DIS Walt Disney Co

By Barbara Kollmeyer and Anora M. Gaudiano, MarketWatch

Dow dragged lower by Chevron and Merck stock tumbles

U.S. stocks traded mostly higher Friday, partly due to better-than-expected quarterly results from four major technology companies such as Amazon.com Inc., Microsoft Corp., Alphabet Inc. and Intel Corp. However, the main indexes were on track to end the week roughly where they started.

Equities were also buoyed by data showing the U.S. economy expanded at a solid 3% annual pace (http://www.marketwatch.com/story/economy-grows-at-3-rate-in-third-quarter-despite-negative-impact-from-hurricanes-2017-10-27) for a second straight quarter despite damages from two hurricanes, while the University of Michigan reported consumer sentiment (http://www.marketwatch.com/story/consumer-sentiment-in-october-at-a-13-year-high-even-as-final-reading-reduced-2017-10-27)in October was the strongest it's seen in 13 years.

What are stock-market indexes doing?

The S&P 500 was up 12 points, or 0.5%, to 2,572, with the technology sector leading the gains, up 2.7%. Meanwhile, the energy sector was under pressure, with Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX) declining despite stronger-than-expected earnings.

The Dow Jones Industrial Average was under pressure, switching between small gains and losses, last trading flat at 23,394.

The Nasdaq Composite Index , meanwhile, advanced 98 points, or 1.5%, to 6,654, setting an intraday record, and marking its best point and percentage gain since late August, according to FactSet data.

What is driving the markets?

Late Thursday, four of the most valuable tech companies in the world--Amazon (http://www.marketwatch.com/story/amazon-revenue-hits-a-record-and-calms-investors-fears-2017-10-26)(AMZN), Google parent Alphabet (http://www.marketwatch.com/story/how-google-generated-a-few-extra-billion-dollars-2017-10-26)(GOOGL), Microsoft (http://www.marketwatch.com/story/microsoft-shares-gain-on-better-than-expected-fiscal-first-quarter-earnings-2017-10-26)(MSFT) and Intel (http://www.marketwatch.com/story/intel-raises-outlook-as-profit-gains-2017-10-26)(INTC)--blew past expectations for profit and revenue (http://www.marketwatch.com/story/amazon-google-microsoft-and-intel-find-billions-more-in-profit-2017-10-26) in their third-quarter reports.

Both Alphabet and Intel were trading at record levels, gaining 6.6% and 5.2% respectively. Meanwhile, Microsoft jumped 8.3%, while Amazon rallied 11%. Microsoft's rally was delivering a 47-point tailwind (http://www.marketwatch.com/story/microsofts-record-stock-rally-delivers-more-than-45-point-tailwind-to-dow-industrials-2017-10-27) to the Dow, helping offset losses by Exxon Mobil, Chevron, Merck & Co. Inc.(MRK) and Walt Disney Co.(DIS).

Read:Alphabet could be headed for a $700 billion market cap (http://www.marketwatch.com/story/alphabet-heads-for-700-billion-market-cap-after-earnings-2017-10-26).

Plus:Amazon revenue hits a record and calms investors' fears (http://www.marketwatch.com/story/amazon-revenue-hits-a-record-and-calms-investors-fears-2017-10-26)

Tesla earnings:Model 3 production, demand under the microscope (http://www.marketwatch.com/story/tesla-earnings-model-3-production-demand-under-the-microscope-again-2017-10-25)

See:Exxon earnings--chemicals, refining expected to show strong margins (http://www.marketwatch.com/story/exxon-earnings-chemicals-refining-expected-to-show-strong-margins-2017-10-24)

(http://www.marketwatch.com/story/amazon-revenue-hits-a-record-and-calms-investors-fears-2017-10-26)What are analysts saying?

"Many on the street are no doubt applauding today's GDP report as a blowout win. We now have the best two-quarter performance since early 2015. Does this give the Fed more ammo for a rate increase in December? You bet," said Mike Loewengart, VP, Investment Strategy at E*TRADE.

Loewengart cautioned, however that there are still "a ton of uncertainty swirling around the GOP tax plan, historically high valuations, and low inflation remains a lurking presence."

What are other markets doing?

The euro weakened after the European Central Bank decision to reduce and extend its monthly bond purchases.

Read:Draghi averts 'taper tantrum'-- for now--as ECB takes baby step toward end of QE (http://www.marketwatch.com/story/draghi-averts-taper-tantrumfor-nowas-ecb-begins-slow-walk-to-normalization-2017-10-26)

Plus:'Like stealing away from a party through the backyard'--analysts react to ECB move (http://www.marketwatch.com/story/like-stealing-away-from-a-party-through-the-backyardanalysts-react-to-ecb-move-2017-10-26)

The dollar was rising across the board (http://www.marketwatch.com/story/dollar-index-jumps-to-3-month-high-as-ecb-fueled-euro-slump-continues-2017-10-27) after the House of Representatives passed a budget resolution (http://www.marketwatch.com/story/house-narrowly-passes-budget-in-critical-step-for-republicans-tax-plan-2017-10-26) on Thursday, which was viewed as an encouraging sign for tax cuts. The ICE Dollar Index was up 0.5% at 95.052. The yield on the 10-year Treasury note was unchanged at 2.45%.

And:Is the euro rally toast after ECB unveils dovish bond-buying cutback? (http://www.marketwatch.com/story/is-the-euro-rally-toast-after-ecb-unveils-dovish-bond-buying-reduction-2017-10-26)

Oil prices were mostly flat, trading at $52.59 a barrel, while gold was marginally softer at $1,267.90 an ounce.

Stocks in Asia mostly rallied (http://www.marketwatch.com/story/asia-stocks-get-inspiration-from-us-earnings-reports-and-european-stimulus-news-2017-10-26), fueled by strong tech earnings out of the U.S. after the close. However, Australian stocks fell after judges ousted five lawmakers (http://www.marketwatch.com/story/five-australian-lawmakers-including-deputy-prime-minister-ousted-government-loses-majority-2017-10-27), including the country's deputy leader, over an obscure constitutional law.

What's on the data docket?

President Donald Trump is leaning toward appointing Fed Gov. Jerome Powell (http://www.marketwatch.com/story/trump-leaning-toward-appointing-powell-to-fed-report-2017-10-27)to be the next chairman of the central bank, according to a report by Bloomberg quoting three people familiar with the matter.

See:MarketWatch's economic calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

Which stocks are in focus?

Macy's Inc. (M) fell 4.9%, with Kohl's Corp.(KSS) down 3.8% after fellow department store J.C. Penney Co. Inc.(JCP) issued a profit warning for the third quarter and full year. (http://www.marketwatch.com/story/macys-and-kohls-shares-sink-after-jc-penney-profit-warning-2017-10-27)J.C. Penney shares plunged 21%.

Shares of Mattel Inc.(MAT) skidded 15%, after a similar tumble late Thursday. The toy maker posted a surprise loss for the quarter, on a sharp decline in sales for its American Girl dolls.

Read:American Girl dolls are dying, and taking Mattel with them (http://www.marketwatch.com/story/mattel-shares-plunge-as-not-even-american-girl-is-safe-from-sales-decline-2017-10-26)

Gilead Sciences Inc.(GILD) shares fell 3.7% after earnings fell by less than expected (http://www.marketwatch.com/story/gilead-revenue-falls-13-worst-yet-to-come-2017-10-26) late Thursday. But executives warned that the worst has yet to come for sales of its hepatitis C treatments.

Shares of Huntsman Corp.(HUN) rose 2% trading on the heels of the failure of its proposed merger (http://www.marketwatch.com/story/clariant-huntsman-call-halt-to-planned-merger-2017-10-27) with Swiss chemical company Clariant AG (CLN.EB). Clariant shares fell 1.9% in European trading after both companies called the deal off on activist pressure.

Apple Inc.(AAPL) rose 1%, with social media frenzied as advance orders (http://www.marketwatch.com/story/tech-earnings-the-new-gadgets-that-will-matter-this-holiday-season-2017-10-20) for the iPhone X began early Friday. Estimates by two market-research firms said the iPhone 8 saw the weakest sales (http://www.marketwatch.com/story/apparent-weakness-in-iphone-8-sales-turns-up-pressure-on-apple-as-iphone-x-preorders-kick-off-friday-2017-10-26) of any of the company's smartphones in recent years. Apple will report fourth-quarter results on Nov. 2.

(END) Dow Jones Newswires

October 27, 2017 10:52 ET (14:52 GMT)

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