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The January PCE report also includes data on personal income and consumer spending. Also scheduled for Friday morning is the release of final consumer sentiment for February.
"If we see any pickup in spending that would lead the market to close the week higher," said Peter Cardillo, chief market economist at First Standard Financial.
All components of the PCE data are expected to show a slight rise month over month, while sentiment should hold steady from the previous 90.7 print. A miss in consumer confidence earlier this week weighed on U.S. stocks.
Due at 8:30 a.m. is the second read on fourth-quarter GDP, which is expected to come in slightly softer than the initial 0.7 percent read. The trade deficit for January is also expected at 8:30 a.m.
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As stocks remain closely correlated to oil, the weekly U.S. oil rig count could add to increasing signs domestic oil production is dropping. The data would follow Thursday's report that the Venezuelan oil minister Eulogio Del Pino said he'd reached an agreement with Russia, Saudi Arabia and Qatar on the need for a mid-March meeting.
Oil prices reversed on the news to settle nearly 3 percent higher at $33.07 a barrel, helping push stocks to close at session highs Thursday.
The Dow Jones industrial average closed up 212 points at 16,697.29, while the S&P 500 gained 1.13 percent to close at 1,951.70, topping the 1,950 resistance level with financials leading gains.
Treasury yields held lower throughout the session, however, with the 2-year hovering just above 0.73 percent and the 10-year at 1.72 percent in late trade Thursday. A seven-year note auction originally scheduled for Thursday afternoon was also delayed to 11:30 a.m. Friday due to a "technical issue," the Treasury said.
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Traders were not fazed by the news, but generally said the drop in yields was a little overdone.
"Unless tomorrow's really strong (on PCE) and we get a strong jobs number in March and the market has a convincing reversal in the short term, you're going to have a Fed (like in September) not confident enough in March" to raise rates, said Brandon Swensen, co-head of the fixed income desk at RBC Global Asset Management.
"Our view is the market has probably swung a little too far but given what's happening globally and what continues to happen in the energy and commodities space, the sentiment coming from oil and China, we're still in a similar range that we've been in," he said.
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While expectations for the bulk of U.S. data due Friday point to support for stocks, overseas news remains the wild card.
"We are still in a very fragile market," said Athanasios Vamvakidis, head of G10 FX strategy in Europe at Bank of America Merrill Lynch. "There are many market concerns about a number of risks at a time the market (has less) belief central banks will come to the rescue."
Those include a potential "Brexit" and negative impact from a sharp slowdown in China's economy. While the country's financial markets are not necessarily an indicator of growth, traders are watching how authorities manage the situation.