U.S. stocks edged higher on Friday as a sharp jump in new home sales suggested the economic recovery was on track, adding to optimism about corporate earnings.

American Express Co jumped more than 4.4 percent to $48.83 and led gains on the Dow industrials a day after it said net income more than doubled.

Limiting gains, Microsoft Corp dropped 1.3 percent to $30.97 a day after it posted a 35 percent jump in profit and beat estimates, but sales just beat expectations, suggesting a technology comeback was not in full swing.

Lennar Corp soared more than 8 percent to $21.39, its highest in more than two years, boosted by the home sales data, and an index of homebuilder shares <.DJUSHB> rose 4.7 percent.

Sales of newly built U.S. single-family homes rebounded in March to touch their highest level in eight months, the government said.

The market is in a bullish mode, and news continues to improve on balance, plus earnings have been better than expected, said Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Nashville.

Home sales are another indication the (economic) improvement is becoming more widespread.

The Dow Jones industrial average <.DJI> gained 18.07 points, or 0.16 percent, to 11,152.36. The Standard & Poor's 500 Index <.SPX> rose 0.95 points, or 0.08 percent, to 1,209.62. The Nasdaq Composite Index <.IXIC> dropped 0.27 points, or 0.01 percent, to 2,518.80.

Other data showed new orders for long-lasting U.S. goods unexpectedly dropped in March as civilian aircraft bookings plunged, but orders posted their largest gain in more than two years excluding transportation.

Schlumberger Ltd shares gained 6.4 percent to $72.61 and led the S&P energy sector higher after the world's largest oilfield services provider forecast a quicker recovery for markets outside North America as its profit just beat the Wall Street view.

U.S.-traded shares of Swedish mobile telecom gearmaker Ericsson rose 7.3 percent to $12.08 despite weak results as investors applauded falling costs.

Amazon.com Inc fell 3.3 percent to $145.19 a day after the online retailer forecast lower-than-expected earnings, even as its quarterly profit topped estimates.

Debt-stricken Greece appealed to its European partners and the International Monetary Fund for emergency loans on Friday, yielding to overwhelming market pressure to set in motion the first financial rescue of a member of the euro zone.

Investors feared the bailout would provide a short-term solution to Greece's debt crisis.

(Editing by Jeffrey Benkoe)