Market Snapshot November 20, 2009, 4:25PM EST

Stocks Slip on Dell Earnings

A disappointing report from Dell, along with a bigger than expected loss at homebuilder D.R. Horton, weighed on equity indexes Friday

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U.S. stock indexes closed lower Friday after late-day bargain hunting failed to lift the market out of an earlier slump led by weakness in technology, energy and homebuilding issues.

Disappointing earnings from PC giant Dell Inc. (DELL) and home builder D.R. Horton (DHI) led to selling among technology and homebuilding stocks, respectively. Energy issues sank along with crude oil futures.

Sentiment was also hurt by comments from European Central Bank President Jean-Claude Trichet indicating a willingness to remove stimulus measures.

Trading was sluggish amid talk about an equities correction after the market's lengthy rally, says S&P MarketScope.

On Friday, the 30-stock Dow Jones industrial average finished lower by 14.28 points, or 0.14%, at 10,318.16. The broad Standard & Poor's 500-stock index was down 3.53 points, or 0.32%, at 1,091.37. The tech-heavy Nasdaq composite index lost 10.78 points, or 0.50%, to 2,146.04.

On the New York Stock Exchange, 19 stocks were lower in price for every 11 that advanced. Breadth on the Nasdaq was 16-10 negative.

Recent underperformance in small-cap stocks suggests "an investor shift into high-quality stocks such as bellwether blue chip names may be taking place," says S&P technical analyst Chris Burba.

J.P. Morgan Securities raised its year-end target on the Standard & Poor's 500 index to 1160 from 1100, to reflect its higher 2010 earnings expectations. The brokerage also said that improvement in payrolls, stabilization in home prices, and greater M&A in 2009 versus 2008 could act as potential catalysts and push the index higher.

Treasuries were lower Friday afternoon. The 10-year note was lower in price at 100-03/32 for a yield of 3.371%, while the 30-year bond was off at 101-07/32 for a yield of 4.305%.

The U.S. dollar index was up 0.34 to 75.63 in what was seen as a short squeeze, according to S&P MarketScope. While Federal Reserve officials have not expressed concern over a weak dollar, traders fear a future inflation outbreak due to huge government debt, says S&P.

December gold futures, which fell at the outset Friday as the dollar index rose, were up $6.90 to $1,148.80 per ounce.

December West Texas Intermediate crude oil futures were lower at $76.73 per barrel.

Global stock markets on Friday took cues from Wall Street's negative performance in Thursday's session. In London, the FTSE 100 index was lower by 0.31%. The CAC 40 index in Paris fell 0.82%. Germany's DAX index declined 0.68%.

Japan's Nikkei 225 index finished lower by 0.54%. Hong Kong's Hang Seng index fell 0.83%. Shanghai's benchmark index shed 0.37%.

Brown Brothers Harriman currency strategist Marc Chandler said Friday that financial markets "appear reluctant to take on new risk with equities and commodities softer and most foreign currencies lower against the US dollar and Japanese yen."

There were no significant economic reports released Friday.

Traders remain worried about a weak economic recovery and a "double dip" recession. Economic report slated for the first three days of next week could offer further clues to the health of the recovery, including October existing home sales and durable goods orders, November consumer confidence, and revised third-quarter U.S. gross domestic product.