Stocks look set to break their losing streak at Friday’s open. The late-day recovery in the U.S. yesterday was followed through in markets overseas, and looks to continue again this morning.

Traders are bargain hunting the beaten up market, and responding to some positive news with some buying action.

The earnings picture got a bit brighter in the U.S., when General Electric reported its second-quarter profit rose 14%. UPS saw its profits fall a little. And tech names such as Juniper Networks and Dell Computer Corp. are gaining on brighter profit outlooks.

On the economic front, U.S. retail sales rose 1.1% in June, gaining 0.4% excluding automobile sales. These numbers suggest that consumers are doing their part to support the recovery, and they nullify the slide seen in May.

In Europe, stocks are up. The improved profit picture at Dell is boosting the fortunes of its suppliers, such as Royal Philips Electronics NV and Infineon Technologies AG. The FTSE is up 89 points this morning to 4,319. The CAC 40 has gained 83 points to 3,595. The DAX has added 108 points to 4,226.

Overnight in Asia, markets finished the week with a modest rally. The Nikkei added 116 points to close at 10,601. The Hang Seng tacked on 89 points to 10,648.

In other news, the International Energy Agency has cut its forecast for oil demand this year by 40%, citing weak recovery in the U.S. economy.