U.S. stocks were mostly lower in morning trading Friday as investors pored through earnings from General Electric, McDonald's and other big companies. Telecom stocks were down the most. Energy companies also fell sharply as U.S. crude oil prices headed lower. Technology and consumer goods companies bucked the broader downward trend.
KEEPING SCORE: The Dow Jones industrial average slid 85 points, or 0.5 percent, to 18,076 as of 11:27 a.m. Eastern time. The Standard & Poor's 500 index fell 5 points, or 0.2 percent, to 2,136. The Nasdaq composite index gained 8 points, or 0.2 percent, to 5,250.
THE QUOTE: Concerns about the implications of a rising dollar, a possible interest rate hike from the Federal Reserve this year and weak earnings are weighing on the market, said Krishna Memani, chief investment officer at OppenheimerFunds.
"Today is a pretty lackluster day," Memani said. "The market is not taking a significant turn in a negative way, but it doesn't really see any positive impetus in the near term to go higher."
GE SLUMPS: General Electric slid 1.6 percent after the company said its latest quarterly sales fell more than anticipated due to weaker results from its lighting and transportation businesses. The industrial conglomerate also trimmed its revenue forecast for the year. The stock lost 46 cents to $28.61. The slide weighed on industrial stocks overall, which were down 0.5 percent.
UGLY STREAK: Skechers U.S.A. slumped 17.1 percent after the footwear maker reported disappointing results for the second quarter in a row. The stock fell $3.93 to $19.01.
HANGOVER: Boston Beer was down 1.3 percent after the company posted weak revenue as sales of craft beer grow at a slower pace. The maker of Sam Adams Beer also cut its guidance. The stock shed $2.10 to $158.35.
ENERGY SLUMP: Several oil and gas companies fell along with the price of oil. Southwestern Energy lost 62 cents, or 4.9 percent, to $12.03, the biggest decliner in the S&P 500.
HAPPY MEAL: McDonald's rose 2.5 percent after the world's biggest hamburger chain served up earnings and revenue that exceeded Wall Street's expectations. The stock added $2.74 to $113.31.
STRATEGY PAYS OFF: Microsoft climbed 4.7 percent a day after the software giant posted a surprisingly high profit for its fiscal first quarter. The results help validate the company's increased focus on software and online services. The stock gained $2.70 to $59.95. That's above Microsoft's all-time closing high of $59.56 set in December 1999.
TOBACCO DEAL: Shares in Reynolds American jumped 15.3 percent after London-based British American Tobacco offered to buy out the 57.8 percent stake in Reynolds that it doesn't already own. Reynolds was evaluating the offer, which analysts say would help both sides overcome a decline in smoking rates in their home markets and competition from electronic cigarettes. Reynolds was the biggest gainer in the S&P 500, climbing $7.21 to $54.38.
MARKETS OVERSEAS: World stock markets drifted mostly lower as investors increasingly factored in the likelihood of a U.S. interest rate increase this year. Germany's DAX was flat, while France's CAC 40 was 0.2 percent lower. Britain's FTSE 100 was down 0.1 percent. Earlier in Asia, Japan's benchmark Nikkei 225 index lost 0.3 percent, while South Korea's Kospi lost 0.4 percent. Hong Kong's stock market was closed due to a typhoon.
OIL: Benchmark U.S. crude fell 18 cents to $50.45 a barrel in New York. Brent crude, used to price international oils, was up 13 cents at $51.51 a barrel in London.
BONDS AND CURRENCIES: Bond prices rose. The yield on the 10-year Treasury note fell to 1.74 percent from 1.76 late Thursday. In currency markets, the slipped to 103.83 yen from 103.95 on Thursday. The euro weakened to $1.0869 from $1.0926.