Higher commodities to lift TSX

U.S. futures were higher, supported in part by an earnings report by search engine Google Inc. which blew past expectations.

The Dow Jones industrial futures gained 79 points to 11,471, the Nasdaq futures were up 14.8 points to 2,340.8 and the S&P 500 futures climbed 8.9 points to 1,206.8.

Google earned $2.7 billion, or $8.33 per share, in the three months ending in September. That was up 26% from nearly $2.2 billion, or $6.72 per share, a year earlier.

If not for expenses covering employee stock compensation, Google would have earned $9.72 per share. That figure easily beat the average estimate of $8.77 per share among analysts surveyed by FactSet.

The company’s third-quarter revenue of $9.7 billion was 33% higher than the same time last year and its stock was up about 7.5% in pre-market trading in New York.

Traders also eyed a meeting in Paris of finance ministers and central bank governors of the world’s 20 leading economies, including Canada. They are discussing how to save Greece from bankruptcy, deal with Europe’s wider debt crisis and restart global economic growth.

Despite the high stakes, leaders have kept expectations low for Friday and Saturday’s Group of 20 meeting in Paris. They have promised a plan by the end of the month, and this weekend is likely to be dominated by closed-door negotiations.

The meeting takes place against a background of some ratings agency downgrades on Thursday.

Standard & Poor cut Spain’s long-term debt rating, citing the country’s weak growth prospects and risks facing its banks.

And Fitch downgraded its outlook for three European banks and said it’s reviewing ratings for a host of others, citing ongoing exposure to sovereign-debt in Europe’s weaker economies and sluggish growth prospects.

Traders also looked to key economic data coming out later in the morning — U.S. retail sales for September and the October reading on consumer confidence from the University of Michigan.

Oil prices moved higher with the November crude contract on the New York Mercantile Exchange ahead $1.28 to US$85.51.

Crude has wandered most of this week above $80 after jumping from US$75 last week amid investor optimism Europe will soon unveil a plan to contain its debt crisis.

Copper prices also advanced with the December contract on the Nymex up nine cents to US$3.39 a pound.

Bullion prices were higher while the December contract in New York gained $8.60 to US$1,677.10.

In Asia, Japan’s Nikkei 225 index fell 0.8%, Hong Kong’s Hang Seng slid 1.4% and the Shanghai Composite Index in mainland China slipped 0.3% after authorities said China’s inflation rate eased to 6.1% in September but still well above the official target

Australia’s S&P/ASX 200 dropped 0.9% while South Korea’s Kospi index rose 0.7%.

European markets were higher as London’s FTSE 100 index rose 0.78%, Frankfurt’s DAX gained 0.65% while the Paris CAC 40 was up 1.02%.

In other earnings news, toy maker Mattel Inc. said Friday that strong sales worldwide of its iconic Barbie brand and “Cars 2” toys helped third-quarter net income rise nearly 16% to US$300.8 million or 86 cents a share, which met expectations.

In other corporate news, Quadra FNX Mining (TSX:QUX) said it expects 2011 consolidated copper production to be at the lower end of its previously stated guidance range of about 240 million pounds. It said that as a result of declining metals prices, third quarter revenue will be decreased by about US$6 million.