* GE, Microsoft, McDonald’s get lift from results
* Caution ahead of Chinese manufacturing data
* SanDisk tumbles after another revenue warning
* Dow up 0.5 pct, S&P; up 0.12 pct, Nasdaq off 0.24 pct
By Rodrigo Campos
NEW YORK, April 20 (Reuters) – U.S. stocks mostly rose on
Friday, led by solid earnings from McDonald’s, General Electric
and Microsoft, but declines in banks and technology shares
pulled indexes from their day’s highs.
The Nasdaq Composite fell as SanDisk Corp led a
drop in semiconductor shares with an 11.3 percent slide after
its second revenue warning in as many quarters. Apple Inc’s
more than 2.4 percent fall also weighed.
As earnings season moves into high gear, the first wave of
corporate results has been substantially stronger than expected.
About 81 percent of S&P; 500 companies that have reported so far
have beat expectations, according to Thomson Reuters data.
The impressive rate of beats comes amid lowered
expectations, but the earnings have helped stocks regain their
footing after a recent pullback on less-than-inspiring U.S.
economic figures and renewed worry about Europe’s debt crisis.
Analysts said the weakness heading into Friday’s close was
in part because of caution ahead of an early indicator of
China’s industrial activity, expected late Sunday.
“We already know earnings are coming in better and the
market has been up quite a bit,” said Doreen Mogavero, president
and chief executive of Mogavero Lee & Co. in New York.
“The private-sector manufacturing data from China will be
setting the pace for next week, so people are taking some
profits off the table,” she said.
A weaker level in China’s HSBC flash purchasing managers
index late in March sent equity and other risk markets lower.
The Dow Jones industrial average rose 65.16 points,
or 0.50 percent, to 13,029.26. The S&P; 500 Index gained
1.61 points, or 0.12 percent, to 1,378.53. The Nasdaq Composite
dropped 7.11 points, or 0.24 percent, to 3,000.45.
For the week, the Dow gained 1.4 percent, the S&P; 500 added
0.6 percent and the Nasdaq fell 0.4 percent, down for a third
week running.
Bank of America Corp fell 4.7 percent to $8.36 after
a downgrade from CLSA analyst Mike Mayo. The shares led declines
in the S&P; financials group, the second-worst performing
among the S&P; 500 top 10 sectors.
Microsoft Corp jumped 4.5 percent to $32.42 and was
the top boost to the Dow on Friday, a day after its profit
report beat Wall Street’s expectations.
General Electric Co’s results drove buying in
industrial shares. The company said it expects double-digit
earnings for the year, which helped shares rise 1.1 percent to
$19.36.
Industrial conglomerate Honeywell International Inc
reported higher quarterly profit and raised its 2012 earnings
forecast. The stock rose 2.4 pct to $59.39.
The S&P; industrial sector index, up 0.8 percent, was
a top boost to the S&P; 500.
McDonald’s Corp edged up 0.7 percent to $95.94 after
the world’s No. 1 fast-food chain reported higher quarterly
profit, helped by strong U.S. sales.
About 6.7 billion shares changed hands on the New York Stock
Exchange, the Nasdaq and NYSE Amex, just shy of the 6.78 billion
daily average so far this year.
Almost two issues rose on the NYSE for every one that fell,
and despite the day’s decline, three issues rose for every two
that fell on the Nasdaq.
