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Oil majors drag down S&P, Dow; tech stocks boost Nasdaq

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Reuters
Last Updated : Jul 29 2016 | 8:07 PM IST

By Yashaswini Swamynathan

REUTERS - The S&P 500 and the Dow were lower on Friday following weak economic data and poor earnings from oil majors Exxon and Chevron.

However, a surge in Alphabet and Amazon.com's shares kept the Nasdaq in positive territory.

Investor sentiment was dented by a slower-than-expected growth in U.S. gross domestic product.

Exxon shares fell 4 percent after the oil producer reported a lower-than-expected quarterly profit. Fellow Dow component Chevron shed 2 percent after posting its biggest loss since 2001.

The two stocks were the biggest drags on the S&P and the Dow.

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"There is nothing in the markets to be excited about and we are at all-time highs, which is not justified," said Phil Davis, chief executive officer of PSW Investments.

"Its going to be a very low volume day today because there are simply no buyers in the market.

The S&P 500 is currently trading at about 17.4 times expected earnings, above the 10-year median of 14.7 times, according to Thomson Reuters StarMine.

At 9:34 a.m. ET (1334 GMT), the Dow Jones Industrial Average was down 31.81 points, or 0.17 percent, at 18,424.54.

The S&P 500 was down 0.43 points, or 0.02 percent, at 2,169.63.

The Nasdaq Composite was up 8.52 points, or 0.17 percent, at 5,163.50.

Five of the 10 major S&P 500 indexes were lower, with the energy sector dropping the most by 1.13 percent.

Google's parent Alphabet surged 3.5 percent to $794.94 after the company's second-quarter earnings handily beat analysts' estimates. The stock was the top percentage gainer on all three indexes.

Amazon.com touched a record high of $766 after the online retailer posted strong results and gave an upbeat forecast for the current quarter.

Wynn Resorts dropped 6 percent after the company announced a smaller-than-expected allocation of new tables for its new $4.2 billion casino in Macau.

Merck rose 1 percent to $59.05 after the drug maker's second-quarter profit and revenue beat estimates.

Advancing issues outnumbered decliners on the NYSE by 1,305 to 1,266. On the Nasdaq, 1,146 issues fell and 1,014 advanced.

The S&P 500 index showed 10 new 52-week highs and one new low, while the Nasdaq recorded 30 new highs and nine new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)

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First Published: Jul 29 2016 | 7:52 PM IST

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