US stocks stalled on Friday after an earnings-driven rally was brought to a halt by weaker-than-expected economic growth in the first quarter.
Amazon.com Inc's profit and sales beat expectation as North America Media revenue, including books, DVDs and music, rose 17% The stock jumped 14.8% to $224.12.
Economic growth cooled more than forecast in the first quarter, the government reported, offsetting some market optimism but was not enough to turn equities around. Gross domestic product expanded at a 2.2% annual rate, while economists expected 2.5%.
"I don't think it is terribly surprising. We had been expecting something like this, something sub 2.5% growth," said Steven Baffico, chief executive at Four Wood Capital Partners in New York.
"There's nothing catastrophic happening, this is just slow growth, and this underscores that the economy is on sound footing but nothing more."
Of the 287 companies in the S&P 500 reporting earnings, 72.8% have topped expectations, according to Thomson Reuters data. A big beat from Apple Inc drove Wednesday's rally, which gave the Nasdaq its best day of the year.
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Also on the Nasdaq, online travel agency Expedia Inc bested estimates for profit growth as worldwide hotel revenue increased. Shares soared 30% to $42.37.
The Dow Jones Industrial Average was up 10.52 points, or 0.08%, at 13,215.14. The Standard & Poor's 500 Index put on 0.46 points, or 0.03%, at 1,400.44. The Nasdaq Composite Index rose 0.72 points, or 0.02%, at 3,051.33.
The S&P 500 is on track for its best week in a month, rising 1.6% so far and up for three straight days. The move has wiped out much of the index's losses for April and lifted the index well above its 50-day moving average.
"By and large, earnings season has been positive and has proven to be an offset to the euro debt situation and to the mixed economic numbers of late," said Andre Bakhos, director of market analytics at Lek Securities in New York
"With the [S&P 500] above 1,400 yesterday and closing just below it completes a bottoming consolidation formation and now the stage is set for a move high."
The euro debt crisis was not far away. Standard & Poor's cut its credit rating on Spain by two notches Thursday, citing expectations that government finances will deteriorate more than previously thought.
But investors appeared to have priced that in. European shares rose, helped by encouraging company earnings. The FTSEurofirst 300 index of top European shares .FTEU3 was up 0.8%.
In other earnings news, Procter & Gamble Co reduced its profit forecast for the year and posted lower earnings. The shares fell 3.2% to $64.76.
Merck & Co Inc's income came in slightly above estimates, sending shares up 0.2% to $38.57, but revenue trailed the Wall Street view.
Ford Motor Co reported higher-than-expected profit as strong North America results helped offset weak international operations and higher taxes. The stock dipped 0.4% to $11.82.