Dow, S&P 500 set for record open after Disney's strong earnings

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The Dow and the S&P 500 were set to open at record highs on Friday after Walt Disney's forecast-beating results, while signs of cooling inflation and a strong recovery in corporate earnings kept the indexes on track for a second straight week of gains.

A stellar earnings season, improving economic data and the Senate's passage of a large infrastructure bill have all reinforced investors' belief in the economic recovery, pushing U.S. stocks to all-time highs in the past few sessions.

"What we know about inflation at this point is that it remains relatively high, but it doesn't appear to be getting a lot worse at the moment," said Randy Frederick, managing director of trading and derivatives at Charles Schwab.

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