Among earnings, Oracle slipped as analysts worried over a slowdown in tech spending, even after the business-software maker posted higher than expected results. Meanwhile, Canaccord raised its price target on the firm to $38.
Micron plunged to lead the S&P laggards after the chipmaker posted quarterly results below Wall Street expectations and warned of low visibility in a weak consumer PC market. In addition, at least six brokerages cut their price targets on the firm. Rivals Nvidia and Taiwan Semi were also lower.
Meanwhile, Accenture gained after the tech outsourcing firm posted a profit that beat estimates and raised its earnings forecast.
Pfizer and Pain Therapeutics declined after the FDA rejected the pharma giants' painkiller Remoxy.
Williams made an unsolicited $4.9 billion cash bidfor Southern Union after-the-bell Thursday topping the pipeline company's $4.1 billion stock deal with rival Energy Transfer Equity .
Comcast climbed after Goldman Sachs added the parent company of CNBC to its "conviction buy" list.
Oil prices were mixedwith U.S. light, sweet crude near $91 a barrel, while London Brent crude traded below $107. Oil tumbled after the IEA announced the release of 60 million barrels of government-held stocks over the next 30 days.
IEA Executive Director Nobuo Tanaka told CNBC that the agency is ready to release more oil and that it sometimes "had to bite."
Airlines gave back the previous session's gains with Delta and United Continental sliding more than 7 percent each. United Continental warned about second-quarter revenues and UBS cut its price on the airline giant to $36 from $39.
The Russell indexes are scheduled to rebalance, which is expected to increase trading volume near the end of the session. Russell rebalancing happens typically on the last Friday of June every year.
On the economic front, durable goods rose more than expected in May as bookings for transportation equipment rebounded strongly.
Meanwhile, GDP was revised modestly higher to 1.9 percent in the first quarter, according to the Commerce Department, up from the previously estimated 1.8 percent, in line with expectations.
“This is very much like last year when we had the slow patch,” according to Scott Brown, Chief Economist at Raymond James, adding that the economy will avoid going through a doubled-dip, but growth is still likely to be very slow.
In the second half of the year, Brown expects gasoline prices to pare back and bank lending to increase to small businesses, which will be favorable for consumers.
European shares closed lower for the eight week amid uncertainties over Greece's debt crisis and after shares in two Italian bank shares fell sharply.
Coming Up Next Week:
MONDAY: Personal income & spending, Fed's Kocherlakota speaks, Fed's Hoenig speaks, 2-yr note auction; Earnings from Nike
TUESDAY: S&P Case-Shiller home price index, consumer confidence, 5-yr note auction, IMF board to select new chief
WEDNESDAY: Weekly mortgage apps, pending home sales index, oil inventories, 7-yr note auction, farm prices, Dell analyst meeting, Fed meeting on card fees; Earnings from Family Dollar, General Mills, KB Home, Monsanto
THURSDAY: Weekly jobless claims, Fed's Bullard speaks, Chicago PMI, End of QE2, Marathon Oil split takes place
FRIDAY: Consumer sentiment, ISM mfg index, construction spending, Biden's deadline for deficit plan, HP launches TouchPad, auto sales
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