* Microsoft, Google tumble after results miss
* GE jumps after profit beats
* Dow, S&P 500 retreat from record highs
* Dow off 0.1 pct, S&P up 0.03 pct, Nasdaq off 0.8 pts
By Caroline Valetkevitch
NEW YORK, July 19 The Dow and Nasdaq fell on
Friday, led by losses in tech shares after disappointing results
from Microsoft and Google.
The S&P 500 was flat, as better-than-expected results from
General Electric Co and Schlumberger NV helped to
offset the tech losses.
Microsoft Corp was the biggest drag on all three
major indexes, with the Nasdaq showing the steepest declines.
Google Inc also dragged on the S&P 500 and Nasdaq. Both
reported earnings that fell short of expectations.
"It seems like (tech) may be the one area where companies
haven't gotten expectations sufficiently reduced," said Eric
Kuby, chief investment officer at North Star Investment
Management Corp in Chicago.
"Stocks like Microsoft and Google I think were probably at
the point where they had traded so nicely into earnings that
people were really looking for something positive to be said."
Microsoft shares gained 21 percent in the second quarter,
while Google was up 11 percent in the period.
In the absence of fresh economic data, the high-profile
earnings disappointments in the tech sector prompted investors
to lock in profits after some rosy results and reassuring
comments from Federal Reserve Chairman Ben Bernanke on Thursday
sent the Dow and S&P to record closing levels. The benchmark S&P
is up more than 18 percent for the year.
Microsoft slumped 10.9 percent to $31.56, while Google lost
1.5 percent to $896.77. The S&P tech sector led
declines, falling 2 percent.
The Dow Jones industrial average was down 18.88
points, or 0.12 percent, at 15,529.66. The Standard & Poor's 500
Index was up 0.58 points, or 0.03 percent, at 1,689.95.
The Nasdaq Composite Index was down 26.95 points, or
0.75 percent, at 3,584.33.
Also in the tech sector, Advanced Micro Devices Inc
tumbled 14.9 percent to $3.95 after the company said gross
margins would fall, even as the chipmaker forecast
stronger-than-expected revenue growth in the third quarter.
Still, encouraging earnings reports from other companies
helped keep the S&P 500 near break-even. Shares of General
Electric rose 5 percent to $24.80 while shares of Schlumberger
gained 5.9 percent to $83.09.
Analysts expect S&P 500 companies' second-quarter earnings
to have grown 2.9 percent from a year earlier, with revenue up
1.1 percent, according to Thomson Reuters data.
Through Friday, of the 104 companies in the S&P 500 that
have reported earnings for the quarter, 65.4 percent have
reported earnings above analyst expectations, while 51 percent
have topped revenue estimates.
Among other companies to report, Whirlpool Corp
climbed 8.2 percent to $129.18 after raising its full-year
Intuitive Surgical Inc slid 9.1 percent to $383.47
after the company cut its 2013 sales forecast and said U.S.
regulators had issued a warning after an inspection of its