Updated from 9:41 a.m.
Stocks moved higher on Friday after the latest data showed fourth-quarter growth in the U.S. economy wasn't as bad as feared.
The S&P 500 was up 0.17%, the Dow Jones Industrial Average added 0.07%, and the Nasdaq rose 0.3%.
The second estimate of fourth-quarter GDP was revised up to an annual rate of 1% from 0.7%, suggesting that the U.S. economy was in better shape than expected to close out last year. Economists had expected GDP to be revised down to 0.4% growth. A stronger U.S. dollar and an inventory buildup continued to hurt manufacturing, though, with exports down 2.7% and imports falling 0.6%. Consumer spending rose 2%, though less than an originally estimated 2.2%.
For the Federal Reserve, "the upgrade in the Q4 GDP growth will likely offer some encouragement, though it is unlikely to change the current bias to remain on the sidelines at the March meeting as they assess the impact of the recent global headwinds on growth," said Millan Mulraine, deputy chief U.S. macro strategist at TD Securities. "We continue to see the next hike at the June FOMC meeting."
Traders had plenty of other data to digest on Friday in a jam-packed day on the economic calendar. The U.S. trade deficit in January widened to $62.23 billion, its largest level since June. U.S. exporters struggled to move goods as a stronger U.S. dollar and a weaker global economy deterred demand.
The consumer economy benefited from colder winter weather in January and lower gas prices. Consumer spending rose 0.5% in January, higher than the 0.3% growth economists had expected. Personal income also rose 0.5%.