Tech Leads Stocks Lower In Early Action - U.S. Commentary

(RTTNews) - Stocks are edging lower in the early stages of Friday's session. A disappointing round of earnings reports has prompted a mild bout of profit taking. The dip has moved the major averages off highs reached earlier in the week.

The Dow Jones Industrial Average is down about 43 points to around 15,506, a slide of approximately 0.3 percent. The S&P 500 is off 4 points, or 0.3 percent, to 1,685.

With the technology sector creating a significant drag during the early action, the Nasdaq is the worst performer among the major averages. The index has slipped by 30 points to 3,581 - a decline of more than 0.8 percent.

Friday's initial retreat follows a series of disappointing earnings reports from the tech sector. These have convinced some investors to book profits after the run-up stocks have experienced lately. Yesterday, the Dow and the S&P 500 reached new record intraday peaks and ended the day at new record closing highs. The Nasdaq also set a new multi-year high.

The advance earlier this week was helped by some upbeat economic statistics and comments from Federal Reserve Chairman Ben Bernanke, who detailed Fed policy to lawmakers in appearances before Congress on Wednesday and Thursday.

Earnings news has dampened spirits in Friday's early trading. Both Google (GOOG) and Microsoft (MSFT) had results that missed analysts' expectations.

Google reported quarterly earnings that rose from last year. The Internet search giant benefited from increased advertising revenue and gains from the sale of its Motorola Home unit. However, results came in below expectations.

Microsoft revealed a profit of its latest quarter. This reversed a loss in the same period last year, when results were hurt by a hefty goodwill impairment charge related to its Online Services Division. The software giant's bottom line missed expectations.

Outside of tech, appliance maker Whirlpool Corp. (WHR) reported a higher second-quarter profit, reflecting sales increase in every region. The company benefited from a rise in demand for its products and continued benefits from its margin expansion actions.

Excluding certain items, though, Whirlpool's adjusted earnings missed analysts' expectations. The company lifted its earnings outlook for the full year 2013.

Diversified conglomerate General Electric Co. (GE) reported a profit for the second quarter that edged up from last year, reflecting a smaller loss from discontinued operations. Total revenues declined 4 percent, and GE Capital revenues decreased 3 percent.

Detroit is a topic of discussion on Wall Street today. The city was forced to declare bankruptcy yesterday. The hub of the U.S. auto industry has become the largest municipal bankruptcy in the nation's history.