in October yielding upbeat results.

China's official PMI (purchasing managers index) rose to 51.4 from 51.1 in September, beating Reuters' estimate of 51.2. And HSBC's final reading of factory activity hit a seven-month high, unchanged from last week's flash estimate.

"The broad message here is that China's economy is still holding up. It's not exactly red hot but it's good enough," said Frederic Neumann, co-head of Asian economic research at HSBC.

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—By CNBC's Katy Barnato