After historic week, Wall Street looks ahead

Wall Street wrapped up a historic week with a mixed performance Friday but posted gains for the week as investors cheered the Dow's first-ever close above 20,000 and navigated President Trump's initial foray into governing and policy.

In the coming week, investors will look beyond the Dow Jones industrial average's high-profile milestone and shift its focus back to more pressing matters that could influence stock prices. Wall Street is bracing for another week of potential Trump-driven market moves, a fresh barrage of quarterly results from Corporate America and the U.S. Federal Reserve's first policy meeting of the year.

More than 100 U.S. large companies are set to report profit results next week, according to earnings tracker Thomson Reuters. Fourth-quarter 2016 profits are on track for 6.8% growth, its fastest pace in two years. IPhone maker Apple, social media giant Facebook and online retail behemoth Amazon.com are among the big names reporting earnings next week.

Stocks barely budged Friday, with the Dow falling 7.13 points to close at 20,093.78, as investors digested a lower-than-expected, but still solid, first read on economic growth in the final quarter of 2016. GDP jumped 1.9% in the October-through-December period, below the 2.2% estimate. For the year, the economy grew 1.6%, its worst showing since 2011 and down from 2.6% growth in 2015.

The Dow finished the week up 1.3%. The Standard & Poor's 500 index, which hit a record high mid-week and briefly crossed the 2,300 level for the first time, ended Friday down 2 points but up 1% for the week at 2,294.69. The technology-packed Nasdaq composite ended the week at an all-time high of 5,660.78 after surging nearly 2% for the week.

But the big news of the week came Wednesday when the Dow barreled through the 20,000 barrier for the first time in its 120-year history, an event cheered by traders donning Dow 20,000 caps on the floor of the New York Stock Exchange.

Trump also moved markets in his first full week on the job. Trump met with top executives of U.S. auto and manufacturing companies to push his agenda, including signing executive orders to start the dismantling of Obamacare and restart talks to build oil pipelines which were shelved during Obama's term. The president also rattled markets by picking a trade fight with Mexico after an administration spokesman broached the possibility of a 20% tax on Mexican-made products imported into the U.S. if Mexico refused to pay for the border wall Trump wants built between the two countries.

"Right now people are very focused on Trump," said Eric Stein, Eaton Vance'a co-director of global income.

Wall Street is not expecting the Fed to hike interest rates next week, following its quarter-point hike in December. At its final meeting of 2016, the Fed increased its key short-term rate a quarter point to 0.75% and said it is on pace for three more rate hikes in 2017.

"We are just one week into the president's term, I don't think Fed chair Janet Yellen will make any rash changes to monetary policy," says  Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management. "I expect the Fed will be in wait-and-see mode" as it will take time before Wall Street and the Fed get a clear picture of how many of Trump's policy goals get enacted.