Midday Report: Time Warner Spikes on AT&T Deal Talk; Microsoft Trades at Records

U.S. stocks turned mixed as Microsoft (MSFT) - Get Report pulled the Nasdaq higher and General Electric (GE) - Get Report dragged on the Dow Jones Industrial Average. A better-than-expected quarter from Microsoft pushed its shares to trade at new records. Time Warner (TWX) spiked on reports AT&T (T) - Get Report execs are in advanced talks to purchase the media company. A deal could be announced as soon as this weekend, according to the Dow Jones. Honeywell (HON) - Get Report reported a mixed quarter, topping earnings but falling short on sales. The company blamed surprise weakness in September and overall softness in its aerospace business. Honeywell expects earnings to grow by double digits in the current quarter.  PayPal (PYPL) - Get Report jumped as the number of active customer accounts drove an 18% increase in quarterly sales. The number of active accounts rose 11% over its third quarter. TheStreet's Keris Lahiff reports from Wall Street.