The Nasdaq had no shot at ending the week on a high note after tech earnings dragged on the industry-heavy index. 

The Times Square-based exchange slumped even further into the red for the year as major companies including Microsoft (MSFT - Get Report) and Alphabet (GOOGL - Get Report)  tumbled. The Nasdaq ended the day 0.8% lower and is now down 2% for the year. 

It was a better day for the S&P 500 and Dow Jones Industrial Average which, while mixed, came off their session lows by the middle of the afternoon. The S&P 500 was flat and the Dow climbed 0.12%. 

Earnings have been a key driver of markets this week, with a tsunami of critical reports driving markets in both directions. Nearly one-third of the S&P 500 have reported earnings so far this season. 

Alphabet fell as quarterly profit rose from a year earlier, though not at as fast a pace as analysts had expected. Net income increased 26%, while adjusted earnings of $7.50 a share missed estimates of $7.96 a share. The parent company of Google saw higher traffic-acquisition costs and expenses and lower aggregate paid clicks.

Alphabet stock was trading near all-time highs before the report, "leaving no wiggle room for a disappointment on what were very high expectations," said TheStreet's Jim Cramer, whose Action Alerts PLUS charitable trust  owns Alphabet.

Microsoft was sharply lower after missing quarterly estimates on its bottom line. The tech giant earned 47 cents a share in its third quarter, falling from 61 cents a share a year earlier. Adjusted earnings of 62 cents a share fell short by 2 cents.

Starbucks (SBUX - Get Report) , also traded on the Nasdaq, tumbled after global sales slowed and fanned worries over its growth potential. Global comparable-store sales rose 6% in the second quarter, down from 8% growth in its first quarter. Europe proved challenging with an unfavorable currency exchange eating into the topline.

"Starbucks has no room for a same-store sales miss, even a marginal one -- sustainability (and consistency) of a high-single digit percentage same-store sales growth, 10% plus overall sales growth and 15% to 20% earnings-per-share growth algorithm is ultimately key," for the stock said Jack Mohr, research director of Action Alerts PLUS, which own Starbucks shares.

General Electric (GE - Get Report) fell as orders declined in its jet-engine and oil-equiment businesses. The conglomerate is currently in the process of shedding lending to focus on its core industrials businesses. Industrial operating profit fell 3% to $2.9 billion over the quarter, while organic orders tumbled 7%.

GE is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells GE? Learn more now.

Caterpillar (CAT - Get Report) slipped after lowering its outlook on weaker demand for construction and mining equipment. The company expects full-year revenue no higher than $42 billion, at the midpoint of previous guidance between $40 billion and $44 billion.

McDonald's (MCD - Get Report)  had a better quarter, topping estimates thanks to a revenue boost from all-day breakfast sales in its first quarter. Same-store sales in the U.S. rose 5.4%, beating estimates of 4.4%.

Crude oil added to gains on Friday afternoon after the number of active U.S. crude rigs fell for the fifth week in a row. The number of crude rigs fell by 8 to 343, while the total number of active rigs, including gas, fell 9 to 431. West Texas Intermediate crude oil for June delivery added 1.4% to $43.77 a barrel.

U.S. manufacturing fell in April to its lowest since September 2009, according to the Markit flash manufacturing PMI. The measure slipped to a reading of 50.8 from 51.4 in March, below consensus of 52. Production volumes languished as new business growth slowed. Manufacturing employment was at its weakest since mid-2013.