Stocks closed mixed on Friday ahead of the Memorial Day holiday weekend and digested key economic data.
"I think the market is just taking a breather to figure things out," said Aaron Jett, vice president of global equity research at Bel Air Investment Advisors. But "I don't think the market is going to make a significant move lower because the fundamentals don't support it."
The Dow Jones industrial average closed just below the flatline to snap a six-day winning streak, with Home Depot contributing the most losses. The S&P 500 and the Nasdaq composite closed marginally higher, notching fresh record closing highs and extended their winning streak to seven sessions.
The major stock indexes posted strong weekly gains, rising more than 1 percent in the period.
"A lot of what we've seen this week is investors being pretty comfortable with their positions and that's why we're seeing so little selling ahead of the long weekend," said Kate Warne, investment strategist at Edward Jones.
The U.S. economy grew at an annual rate of 1.2 percent in the first quarter, an improvement from the first reading on economic growth.
The sluggish first-quarter growth pace is, however, probably not a true reflection of the economy's health. GDP for the first three months of the year tends to underperform because of difficulties with the calculation of data that the government has acknowledged and is working to resolve.
The second read on first-quarter GDP "provides us with a higher starting point to Q2 but those estimates for Q2 are now moving lower. Yesterday, trade and inventories led to a drop in estimates and today's durable goods report will drag it down even further. So we have a higher than expected Q1 but now a lower than forecasted Q2," said Peter Boockvar, chief market analyst at The Lindsey Group, in a note.
Durable goods orders for April, meanwhile, fell less than expected.