U.S. STOCKS FELL ON FRIDAY AFTER A DISAPPOINTING PROFIT FORECAST FROM NO. 1 SOFTWARE MAKER MICROSOFT CORP. OUTWEIGHED NEWS THAT SHOWED THE U.S. ECONOMY GREW BRISKLY IN THE FIRST QUARTER, ACCORDING TO REUTERS. SHARES OF MICROSOFT SUFFERED THEIR BIGGEST ONE-DAY SLIDE SINCE DECEMBER 2000, HELPING TO PUSH THE NASDAQ DOWN MORE THAN 1 PERCENT DURING THE SESSION. MICROSOFT ALSO WAS THE HEAVIEST WEIGHT ON BOTH THE DOW INDUSTRIALS AND THE S&P 500. RISING OIL PRICES LIFTED THE ENERGY SECTOR WHILE SHARES OF THE BIGGEST U.S. BANKS ROSE ON THE BELIEF THEY MAY BE UNDERVALUED ON THE HEELS OF NEW ECONOMIC DATA AND SEVERAL ANALYSTS' UPGRADES. BOTH SECTORS BOOSTED THE S&P 500. U.S. GROSS DOMESTIC PRODUCT GREW AT AN ANNUAL RATE OF 4.8 PERCENT IN THE FIRST QUARTER, THE STRONGEST IN 2 1/2 YEARS, THE GOVERNMENT SAID. PRICES ROSE LESS RAPIDLY THAN IN THE FOURTH QUARTER, CALMING INFLATION WORRIES. "GENERALLY, THE GDP REPORT WAS FRIENDLY ON A LONGER-TERM BASIS," SAID RICHARD SKAGGS, A PORTFOLIO MANAGER WITH LOOMIS SAYLES IN BOSTON. BUT HE ADDED THAT "MICROSOFT REALLY SURPRISED PEOPLE BY GUIDING DOWN FOR THE JUNE QUARTER." THE DOW JONES INDUSTRIAL AVERAGE WAS DOWN 22.01 POINTS, OR 0.19 PERCENT, AT 11,360.50. THE STANDARD & POOR'S 500 INDEX WAS UNCHANGED AT 1,309.72. THE NASDAQ COMPOSITE INDEX WAS DOWN 23.86 POINTS, OR 1.02 PERCENT, AT 2,321.09. --MORE 2338 Local Time 2038 GMT
