Nasdaq falls on weak Google, Microsoft; Dow edges up

The tech-dominated Nasdaq index tumbled early Friday after shares of Microsoft and Google parent Alphabet sank on disappointing earnings, but the Dow managed a small opening gain.

About five minutes into trade, the Dow Jones Industrial Average was at 18,000.32, up 17.80 points (0.10 percent).

The broad-based S&P 500 dipped 1.05 (0.05 percent) to 2,090.43, while the tech-rich Nasdaq Composite Index sank 29.76 (0.60 percent) to 5,916.13.

Alphabet lost 3.5 percent after reporting earnings per share that lagged analyst expectations by 46 cents, while Microsoft tumbled 6.6 percent as it reported a 25 percent plunge in quarterly profits to $3.8 billion.

Other top companies with disappointing results included American Airlines, Caterpillar, Starbucks and Visa.

Briefing.com analyst Patrick O'Hare suggested in a note that Wall Street is viewing the results with rose-tinted glasses.

"Weak earnings + weak economic data = higher stock prices," O'Hare said.

"That has been the prevailing equation, but only because this market has been doing trigonometry, focusing on the tangential thought that everything is going to be much better in the second half of the year."