clock menu more-arrow no yes

Filed under:

Stocks edge higher on Wall Street; Amazon surges

NEW YORK — Stocks are trading slightly higher early Friday as investors weigh big corporate profit gains against disappointing economic news.

The Dow Jones industrial average was up 28 points at 13,233 at 11 a.m. The Standard & Poor's 500 edged up less than two points to 1,402. The Nasdaq composite rose nine points to 3,059.

Amazon rose 13 percent after the online retailer reported a big increase in shipments. Online travel agency Expedia Inc. surged 28 percent on higher profits from its hotel-booking business

The market's gains were checked by a government report that U.S. economic growth slowed in the first three months of the year. The Commerce Department reported that the economy grew at annual rate of 2.2 percent in the first quarter, below the 2.5 percent rate economists had expected. It grew at a faster rate, 3 percent, in the final three months of 2011.

European stock markets rose as investors shrugged off another downgrade of Spain's debt. The credit rating agency S&P warned that the Spain would have trouble paying down its debt with its economy in recession. Adding to its woes, Spain also reported its unemployment rate rose to nearly 25 percent, its highest in 18 years.

Germany's DAX rose 0.8 percent, France's CAC-40 1 percent. Stocks also rose in Italy and Spain.

However the yields on Spanish and Italian government bonds rose, a sign that investors are still uneasy about the ability of those countries to service their debt. The yield on Spain's benchmark 10-year bond rose 0.08 percentage point to 5.87 percent. Italy's 10-year yield rose 0.13 point to 5.66 percent.

In the U.S., Procter & Gamble fell 3 percent after the consumer products giant reported a 16 percent profit slump for the first three months of the year on higher costs for raw materials and restructuring charges. The maker of Bounty paper towels and Luv diapers said it would be rolling back some price increases to compensate.