Stocks: Investors await reading on U.S. growth

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NEW YORK (CNNMoney) — While Europe’s debt crisis still looms in the background, U.S. investors hope to get some news Friday about stronger economic growth at home.

SP 500 (SPX), Dow Jones industrial average (INDU) and Nasdaq (COMP) futures were modestly higher. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

Investors will be watching for the government’s fourth-quarter GDP reading before the market open, hoping for data to back up growing optimism about the nation’s economic recovery. Analysts surveyed by Briefing.com are predicting that the economy grew at an annual rate of 3.2%, up from 1.8% in the third quarter.

If the data is stronger, investors will have to square that good news with the Federal Reserve’s latest lower outlook for the economy. The Fed announced Wednesday that it plans to keep the federal funds rate near zero until late 2014, because the recovery remains too slow to warrant higher interest rates any time soon.

“People are expecting that growth improved a bit in the last quarter,” said James Shelton, chief investment officer with Kanaly Trust. “I don’t think they’re all that confident though that we’re going to be able to sustain that. I think the Fed told us that a couple days ago.”

The University of Michigan will release the final January installment of its Consumer Sentiment Index. Meanwhile, results are in from companies including Chevron (CVX, Fortune 500), Ford (F, Fortune 500) and Procter Gamble (PG, Fortune 500).

Anxiety continues to loom over Greece’s ongoing negotiations with private-sector creditors in an attempt to reduce its debt burden. Without an agreement, the country jeopardizes its access to bailout funds and might not be able to make a €14 billion debt payment that’s due March 20.

U.S. stocks ended in the red Thursday, as investors digested a mixed batch of corporate earnings results, and remained cautious amid lackluster economic data and the continuing debt talks in Greece.

Europe’s Debt Crisis

World markets: European stocks were mostly lower in midday trading. Britain’s FTSE 100 (UKX) dropped 0.5%, while the DAX (DAX) in Germany was flat and France’s CAC 40 (CAC40) fell 0.7%.

Asian markets ended mixed. The Hang Seng (HSI) in Hong Kong added 0.3% and Japan’s Nikkei (N225) was flat. Shanghai wrapped up a week-long celebration for Chinese New Year.

Companies: Starbucks (SBUX, Fortune 500) beat Wall Street estimates with strong earnings and revenue in its fourth quarter. The coffee chain saw its strongest holiday season in history of the company, Chief Financial Officer Troy Alstead said in a conference call with investors.

But investors were underwhelmed by the company’s profit outlook for the future. Starbucks shares fell 1.3% in premarket trading.

Ford, aided by a one-time gain, posted 2011 profit of $20.2 billion — its biggest since 1998. But for the quarter alone, its earnings missed forecasts. Ford shares fell 5.2% in premarket trading.

Transocean (RIG) shares rose 6.2% in premarket trading, after a federal judge cleared the company of some damages related to the Deepwater Horizon spill, because it was shielded by a contract with well-owner BP. BP (BP) shares slumped 1.5% in premarket trading.

Chevron is expected to post earnings of $2.84 a share, according to a survey of analysts by Thomson Reuters, up from $2.44 a year ago.

Procter Gamble said it earned $1.10 per share in its fiscal second quarter, beating forecasts for $1.08 per share. The maker of Tide detergent, Crest toothpaste and Pringles snacks lowered its outlook for the year. Shares fell 1.3% in premarket trading

Why Soros thinks the euro will survive

Currencies and commodities: The dollar fell against the euro, the British pound and the Japanese yen.

Oil for March delivery rose 48 cents to $100.18 a barrel.

Gold futures for February delivery fell $2.70 to $1,724 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.97% from 1.93% late Thursday.  

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