* Microsoft, Google tumble after results miss
* S&P 500 ends at record high for second day
* GE jumps after profit beats
* Dow, S&P 500 post fourth week of gains
* Dow off 0.03 pct, S&P up 0.2 pct, Nasdaq off 0.7 pct
By Caroline Valetkevitch
NEW YORK, July 19 The Dow and Nasdaq stock
gauges fell on Friday as disappointing results from Microsoft
and Google dragged on the market, while the S&P 500 index edged
up to end at a second straight record high.
Stronger-than-expected results from General Electric Co
and oilfield services company Schlumberger NV
helped the S&P 500 index to offset the tech losses and to post a
fourth week of gains.
For the week, the Dow rose 0.5 percent, the S&P added 0.7
percent and the Nasdaq fell 0.3 percent. The benchmark S&P is up
18.6 percent for the year.
The high-profile tech sector disappointments prompted
investors to lock in profits Friday after upbeat company results
on Thursday and reassuring comments from Federal Reserve
Chairman Ben Bernanke sent the Dow and S&P to record closing
Microsoft Corp was the biggest drag on all three
major indexes, with the Nasdaq registering the day's steepest
declines. Google Inc also weighed 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."
On Friday, Microsoft slumped 11.4 percent to $31.40, while
Google lost 1.5 percent to $896.59. The S&P tech sector
led declines, falling 2 percent.
The Dow Jones industrial average was down 4.80
points, or 0.03 percent, at 15,543.74. The Standard & Poor's 500
Index was up 2.72 points, or 0.16 percent, at 1,692.09.
The Nasdaq Composite Index was down 23.66 points, or
0.66 percent, at 3,587.61.
Analysts' estimates for corporate earnings have been reduced
so much that investors believe the targets for the most part
should be easily beaten.
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, according to Thomson Reuters
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.
Also in the tech sector, Advanced Micro Devices Inc
tumbled 13.1 percent to $4.03 after the company said gross
margins would fall, even as the chipmaker forecast
stronger-than-expected revenue growth in the third quarter.
Encouraging earnings reports from other companies helped to
offset the tech losses. Shares of General Electric rose 4.6
percent to $24.72 while shares of Schlumberger gained 5.4
percent to $82.74.
Whirlpool Corp climbed 8 percent to $128.91 after
raising its full-year outlook.
Intuitive Surgical Inc slid 6.8 percent to $392.66
after the company cut its 2013 sales forecast and said U.S.
regulators had issued a warning after an inspection of its
Volume was roughly 5.9 billion shares traded on the New York
Stock Exchange, the Nasdaq and the NYSE MKT, below the average
daily closing volume of about 6.4 billion this year.
Advancers outpaced decliners on the NYSE by a ratio of
nearly 15 to 14 in Friday's session, while decliners outpaced
advancers on the Nasdaq by about 12 to 11.