Stocks dragged down by tech earnings
POSTED: Friday, July 19, 2013 - 9:21am
UPDATED: Friday, July 19, 2013 - 12:45pm
NEW YORK (CNNMoney) — Investors around the world were taking a step back early Friday following worse-than-expected quarterly results from Google and Microsoft.
The Dow Jones Industrial Average and the S&P 500 dipped 0.2% and 0.3%. The Nasdaq dropped 0.7%.
Google and Microsoft reported disappointing quarterly numbers after Thursday's closing bell, sending their shares sharply lower. Microsoft was hit by a big write-down on its Surface tablet.
The pullback comes one day after both the Dow and S&P climbed to new record highs.
All three indexes are up sharply for the year.
The Dow and S&P 500 have gained nearly 19% while the Nasdaq has rallied almost 20%. (Click here for more on stocks, bonds, commodities and currencies.)
Still, results from two of the world's biggest industrial companies -- General Electric and Honeywell -- showed signs that the global economy continues to strengthen.
Honeywell raised its outlook for the year, after the company reported better-than-expected earnings.
General Electric reported earnings and sales roughly in line with estimates, and said it saw strong growth in U.S. orders.
Whirlpool raised its guidance for the year as the appliance maker reported a significant gain in quarterly sales and profit.
Schlumberger's stock rose after the energy company reported a bump in sales and profit, driven by drilling successes on land and deepwater.
In international markets, European indexes were down between 0.5% and 0.6% in afternoon trading.
Asian markets were also weak Friday. China's Shanghai Composite index dipped and Japan's Nikkei each pulled back by 1.5%. But Hong Kong's Hang Seng index managed to edge up by 0.1%.
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