Futures Turn Lower After GDP Report

U.S. stock index futures retreated Friday, erasing their early gains, after the GDP report showed the economy grew less than expected in the fourth-quarter.

U.S. GDP expanded at a 2.8 percent annual rate, according to the Commerce Department, logging its fastest pace in 1-1/2 years in the fourth quarter, but the figure was still slightly below expectations for a 3.0 percent gain.

European stocks were earlier buoyed by comments made by European economic affairs chief Ollie Rehn who said a deal on reducing Greece's private sector debt is imminent and should be completed by the end of January at the latest.

Among earnings, Ford posted a lower-than-expected fourth-quarter profit on disappointing results outside North America and rising commodity costs.

Procter & Gamble quarterly profit plunged 49 percent and the household products maker lowered its guidance.

Meanwhile, Honeywell posted quarterly results that narrowly topped expectations.

Juniper Networks and Riverbed Technologies disappointed investors with gloomy first quarter outlooks that were below expectations, raising fears that demand for companies that help manage internet traffic may be weak for some time.

Starbucks reported quarterly profit ahead of expectations, but shares fell in after-hours trade as investors focused on the company's weakness in Europe rather than strength in the U.S.

In other corporate news 3M’s board of directors are divided over whether to extend the contract of chief executive George Buckley once it expires in a month, the Wall Street Journal reported on Friday, citing a person familiar with the matter.

Transocean saw a 6 percent jump after-hours, as a federal judge ruled that the company won’t have to pay third-party compensatory damages related to the Gulf oil spill, but may still be liable for punitive damages.

Also on the economic front, the University of Michigan’s final January consumer sentiment index is also released at 9:55 am ET and is seen coming in at 74.5, according to a Reuters consensus, higher than the preliminary January reading of 74 and December’s 69.9.

On Tap Next Week:

MONDAY: Personal income & spending, Dallas Fed mfg survey
TUESDAY: Employment cost index, S&P Case-Shiller home price index, Chicago PMI, consumer confidence, Florida GOP Primary vote; Earnings from ExxonMobil, Eli Lilly, Pfizer, UPS, Amazon.com, Broadcom
WEDNESDAY: Weekly mortgage applications, Challenger job-cut report, ADP employment report, Fed's Plosser speaks, ISM mfg index, construction spending, oil inventories, auto sales; Earnings from Aetna, Marathon Oil, Qualcomm, Electronic Arts
THURSDAY: Jobless claims, productivity and costs, Fed's Fisher speaks, chain-store sales; Earnings from AstraZeneca, Deutsche Bank, Merck, Royal Dutch Shell, Sony, Unilever, beazer Homes
FRIDAY: Employment situation, factory orders, ISM non-mfg index; Earnings from Clorox