Friday, January 20, 2012

S&P, Nasdaq dip after Google falls short, European shares move up

The S&P 500 and the Nasdaq eased on Friday after Google disappointed on earnings, while the Dow rose with IBM.

The latest batch of results highlighted how mixed the quarter's earnings season has been, with just 72 S&P 500 companies reporting so far.

IBM and other technology names lifted the Dow a day after IBM offered a strong outlook and results from several big-tech names signaled they were shaking off nervousness about economic growth and boosting technology spending. IBM rose 4.5 percent to $188.70.

Google Inc slid 9 percent to $581.97. The Internet search giant's quarterly profit and revenue missed expectations on declining search advertising rates.

The Dow Jones industrial average was up 74.36 points, or 0.59 percent, at 12,698.36. The Standard & Poor's 500 Index was down 1.74 points, or 0.13 percent, at 1,312.76. The Nasdaq Composite Index was down 7.18 points, or 0.26 percent, at 2,781.15.

European shares notched up a fifth straight week of gains, as the outlook for the global economy improved and on optimism Greece would avoid a messy default.

However, equities suffered a slight reversal on weaker resources stocks, and with Novartis lower amid doubts about a key drug.

The pan-European FTSEurofirst 300 index of top shares ell 0.3 percent to close at 1,043.06 points.

Japan's Nikkei average closed at its highest level in more than two months today, with investor sentiment riding high on encouraging results from US banks, while near-term concerns over Europe eased after solid demand at debt auctions.

The Nikkei added 1.5 percent to 8,766.36 and gained 3.1 percent for the week. The next major targets for the benchmark are its 200-day moving average near 9,115 and its highfrom last October's rally of 9,152.39.