* Wall St weighed by Intel, GE results
* Dollar extends rally vs euro
* European shares extend new-year rally
By Angela Moon
NEW YORK, Jan 17 Wall Street stocks fell on
Friday as quarterly earnings of Intel and General Electric
disappointed, contributing to a decline in a measure of global
equity markets, while the dollar hit a seven-week high against
The S&P 500 and Nasdaq fell, led by losses in Intel and
General Electric after disappointing results. But both indexes
managed to end the week slightly higher.
In Europe, shares rose on brisk volumes, extending their
new-year rally as expectations of a pick-up in global growth
prompted investors to buy mining stocks.
The MSCI all-country world index, a measure of global equity
markets, fell 0.13 percent.
The dollar hit a seven-week high against the euro after a
round of mixed U.S. data on balance supported the view that the
world's largest economy was steadily gaining steam, keeping the
Federal Reserve on track to continue to reduce its stimulus.
On Wall Street, Intel and General Electric were among the
biggest decliners. Shares of Intel lost 2.6 percent to
$25.85, weighing on all three major U.S. indexes after the
chipmaker's fourth-quarter earnings missed expectations by a
penny and the company gave a lukewarm forecast for revenue for
the current quarter.
General Electric lost 2.3 percent to $26.58. The
conglomerate posted a slightly better-than-expected rise in
quarterly revenue, propelled by its oil pumps and jet engines
businesses, but its full-year profit margins were disappointing.
The Dow outperformed the broader S&P 500 index as
American Express shares climbed 3.6 percent to $90.97.
As earnings continue to trickle in, analysts expect the
market to get more clarity on the strength of corporate America
and look for leadership to define the next move.
"The market was teased in a good way by some of the first
earnings, tempered later with disappointing numbers, and it's
trying to make a sense of what the quarter is going to be," said
John Manley, chief equity strategist at Wells Fargo Funds
Management in New York.
The Dow Jones industrial average rose 41.55 points,
or 0.25 percent, to end unofficially at 16,458.56. The Standard
& Poor's 500 Index slipped 7.19 points, or 0.39 percent,
to finish unofficially at 1,838.70. The Nasdaq Composite Index
fell 21.11 points, or 0.50 percent, to close
unofficially at 4,197.58.
For the week, the Dow rose 0.1 percent, while the S&P 500
slipped 0.2 percent and the Nasdaq gained 0.5 percent.
In currency markets, the dollar index, a gauge of the
dollar's value versus six major currencies, rose 0.4 percent to
In afternoon trading, the dollar traded down 0.03 percent to
The euro fell to a seven-week low of $1.3515 in the
afternoon on the dollar's strong rally. It was last at $1.3530,
down 0.7 percent.
"verall, the U.S. economy is making steady, if uneven,
progress and that should keep intact expectations for sustained
Fed tapering this year," said Joe Manimbo, senior market analyst
at Western Union Business Solutions in Washington.
"U.S. Treasury yields haven't budged much, so as long as
they hold near their elevated levels, that should continue to
underpin the dollar."
Data showed U.S. industrial output rose at its fastest clip
in 3-1/2 years in the fourth quarter. Separately,
ground-breaking for new homes last month dropped 9.8 percent,
the largest percentage decline since April, though housing
starts were coming off a multi-year high in November.
In Treasuries, the benchmark 10-year note was up
7/32 in price with the yield at 2.8176 percent.
Stocks rose in Europe as gains in consumer cyclicals helped
the broad FTSEurofirst 300 index gain 0.5 percent to
close at 1,345.02, a level not seen in 5-1/2 years.
The region's quarterly earnings season does not pick up
until next week. STOXX Europe 600 companies are seen
missing consensus by 0.4 percent on revenues and by 0.9 percent
on earnings, according to StarMine SmartEstimates, which focuses
on the predictions by the most accurate analysts.
In commodities, Brent crude oil rose more than $1 per
barrel, driven by demand for heating fuel and rising gasoline
prices, but gains were offset by expectations for increased
supply from Libya and Iran.
Brent oil for March delivery, which became the
front-month contract following the expiry of the February
contract on Thursday, rose $1.04 to $106.79 a barrel.