Earnings hit stocks

NEW YORK (CNNMoney.com) -- Stocks fell Friday, the day after the Dow Jones industrial average closed over the 14,000 mark for the first time ever, on a spate of disappointing earnings news.

The Dow lost 111 points, or 0.8 percent, to fall below 14,000, while the broader S&P 500 fell 0.7 percent. The tech-heavy Nasdaq declined 1 percent.

Stocks rallied Thursday, pushing the Dow, a blue-chip barometer that tracks 30 large companies, to its highest finish ever.

But a big miss from Dow component Caterpillar dashed hopes of another record setting day Friday.

The heavy equipment maker said its net profit fell 21 percent and posted earnings of $1.24 a share, versus estimates for $1.49 a share. Caterpillar (Charts, Fortune 500) shares slid 8 percent in early trade.

Lackluster earnings in the tech sector also weighed on stocks.

Google (Charts, Fortune 500) reported earnings late Thursday that missed Wall Street's estimates even as its quarterly sales soared. The earnings miss - only the second since the Internet search firm went public in 2004 - rattled investors who have grown accustomed to solid results from the company. Google shares tumbled 6 percent.

Swedish firm Ericsson, the biggest maker of cell phone network equipment, also reported earnings that fell short of analysts' expectations early Friday. Ericsson (Charts) shares fell 5 percent.

Elsewhere, chipmaker AMD (Charts, Fortune 500) posted a jump in quarterly sales, although it reported a loss as its ongoing price war with Intel (Charts, Fortune 500) pressured its bottom line.

Rival Microsoft (Charts, Fortune 500) said its net income and revenue rose during the quarter. Strong sales of its Vista operating system helped offset charges related to the company's Xbox game console.

Overseas, major Asian markets finished the session higher on Wall Street's record day Thursday, but European stocks slipped by midday as the earnings news rolled in.

Oil prices edged lower, with U.S. light crude for August delivery down 5 cents to $75.87 a barrel in electronic trading.

Treasury prices rose, lowering the yield on the benchmark 10-year note to 5 percent from 5.01 percent late Thursday.

The dollar gained slightly against the euro and weakened against the yen.