* Amazon and Microsoft rally after results, lifting Nasdaq
* UPS sees boost in holiday volume, shares hit record high
* Major indexes on track to end week higher
* Indexes up: Dow 0.1 pct, S&P 0.2 pct, Nasdaq 0.2 pct
By Ryan Vlastelica
NEW YORK, Oct 25 (Reuters) - U.S. stocks edged up on Friday
with technology shares leading the gains on strong results,
though the market's rally appeared to be running out of steam
with indexes near all-time highs.
The S&P 500 has gained 23 percent so far this year, just shy
of the 23.5 percent jump it posted in 2009. Surpassing the 2009
record would give the index its biggest annual gain in a decade.
The benchmark is on track for its third-straight week of gains.
Microsoft Corp was the leading point gainer on the
Dow, Nasdaq and S&P 500 as profit and revenue reported late
Thursday exceeded expectations, sending shares up 5.5 percent to
$35.59. Amazon.com posted its largest daily gain since
April 2012 after the online retailer reported
stronger-than-expected sales growth. Shares jumped 8.3 percent
to $359.74 after hitting a record $368.40.
"We've been positive on Microsoft for a while, but I can't
remember the last time I saw it move up this much after
earnings. It is very positive, and helping to boost the overall
tape today," said Douglas DePietro, managing director at
Evercore Partners in New York.
"Still, the market has been getting tired lately. While I
believe we'll see another leg up soon, it isn't out of the
question that we would need to consolidate near all-time highs."
The Dow Jones industrial average was up 28.28 points,
or 0.18 percent, at 15,537.49. The Standard & Poor's 500 Index
was up 3.27 points, or 0.19 percent, at 1,755.34. The
Nasdaq Composite Index was up 7.55 points, or 0.19
percent, at 3,936.51.
For the week thus far, the Dow is up 0.9 percent, the S&P is
up 0.6 percent and the Nasdaq is up 0.6 percent. It is the third
straight week of gains for both the Dow and S&P, while the
Nasdaq has climbed in seven of the past eight weeks, up almost
10 percent over that period.
Much of those advances have come on expectations the Federal
Reserve will continue its $85 billion a month bond-purchase
program for several months, likely providing a floor for stock
prices into 2014.
Among other earnings, United Parcel Service's stock
hit a record at $96.94 after UPS posted a bigger quarterly
profit and said it expects online sales to boost holiday volume.
Shares came off highs and were up 0.2 percent to $94.68.
Zynga said it expects a full-year profit after
reporting better-than-expected third-quarter results due to
cost-cutting and a renewed focus on mobile games and core
franchises. Shares jumped 11 percent to $3.91.
With 49 percent of S&P 500 companies having reported, 68.7
percent have topped profit expectations, a beat rate above the
historical average of 63 percent. However, only 54.2 percent
have beaten revenue expectations, below the long-term average of
Dow component DuPont jumped to the highest in more
than 13 years a day after announcing it will spin off its
titanium dioxide unit within 18 months, yielding to pressure
from Wall Street to divest the volatile business. Shares rose
0.2 percent to $61.53.
New orders for long-lasting U.S. manufactured goods outside
of transportation equipment fell in September, possibly due to
uncertainty over government spending, while a surge in aircraft
orders helped boost durable goods orders by 3.7 percent last
month, more than expected.
U.S. consumer sentiment dropped in October to its lowest
level since the end of last year as consumers worried
congressional dysfunction and the resulting partial federal
government shutdown would hurt growth.
In other data the Commerce Department said wholesale
inventories rose 0.5 percent in August, the biggest increase
since January. The government also said inventories rose more
than initially estimated in July.