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Stocks Turn Mixed After Weak GDP Data; ExxonMobil Hit By Low Oil Prices

Falling oil prices are taking a toll on oil refiners. (© PiLensPhoto - Fotolia/stock.adobe.com)

Stocks turned mixed in early afternoon trading Friday following data showing the U.S. economy grew much less than expected in the second quarter.

Exxon Mobil (XOM) slumped as falling oil prices hurt earnings, while Google parent Alphabet (GOOGL) led tech stocks higher after reporting strong quarterly results.

The Nasdaq composite and the S&P 500 edged up 0.1%, but the Dow Jones industrial average dipped 0.1%. Volume in the stock market today was tracking below Thursday's levels on both the NYSE and the Nasdaq.

Gross domestic product grew at an annualized rate of just 1.2% in the second quarter, far below the consensus estimate of 2.6%.

Oil prices were little changed at just above $41 a barrel following a sharp slide from around $100 two years ago. The 10-year Treasury yield fell 2 basis points to 1.48%.

Exxon Mobil led the Dow lower, sliding more than 2% in heavy volume after announcing that Q2 profit dropped 59% to 41 cents a share, much less than expected. Revenue fell 22% to $57.7 billion, also below views.

The oil giant said earnings were hurt by weak refining margins and low energy prices.

Chevron (CVX) pared most of its early losses following weak Q2 results.

Meanwhile, Alphabet jumped more than 4% after reporting late Thursday that Q2 profit rose 20% to $8.42 a share, beating Wall Street's expectations. Revenue climbed 21% to $21.5 billion.


IBD'S TAKE: How does Alphabet stack up against its peers in the rising Internet-Content industry? Find out at IBD's Stock Checkup.


IBD Leaderboard stock Amazon.com (AMZN) rose more than 1% to 762.36, hitting a record 766 intraday, as it continues to climb after posting strong quarterly results late Wednesday.