Market Minute: Microsoft, Google Miss Earnings Targets; GE Edges Higher

Microsoft and Google report huge profits, but not big enough. Those stocks and more are what's in business news Friday.

The Dow industrials (^DJI) gained 77 points Thursday and the S&P 500 (^GPSC) rose nearly 9, with both closing at record highs once again. The Nasdaq (^IXIC) edged 3 points higher.

Some of the air could come out of the tech sector following earnings from Microsoft and Google.

microsoft ceo steve ballmer earnings windows pc sales google ge stocks
Jeff Chiu/APMicrosoft CEO Steve Ballmer

Microsoft's posted a quarterly profit of nearly $5 billion, but it took a big write-off for its struggling tablet division. Earnings were also hurt by weakness in the PC market. This is the fourth straight quarter that Microsoft (MSFT) has missed Wall Street targets.

Google's net rose 16 percent to nearly $3.25 billion. But the results fell far short of expectations. Investors are concerned about the decline in the price of Web advertisements and the company's plan to increase capital spending. Google (GOOG) shares are up 28 percent this year, but likely to retreat today.

Shares of Advanced Micro Devices (AMD) are set to tumble even though the chipmaker topped expectations.

The other big report this morning comes from General Electric (GE). The company's net income inched slightly higher but revenue edged lower. GE is considered an economic bellwether because it's a leader in so many industries, from financial services to home appliances and jet engines.

More troubles for Boeing's (BA) Dreamliner. British officials blame a fire aboard a parked 787 last week on the battery that powers an emergency transmitter. It recommends that airlines disable that system. Separately, a Japan Airlines flight from Boston to Tokyo was forced to return to Logan International Airport on Thursday after a warning light came on in the cockpit.

CBS (CBS) could be ready to go to war with Time Warner Cable (TWC). The company threatens to withdraw some of its stations beginning next Wednesday in a fight over fees. The dispute could affect cable viewers in New York, Los Angeles and Dallas.

And Moody's has affirmed the U.S. government's Aaa rating, raising its outlook to "stable" from "negative," partly because of declining budget deficits.

-Produced by Drew Trachtenberg.