Market Snapshot: Dow poised to break winning run, with GDP data on the agenda



    Markets reporter

    After rising for three straight days, the Dow Jones Industrial Average on Friday was poised for a pullback, with fourth-quarter GDP data and a spate of earnings, including those from Dow component Chevron, among the factors investors need to consider.

    Futures for the Dow Jones Industrial Average YMH7, +0.00%  slipped 3 points to 20,048, indicating a pullback from Thursday’s record close above the coveted 20,000 level.

    Futures for the S&P 500 index SPX, -0.07%  slipped 0.35 points to 2,293.75, while those for the Nasdaq-100 index NQH7, +0.02% climbed 1.50 points to 5,149.

    Those two benchmarks failed to key off the Dow’s optimism on Thursday, closing slightly lower after logging fresh all-time highs on Wednesday. U.S. stocks have rallied since Donald Trump won the election in November, pushed higher by hopes that his pro-business policies and fiscal spending plans will boost the economy and make American companies more profitable.

    U.K.'s Theresa May meets Trump to talk trade

    U.K. Prime Minister Theresa May on Friday will become the first foreign leader to meet Donald Trump since he took office. In a tricky balancing act, she has to lay the ground for a trade deal with the U.S. and avoid antagonizing European leaders. Photo: Reuters

    On Friday, Trump will meet with U.K. Prime Minister Theresa May for his first round of trade talks with another country. The two have signaled they want to strengthen the “special relationship” between the U.S. and the U.K. by forging a solid trade deal. However, stark differences on trade already stand out ahead of the talks.

    Read: What to watch as U.K.’s May kicks off trade talks with Trump

    Trump has pushed an “America First” policy of protectionism and decried multilateral trade deals, while May has promoted her vision of Britain as the biggest proponent of free trade. May also stressed that any trade agreement with the U.S. would but British interests first.

    Economic news: The highlight on the economic calendar on Friday is the first release of the fourth-quarter gross domestic product number, out at 8:30 a.m. Eastern Time. Economists polled by MarketWatch expect growth to have slowed to 2.2% in the last three months of the year, down from 3.5% in the third quarter.

    Also at 8:30 a.m., durable goods orders for December are due and are forecast to show a rise of 2.2% compared with a 4.5% slide in November.

    “Expectations are for two opposing signals here, with GDP expected to rise at a slower pace, whilst goods order data is tipped to jump back into growth. With both releases due at [8:30 a.m.], any divergence from forecasts can be expected to create some meaningful reaction for dollar crosses, and at these levels it’s difficult to see any specific bias in terms of risk here,” said Tony Cross, market analyst for TopTradr, in a note.

    The ICE Dollar Index DXY, +0.12%  rose 0.2% to 100.53 ahead of the releases.

    Consumer sentiment data for January come out at 10 a.m. There are no Federal Reserve speakers on tap as the central bank is in its blackout period ahead of its policy-setting meeting next week.

    See: MarketWatch’s economic calendar

    Earnings: Shares of Starbucks Corp. SBUX, -0.41%  dropped 3.9% in thin premarket action after the coffee chain late Thursday posted same-store sales that missed forecasts.

    Google parent Alphabet GOOG, -0.42% GOOGL, -0.17%  on Thursday also reported earnings that failed to meet expectations, sending the shares down 1.8% ahead of the bell.

    Read: The tax hit that made Google miss on earnings, and the big change that will keep it from happening again

    On a more upbeat note, shares of Microsoft Corp. MSFT, +0.93%  climbed 1.4% after the software giant late on Thursday posted results that topped Wall Street estimates.

    On Friday, Honeywell International Inc. HON, +0.08%  , Colgate-Palmolive Co. CL, -0.28%  , American Airlines Group Inc. AAL, +3.51%  , AbbVie Inc. ABBV, -0.18%  and Chevron Corp. CVX, -0.59%  are slated to report premarket.

    Other markets: Asian stocks closed mostly higher, while European stocks SXXP, -0.42%  headed lower into the weekend.

    Oil prices CLH7, -0.93% LCOH7, -1.24%  slumped, while metals dropped across the board as well.

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