Mixed Over Earnings

News at a Glance

The Lowdown

The Dow Jones Industrial Average extended its winning streak to three days, gaining 50 points at 11497. The blue-chip index finished the week on a hot streak, climbing 534 points since a Tuesday selloff that left it at its lowest point in nearly two years. Meanwhile, the S&P rose fractionally on Friday to 1261.

The Nasdaq showed weakness, falling 30 to 2283. The decline came on the heels of disappointing results and guidance from two tech mainstays.

Microsoft (MSFT) said its fourth-quarter profits jumped 42% but missed Street estimates by a penny a share and offered anemic guidance. Google (GOOG) was similar story: the firm posted 35% increase in net income but failed to match analysts' projections, pinning the blame on the broader economy.

IBM (IBM) was a bright spot in tech. The firm beat the Street on a 22% rise in second-quarter profits and guided up for the rest of the year. IBM's services division, which helps companies streamline their information technology and minimize waste, continued to perform well. The firm also turned in strong sales abroad.

In finance, Citigroup (C) continued the string of second-quarter earnings surprises out of the banking industry. Citi, a Dow component, was hit hard but losses related to delinquint loans but still topped analysts' estimates on a $2.5 billion loss. Citi's results followed better-than-expected results from JPMorgan Chase (JPM) and Wells Fargo (WFC).

Merrill Lynch (MER) was not as fortunate. The firm posted a second-quarter loss of $4.89 billion, or $4.97 a share, up from a profit of $2.01 billion, or $2.24 a share, in the year-ago period. Cheif Executive John Thain called it "a difficult and disappointing quarter in terms of the bottom line."

On the Nymex, oil prices edged up after a sharp decline Thursday. By 4:11 p.m., crude traded up 31 cents on the day at $128.60 a barrel.

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