NEW YORK (CNN/Money) - Stocks could be headed for a strong opening Friday as investors recover from an interest rate hike and a signal from Federal Reserve that its rate-hiking moves of the past year are not finished.

U.S. stock futures were up sharply in early trading, indicating a higher opening for stocks ahead of the long Fourth of July holiday weekend

Stocks sagged Thursday, ending the quarter and the first half of 2005 down amid jitters over higher oil prices and uncertainty about when the Fed will pause its rate campaign. The fed funds rate, an overnight bank lending rate, now stands at 3.25 percent after a quarter-point increase.

Oil prices were mixed, still well below the record highs reached Monday. The August light crude contract gained 5 cents to $56.55 a barrel in electronic trading, while the August contract for Brent crude fell 7 cents to $55.51.

Major markets in Asia closed mixed Friday, with the Nikkei showing gains while major indexes in Australia and Hong Kong were down modestly. Major European markets were all higher in early trading.

Treasury prices were lower, lifting the yield on the 10-year note to 3.94 percent from 3.91 percent late Thursday. The dollar was little changed against on the euro and lower against the yen.

Friday brings the latest data on manufacturing, construction spending, auto sales and consumer sentiment.

The Institute for Supply Management's manufacturing index, due Friday at 10 a.m. ET, is expected to have edged up to 51.5 in June from 51.4 in May, according to Briefing.com forecasts. Any reading over 50 points to expansion in the sector.

Economists are forecasting an increase of 0.5 percent in May construction spending, also due at 10 a.m. ET. Spending rose 0.5 percent in April.

Auto sales are estimated to reach an annual rate 5.5 million vehicles in June, up from 5.3 million the prior month, due partly to General Motors' latest discount program.

As for consumer sentiment, the closely-watched University of Michigan gauge due Friday at 9:45 a.m. ET is expected to show no change from an earlier read of 94.8, according to economists' estimates.

Earlier in the week, the Conference Board's consumer confidence figures for June showed their strongest levels in three years, coming in above most economists' forecasts.

In corporate news, Morgan Stanley announced that veteran John Mack, who was ousted following a power struggle in 2001, will return to the venerable investment bank as chairman and CEO.

For a more detailed look at the markets before the open, click here.