Futures edge higher, on track for strong month

NEW YORK U.S. stock index futures edged higher on Friday, with investors reluctant to make big bets in an abbreviated session, though major indexes remained on track for their third straight month of strong gains.

Trading will likely be anemic, as it has been all this week, with many investors out for the Thanksgiving holiday. Markets will close three hours early at 1 p.m. (1800 GMT), following an all-day closure on Thursday.

The light action could amplify market volatility, though there are few obvious trading catalysts, with no economic indicators on tap. That may make it difficult for markets to extend their recent rally, though retail stocks will be in focus as the holiday shopping season begins.

Equities have surged in recent weeks on the back of expectations for continued stimulus from the Federal Reserve. The Dow and S&P 500 closed at record highs on Wednesday while the Nasdaq ended at a 13-year high.

Retail stocks will be in focus as investors attempt to get an early read on the strength of the holiday shopping season. While "Black Friday" typically marks the unofficial start to the holiday shopping season, many stores opened on Thursday and offered steep discounts.

S&P 500 futures rose 3.9 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 35 points and Nasdaq 100 futures rose 17 points.

For the month of November, the Dow is up 3.5 percent, the S&P is up 2.9 percent and the Nasdaq up 3.2 percent. It is the third straight month of gains for these indexes, with the Dow climbing 8.7 percent over that three-month period, the S&P up almost 11 percent and the Nasdaq rising 12.7 percent.

For the week, the Dow is up 0.2 percent and the S&P is up slightly more than 0.1 percent. Both indexes are on track for their eighth straight weekly gain. The Nasdaq is up 1.3 percent on the week.