The S&P 500 and Nasdaq dipped on Friday after a pair of bellwether corporate earnings fell short of lofty expectations, though a trio of strong results from Dow components kept the blue-chip average in positive territory.

Investors also kept an eye on Greece, where a debt deal appeared to be close.

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.

But weakness at both GE and Google pressured the broader indexes.

Google Inc slid 8.2 percent to $587.44 as the biggest drag on the benchmark S&P 500. The Internet search giant's quarterly profit and revenue missed expectations on declining search advertising rates.

General Electric Co lost 0.5 percent to $19.05 after the conglomerate's revenues missed consensus forecasts. Fellow Dow component American Express Co dropped 2 percent to $49.94 as it set aside more money to cover bad loans.

There's an underlying concern that some names may have moved too far, meaning that any trip-up in earnings could bring a short-term pullback, which is what we're seeing with GE and Google, said Lawrence Glazer, managing partner at Mayflower Advisors in Boston.

The valuations in an old-tech name like IBM support more appreciation, while a higher-growth name like Google had higher expectations to outshine.

International Business Machines Corp gained 4.3 percent to $188.28. Intel Corp rose 1.9 percent to $26.11, while Microsoft Corp advanced 4.8 percent to $29.47.

Microsoft said earnings fell slightly, while Intel shook up its executive suite and named a new chief operating officer as its profits topped scaled-back estimates. All three companies are Dow components, along with GE and AmEx.

The Dow Jones industrial average <.DJI> was up 63.88 points, or 0.51 percent, at 12,687.86. The Standard & Poor's 500 Index <.SPX> was down 2.51 points, or 0.19 percent, at 1,311.99. The Nasdaq Composite Index <.IXIC> was down 5.57 points, or 0.20 percent, at 2,782.76.

The euro zone remained on investors' radar. Greece and its private bondholders were close to an initial bond-swap deal, sources said, with agreement possible by late Friday. Creditors could lose up to 70 percent of the loans given to the fiscally troubled nation.

Hopes are an agreement would prevent the nation from spiraling into bankruptcy and bring some stability to the debt-strained euro zone.

Improving economic data in the United States along with signs of European stability have helped push the S&P 500 up 4.2 percent to start the year.

The National Association of Realtors said sales of previously owned U.S. homes rose to an 11-month high in December, adding some weight to the belief the sector may be starting to recover.

Parker Hannifin Corp
fell 4.5 percent to $81.13 after the industrial parts maker reported a lower-than-expected quarterly profit and cut its full-year forecast.

Of the 72 S&P 500 companies that have reported results, 60 percent have beaten profit expectations, according to the Thomson Reuters Director's Report, a lower rate than in recent quarters.

(Reporting By Ryan Vlastelica; Editing by Jan Paschal and Jeffrey Benkoe)