TIM PARADIS

AP Business Writer

NEW YORK (AP) Stocks are higher in early trading after a slide in the previous session and ahead of a long holiday weekend.

Investors found some room for optimism Friday after banks reduced borrowing from the Federal Reserve's emergency loan program over the past week. Investment firms didn't borrow at all during the week the first time that's happened since early September.

Traders are also upbeat about retailers Sears, Gap and Aeropostale Inc. after the companies posted better-than-expected quarterly results.

The Dow Jones industrial average is up 22 at 8,316. The Standard & Poor's 500 index is up 1 at 890, while the Nasdaq composite index is up 7 at 1,703.

Copyright 2009 The Associated Press.