U.S. stocks rise on upbeat trade data; Dow Jones up 0.35%

Investing.com - U.S. stocks opened higher on Friday, after the release of positive trade balance reports from the U.S. and China.

During early U.S. trade, the Dow Jones Industrial Average rose 0.35%, the S&P 500 index climbed 0.47%, while the Nasdaq Composite index jumped 1.06%.

Official data showed that the U.S. trade deficit narrowed more-than-expected in December, moving to USD38.5 billion from a deficit of USD48.6 billion. Analysts had expected the trade deficit to narrow to USD46 billion in December.

Sentiment improved earlier, after a report showed that China's trade surplus narrowed less-than-expected in January, falling to USD29.20 billion from a surplus of USD31.60 billion, compared to expectations for a fall to USD22 billion.

The data added to hopes that the world's second largest economy is on the road to recovery.

LinkedIn saw shares soar 17.50% after announcing quarterly profits that exceeded expectations and a bullish forecast for 2013.

Also among earnings, Activision Blizzard surged 9.33% after the videogame publisher topped earnings and revenue expectations and handed in current-quarter guidance that beat estimates.

In the tech sector, RadioShack rallied 4.50% after it named Walgreen executive Joseph Magnacca as its new chief executive, hoping it will help boost sales.

Separately, chipmaker Microchip Technology advanced 6.16%, after forecasting a larger-than-expected profit and revenue for the current quarter after reporting third-quarter results that beat analysts' expectations.

Elsewhere, DreamWorks Animation rose 0.43% after the Wall Street Journal reported that the company might cut a maximum of 500 jobs from its 2,000 member workforce following disappointing holiday results and delays to its film lineup.

Financial stocks added to gains, as shares in Citigroup added 0.28% and Bank of America advanced 0.42%, while JP Morgan climbed 0.46% and Goldman Sachs jumped 0.77%.

On the downside, Boeing dropped 0.61%, even as U.S. agencies cleared the aircraft company to restart test flights of its grounded 787 Dreamliners in order to get more data on potentially faulty batteries.

However, they also demanded a closer look at how the batteries were approved, which may delay resuming delivery of Boeing's newest aircraft.

Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 jumped 1.02%, France’s CAC 40 surged 1.10%, Germany's DAX advanced 0.64%, while Britain's FTSE 100 rallied 0.71%.

During the Asian trading session, Hong Kong's Hang Seng Index added 0.16%, while Japan’s Nikkei 225 Index tumbled 1.8%.