Stocks fell on Friday on worry about earnings quality after General Electric Co missed quarterly estimates, discouraging investors after Wall Street's four-day rally.
With companies such as Intel Corp
GE numbers are not a good sign and a reflection of the global economy still being weak, said Bill Strazullo, chief market strategist at Bell Curve Trading in Boston. The market is holding in, but it is not all clear.
Despite Friday's decline, the broad S&P 500 index is on track to post its largest weekly percentage advance since mid- March.
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The Dow Jones industrial average <.DJI> dropped 9.22 points, or 0.11 percent, to 8,702.60. The Standard & Poor's 500 Index <.SPX> fell 4.76 points, or 0.51 percent, to 935.98 while the Nasdaq Composite Index <.IXIC> slid 8.44 points, or 0.44 percent, to 1,876.59.
Even with Friday's modest pullback, all three major U.S. stock indexes are on track for their best week since mid-March. Both the Dow and the S&P 500 are set to snap four-week losing streaks.
The S&P 500 had climbed as much as 40 percent from its 12-year closing low hit in early March, but the run-up stalled in June. The benchmark index had dropped 7 percent from the rally's June peak. But after an upbeat start to second-quarter earnings season, it is up 38.5 percent from the March low.
In other earnings news, a spike in shares of International Business Machines Corp
On the economic front, data showed U.S. housing starts and building permits jumped more than expected in June, propelled by a surge in single-family home starts.
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(Editing by Jan Paschal)