The stock market closed on Friday with a mixed picture as subpar earnings sent the Nasdaq Composite sharply lower but the Dow built on what was its best week in three months. 

Today’s Market

The Dow Jones Industrial Average rose 49.91 points, or 0.44% to 11496.57, the Standard & Poor’s 500 index gained 0.36 points, or 0.03%, to 1260.68 and the Nasdaq Composite Index slid 29.52 points, or 1.28%, to 2282.78. The consumer-friendly FOX 50 lost 1.04 points, or 0.12%, to 895.48.

Whether it was several better-than-expected earnings reports, a clear sign of a bear-market rally or just the result of an oversold market, the blue chips climbed more than 300 points this week. 

“I cant remember the last time we had two good days in a row let alone the chance for a third," Ted Weisberg of Seaport Securities told FOX Business. 

Microsoft (MSFT) led the blue-chip decliners on Friday, tumbling 6% on its earnings and outlook. On the upside, Citigroup (C) soared 7% on its not-so-horrible quarterly results. Also, Bank of America (BAC) posted solid gains ahead of its quarterly results next week. 

The Nasdaq Composite fared much worse than the broader market, declining by nearly 1.5%. The index was weighed down by search engine Google (GOOG), which fell by almost 10% on its earnings. Other tech giants like Amazon.com (AMZN) and Apple (AAPL) were stuck in the red. However, Teva Pharmaceuticals (TEVA) helped lead the Nasdaq 100 on its $7.46 billion deal to acquire rival Barr Pharmaceuticals (BRL). 

The Dow was able to extend its win streak to three, picking up some 500 points over that span. The huge rally from the previous two sessions was the best on a percentage basis since October 2002. It was also the largest two-day point gain since November 2007 and the sixth largest ever, according to Dow Jones.

The selloff in tech stocks was sparked by Google's (GOOG) results, which showed that the company is likely not immune to the slowing economy. Google's adjusted-earnings soared to $4.63 a share but fell below the $4.72 analysts had been looking for. The company's revenue jumped 39% to $5.37 billion, meeting average estimates. 

The day could have taken a gloomy turn had it not been for Citigroup's better-than-expected results, which helped overshadow the tech plunge and dismal results from  Merrill Lynch (MER). 

Citi, the nation's biggest bank by assets, reported a second-quarter loss of $2.5 billion amid $11.7 billion in writedowns. While both numbers are staggering, they were above Wall Street's lowered expectations. 

The financial conglomerate lost 54 cents per share for its third-straight quarterly loss. Analysts polled by Thomson Reuters had been looking for a larger loss of 66 cents per share. 

The results were in stark contrast to those of Merrill Lynch, which posted a massive $4.65 billion loss after Thursday's closing bell. The world's largest brokerage lost $4.97 per share amid $9.75 billion of writedowns. Analysts had been expecting a much more modest loss of $1.91 per share. Merrill's stock slid more than 3% in morning trading. 

Meanwhile, shares of government-sponsored mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE) soared after Freddie filed regulatory papers with the SEC to raise $5.5 billion. The Wall Street Journal reported that Freddie is thinking about raising up to $10 billion to avoid extra government regulation. 

On the energy front, crude oil futures continued their cold streak, ending the day down 41 cents at $128.88 a barrel. Oil prices have been pushed lower by worries of weakened demand, a surprising build in crude stockpiles and less tension between Iran and West. 

Coming into the day oil had already plunged $16 from the previous three trading sessions, the largest three-day dollar losses ever. On a percentage basis, it was the largest losses since 2003. 

Corporate Movers

Microsoft (MSFT) fell after the software titan's fiscal fourth-quarter earnings missed the Street's estimates by a penny and issued weak outlook. Citing "tough" economic conditions, Microsoft said it sees earnings of 47 cents to 48 cents for the current quarter, below average estimates of 50 cents from Thomson Reuters. 

IBM (IBM) gave the tech world something to cheer about, reporting a 22% jump in second-quarter profit that topped Wall Street's estimates. "Big Blue" earned $1.92 per share, 16 cents above mean estimates. IBM also upped its full-year profit outlook above the Street's estimates. 

Teva Pharmaceuticals (TEVA) was one of the best performing stocks on the Nasdaq 100 after it unsealed its plans to buy Barr Pharmaceuticals (BRL) in a $7.46 billion deal. Shares of Barr soared more than 10% on the deal. Teva is based in Israel and is the world's largest generic drug maker. The deal puts a 42% premium on Barr's closing price from Wednesday. 

Advanced Micro Devices (AMD) fell sharply after the chip maker announced a worse-than-expected loss and named Dirk Meyer the new CEO. Meyer, who was previously chief operating officer, will take over for Hector Ruiz, who will stay on as chairman. The Intel (INTC) rival posted an adjusted-loss of 60 cents per share, 8 cents worse than analysts had expected. 

Honeywell (HON) posted a second-quarter profit increase of 18% to 96 cents per share, beating the Street by two pennies. The industrial giant and former Dow component boosted its full-year profit forecast by a nickel to $3.75 to $3.85 per share. Average estimates called for $3.79, according to Thomson Reuters.  

World Markets

The Dow Jones Euro Stoxx 50 Index, a gauge of the 50 biggest companies in Europe, rose 65.44 points, or 2.01%, to 3321.53. The FTSE 100, London's benchmark index, gained 90.10 points, or 1.70%, to 5376.40

On the continent, Paris's CAC 40 Index picked up 90.10 points, or 1.70%, to 4299.36 while Germany's DAX added 111.38 points, or 1.78%, to 6382.65.

In Asia, Japan's benchmark Nikkei 225 Index fell 84.25 points, or 0.65%, to 12803.70. Hong Kong's Hang Seng gained 139.47 points, or 0.64%, to 21874.19.