Closing Bell: Microsoft, Google Miss on Profit; S&P Still Manages Record

new york stock exchange traders wall street microsoft google technology earnings
Scott Eells/Bloomberg via Getty Images
Technology stocks led the Nasdaq composite index lower Friday after disappointing earnings from Google. Also underperforming was Microsoft, which dealt a big blow to the Dow Jones industrial average. The Standard & Poor's 500 index edged up to set another record.

The Dow (^DJI) fell 4.65 points, or 0.03 percent, to 15,544, while the S&P 500 (^GPSC) gained 2.72 points, or 0.2 percent, to 1,692. The tech-heavy Nasdaq (^IXIC) fell 23.66 points, or 0.7 percent, to 3,587.61.

Microsoft (MSFT) fell sharply after the company wrote off $900 million for expected losses on its Surface tablet and reported declining revenues for its Windows operating system. The stock lost more than 11 percent to close at $31.40. If not for declines in Microsoft, Hewlett-Packard (HPQ) and IBM (IBM), the index would have gained about 70 points.

Google (GOOG) dropped after it reported revenues that fell below analyst forecasts, partly because the Internet search leader's ad prices took an unexpected turn for the worse. Shares of the Internet-search giant toppled $14.08, or 1.6 percent, to $896.60.

Chipmaker Advanced Micro Devices (AMD) also posted earnings that worried investors. The company's stock plunged 61 cents, or 13.2 percent, to $4.03 after it announced a second-quarter loss on lower revenue stemming from a worldwide slump in PC demand.

Disappointing earnings from Microsoft and Google were preceded Thursday by poor results from Intel (INTC) and eBay (EBAY). Technology stocks in the S&P 500 have lagged this year, gaining only 8.8 percent, while the broader index is up 18.4 percent.

U.S. municipal bonds fell the most in nearly a month on news that Detroit had filed for the largest municipal bankruptcy in U.S. history, adding to a slew of concerns about the $3.7 trillion market. The increase in yields, which move inversely to prices, was the steepest since June 24, when the U.S. Federal Reserve rattled markets with plans to scale back its bond-buying program.

The price of crude oil edged up a penny to $108.05 a barrel. The price of gold climbed $8.70 to $1,292.90 an ounce.

Other stocks in the news:
  • ManpowerGroup (MAN) reported its second-quarter net income jumped 66 percent, as cost cuts made up for sliding sales. The staffing company earned $68.2 million, or 87 cents a share, up from $41 million, or 51 cents a share, compared to a year ago; revenue fell 3 percent. The stock rose $3.85, or 6.2 percent, to $65.69.
  • General Electric (GE) rose $1.09, or 4.6 percent, to $24.72 after it posted a slight gain in net income in the second quarter and said its U.S. operations are picking up steam. The results were better than analysts had forecast.
  • Chipotle Mexican Grill (CMG) climbed $32.22, or 8.6 percent, to $408.97 after the chain reported results that beat analyst expectations.
  • Whirlpool (WHR) surged $9.54, or 8 percent, to $128.91 after its second-quarter net income soared 75 percent as demand improved for its appliances. The manufacturer also benefited from some tax credits.
  • Shares of RetailMeNot (SALE), a provider of online coupon codes for retailers, jumped after the company and some of its shareholders raised $190.9 million in its initial public offering. The shares rose $6.70, or 31.9 percent, to $27.70.
  • Oilfield-services company Baker Hughes (BHI) said its second-quarter profit fell 45 percent as it cut operations in Brazil and Mexico. The company earned $240 million, or 54 cents a share, down from $439 million, or $1 a share, a year ago. Revenue rose 2.2 percent to $5.49 billion. The stock fell $1.28, or 2.6 percent, to $47.80.

What to watch Monday:
  • The National Association of Realtors releases existing home sales for June at 10 a.m. Eastern time.
These major companies are scheduled to report quarterly earnings:
  • Gannett Co. (GCI)
  • Halliburton Co. (HAL)
  • Hasbro Inc. (HAS)
  • Kimberly-Clark Corp. (KMB)
  • McDonald's Corp. (MCD)
  • Netflix Inc. (NFLX)
  • Texas Instruments Inc. (TXN)

-Compiled from staff and wire reports.

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Good job President Obama on cleaning up the mess left by the GOP and bush jr. Now lets clean up social security. If you are drawing s.s. thank a democrat. If you want to end this program vote republican.

July 22 2013 at 8:55 AM Report abuse rate up rate down Reply

How many failed Detroit's does it take?

July 21 2013 at 4:39 PM Report abuse -2 rate up rate down Reply

If you are on social security and medicare thank a democrat. If you want to end these 2 programs vote republican.

July 21 2013 at 8:59 AM Report abuse +2 rate up rate down Reply
1 reply to toosmart4u's comment

Just the opposite.........The Democrats will let them go bankrupt, just like Detroit, but the Repubs want to save them........ That is a fact!

July 21 2013 at 1:12 PM Report abuse -1 rate up rate down Reply

This makes the GOP nuts..... better jobs reports & soaring markets!!!!

July 20 2013 at 9:05 PM Report abuse +1 rate up rate down Reply

S&P don't care about stinkin' earnings.

If they can inflate the prices of stocks until all the sucker fish take the bait, the better for the big boys and girls.

They can then gut and fillet the sucker fish and make huge profits.

July 20 2013 at 6:53 PM Report abuse rate up rate down Reply

Where are all the voices saying the good times are over and the bubble is bursting who were posting the other day when the markets dropped a hundred or so points.

July 20 2013 at 3:13 PM Report abuse rate up rate down Reply

Enjoy while it lasts. Not much longer now

July 20 2013 at 10:04 AM Report abuse -1 rate up rate down Reply
1 reply to erink91321's comment

Evidently you have never invested like I have for 33 years. If you don't that is your fault. The market goes up and the market goes down. Just ride the waves but it always recovered.

July 21 2013 at 5:19 PM Report abuse +1 rate up rate down Reply
1 reply to merstockgto's comment

It only recovers because the government comes to the rescue, that's the only way is has recovered. Bailout, bailout, bailout.

July 22 2013 at 7:07 AM Report abuse rate up rate down