Stocks clawed back from lows, though the S&P 500 did close with slight losses. Worries President Trump's "America First" policies could hurt growth kept markets on the defensive for much of the day. Kate Spade climbed on reports of takeover interest. Accessories brands Coach and Michael Kors are reportedly both mulling a bid. Aetna fell after a federal judge blocked its proposed $37 billion merger with Humana . The judge said the deal would likely harm competition in hundreds of counties across the U.S. AMC Entertainment agreed to buy Nordic Cinema Group, a Stockholm-based cinema chain, in an all-cash deal worth more than $900 million. The acquisition is expected to close in June.

President Elect Donald Trump becomes President Trump later today. If Trump strikes a hawkish tone in today's speech on trade and labels China as a currency manipulator, that could push stocks lower, according to analysts. Investors have been cautious all week on nervousness about the speech and any policy changes that will follow. General Electric says it earned 46 cents a share, matching expectations. Revenue, however fell slightly short of predictions at $33 billion. GE now bills itself as a 'digital industrial company' and gets the bulk bulk of its profit from the aviation and power business. IBM beat earnings expectations but revenue decline for the 19th quarter in a row. Chief Financial Officer Martin Schroeter emphasized that annual revenue in IBM's faster growing businesses like Watson and cloud computing rose 14%.

U.S. stocks were slightly higher Thursday ahead of Donald Trump's closely watched inauguration on Friday. Meanwhile, the European Central Bank left key interest rates unchanged and maintained its monthly pace of asset purchases at 80 billion euros until March. The stimulus will be lowered to 60 billion euros per month starting in April. Those changes were announced back in December. Despite a rise in inflation last month, European Central Bank President Mario Draghi, in a press conference, pointed to overall inflation trends in the eurozone, which remain under the central bank's target. Netflix shares surged after topping fourth quarter estimates on Wednesday, after the markets closed. Netflix added 7.05 million subscribers, ahead of the 3.57 million added in the third quarter. Kinder Morgan shares were lower after reporting a nearly 7% drop in revenue year over year for the fourth quarter $3.39 billion as less oil flowed through its pipelines. TheStreet's Scott Gamm reports from Wall Street.

Stocks held lower one day before the inauguration of President-elect Trump. The so-called Trump rally has faded in recent days as the policies of a Trump Administration remained ambiguous. Citigroup moved lower after getting hit with a $25 million fine from the U.S. Commodity Futures Trading Commission. Regulators had investigated charges of spoofing U.S. Treasury futures markets from 2011 to 2012. Target was downgraded to SELL from NEUTRAL at Goldman Sachs. Analysts said the retailer was likely to see stagnant to lower earnings, which would weigh on its valuation. CSX was on its way to end the day with its best gains in more than three decades. The railroad operator surged on reports it had become a target for activist investors, led by former Canadian Pacific CEO Hunter Harrison.

General Motors is set to announce a billion dollar investment in multiple U.S. factories. The investment is part of the normal process of equipping factories to build new models and has been planned for months, according to sources. It's expected to generate 1000 jobs. Multiple factories will get part of the money. British Prime Minister Theresa May is expected to confirm in a speech that the United Kingdom will leave the single European Union Market. She is expected to detail a new and equal partnership between other EU countries. A major tobacco merger is now one step closer to creating a global tobacco giant. British American tobacco and Reynolds American have agreed to the terms of their $49 billion deal. It would create the world's largest tobacco company. International leaders and celebrities convene for the first day of the World Economic Forum in Davos, Switzerland.

Bank of America reported 40 cents a share versus 38 cents expected. Revenue was $20 billion, which was on the light side of consensus. CEO Brian Moynihan says the bank is well-positioned to deliver for shareholders in 2017. Nintendo shares are falling in Japan over disappointment about the new Switch console. Investors fear they have priced the Switch too high. At $300 it may not be competitive with other devices especially since there are only 6 games available when it goes on sale. The Switch will be available for purchase March 3rd for $300. More automakers are being probed for cheating on emissions. Paris prosecutors opening a preliminary investigation into emissions by Renault vehicles weeks after fraud watchdogs said their research found enough material to require further investigation, sending the automakers shares sliding. Meanwhile, Fiat Chrysler shares are rebounding in Italy.

U.S. stocks inched higher on Friday, even as retail sales rose less than expected. December retail sales rose 0.6% month over month, missing estimates of 0.7%. Sales on motor vehicles rose 2.4%, while sales at nonstore retailers rose 1.3%. JPMorgan Chase posted fourth quarter earnings of $1.71 a share, beating estimates of $1.44. Revenue of $24.3 billion, also topped estimates of $23.95 billion. Fixed income trading revenue surged 31% amid market volatility following Donald Trump's presidential victory in November. Wells Fargo reported disappointing fourth quarter results. Earnings of $0.96 a share missed estimates of $1. Revenue of $21.58 billion fell short of estimates of $22.45 billion. The company's new CEO Tim Sloan said the bank continued to rebuild customer trust following its fake bank account scandal. TheStreet's Scott Gamm reports from Wall Street.

The Nasdaq scored another record close for the fourth time this week as health care stocks rebounded from earlier selloffs. The S&P 500 also sported gains, while the Dow Jones Industrial Average saw slight losses. Crude oil ended the week with the worst losses in a month despite a welcome decline in the number of active oil-drilling rigs in the U.S. The drop was the first in 11 weeks. Infosys slumped after lowering its sales guidance for its fiscal year. The India-based IT company also warned of potential changes to the H1-B visa under a Trump administration. The visa class applies to specialized workers. Pandora rallied after reaching a total 4.3 million paid subscribers in December. The music streaming company also announced plans to cut its U.S. workforce by roughly 7%.

The Nasdaq pulled back from a run that saw record closes for five consecutive trading days. Tech names including Microsoft and Intel were the biggest drag, while biotech stocks remained under pressure for their second day in a row. KB Home beat profit and sales estimates over its fourth quarter. Revenue jumped 21%, while its backlog increased 11%. Boeing fell after RBC Capital rated its stock as underperform. The firm pointed to eroding profit margins in its commercial airplane units and potential protectionist policies from a Trump administration that could prove a headwind to the industry. Fiat Chrysler slumped as the EPA lobbed accusations against the automaker of using software that spewed excess diesel emissions. The software reportedly affected 100,000 vehicles.

Confirmation hearings begin today on the team that President-elect Donald Trump has chosen to help him lead the nation. Attorney General nominee Jeff Sessions is expected to generate the most controversy during the hearings. According to the Puget Sound Business Journal, he once criticized Microsoft co-founder Bill Gates for lobbying Congress to expand the H-1B Visa program. He's also called legal marijuana a very real danger. Also facing a hearing today is Homeland Security nominee John Kelly. There are lots of changes going on at Yahoo! . CEO Marissa Mayer will leave the company's board. Also, Yahoo will change its name to Altaba. All of these move are contingent upon the $4.8 billion buyout from Verizon to go through. Small businesses are feeling the best they have in 12 years. The National Federation of Independent Businesses said its optimism index jumped in December. The measure soared to the highest level since 2004 last month as owners overwhelmingly expect business conditions to improve under the Trump administration.