NEW YORK - Google's upbeat earnings report sent technology stocks higher Friday, while the rest of the stock market lagged on concerns about banks' foreclosure problems.
The tech-focused Nasdaq composite rose more than 1 percent with a boost from Google Inc.'s 11 percent gain. While all three major market indexes rose for the week, the Nasdaq's 2.7 percent jump more than doubled the performance of other measures.
Stocks across the board initially rose after Federal Reserve Chairman Ben Bernanke reiterated that the central bank is ready to do more to stimulate the economy. Bernanke's comments were the latest confirmation that the central bank is about to step up its purchase of Treasury bonds to spark growth.
But that burst of optimism couldn't fully overcome worries about how banks like Bank of America Corp. and J.P. Morgan Chase & Co. handled the foreclosure process on mortgages. Both banks, along with General Electric Co., were the primary culprits in sending the Dow Jones industrial average down more than 30 points.
"The market is not going to continue to rally if financials accelerate to the downside," said Maier Tarlow, a managing director at Raven Securities. "It's a major roadblock."
A small drop in the University of Michigan/Reuters consumer sentiment survey countered reports of growth in retail sales and manufacturing activity in New York.
Economists polled by Thomson Reuters expected the preliminary reading on October consumer sentiment to rise slightly. Retail sales climbed in September by more than economists had forecast. Manufacturing activity in New York surged in October and pointed to continued expansion in coming months.
The Dow fell 31.79, or 0.3 percent, to 11,062.78. It had been up as much as 47 points shortly after the opening bell. It was up 0.5 percent for the week.
