S&P rose to new record, tech sector sank

The S&P 500 rose to new levels on Friday, recording another day of advance. The benchmark has been on a four-straight week gain. However, tech sector disappointed as Microsoft and Google retreated by 11.4% and 1.55%, respectively. The S&P 500 rose 2.72 points, or 0.2%, to 1692.09. The Dow Jones Industrial Average lost 4.80 points, or less than 0.1%, to 15543.74, after interrupting its own all-time high Thursday. The Nasdaq Composite Index declined by 23.66 points, or 0.7%, to 3587.61.

Generally, for the week, the S&P 500 rose 0.7%, and the Dow Jones average added 0.5%.

Slow and steady U.S. economic growth and increasing confidence in the Federal Reserves ability to reduce its financial stimulus without roiling markets are fueling continued gains in stocks, according to analysts. Meanwhile, second-quarter corporate profits have mostly topped analysts expectations, indicating companies are outperforming Wall Streets projections amid the sluggish recovery.

About 72% of the 104 companies to report results for the latest quarter have topped projections, according to FactSet. “Well have a broader selection of industries next week, and what other trends will we see?” Mr. Morgan said. “Is tech the only one that has surprise misses, or are there more? Well get a better handle on that next week.”, A.C. Morgan, head of U.S. equity-sales trading at UBS AG said for Wall Street Journal.

Whirlpool added 8% on Friday after the worlds largest home-appliance manufacturer raised its profit forecast for the year, as the North American market outlook was improving quickly, according to the firm. General Electric jumped by 4.6% after the utility company topped earnings estimates and indicated margin expansion was expected to continue.

Advanced Micro Devices (AMD) sank by 13% after it reported it shifted to a loss in the second quarter. That trimmed a 93% gain in the shares this year through Thursday.

The dramatic moves in individual stocks, while the benchmark indexes remained almost flat, contrasted with much of the trading action this year. Betting on whether the Feds policies will help or hurt stocks as a whole fueled lockstep stock trading in many sessions. The European stocks were also little changed.