Stocks turned lower by late afternoon Friday as an energy sector rally eased.
The S&P 500 was down 0.27%, the Dow Jones Industrial Average fell 0.26%, and the Nasdaq was flat.
Crude oil pulled lower after the latest weekly read on active oil rigs fell, though at a slower-than-expected pace. Crude oil drilling rigs in the U.S. fell by 13 to 400 in the past week, according to Baker Hughes data. West Texas Intermediate crude closed 0.9% at $32.78 a barrel.
The energy sector remained the best performer on markets Friday, though were off session highs. Major oilers such as PetroChina (PTR) , Royal Dutch Shell (RDS.A) , Schlumberger (SLB) , and BP (BP) climbed, while the Energy Select Sector SPDR ETF (XLE) added 0.4%.
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 at the end of 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."