u.s. stocks fell friday, ending a week dominated by quarterly earnings reports. the s&p 500 and the nasdaq composite fell this past week, while the dow jones industrial average posted a slight gain. the losses coincided with a selloff in government bonds that pushed yields to their highest levels in five months. the dow industrials fell 8.49 points, or less than 0.1%, to 18161.19 on friday, and the nasdaq composite lost 25.87 points, or 0.5%, to 5190.10. government bonds stabilized after two days of sharp price declines. the yield on 10-year u.s. treasury note edged higher friday to 1.847%<u+2014>its highest yield since may 27. stocks pulled back from earlier gains after the federal bureau of investigation said it was reviewing new evidence in connection with its investigation of democratic presidential candidate hillary clinton <u+2019>s email server. some of the initial selling was likely triggered by algorithmic trading platforms that analyze news headlines for certain words or phrases, mark them as negative or positive, and buy and sell stocks or bonds accordingly, some traders said. the s&p 500 was up 0.2% shortly before the news, then quickly reversed those gains and ended down 6.63 points, or 0.3%, at 2126.41. gold for november delivery rose 0.6% to $1,275.50 an ounce. investors and traders have said the market is susceptible to shifts in expectations about who will win the u.s. presidential election. <u+201c>the next week before the election will keep the market on edge,<u+201d> said kenny polcari, director of equities at o<u+2019>neil securities, adding that he expects more surprises that could swing stocks. earlier friday, stocks were rising after the commerce department said gross domestic product expanded at an inflation- and seasonally adjusted 2.9% annual rate in the third quarter, exceeding the second quarter<u+2019>s pace of 1.4%. but disappointing quarterly results from some u.s. companies pressured shares, capping a busy week of earnings . more than half of s&p 500 companies have reported so far. mckesson shares tumbled $36.39, or 23%, to $124.11 after the health-care giant on thursday cut its profit outlook for the year. it was the lowest close for the stock since 2013, and its biggest one-day percentage decline since 1999. amgen fell 15.39, or 9.6%, to 145.18 as the drugmaker on thursday reported a drop in sales of its cancer-care drug neupogen, which started facing competition late last year. health-care stocks were the worst performers in the s&p 500, falling 2.2%. the shares of amazon.com dropped 42.04, or 5.1%, to 776.32 after the online retail giant late thursday posted its lowest quarterly profit in a year . it was the stock<u+2019>s biggest one-day percentage decline since february. despite friday<u+2019>s declines, the earnings season is shaping up to be better than analysts<u+2019> downbeat expectations. <u+201c>overall, the mini earnings recession is coming to an end,<u+201d> said chris jeffery, an asset-allocation strategist at legal & general investment management. <u+201c>that<u+2019>s largely about the energy and materials sectors coming out of their slump,<u+201d> he added. in europe, anheuser-busch inbev, the world<u+2019>s largest brewer, lowered its revenue forecast , sending its shares down 4.3%. the stoxx europe 600 slipped 0.3%, losing 1% for the week. japan<u+2019>s nikkei stock average rose 0.6% friday and 1.5% for the week. <u+2014>sam goldfarb contributed to this article. write to corrie driebusch at corrie.driebusch@wsj.com and christopher whittall at christopher.whittall@wsj.com
u.s. stocks drop; treasurys stabilize - wsj
corrie driebusch christopher whittall