(by Geck Finn)

Stocks fell on Friday, investors worry about a corporate slowdown.It was the fifith consecutive week of losses for the Dow and the sixth for the S&P 500.

The Dow Jones Industrial Average fell 0.8 per cent to 9,962.22 by the close, putting it down 1.8 per cent for the week. The S&P 500 fell 1 per cent to 1,086.20, leaving it with losses of 1.4 per cent for the week. The Nasdaq dropped 2.1 per cent to 1,849.09 for a 1.8 per cent fall on the week.

Microsoft was one of many companies to offer strong second quarter figures. Online auctioneer eBay saw a 52 per cent increase in second quarter profits on strong sales, but a lower than expected forecast meant its shares slid 6.7 per cent to $75.01 on the week.

General Motors slid 1.5 per cent to $42.93 on the week in spite of its 49 per cent profits rise. Investors worried that its success, driven by its financial arm, could hardly last as rates begin to rise. McDonald’s saw a 25 per cent climb in its profits and the best sales growth in 17 years but slid 2.6 per cent to $27.08 on the week.

Coca-Cola also dented sentiment yesterday, falling 7.8 per cent to $45.17 as the soft drink company’s 16 per cent profits rise came largely on foreign exchange. Investors were also disappointed with the company’s slow volume growth. Shares were off 10.7 per cent for the week. Starbucks fared better because it had a rosy forecast to go with rosy results. Shares gained 1.9 per cent to $47.06 on the week after the coffee chain reported 44 per cent higher quarterly profits and raised its full year earnings target.

But upbeat forecasts were not a guarantee of success. Caterpillar, the construction equipment maker, reported a 38 per cent jump in profits and boosted its full-year outlook. But shares shed 5.9 per cent for the week to $73.22 after the company missed Wall Street estimates.

Amazon.com, the online retailer, sank quickly after it swung to a profit that was smaller than Wall Street had been expecting. The company raised full year forecasts but to a level shy of analysts’ expectations. Shares fell 15 per cent on the week to $39.98.

AT&T sank 5.1 per cent to $14.02 on the week after it reported an 80 per cent plunge in profits and said it would stop marketing to residential consumers, shifting its focus to businesses.

Elsewhere in telecoms, SBC Communications gained 4.8 per cent on the week to $24.22 after reporting the best revenue growth in both long-distance and data services in several quarters.