US stocks mixed despite Microsoft news

Wall Street tussled again with interest rate concerns today, closing mixed as a solid earnings report from Microsoft lifted tech stocks but failed to spark broad-based buying in other sectors.

The major stock indicators managed gains for the day, and a modest advance for the week. But declining issues had a 2-to-1 lead over advancers on the New York Stock Exchange today, reflecting Wall Street’s general uneasiness about rising rates.

The market’s nervousness was exacerbated by news of a surge in durable goods orders.

In addition to Microsoft, Corning posted a strong first quarter as did International Paper and Weyerhaeuser, both bellwethers for the forestry products sector.

The Dow Jones industrial average edged up 11.64 or 0.1%, to close at 10,472.84 after rising nearly 144 on Thursday as investors had a one-session reprieve from rate concerns.

The tech-dominated Nasdaq composite index rose 16.86, or 0.8%, to 2,049.77, following its 1.9% surge on Thursday.

The Standard & Poor’s 500 index inched up 0.67, or 0.1%, to 1,140.60.

The Nasdaq outperformed the other indexes for the week, rising 2.7%, while the Dow rose 0.2% and the S&P 500 picked up 0.5%.

Blue chip stocks were lower for much of the day today as a report of strong durable goods orders in March fanned fears that the economy may be bouncing back fast enough for the Federal Reserve to begin raising rates from 45-year lows.

The Commerce Department said orders for manufactured goods rose by a robust 3.4% last month.

The increase followed an even better 3.8% rise in February and surpassed the 0.7% rise expected by economists.

Tech stocks advanced after Microsoft reported a big gain in revenues after the market close on Thursday.

Microsoft jumped $1.59 to $27.54 after the software giant posted a massive 17% gain in revenues last quarter and beat analysts’ expectations for earnings growth.

However, Amazon.com fell $2.57 to $46.29 despite posting a 41% increase in revenues and beating profit expectations in its latest quarter as investors worried whether the Internet retailer was discounting its products too much.

Shares in Corning jumped $1.88 to $12.13 after the materials company, which specialises in fibre-optic and glass products, reported profits that handily beat forecasts, driven by a nearly twofold surge in sales of glass used in flat-screen computer monitors and televisions.

Volume was moderate on the NYSE.

The Russell 2000 index fell 2.53 or 0.4% to 590.71.