By Polya Lesova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks ended mostly lower on
Friday after a report showed the economy expanded at a slower pace
than expected in the first quarter and a gauge of consumer
sentiment fell in April.
However, gains for Hewlett-Packard Co. and Chevron Corp. helped
the Dow Jones Industrial Average finish in positive territory.
The S&P 500 index (SPX) fell 2.92 points, or 0.2%, to end at
1,582.24 after hitting an intraday low of 1,577.56. The benchmark
snapped a five-session winning streak Friday, but it posted weekly
gains of 1.7%.
The technology and consumer staples sectors were the only
gainers among the S&P 500's 10 major industry groups, while
materials was the worst performing sector. See: 14 cheap dividend
stocks for a cheap market.
The technology-heavy Nasdaq Composite (RIXF) dropped 10.72
points, or 0.3%, to end at 3,279.26, leaving it up 2.3% for the
week.
"What's happening today is a little bit of jitters on the
economic front and a little bit of jitters on the earnings front,"
said Adam Sarhan, chief executive of Sarhan Capital. Investors are
also growing more concerned over a steeper-than-expected downturn
in Europe, he said.
More than 681 million shares traded on the New York Stock
Exchange. Composite volume topped 3.1 billion.
The Dow Jones Industrial Average (DJI) rose 11.75 points, or
0.1%, to end at 14,712.55, leaving it up 1.1% for the week.
Hewlett-Packard Co. (HPQ) rose 1.9%, leading gainers in the
30-stock blue-chip index.
Chevron Corp.(CVX) was another gainer in the Dow, rising 1.3%.
The oil major said its first-quarter earnings fell to $6.2 billion,
or $3.18 per share, from $6.5 billion, or $3.27 a share, in the
same period a year ago, but the results still exceeded analyst
expectations.
Alcoa Inc. (AA) and United Technologies Corp. (UTX) were the
biggest decliners in the Dow, dropping 1.4% and 1%,
respectively.
The Commerce Department said before the opening bell that gross
domestic product grew at a 2.5% pace in the first three months of
2013, up from 0.4% in the fourth quarter. Economists surveyed by
MarketWatch had forecast GDP growth of 3.2%. See: Breaking down the
GDP report in charts.
"The disappointment will push back expectations of when the Fed
will start to withdraw its stimulus, especially as recent data
suggest the rate of growth could weaken again in the second
quarter," said Chris Williamson, chief economist at Markit,
referring to the Federal Reserve's bond-buying program, which is
aimed at boosting economic growth and lowering unemployment. The
Federal Open Market Committee is due to hold a meeting on monetary
policy on Tuesday and Wednesday, and it's expected to keep its bond
buying unchanged at $85 billion a month.
Shortly after Friday's opening bell, the University of
Michigan-Thomson Reuters consumer-sentiment gauge fell to a final
April reading of 76.4, the lowest since January, from a final March
reading of 78.6. Economists had expected it to be even lower.
Gains for Apple Inc. helped the S&P 500 pare losses in late
trading. Shares of the iPhone maker (AAPL) rallied 2.2%, leaving it
up 6.8% for the week. The company has a large weighting in the
S&P 500 and therefore its moves have a big impact on the index.
This week, Apple reported first-quarter earnings above expectations
and said it was raising its dividend and adding $50 billion to its
share-buyback program.
Among other individual stock moves, PerkinElmer Inc. (PKI) was
the top decliner in the S&P 500, sinking 12% after the maker of
health-testing equipment lowered its full-year outlook.
Expedia Inc. shares (EXPE) slumped nearly 10% after the online
travel site said its first-quarter loss widened. Read about Expedia
and other stocks making big moves in Friday trading.
Shares of Amazon.com Inc.(AMZN) fell 7.2% as the e-commerce
group said late Thursday it may report a second-quarter operating
loss.
J.C. Penney Co.(JCP) rallied nearly 12%, making it the top
gainer in the S&P 500 after hedge-fund investor George Soros
reported a 7.9% stake in the struggling retailer.
D.R. Horton Inc.(DHI) shares jumped nearly 9% after the company
posted a surge in fiscal second-quarter profit and a 34% rise in
orders.
Sarhan Capital's Sarhan noted that 70% of companies that have
reported so far have beaten expectations, and earnings are on track
to come in 1.1% lower versus the first quarter of 2012.
"If that happens, it'll be the first annual decline on a
year-on-year basis since 2009," he said.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires