Stocks zigzagged Friday, holding the Dow and the Standard & Poor's 500 index to only modest moves. Disappointing profit reports from Microsoft Corp. and Amazon.com Inc. weighed on the technology-laden Nasdaq composite index.
The reports underscore the prevailing theme of earnings season thus far: Companies have been able to report better-than-expected earnings in large part because of aggressive cost-cutting measures, not stronger sales. Revenue at some companies is still sagging as consumers forgo spending to shore up their savings.
Still, investors have taken the improved results as confirmation that the economy is healing and that a turnaround is possible by the end of the year.
Despite the market's gains, analysts warn that investors still have a number of obstacles to contend with, including earnings reports from retailers that will provide more insight into the financial health of the consumer.
"It's healthy that there is fear and skepticism in the marketplace," said Jeffrey Frankel, president of Stuart Frankel & Co. "The more people are concerned and the more people are careful, the healthier the market will be. What gets us in trouble is when there is no fear."
The Dow Jones industrial average .DJI rose 23.95 points, or 0.26 percent, to 9,093.24. The Standard & Poor's 500 Index .SPX advanced 2.97 points, or 0.30 percent, to 979.26. But the Nasdaq Composite Index .IXIC shed 7.64 points, or 0.39 percent, to 1,965.96.
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