S&P 500, Nasdaq Fall for the Week on Pressure from Tech Sector

The Nasdaq Composite extends losses after Amazon results

-- European stocks near three-month lows; Asia shares drop

-- U.S. growth figures confirmed a brighter second quarter

The Dow Jones Industrial Average posted a gain for the day and the week, while a fall in technology shares contributed to declines in the S&P 500 and Nasdaq Composite.

Upbeat quarterly results from large U.S. companies including Boeing, Caterpillar, Chevron and Verizon Communications helped the Dow industrials outperform its peers in recent days.

Together, those stocks' weekly gains contributed roughly 310 points to the index, which rose 250.24 points, or 1.2%, for the week. On Friday, the Dow industrials rose 33.76 points, or 0.2%, to 21830.31 -- a fresh record.

The S&P 500 fell 3.32 points, or 0.1%, to 2472.10 Friday and was little changed on the week, while the tech-heavy Nasdaq Composite shed 7.51 points, or 0.1%, to 6374.68 Friday and lost 0.2% during the week.

Shares of Amazon.com weighed on both indexes after the internet retailer reported downbeat results late Thursday. Amazon.com dropped $25.96, or 2.5%, to $1020.04 after the company said its quarterly profit fell 77%, adding to Friday's declines in the consumer-discretionary sector. Starbucks shed 5.50, or 9.2%, to 54.00 after the company's earnings fell short of analyst expectations and it lowered its full-year earnings forecast. Goodyear Tire & Rubber declined 2.97, or 8.4%, to 32.51 after the tire maker cut its profit outlook for the year.

The tech sector of the S&P 500 slipped 0.1% Friday, extending declines from the prior session, and posted a weekly fall of 0.6%. Nonetheless, the sector remains up 22% year-to-date.

"There's been such an enormous run-up in tech that these stocks are vulnerable to any disappointment," said Russ Koesterich, co-portfolio manager of the BlackRock Global Allocation Fund. The question now is if investors sell their positions in tech shares, into what assets or sectors will they move that money, he added.

Energy stocks in the S&P 500 ticked lower Friday but ended the week up 1.9%. The sector climbed as the price of oil jumped, with crude prices ending the week up 8.6% at $49.71 a barrel -- the best weekly performance since December.

On Friday, Exxon Mobil and Chevron both reported profit gains in the second quarter. Shares of Chevron rose 2.01, or 1.9%, to 108.12 while shares of Exxon fell 1.23, or 1.5%, to 79.60 as its earnings fell short of analyst expectations.

Second-quarter earnings overall have been positive. With more than half of the companies in the S&P 500 having reported results, earnings are on track to rise 9.1% from the year earlier, according to FactSet.

The dollar edged lower Friday after data showed U.S. economic growth picked up in the second quarter but inflation remained soft. The Commerce Department said gross domestic product, a broad measure of goods and services produced in the U.S., rose at a 2.6% annual rate in the second quarter. Economists surveyed by The Wall Street Journal had expected an increase of 2.7%.

The Fed's preferred inflation gauge, the price index for personal-consumption expenditures, rose at a rate of 0.3% during the period.

The WSJ Dollar Index, which measures the U.S. currency against 16 others, declined 0.5%. U.S. government bonds strengthened, sending the yield on the benchmark 10-year Treasury note down to 2.291% from 2.312% on Thursday.

The second-quarter pickup in growth follows a stumble in the first three months of the year, when GDP grew at a 1.2% pace. Expectations for solid growth in the second quarter climbed heading into Friday as data on U.S. factories and jobs offered encouraging signals on the U.S. economy.

In Europe and Asia, stocks were dragged down by declines in tech stocks.

The Stoxx Europe 600 fell 1% -- marking its lowest close since April. Europe's technology sector shed 1.3% on Friday, while Japan's Nikkei Stock Average and Hong Kong's Hang Seng Index each fell 0.6% amid pressure on the sector.

Write to Riva Gold at riva.gold@wsj.com and Corrie Driebusch at corrie.driebusch@wsj.com

(END) Dow Jones Newswires

July 28, 2017 17:22 ET (21:22 GMT)