Stocks Finish Mixed But Notch Weekly Gains; McDonald's, Microsoft Lead Dow

Loading the player...

The major indexes ended mixed Friday, with the Dow lagging despite big earnings-related gains from McDonald's (MCD) and Microsoft (MSFT). But all three indexes advanced for the week.

The Nasdaq rose 0.3%, thanks to huge moves from Microsoft and PayPal (PYPL). The tech-heavy index closed above its 50-day moving average and gained 0.8% for the week. The S&P 500 ended flat and the Dow Jones industrial average edged 0.1% lower; for the week, the S&P 500 climbed 0.3% while the Dow was fractionally higher.

Volume was higher on the NYSE but lower on the Nasdaq, according to preliminary data. Losers outpaced winners by a small margin on both exchanges.

Tobacco, security software and restaurant stocks were among top gainers in the stock market today. But apparel makers, medical software and medical care providers underperformed. Skechers (SKX) gapped down and tumbled 17% to a near two-year low after a Q3 earnings miss and Q4 warning late Thursday.

McDonald's scored a 3% gap-up move in hefty trade after reporting better-than-expected Q3 results. Global same-store sales rose 3.5% ex currency impacts, while U.S. comps increased 1.3%, boosted in part by its All-Day Breakfast and McPick 2 offerings. Shares are now 5% below the 200-day line and 13% off their May 10 high.

Microsoft was the blue chip winner, leaping 4% to break out past a 58.80 flat-base buy point in fast volume. It's still in buy range from the entry. After the close Thursday, the Xbox maker announced fiscal Q1 results that topped views, thanks to strength in its cloud computing businesses. William Blair raised its rating to outperform, while BMO Capital upped its price target to 69 from 52.

PayPal soared 10% to a new high in huge turnover. The payments provider late Thursday reported Q3 earnings that met and revenue that topped views. PayPal lifted its three-year revenue growth outlook to 16%-17% from a prior forecast for 15%. Stifel upgraded its rating and price target; RBC Capital raised its price target to 47 from 46.

Economic reports coming Monday include the Purchasing Managers' Manufacturing flash index for October and the Chicago Fed national activity index for September. The Fed's James Bullard, William Dudley, Charles Evans and Jerome Powell are slated to speak.

Earnings are on tap for Monday from Restaurant Brands International (QSR), T-Mobile U.S. (TMUS) and Visa (V).

McNuggets, McPick 2, Breakfast Help McDonald's Beat Restaurant Slump

Microsoft Stock Rises To Record High As Cloud Leads Earnings Beat

Apple PT Raised; Microsoft, PayPal Upgraded; Yahoo Downgraded