Stocks are slightly higher at the open on Friday after having lost most of their pre-market gains after the U.S. military launched airstrikes in Iraq. Futures were higher on word Russia may be looking to de-escalate the conflict in Ukraine. American workers were more productive in the second quarter. The Labor Department reported a modest recovery of 2.5% after falling sharply in the first quarter. Expenses per worker rose at a slower pace at 0.6%, less than estimated. McDonald's (MCD) is down in early trading after reporting worse than expected July sales for all of its regions. The Gap (GPS) is up after reporting a much better than expected 2% rise in same-store sales for July. Strong sales were attributed to its Banana Republic and Old Navy chains. The Gap also raised it Q2 guidance. TheStreet's Susannah Lee reports from New York.

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