Traders will also be watching to see if Nasdaq can stretch its winning streak to 11 days.
Microsoft could be a factor, falling in after hours trading after initially surging 4 percent. Microsoft earnings beat analysts’ estimates on the top and bottom line. Microsoft is also a member of the Dow 30.
The Nasdaq Thursday closed up 0.8 percent at 6,390, a record and its first 10-day win since February, 2015. The S&P 500 closed less than a point lower at 2,473, and the Dow was off 28 points at 21,611.
“There are some misses, but overall there’s no significant signs of weakness. It’s really more about expectations than overall earnings growth rate,” said Krishna Memani, OppenheimerFunds CIO.
S&P 500 companies’ earnings are expected to grow 8.6 percent this quarter, based both on actual reports and estimates, according to Thomson Reuters. There have been earnings beats by 74 percent of the companies; 74 percent have also beat on revenue.
“I don’t think, given where the dollar is, we should look for many surprises [in earnings] on that front. It should be decent. It’s not going to be spectacular,” said Memani. “Other than anecdotal things like IBM, there have not been that many substantial misses.” IBM reported its 21st consecutive revenue decline this week, as it missed on the top line.
The dollar was a big loser on Thursday, hitting a two-year low against the euro. It’s now down 10 percent for 2017. The dollar fell as the euro jumped after European Central Bank President Mario Draghi made positive comments about the euro zone economy. He was vague on when the ECB would begin detailing plans to pare back its asset purchase program, but the market expects to hear from the ECB in September.
The dollar also weakened on reports that special counsel Robert Mueller is widening his probe of the Trump campaign’s Russian ties to include Trump family business dealings.