Stocks Hit by Oil's Spike

The Nasdaq drops 0.8%, and almost all of the Dow's earlier gains vanish.
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Updated from 4:10 p.m. EDT

Blue chips closed little changed and tech stocks slumped Friday as surging crude prices and weakness in the chip sector overpowered good news from

Google

(GOOG) - Get Report

and

3M

(MMM) - Get Report

.

The

Dow Jones Industrial Average

tacked on about 4.56 points, or 0.04%, to 11,347.45, another six-year high. Losses of more than 2.5% in

General Motors

(GM) - Get Report

and

Hewlett-Packard

(HPQ) - Get Report

dragged the proxy lower in the final hour. The

S&P 500

shed 0.18 point, or 0.01%, to finish at 1311.28.

Meanwhile, despite a 5.3% gain in Google, the

Nasdaq Composite

fell 19.69 points, or 0.83%, to 2342.86. Weakness in chip stocks weighed on the index, with the Philadelphia Semiconductor index down 2.1%.

Intel

(INTC) - Get Report

,

Applied Materials

(AMAT) - Get Report

and

Broadcom

(BRCM)

were among the biggest losers.

About 1.78 billion shares traded on the

New York Stock Exchange

, with declining shares matching advancing ones. Trading volume on the Nasdaq was 2.17 billion shares, with decliners outpacing advancers 3 to 2.

For the week, the Dow gained 210 points, or 1.9%, the S&P 500 rose 22 points, or 1.7%, and the Nasdaq finished up 17 points, or 0.7%.

In other markets, the 10-year Treasury bond was up 8/32 in price to yield 5.01%, while the dollar fell against the yen and euro.

Oil futures pushed through the $75 level to fresh all-time highs. The price was up from Thursday because of the advent of the June contract as the front-month benchmark. In Nymex floor trading, June crude finished trading at $75.17 a barrel, up $1.48 from last night's close.

Gold and silver, both of which retreated from multiyear highs Thursday, rebounded Friday. The Comex gold contract closed up $12.40 to $635.50 an ounce, while silver futures tacked on 44 cents to $12.97 an ounce.

"The market finally reacted to commodity prices," said James Park, managing director with Rodman & Renshaw. "The weakness on the long end of the curve contributed to the weakness, too. We held strong for this week, but everything was in a negative light today. There was also a little more volatility because it's options expiration."

To view Gregg Greenberg's video take on today's market, click here

.

At the start of trading, the Dow rose thanks to a gain in 3M, which earned $899 million, or $1.17 a share, in its first quarter, up from $771 million, or 97 cents a share, last year. Revenue rose 8.3% to $5.56 billion. Analysts were looking for EPS of $1.14 on sales of $5.58 billion. The industrial company also raised its full-year earnings forecast. 3M was higher by $2.46, or 3%, to finish at $85.06.

Google shares rose $22.10 to $437.10 after the company posted a 60% rise in first-quarter earnings and reported an operating EPS number of $2.29. That beat Wall Street estimates by 15%. Sales minus advertiser commissions were $1.53 billion, beating the $1.44 billion Thomson First Call consensus.

The quarter highlighted Google's growing strength outside of its core search franchise, a development that reportedly is making some of its larger competitors nervous. According to

The Wall Street Journal

on Friday,

eBay

(EBAY) - Get Report

has spoken to both

Microsoft

(MSFT) - Get Report

and

Yahoo!

(YHOO)

about possible alliances to combat the Google threat.

While Google's earnings were a bright spot, Citigroup sapped some of the tech arena's momentum when it dropped its rating on

Dell

(DELL) - Get Report

to sell from buy. Citi cut its stock price target to $28 from $37, saying Dell's pricing advantage over its competitors is eroding.

The firm also said the PC maker has to adjust its profitability expectations in order to kick-start growth and increase its market share. Shares lost $1.23, or 4.4%, to $27.01.

Energy led all sectors, with the Amex Oil index adding 2.8%, and the Philadelphia Semiconductor Sector index finishing up 1.9%. Elsewhere, the Amex Gold Bugs index reversed a large decline Thursday and closed up 4%. The Amex Airline index fell 2.1%, and the Philadelphia Housing Sector index shed 0.5%.

Google, of course, wasn't the only company reporting earnings Thursday after the market closed, as several other big tech names released their quarterly results.

SanDisk

(SNDK)

said first-quarter earnings fell to $35.1 million from $74.5 million a year ago, reflecting a writeoff. Adjusted earnings of 44 cents a share matched estimates. Shares of SanDisk dropped $5.49, or 8.4%, to $60.05.

Outside of technology,

Ford Motor

(F) - Get Report

swung to a first-quarter loss of $1.2 billion, or 64 cents a share, compared with a profit of $1.2 billion, or 60 cents a share, last year. Excluding items, the automaker earned 24 cents a share. Revenue fell 9% from a year ago to $41.1 billion. The Thomson First Call consensus was for earnings of 25 cents a share on revenue of $39.7 billion. Ford fell 63 cents, or 7.9%, to close at $7.32.

Shares of

McDonald's

(MCD) - Get Report

ended lower after the company posted first-quarter earnings of $625.3 million, or 49 cents a share, falling from $727.9 million, or 56 cents a share, last year. Results were in line with analysts' expectations. Revenue was up slightly to $5.1 billion from $4.8 billion last year. The stock was off 48 cents, or 1.4%, to $34.60.

RadioShack

(RSH)

said it had first-quarter net income of $8 million, or 6 cents a share, falling from $55 million, or 34 cents a share, last year. Sales were up 3% from a year ago to $1.16 billion. The Thomson First Call consensus was for EPS of 17 cents on sales of $1.13 billion. RadioShack closed down 25 cents, or 1.4%, to $17.79.

Halliburton's

(HAL) - Get Report

first-quarter net rose 34% from last year thanks to strength in the company's energy-services division. The company's income from continuing operations of 90 cents a share was 2 cents ahead of estimates. Halliburton tacked on 53 cents, or 0.6%, to $83.33.

Friday morning, rival

Schlumberger

(SLB) - Get Report

reported a first-quarter profit of $722 million, or 59 cents a share, on sales of $4.24 billion. The results topped Street forecasts for earnings of 55 cents a share and sales of $4.15 billion. Schlumberger gained 44 cents, or 0.7%, to $68.51.

Analysts at Prudential initiated refining company

Valero

(VLO) - Get Report

with an overweight rating and set a $75 price target, citing widening margins for certain petroleum products, among other things. Valero added $1.47, or 2.2%, to $69.04.

JPMorgan raised its rating for

Boston Scientific

(BSX) - Get Report

to overweight from neutral, citing potential growth and shareholder returns due to the company's acquisition of

Guidant

(GDT)

. The deal is expected to close Friday. Boston Scientific ended the session up 23 cents, or 1%, to $22.49.

Overseas markets were mostly higher, with London's FTSE 100 adding 0.8% to 6133 and Germany's Xetra DAX adding 0.5% to 6095. In Asia, Japan's Nikkei rose 0.5% overnight to 17,404, while Hong Kong's Hang Seng slipped 0.2% to 16,912.