US stocks have ended mixed after a mediocre report on US economic growth and the latest batch of uneven corporate earnings reports.
The Dow Jones Industrial Average rose 11.75 (0.08 per cent) on Friday to 14,712.55.
The broad-based S&P 500 dipped 2.92 (0.18 per cent) to 1,582.24, while the tech-rich Nasdaq Composite Index lost 10.72 (0.33 per cent) to 3,279.27.
Friday’s results came as the Commerce Department reported first quarter growth of 2.5 per cent, above the previous quarter’s level, but below the 2.8 per cent analysts had forecast.
The report illustrated the effects of an 8.4 per cent cut in federal spending due to the federal “sequester”.
On the positive side, consumer spending rose 3.2 per cent.
Briefing.com analysts said the weaknesses in the data simply confirmed to investors that the Federal Reserve was not likely to tighten economic policy in the near future.
“The broader market appeared unconcerned as market participants are well aware of the Federal Reserve’s commitment to maintain its accommodative monetary policy for as long as conditions warrant.” Briefing said.
Dow member Chevron rose 1.3 per cent despite reporting a 4 per cent decline in earnings. The company reported slightly higher oil and natural gas output.
Online retailing king Amazon tumbled 7.2 per cent after reporting a 37 per cent drop in quarterly earnings and forecasting second quarter sales at a lower level than had been expected by analysts.
Tyre maker Goodyear dropped 3.3 per cent after reporting a 12.3 per cent decline in quarterly revenues. The company cited continued weakness in its European division.
Home builder DR Horton soared 6.9 per cent after reporting profit rose 173 per cent in its fiscal second quarter as sales boomed amid a recovering housing market.
Struggling retailer JC Penney jumped 11.6 per cent after investor George Soros’ company took a 7.9 per cent stake in the company.
Falling copper prices sent Barrick Gold Corp. 2.7 per cent lower and Freeport-McMoRan Copper & Gold 1.5 per cent lower.
Bond prices rose. The yield on the 10-year Treasury dropped to 1.66 per cent from 1.71 per cent on Thursday, while the 30-year bond fell to 2.86 per cent from 2.91 per cent. Bond prices and yields move inversely.
