* GDP shy of expectations, consumer confidence dips vs March
* Amazon weighs on S&P after results; Chevron helps Dow
* Major averages on track to post solid gains on the week
* Dow up 0.1 percent, S&P down 0.2 percent, Nasdaq down 0.4
By Ryan Vlastelica
NEW YORK, April 26 U.S. stocks mostly slipped on
Friday as the latest round of economic data indicated that
growth fell short of expectations in the latest quarter.
Amazon.com Inc tumbled after results, pressuring
both the S&P 500 and Nasdaq, though gains at Hewlett-Packard Co
and Chevron Corp kept the Dow in modestly
positive territory. Despite the day's decline, major indexes
were on track for a week of solid gains.
Gross domestic product expanded at a 2.5 percent rate in the
first quarter, below estimates for growth of 3 percent but above
the 0.4 percent rate in the fourth quarter of 2012.
The data could raise doubts about the ability of the economy
to absorb government spending cuts and higher taxes, and may
fuel speculation on the possibility of more Federal Reserve
measures to boost growth, or at least keep its current stimulus
plans in place.
"The moderate move to the downside isn't out of line with
the GDP data as light as it was," said Steve Sosnick,
equity-risk manager at Timber Hill/Interactive Brokers Group in
Greenwich, Connecticut. "It wasn't so great, but not bad enough
to derail the freight train the market has been on."
The S&P is 1.7 percent higher on the week while the Dow is
up 1.2 percent and the Nasdaq is up 2.3 percent.
The Thomson Reuters/University of Michigan's final reading
on the overall index on consumer sentiment fell to 76.4 from
78.6 in March, although it topped economists' expectations for
73.2 and improved upon the preliminary April reading of 72.3.
Amazon shed 7.1 percent to $255.25 and was the biggest drag
on both the S&P and Nasdaq 100 after revenue growth
slowed in the first quarter as the world's largest Internet
retailer struggled overseas, even as margins jumped on lower
Chevron rose 1.1 percent to $119.78 after the energy giant
posted earnings that beat expectations, helped by foreign
"In general, earnings haven't been blockbusters, but the
fact that we've had a sharp rally through the season tells you
the market is relatively sanguine about what has come out,"
The Dow Jones industrial average was up 15.39 points,
or 0.10 percent, at 14,716.19. The Standard & Poor's 500 Index
was down 3.70 points, or 0.23 percent, at 1,581.46. The
Nasdaq Composite Index was down 13.35 points, or 0.41
percent, at 3,276.64.
Hewlett-Packard gained 3.2 percent to $20.21, helping to
keep the Dow in the green.
Shares of Starbucks Corp, the world's biggest
coffee chain, slipped 1 percent to $59.85 after it reported a
quarterly profit that matched Wall Street estimates, although
revenue was slightly below expectations.
The PHLX housing sector index gained 1.2 percent and
was on track for its sixth consecutive advance, getting a lift
from D.R. Horton Inc and Weyerhaeuser Co after
the No. 1 U.S. homebuilder and forest products company reported
D.R. Horton shares jumped 7.3 percent to $26.31 though
Weyerhaeuser slipped 0.8 percent to $31.12.
With 51 percent of the S&P having reported, 69 percent have
beaten earnings expectations, above the 63 percent average since
1994 and slightly over the 67 percent beat rate over the past
However, revenue has been lackluster, with only 42 percent
topping analyst forecasts, well below the 62 percent average
since 2002 and the 52 percent beat rate for the last four
Analysts now see earnings growth of 3.6 percent this
quarter, up from expectations of 1.5 percent at the start of the