- 29Oct
(Reuters) - U.S. stocks were little changed on Friday as investors continued to assess prospects for monetary stimulus by the U.S. Federal Reserve, with a report showing modest economic growth limiting declines.
Market action this week has been dictated by expectations the Fed will announce another round of quantitative easing next week. Analysts said the gross domestic product report was positive and in-line with expectations, but took a backseat to stimulus speculation.
"It's about a neutral for the single biggest event coming up over the next four days, which is the (Federal Open Market Committee) meeting next week," said Craig Peckham, equity trading strategist at Jefferies & Co in New York.
"It's taken as a foregone conclusion that there will be an expansion of the Fed's balance sheet to stimulate the economy. The question is how much and over what timeline?"
The Dow Jones industrial average .DJI added 8.36 points, or 0.08 percent, to 11,122.31. The Standard & Poor's 500 Index .SPX edged up 0.87 points, or 0.07 percent, at 1,184.65. The Nasdaq Composite Index .IXICgained 6.98 points, or 0.28 percent, to 2,514.35.
While the S&P 500 is flat so far this week, the index is up almost 4 percent for the month, and investors could take the opportunity to lock in profits.
Microsoft Corp (MSFT.O) gave support to both the Dow and the Nasdaq. Its shares rose 1.8 percent to $26.75 a day after it reported a profit that beat estimates on higher sales of its flagship software.
On the downside, Chevron Corp (CVX.N) posted a weaker-than-expected profit, and its shares dipped 1.7 percent to $82.97.
The energy sector was also hit by a drop in Halliburton Co (HAL.N) the day after a White House panel said the company used flawed cement in BP Plc's (BP.L)(BP.N) doomed Gulf of Mexico well, which could have contributed to the blowout. Halliburton was down 2.2 percent at $30.97.
