Google weighs on tech stocks as Dow rises

April 15, 2011

, NEW YORK, Apr 15 – The US stock market opened in broadly positive territory on Friday, as US inflation data showed prices rising in line with traders expectations, but tech stocks were weighed down by disappointing Google earnings.

In the first half hour of trade, the Dow Jones Industrial Average rose 15.02 points (0.12 percent) to 12,300.17, while the broader S&P 500 rose 2.02 points (0.15 percent) to 1,316.54.

But the tech-heavy Nasdaq Composite fell 9.98 points (0.36 percent) to 2,750.24 as Google shares lost more than six percent.

The Internet giant\’s earnings on Thursday came in slightly below Wall Street expectations, dragged down by rising operating expenses.

The Mountain View, California-based firm reported a first-quarter net profit of $2.3 billion, up from $1.96 billion a year ago.

But the broader market took solace from Labor Department figures, which showed the consumer price index rose by 0.5 percent during March, in line with expectations, and core prices were less than expected.

"The US equity markets have pared a large portion of early losses and are nearly unchanged, following reports that showed US core consumer prices were cooler than economists forecasted," said analysts at Charles Schwab.

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