* Google leads tech advance; GE slips after earnings
* Obama condemns Russia after Malaysian airliner downed in
* Small-cap index gains after 3-day losing streak
* Dow up 0.7 pct; S&P 500 up 1 pct; Nasdaq up 1.6 pct
(Updates to close)
By Angela Moon
NEW YORK, July 18 U.S. stocks rose on Friday,
rebounding a day after the S&P 500 suffered its worst slide
since April 10, with the three major indexes closing higher for
Technology stocks ranked among the day's biggest gainers.
Google led the rally. Its stock jumped 4.2 percent to
$605.11 a day after the No. 1 Internet search company reported
second-quarter results that beat investors' expectations. Shares
of Facebook Inc gained 3 percent to $68.42.
Market participants kept geopolitical news in focus. U.S.
President Barack Obama demanded that Russia stop supporting
separatists in eastern Ukraine a day after the downing of a
Malaysian airline by a surface-to-air missile, which he said was
fired from rebel territory. The incident raised the prospect of
more U.S. sanctions on Moscow.
Investors also remained cautious after Israel warned on
Friday that it could "significantly widen" a Gaza land
"It seems counter-intuitive, given the ruthlessness with
which the market sold off yesterday, but in the broader context,
the markets are generating a lot of attractive themes," said
Peter Kenny, chief market strategist at Clearpool Group in New
"We have an economy that is expanding," he added. "We have
many data points that support that narrative. We are in the
middle of earnings season, and earnings season has given
investors reason to believe that what we have seen in the
headlines over the last day or two, though very important, isn't
what is driving investment decisions."
The Dow Jones industrial average rose 123.37 points
or 0.73 percent, to end at 17,100.18. The S&P 500 gained
20.10 points or 1.03 percent, to 1,978.22. The Nasdaq Composite
added 68.70 points or 1.57 percent, to 4,432.15.
For the week, the Dow climbed 0.9 percent, the S&P 500 rose
0.5 percent and the Nasdaq gained 0.4 percent.
The CBOE Volatility Index tumbled 17.1 percent to
12.06 - a day after surging 32 percent to 14.54, which was its
biggest jump since April 2013. The VIX still remains well below
its historical average of around 20.
General Electric shares shed 0.6 percent to $26.46
after the U.S. conglomerate reported growth in second-quarter
operating earnings that matched analysts' expectations.
Honeywell International, a maker of aircraft cockpit
parts and other electronic equipment, raised the lower end of
its 2014 profit forecast range and reported better-than-expected
quarterly profit. Its stock gained 1.7 percent to $96.82.
S&P 500 companies' profits are expected to grow 5 percent in
the second quarter, according to Thomson Reuters data, down from
the 8.4 percent growth forecast at the start of April. Revenue
is seen up 3.2 percent.
Thomson Reuters data also showed that of 82 companies in the
S&P 500 that had reported earnings through Friday morning, 68.3
percent beat Wall Street's expectations, roughly in line with
the 67 percent rate for the past four quarters and above the 63
percent rate since 1994.
An index of U.S. small-cap stocks ended Friday's session
more than 1 percent higher, breaking a three-day losing streak.
The Russell 2000 index popped back above its
200-day moving average of around 1,140, ending Friday up 1.6
percent at 1,151.61.
For the week, though, the Russell 2000 still slid 0.7
percent. It was dragged down following valuation concerns raised
by Federal Reserve policymakers on Tuesday.
About 5.61 billion shares traded on U.S. exchanges, slightly
above the 5.58 billion average for the month to date, according
to data from BATS Global Markets.
(Reporting by Angela Moon; Editing by Jan Paschal)