It was a tale of two markets on Wall Street on Friday, as earnings news pushed the major averages in different directions.Weighed down by disappointing earnings from blue-chip bellwether Caterpillar (CAT), the Dow Jones Industrial Average finished the day lower. Meanwhile, the Nasdaq posted a notable gain, as technology stocks got a boost from a strong report from computer chip maker AMD (AMD). The S&P 500, representing the lack of direction in the broad market, finished the day near the flat line.
Specifically, the Dow dropped to 12,681.16, down 43.25, or 0.34 percent, on the day. Meanwhile, the Nasdaq was up 24.40 points, or 0.86 percent, to end at 2,858.83. The S&P 500 eked out a slim gain, rising 1.22 points to close at 1,345.02.
Besides corporate earnings, the ongoing debt problems in various parts of the world continued to be the key topic of conversation on Wall Street. News on this front also pulled the market in opposite directions: a relief deal for Greece raised hopes that the European crisis will be contained, but U.S. politicians seemed no closer to an agreement to raise the country's borrowing capacity.
Attention was also paid to a tragedy in Norway. In an apparent terrorist attack, a pair of explosions rocked government buildings in the capital of Oslo. At least seven people have been killed in the blasts, according to media reports.
Eurozone leaders late Thursday announced a new aid package for debt-stricken Greece worth 109 billion euros. The plan, a bid to prevent the region's debt crisis from spreading, includes financing from both the European Union and the International Monetary Fund, as well as from the private sector.
The debt discussions in the U.S. have not made progress, however. House Speaker John Boehner told a press conference Friday morning that his colleagues are not close to a deal with the president on raising the debt ceiling. There had been reports on Thursday that an agreement could be on the way, but the White House and Republican leaders quickly shot down that speculation.
In earnings news, Caterpillar said its second-quarter profit rose significantly from last year, amid continued improvement in global demand. However, adjusted earnings came in well below Wall Street expectations, as sales were hurt by the events in Japan.
Shares of Caterpillar finished lower by about 5.8 percent.
AMD was a highlight in the other direction. Shares of the chip maker rose more than 19 percent after the company revealed better-than-expected quarterly results.
McDonald's (MCD) also had a strong earnings report. The fast food giant's line of frozen drinks have been a hit in the U.S., helping earnings per share and quarterly revenues top expectations.
Overseas, markets were buoyed by the Greek relief deal. The Japanese market rose to a two-week high, with the benchmark Nikkei index rose 1.2 percent to 10,132.
In Europe, the U.K.'s FTSE 100 rose 35.13 points, or 0.6 percent, to end at 5,935.02. The German DAX climbed 36.25 points, or 0.5 percent, to close at 7,326.39. France's CAC 40 rose 25.95 points, or 0.7 percent, to end at 3,842.70
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