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NEW YORK (CNNMoney) -- Stocks were mixed in early trading Friday, with the Dow industrials dragged lower by shares of Caterpillar, after the industrial conglomerate reported disappointing earnings.
Investors were also on edge over the latest moves (or lack thereof) on the U.S. debt ceiling, as well as Greece's debt woes.
The Dow Jones industrial average (INDU) lost 44 points, or 0.3%; the S&P 500 (SPX) shed 3 points, or 0.2%; while the Nasdaq Composite (COMP) rose 5 points, or 0.2%.
Shares of Caterpillar (CAT, Fortune 500) sank more than 6%, making the construction equipment maker the weakest member of Dow and the third-worst performer on the S&P 500. Caterpillar's earnings fell short of forecasts.
Caterpillar's disappointing report dragged other equipment manufacturers lower as well, including shares of Deere (DE, Fortune 500), Cummins (CMI, Fortune 500) and Joy Global (JOYG).
"There were pretty high expectations for Caterpillar heading into its earnings this season," said Anthony Conroy, head trader with BNY ConvergEx. "Despite their miss, I'm still optimistic for this earnings season."
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Friday's early weakness comes a day after U.S. stocks surged, following news that European leaders reached an agreement to contain Greece's debt crisis.The aid package, which officials said will cover all of Greece's financing needs, involves lowering interest rates and extending the payback period on existing loans to Greece from the EU and International Monetary Fund.
"The outlook for both the U.S. and Europe is clearly getting better but it's not over yet," Conroy said.
Companies: General Electric (GE, Fortune 500) reported operating earnings of $3.7 billion or 34 cents per share -- a jump of 17% from the year-ago quarter. Shares rose 1%.
CoinStar (CSTR) shares dropped 6%, after the head of the company's RedBox unit unexpectedly resigned on Friday. Coinstar makes the bulk of its profits from RedBox.
Shares of Verizon (VZ, Fortune 500) fell 2.7%, after the company announced it didn't sell as many iPhones as anticipated, despite reporting stronger-than-expected earnings. The company reported quarterly earnings per share of 57 cents, topping analyst estimates by 2 cents.
Former Dow member Honeywell (HON, Fortune 500) beat analyst estimates with second-quarter earnings of $1.02 per share. The company reported revenue of $9.1 billion, excluding $234 million from a newly discontinued operation. Shares fell about 3% in early trading.
Sandisk (SNDK, Fortune 500) shares shares jumped 9%, following the company reporting better-than-expected earnings and revenue, while also raising its full-year guidance.
Shares of AMD (AMD, Fortune 500) jumped 14% on Friday, after the company said it expected revenues to rise faster than previously forecasted. The company also posted a profit of 9 cents a share, beating analysts expectations by a penny.
McDonald's (MCD, Fortune 500) reported earnings of $1.35 per share, compared to $1.13 in year-ago quarter. Shares rose 3% in early trading.
World markets: European stocks were mixed in afternoon trading. Britain's FTSE 100 climbed 0.1% and France's CAC 40 gained 0.2%, while the DAX in Germany fell 0.2%.
Asian markets ended the session higher. The Shanghai Composite ticked up 0.2%, the Hang Seng in Hong Kong rallied 2.1% and Japan's Nikkei increased 1.22%.
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Currencies and commodities: The dollar strengthened against the euro and British pound, but weakened against the Japanese yen.Oil for September delivery slipped one cent to $99.07 a barrel.
Gold futures for August delivery rose $14.90 to $1,601.90 an ounce.
Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 2.98% from 3.01% late Thursday.
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