NEW YORK (CNNMoney.com) -- U.S. stocks were headed for a higher start Friday, as investors expressed optimism about the economy with the start of a new month and quarter.
Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were higher ahead of the opening bell. Futures measure current index values against perceived future performance.
Friday is the first trading day in October, and also marks the beginning of the fourth quarter.
U.S. stocks are coming off their best September performance in 71 years. Despite a topsy-turvy month, the Dow and S&P 500 posted their biggest September gains since 1939.
The trend is hardly consistently upward though. Stocks have been volatile as reports about the economy continue to be mixed, and businesses are expecting more uncertainty ahead of the midterm elections.
"What we've seen is economic growth on, economic growth off," said Mark Luschini, chief investment strategist at Janney Montgomery Scott. "While much of the summer was marred with thoughts of a double-dip recession, we had a turnabout in September. Things aren't necessarily getting better, they just aren't getting worse."
Economy: Personal income increased 0.5% in August after a 0.2% rise in July, the Commerce Department said. Spending rose 0.4%, matching last month's increase.
Economists had expected both consumer spending and income rose 0.3% in August, according consensus estimates from Briefing.com.
After U.S. markets open, investors will also take in readings on nationwide manufacturing activity and auto sales.
Companies: Hewlett-Packard named Leo Apotheker as its new president and CEO late Thursday. Apotheker previously held top roles at SAP (SAP), including a brief stint as CEO. Shares of HP (HPQ, Fortune 500) fell 2.9% in premarket trading.
BP will use assets in the Gulf of Mexico as collateral for its $20 billion fund for oil spill victims, the company said Friday. BP permanently sealed its Macondo well on Sept. 19, after an oil spill that started there dragged on for more than 5 months. BP (BP) shares rose 1.8% in premarket trading.
The United Airlines and Continental Airlines merger is complete, under the holding company United Continental Holdings Inc. The company's common stock will begin trading on the New York Stock Exchange on Friday, under the ticker symbol UAL.
World markets: European shares were mixed in mid-day trading. Britain's FTSE 100 rose 0.9%, Germany's DAX was up 0.5% and France's CAC 40 was little changed.
Asian markets finished the day mostly higher, after China said its manufacturing sector picked up momentum in September.
The Shanghai Composite soared 1.7%, while Japan's Nikkei rose 0.4%. The Hang Seng in Hong Kong edged lower.
Currencies and commodities: The dollar fell against the euro, the Japanese yen and the British pound.
Crude oil futures for November delivery gained $1.20 to $81.17 a barrel.
Gold futures for December delivery added $8.20 to $1,317.80 an ounce, after they briefly surpassed another intra-day trading record earlier in the morning.
Bonds: The price on the benchmark 10-year bond fell, pushing up the yield up to 2.53% from 2.52% late Thursday. 
| Overnight Avg Rate | Latest | Change | Last Week |
|---|---|---|---|
| 30 yr fixed | 3.80% | 3.88% | |
| 15 yr fixed | 3.20% | 3.23% | |
| 5/1 ARM | 3.84% | 3.88% | |
| 30 yr refi | 3.82% | 3.93% | |
| 15 yr refi | 3.20% | 3.23% |
Today's featured rates:
| Index | Last | Change | % Change |
|---|---|---|---|
| Dow | 32,627.97 | -234.33 | -0.71% |
| Nasdaq | 13,215.24 | 99.07 | 0.76% |
| S&P 500 | 3,913.10 | -2.36 | -0.06% |
| Treasuries | 1.73 | 0.00 | 0.12% |
| Company | Price | Change | % Change |
|---|---|---|---|
| Ford Motor Co | 8.29 | 0.05 | 0.61% |
| Advanced Micro Devic... | 54.59 | 0.70 | 1.30% |
| Cisco Systems Inc | 47.49 | -2.44 | -4.89% |
| General Electric Co | 13.00 | -0.16 | -1.22% |
| Kraft Heinz Co | 27.84 | -2.20 | -7.32% |
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