NEW YORK (CNNMoney.com) - Microsoft's earnings and forecast gave a boost to stocks Friday morning, taking the edge off a report that showed the economy grew at the slowest pace in three years during the fourth quarter.

The Nasdaq composite (up 8.10 to 2,291.10, Charts) gained 0.6 percent in the early going, while the Standard & Poor's 500 (up 1.50 to 1,275.33, Charts) index rose 0.3 percent. The Dow Jones industrial average (up 4.80 to 10,814.27, Charts) added 0.2 percent.

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Strong quarterly results fueled a rally Thursday. Upbeat earnings provided some support early Friday as well, although that was tempered by the initial reading on gross domestic product growth (GDP).

GDP grew at an annual rate of 1.1 percent in the fourth quarter, after rising at a 4.1 percent rate in the third quarter. Economists surveyed by Briefing.com thought it would increase at a 2.8 percent rate.

In corporate news, Microsoft (Research) reported higher quarterly earnings late Thursday that met analysts' forecasts and higher quarterly revenue that missed forecasts. The software leader also forecast revenue for the current quarter in a range that sets the midpoint above analysts' forecasts.

Shares gained 3 percent in the morning and gave a boost to other techs.

Fellow Dow component Procter & Gamble (up $0.58 to $59.40, Research) reported quarterly earnings that were flat with a year ago, but nonetheless topped analysts' estimates. The consumer products maker also forecast current-quarter results above Wall Street's forecasts. P&G shares were modestly higher.

Also adding to any early hesitation was a rise in oil prices. U.S. light crude oil for March delivery increased $1.06 to $67.32 a barrel in electronic trading.

Treasury prices rose on the GDP report, lowering the yield on the 10-year note to about 4.49 percent from 4.51 percent late Thursday. Treasury prices and yields move in opposite directions.

In currency trading, the dollar fell versus the euro and was little changed versus the yen.

COMEX gold rose $1.80 to $561.70 an ounce.

In global trade, major Asian markets closed higher, while European markets gained at midday.

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