Wall St slips on GE, Google results

NEW YORK (Reuters) - The S&P 500 and Nasdaq edged lower on Friday after GE and Google results fell short of expectations, while investors awaited a resolution in the latest round of Greek debt talks.

The Dow advanced, lifted by IBM, which offered a strong outlook late Thursday. Results from several big technology companies signaled corporate leaders were shaking off nervousness about economic growth and boosting technology spending.

Google Inc shares slumped 7.7 percent to $590.51 as the biggest drag on the benchmark S&P. Quarterly profit and revenue for the No. 1 Internet search engine missed Wall Street expectations on declining search advertising rates.

General Electric Co lost 1.5 percent to $18.87 after the largest U.S. conglomerate's revenues missed Wall Street estimates. Fellow Dow component American Express Co dropped 2.1 percent to $49.87 as it set aside more money to cover bad loans.

"At this point, we are still at the starting line on earnings season. The good news is that the market has not reacted to the slow start," said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.

International Business Machines Corp gained 3.7 percent to $187.18.

Intel Corp rose 1.5 percent to $26.02, while Microsoft Corp was up 3.5 percent to $29.11. Microsoft said earnings fell slightly, while Intel's profits topped scaled-back estimates.

Greece and its private bondholders were close to an initial bond swap deal, sources said, with agreement possible by late Friday. Investors could lose up to 70 percent of the loans given to the fiscally troubled nation.

Hopes are that an agreement would prevent the nation from spiraling into bankruptcy and bring some stability to the debt-strained euro zone.

"Economic news has been a little better than expected, and we've had a lack of bad news from Europe, so investor interest has been buoyed by a little more optimism in terms of investor acceleration, but today just looks like a consolidation day," said Dickson.

Improving economic data in the United States along with signs of European stability has helped push the S&P 500 up 4.2 percent to start the year.

The Dow Jones industrial average <.DJI> was up 65.77 points, or 0.52 percent, at 12,689.75. The Standard & Poor's 500 Index <.SPX> was down 2.03 points, or 0.15 percent, at 1,312.47. The Nasdaq Composite Index <.IXIC> dipped 3.11 points, or 0.11 percent, at 2,785.22.

The National Association of Realtors said sales of previously owned U.S. homes rose to an 11-month high in December, adding some weight to the belief the sector may be starting to recover.

Parker Hannifin Corp dipped 4.1 percent to $81.50 after the industrial parts maker reported a lower-than-expected quarterly profit and cut its full-year forecast.

(Reporting By Chuck Mikolajczak; editing by Jeffrey Benkoe and Padraic Cassidy)

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