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Stocks at Record Highs, Futures Pullback as Google, Microsoft Disappoint

Tickers in this article: GE GOOG HON MSFT SLB WHR ^DJI ^GSPC ^IXIC

NEW YORK ( TheStreet) -- With stock markets at record highs, futures were cautious Friday as investors weighed disappointing earnings from Google and Microsoft against better-than-expected quarterly reports from General Electric Schlumberger and Honeywell .

Futures for the S&P 500 were down 2.5 points, or 6.12 points below fair value, to 1,678. Futures for the Dow Jones Industrial Average were off 35 points, or 40.54 points below fair value, to 15,446. Futures for the Nasdaq were shedding 5.25 points, or 28.92 points below fair value, to 3,042.25.

Major U.S. stock markets jumped Thursday, driving the S&P 500 and Dow Jones Industrial Average to new closing and intra-day highs after a spate of upbeat earnings reports led by UnitedHealth during the regular trading session, and Federal Reserve Chairman Ben Bernanke told Congress the central bank was staying its course on stimulus.

Greg Sarian, director and partner at HighTower's Sarian Group in Philadelphia, said the markets this week are "breathing a sigh of relief" largely driven by Bernanke's dovish tone describing a continuation of accommodative monetary policy for some time. In addition, economic data have been suggesting that "a slow, but forward moving pace of recovery" will continue as markets reacted favorably to decent Philly Fed and jobless claim numbers.

"Lastly, corporate earnings have also boosted the markets confidence as bellwether companies such as IBM and Verizon reported solid numbers with positive guidance going forward," said Sarian. "We believe the market recovery is real and will continue, not in a straight line however. Volatility will persist and present opportunities to increase equity exposure."

General Electric was rising 2.24% to $24.16 after the Fairfield, Conn., conglomerate reported profit growth in all of its industrial businesses, except for Power & Water. The company posted second-quarter operating earnings of $3.685 billion, or 36 cents a share, down from $4.059 billion or 39 cents a share, in the first quarter, and $4.010 billion, or 38 cents a share, in the second quarter of 2012. The first-quarter operating profit beat the consensus estimate of 35 cents, among analysts polled by Thomson Reuters.

Honeywell, the industrial conglomerate, was edging up 1.24% to $84 after exceeding second quarter earnings expectations by seven cents at $1.28 a share for the second quarter amid stronger profit margins.

Oilfield services company Schlumberger was popping nearly 3.5% to $81.19 after reporting second quarter adjusted earnings of $1.15 a share, beating the Wall Street target by five cents, as strength in its international markets overshadowed softness in North America.

Appliance company Whirlpool booked second-quarter revenue above expectations and hiked its full-year outlook as profit margins and sales improved. Shares were rising 2.84% to $122.76 even though earnings came in short by five cents at $2.37 a share.