NEW YORK (TheStreet) -- Stock futures remained lower on Friday after the U.S. economy grew at a slower-than-expected pace in the fourth quarter.
S&P 500 futures were down 0.93%, Dow Jones Industrial Average futures slipped 0.94%, and Nasdaq futures fell 0.51%. Stocks were set to open the day lower, giving back some of the gains achieved in a late Thursday afternoon rally.
U.S. GDP rose 2.6% in the fourth quarter, lower than an expected 3.2% gain, as business spending remained weak. The pace was nearly half the third-quarter's blockbuster 5% growth. However, consumer spending was stronger than expected at 4.3%, a sign lower gas prices were continuing to prop up sentiment.
"Today's number is a miss and a disappointment in the context of recent strong GDP prints," said BTIG chief strategist Dan Greenhaus. "The Federal Reserve can't be happy with that and compounding the issue, price pressures remained relatively benign in the quarter."
Earnings have taken Wall Street's focus in what has been one of the busiest reporting weeks of the season. Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report , Qualcomm (QCOM) - Get QUALCOMM Incorporated Report , Apple (AAPL) - Get Apple Inc. (AAPL) Report and Facebook (FB) - Get Facebook, Inc. Class A Report were among the companies that reported earlier in the week.
Amazon (AMZN) - Get Amazon.com, Inc. Report soared more than 12% before the bell on Friday after turning a quarterly profit of 45 cents a share, 28 cents above expectations. The e-commerce juggernaut said gross margins rose 300 basis points from a year earlier to 29.5%. Google (GOOGL) - Get Alphabet Inc. Class A Report was up 1.3% despite missing profit and sales expectations. Ad prices slipped 3% quarter on quarter on low smartphone rates.
Chevron (CVX) - Get Chevron Corporation Report was trading flat after beating low expectations in its fourth quarter. Earnings of $1.85 a share beat by 21 cents, while revenue of $46.09 billion came in much higher than an expected $30 billion. Sales dropped 18% as oil prices plunged.
European markets were lower. Germany's DAX was down 0.32%, France's CAC 40 slid 0.33%, and London's FTSE 100 fell 0.37%. Further supporting the European Central Bank's plan to introduce easing measures in March, the latest figures from Eurostat showed the region at continued risk of slipping into deflation. Consumer prices in the Eurozone slipped 0.6% in January compared to the year earlier, its largest decline since mid-2009.
Burger chain Shake Shack will begin trading Friday under the symbol ' (SHAK) - Get Shake Shack, Inc. Class A Report .' The company priced its IPO at $21 a share, above an expected $17 to $19. The offering values Shake Shack at around $745.5 million.
--Written by Keris Alison Lahiff in New York.