Gross domestic product -- a broad measure of what the economy produces -- increased in the first quarter but fell short of what economists expected.
That reading is the latest sign of what many investors see as a directionless economy that the Federal Reserve can't quite resuscitate. The Fed continues pumping billions of dollars a month into bonds and mortgage-backed securities to fuel the economy, but has seen lackluster results.
Mixed bag of earnings: D.R. Horton's(DHI) stock price surged, after the home builder reported a near doubling of quarterly net income on Friday, riding the wave of the recovering housing market.
Burger King Worldwide(BKW) rose after it reported an increase in profits.
Starbucks(SBUX) came under pressure after issuing downside guidance for the current quarter and reaffirming its revenue outlook for the year.
JCPenney's new customer: George Soros
Tech stocks tumble:Amazon(AMZN) shares fell precipitously, after the online retailer reported a profit decline. Shares of Chinese search firm Baidu(BIDU) dropped more than 8% on weak earnings.
Shares of Expedia(EXPE) were the biggest drag on the Nasdaq. The online travel site lowered its guidance for the year, blaming a slowdown in hotel reservations.
In other corporate news, shares of J.C. Penney(JCP) surged after hedge fund mogul George Soros said late Thursday that he had taken a 7.9% stake in the ailing retailer. CNBC also reported that Goldman Sachs had secured $1.75 billion in financing for the company.
The Nikkei lost 0.3% after the Bank of Japan said it would maintain its stimulus program. A separate report showed prices fell 0.5% last month in Japan, underscoring the monumental task facing policymakers as they attempt to reverse 15 years of deflation.