Friday, October 26 15:48:12
U.S. stocks were little changed today, after data showed the economy grew at a faster pace than expected, overshadowing recent concerns about a disappointing earnings season so far.
Investor sentiment got a boost after the Commerce Department said U.S. gross domestic product expanded at a 2.0 percent annual rate. That follows 1.3 percent growth in the second quarter, and was just a tick above the 1.9 percent estimate of analysts polled by Reuters.
Still, the positive data may not be enough to stem a recent slide in the market, which has seen the S&P drop 3.7 percent from near five-year highs on Sept. 14.
"The fact that this was a two percent GDP number is still pathetic in the overall scheme of life - we ought to be growing at four percent, not two percent," said Phil Orlando, chief equity market strategist, at Federated Investors, in New York.
Apple Inc, slipped 0.1 percent to $698.75 after the world's largest publicly-traded company by market capitalisation reported a second straight quarter of disappointing results and iPad sales fell well short of analysts' targets. The company also forecast revenue and margins below Wall Street forecasts.
But Amazon.com Inc climbed 4.4 percent to $241.96 after reporting its first quarterly net loss in more than five years as it spent heavily on technology, infrastructure and digital content, as analysts said it would boost profit in the long run.
The S and P 500 has dropped 1.8 percent this week as dismal corporate earnings and cautious outlooks, especially from large multinationals, painted a pessimistic picture of the global economy.
The Dow Jones industrial average dropped 5.99 points, or 0.05 percent, to 13,097.69. The Standard and Poor's 500 Index shed 0.73 points, or 0.05 percent, to 1,412.24. The Nasdaq Composite Index gained 5.55 points, or 0.19 percent, to 2,991.67.