Stocks: Techs rally, blue chips slump
Google helps the tech sector rebound, but the Dow can't build any momentum.
NEW YORK (CNNMoney.com) -- Stocks recovered from session lows Friday as Google's upbeat earnings and a rally in bank stocks helped offset the impact of GE's weaker profit report.
The Dow Jones industrial average (INDU) lost 45 points, or 0.6%. The Standard & Poor's 500 (SPX) index added 4 points, or 0.5%. The Nasdaq composite (COMP) gained nearly 12 points, or 0.8%.
Stocks ended a particularly volatile week lower. Financial markets were closed Monday for a holiday, slid sharply on Tuesday, rallied Wednesday and then slumped again Thursday.
Investors have been sorting through weaker earnings, more problems for the banks and questions about when and how the new administration will help staunch the economic slowdown.
The Dow has managed to bounce back after falling below the 8,000 level on four consecutive days this week. That could be significant, as it keeps the blue-chip average above the bear market lows of last November, with stocks essentially "base-building," said Matt King, chief investment officer at Bell Investment Advisors.
King said that as long as stocks continue to bounce off that 8,000 level over the next few sessions, each time moving a bit higher, that would be a good indication that a bottom has really been set.
"I think most of the bad news is pretty-much priced into the market," he said. "We've priced in that corporate earnings are continuing to slow and unemployment is continuing to rise."
Stocks slumped in the morning as General Electric's lower quarterly earnings added to worries about the health of 'Corporate America.' But the selling eased up later in the session, with Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500) and other banking shares bouncing.
Rising oil and gold prices gave a lift to a variety of energy and metal stocks. Google's rally helped fire up the technology sector.
Stocks slumped Thursday, as a management shakeup at Bank of America and Microsoft's earnings disappointment and job cuts weighed on investor sentiment.
GE: Dow component General Electric (GE, Fortune 500) reported weaker sales that missed analysts' estimates and weaker earnings at the low end of its own projections.
The company also said it was maintaining its $1.24 per share dividend, amid worries that it would need to cut the dividend. Shares slipped 10.8%.
Earnings: The week has brought a slew of weaker-than-expected earnings, particularly from big financial firms including Citigroup and Bank of America.
Tech results have run the gamut, with IBM, Apple and Google reporting positive surprises.
After the market close Thursday, Google (GOOG, Fortune 500) reported higher sales that beat estimates and lower earnings that topped forecasts. Shares gained 6% Friday.
Chipmaker Advanced Micro Devices (AMD, Fortune 500) reported weaker quarterly sales and earnings that missed estimates in a late Thursday announcement. The company also forecast that first-quarter revenue would drop from the fourth quarter. Shares rose 2.5%, erasing morning losses.
Xerox (XRX, Fortune 500) reported weaker quarterly sales and earnings that missed estimates and also forecast first-quarter profit that is short of analysts' estimates. Shares fell 7.4%.
Pfizer: The world's largest drugmaker is reportedly in talks to buy rival Wyeth in a deal that could be worth over $60 billion, according to a Wall Street Journal report Friday. Pfizer (PFE, Fortune 500) shares rose 1.4%, while Wyeth (WYE, Fortune 500) shares added 12.6%.
Market breadth was mixed. On the New York Stock Exchange, winners beat losers eight to seven on volume of 1.42 billion shares. On the Nasdaq, losers edged winners by a narrow margin on volume of 2.19 billion shares.
Bonds: Treasury prices slipped, raising the yield on the benchmark 10-year note to 2.61% from 2.59% Thursday. Treasury prices and yields move in opposite directions. Yields on the 2-year, 10-year and 30-year Treasurys all hit record lows last month.
Lending rates tightened. The 3-month Libor rate increased to 1.17% from 1.16% Thursday, according to Bloomberg.com. Libor is a bank-to-bank lending rate.
Other markets: In global trading, Asian markets ended lower, while most European markets ended lower. Britain is officially in a recession, after the government reported gross domestic product declined for the second quarter in a row.
The dollar gained versus the euro and fell against the yen.
U.S. light crude oil for March delivery rose $2.80 to settle at $46.47 a barrel on the New York Mercantile Exchange.
COMEX gold for April delivery rose $37.20 to settle at $897.70 an ounce.
Gasoline prices held steady at a national average of $1.85 a gallon, according to a survey of credit-card swipes released Friday by motorist group AAA. 
