Market Snapshot October 23, 2009, 4:35PM EST

Stocks End Week on a Down Note

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Microsoft's reported third-quarter earnings per share of 40 cents, above expectations of 32 cents, while revenues fell to $12.92 billion, above analysts' consensus estimate of $12.31 billion. Net income of $3.57 billion declined 18% from a year ago. The software giant attributed its relatively strong performance to reducing operating expenses and keeping a tight grip on costs.

The launch of Microsoft's Windows 7 operating system on Thursday to positive reviews, along with blowout earnings from Amazon.com (AMZN) provided some support to the tech sector. But a slide in Broadcom (BRCM) tempered tech investors' enthusiasm.

Profits at manufacturer Honeywell International (HON) sank 15%, though they were above Wall Street forecasts, while Ingersoll-Rand (IR) profits declined as well.

In economic news Friday, U.S. existing home sales jumped 9.4% in September to a 5.57 million-unit annual rate, (the highest since July 2007) from a downwardly revised 5.09 million in August (was 5.10 million). Single family sales were up 9.4% to a 4.89 million pace, rebounding from the 2.9% slide in August. Condo/coop sales climbed 9.7% to a 0.68 mln clip. The months' supply of homes shrunk to 7.8 (the lowest in 30 months) from 9.3 (revised from 8.5 previously). The median price fell to $174,900 in September from a revised $177,300 in August (was $177,700). That's down 8.5% yera-over-year.

"The data are much better than expected, and probably boosted by anticipation of the end of the first time homebuyer tax credit at the end of next month," says Action Economics.

Bernanke's prepared remarks Friday didn't touch on monetary policy or the economy, but stayed on the regulation topic. He said the Fed and regulators must improve their performance, adding regulators need more tools to help curb systemic risks. He also implored Congress to close regulatory gaps, especially on the "too big to fail" problem. Financial firms should face "robust" oversight, and the financial industry should bear the costs to shut firms, not taxpayers.

Britain's failure to escape the worst recession since World War II may force the Bank of England to increase its bond-purchase plan next month, economists said. Seven months after Governor Mervyn King's central bank started a 175 billion-pound ($287 billion) program to rescue the economy, the Office for National Statistics said today gross domestic product unexpectedly shrank 0.4% in the third quarter. None of the 33 economists surveyed by Bloomberg predicted a contraction. Britain is still mired in recession even after pledges of about one trillion pounds in stimulus and banking aid from the Bank of England and Prime Minister Gordon Brown.

Among other stocks in the news Friday, Honeywell International () posts third-quarter earnings per share (EPS) of 80 cents, vs. 97 cents EPS one year earlier, a on 17% revenue decline. Wall Street was looking for EPS of 72 cents.

American Express (AXP) posted third-quarter EPS from contiuing operations of 54 cetns, vs. 74 cents EPS one year earlier, on 16% lower total revenue. Excluding a non-recurring benefit associated with the company's accounting for net investment in consolidated foreign subsidiaries, adjusted EPS from continuing operations were 44 cents. wall Street was looking for 38 cents EPS.

Whirlpool (WHR) posted third-quarter EPS of $1.15, vs. $2.15 EPS one year earlier, on an 8% revenue decline. Wall Street was looking for EPS of 77 cents.

Burlington Northern Santa Fe (BNI) reported third-quarter EPS of $1.42 (including a 6-cent gain), vs. $1.99 EPS one year earlier, on a 27% revenue drop.