US stocks edged lower on Friday as technology shares were hit by Intel's dour results, while investors assessed data that showed domestic growth was boosted by temporary factors in the first quarter. The Commerce Department said gross domestic product increased at a 3.2 percent annualized rate, lifted by trade and the largest accumulation of unsold goods since 2015, factors that are likely to reverse in the coming quarters.
However, consumer and business spending slowed sharply, and investment in homebuilding contracted for a fifth straight quarter, giving the report a weak tone.
"Generally GDP was good, but if you look at personal consumption, it is probably telling the Fed to stay back right now because there is no real sign of inflation picking up right now," said Tom Plumb, president of Plumb Funds in Madison, Wisconsin.
The S&P 500 is now about 0.5% away from its record high hit in late September, boosted by hopes of a US-China trade resolution, a dovish Federal Reserve and a largely positive first-quarter earnings season.
Nearly 78% of the 178 S&P 500 companies that have reported earnings so far have surpassed estimates, according to Refinitiv data. Analysts now expect earnings to decline 0.3% from a year earlier, a big improvement from the 2.3% fall forecast at the start of April.
Intel Corp slumped 9.9% after it cut its full-year revenue forecast and missed quarterly sales estimate for its key data center business.
At 10:58 a.m. ET the Dow Jones Industrial Average was down 17.60 points, or 0.07%, at 26,444.48, the S&P 500 was down 0.47 points, or 0.02%, at 2,925.70 and the Nasdaq Composite was down 21.01 points, or 0.26%, at 8,097.67.
Exxon declined 2.9% after its quarterly profit missed estimates on lower oil and gas prices and weakness across its businesses.
Ford Motor Co surged 10.3% and was the biggest gainer on the S&P. Amazon.com Inc rose 0.6% after the e-commerce giant reported quarterly profit that doubled and beat estimates on soaring demand for its cloud and ad services.