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After record highs, traders eyeing Europe

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Investors in both the United States and in Europe will be closely watching events from Frankfurt on Thursday.

The day's trading session could take its cue from the European Central Bank's Governing Council meeting on monetary policy, which ECB President Mario Draghi is set to wrap up with a news conference at 8:30 a.m., ET.

"It's going to be a bit of a communication challenge for Draghi tomorrow. It's going to depend on how well he communicates in the Q&A session tomorrow," said Patrick O'Donnell, investment manager at Aberdeen Asset Management.

"It's going to be pretty tricky I think, because of the growing consensus in the Governing Council that the current policy is doing more harm than good," he said.

Europe's central bank has an 80 billion euros-a-month ($86.06 billion) asset purchase, or quantitative easing, program that is set to end in March. Markets generally expect policymakers to keep policy easy by extending the program by six months.