North American stocks may pull back Friday amid a disappointing profit outlook from Microsoft and data that showed a less-than-expected increase in first-quarter U.S. economic growth.

The U.S. Commerce Department today released quarterly gross domestic product data that showed annualized growth of 4.8%, less than the 5% economists were expecting, after 1.7% growth in the fourth quarter.

Here at home, Statistics Canada said economic activity grew by 0.2% in February, the same pace as in January. The economy was bolstered by a rebound in utilities and strength in wholesale sales, finance and construction.

The Canadian dollar opened at US88.93¢, down 0.11 of a cent.

Later today, investors will see a final April reading of the University of Michigan’s consumer confidence index and a closely watched Chicago-area business-activity survey also will be released.

Crude-oil futures were back on the rise, with the front-month contract gaining 35¢ to US$71.32 a barrel in electronic trading.

In earnings news, TransCanada Corp. earned $273 million in the first quarter, up from $232 million a year earlier, after a large gain from a gas-marketing claim settlement.

Microsoft said late Thursday that its quarterly profit rose a less-than-forecast 16%, with the company’s outlook for future quarters also lagging forecasts.

Chevron reported first-quarter earnings of US$4 billion, or $1.80 a share, up from a year-ago profit of US$2.68 billion, or $1.28 a share, and ahead of analysts’ expectations of $1.78 a share.

Overseas, Sanofi-Aventis got a boost in Paris after the European Medical Agency adopted a positive opinion on its Acomplia and Zimulti drugs for weight loss. However, European stock markets were lower across the board, with energy stocks in particular under pressure.

Asian stock markets saw losses after getting their first chance to react to China’s surprise interest rate increase.

The benchmark Nikkei 225 index fell 208.31 points, or 1.22%, to 16,906.23 points on the Tokyo Stock Exchange, the lowest since March 28.

In Hong Kong, the Hang Seng Index fell 81.55 points, or 0.5%, to 16,661.3.

On Thrusday, Toronto stocks dropped as the exchange was waylaid by lower commodity prices.

The S&P/TSX composite index fell 134.04, or 1.09%, to 12,187.69. The announcement that the Chinese central bank would raise interest rates by a quarter point caused the downturn in commodities prices.

The S&P/TSX Venture Exchange index fell 42.46, or 1.37%, to 3,051.87.

In New York, markets were up as the U.S. Federal Reserve chairman suggested the cycle of rate hikes might be coming to an end.

The Dow Jones Industrial Average closed off its highs, up 28.02 points at 11,382.51. The Nasdaq Composite Index climbed 11.32 points to 2,344.95 while the S&P 500 Index added 4.31 points to 1,309.72.

Ben Bernanke seemed to suggested that a pause in U.S. rate increases could be ahead, though he warned that escalating energy price might lead to hikes.