(RTTNews) - Stocks are showing some weakness in morning trading on Friday, as investors look over a plethora of corporate data. While disappointing quarterly results from Google (GOOD) and Microsoft (MSFT) is weighing on the markets, some positive data from Citigroup (C) has helped to keep selling pressure muted.

After the markets closed on Thursday, Google and Microsoft announced their quarterly results. Google delivered lower than expected earnings for the second quarter, raising concerns over the impact of the slowing U.S. economy on its ad sales. Microsoft also announced disappointing fourth quarter results while forecasting first quarter earnings below analysts’ current consensus estimate and cut its earnings outlook for fiscal year 2009.

Meanwhile, a much narrower than expected quarterly loss from Citigroup has helped to keep the selling pressure in check. The nation’s largest bank reported a loss of $2.50 billion in its second quarter after the nation’s biggest banking firm wrote down $7.2 billion, as credit costs continued to rise. However, the loss per share was narrower than Wall Street forecast.

The major averages have moved well off of their session lows, in recent trading, although the Nasdaq continues to underperform the Dow and the S&P 500, due to the declines from Google and Microsoft. The Dow is currently down 26.71 at 11,419.95, the Nasdaq is down 34.23 at 2,278.07 and the S&P 500 is down 4.35 at 1,255.97.

Sector News

Airline stocks are turning in some of the worst performances, as the price of oil rises more than $2 a barrel. The airline sector has seen notable gains in the past several sessions following a sharp drop in oil. The Amex Airline Index is down 1.9 percent, pulling back from a monthly closing high set on Thursday.

Within in the airline sector, Continental Airlines (CAL) and AMR Corp (AMR) are seeing some of the biggest declines. Continental is down 4.9 percent, compared to a 2.5 percent decline from AMR.

Brokerage stocks are also seeing significant selling pressure after Merrill Lynch (MER) reported a steep second quarter loss. Merrill Lynch is down 2.3 percent, contributing to a 0.9 percent decline in the Amex Securities Broker/Dealer Index.

Despite some positive news from Citigroup, bank stocks are sharply lower as well. The S&P Bank Index is falling 0.9 percent, reversing a portion of the gain posted in the previous session.

Other stocks that are seeing notable losses include semiconductor, housing and internet stocks. The Philadelphia Semiconductor Index is down 2.2 percent, the Philadelphia Housing Index is down 0.9 percent and the Amex Internet Index is down 1.7 percent.

On the other hand, oil service stocks are posting substantial gains, boosted by the rise in oil prices. The Philadelphia Oil Service Index is climbing 3 percent, reversing the losses posted in the previous two sessions.

Stocks Driven By Analysts Comments

Among individual stocks, Huntington Bancshares (HBAN) is seeing significant selling pressure after a Fox Pitt analyst downgraded the regional bank. The analyst downgraded the stock to an In Line rating from an Outperform rating. The stock is down 9.5 percent, reversing a portion of the gain posted in the previous session.

On Thursday, Huntington said its second quarter earnings rose 26 percent to $0.25 per share. Analysts were looking for a profit of $0.23 per share. At the same time, the bank revised its 2008 earnings forecast to between $1.25 to $1.35 per share, down from a range of $1.45 to $1.50.

TD Ameritrade (AMTD) is also posting a substantial loss after a BMO Capital Markets analyst downgraded the stock to a Market Perform rating. The downgrade comes after the discount brokerage firm reported third quarter earnings in the previous session. The stock is down 3.9 percent, pulling back from a monthly high set on Thursday.

On the other hand, Verasun Energy (VSE) was upgraded at UBS. The analyst upgraded the stock to a Buy rating from a Neutral rating. The stock is currently trading 13.9 percent higher, adding to gains posted in the previous four sessions. With the gain, the Verasun Energy set a monthly high earlier in the day.

Other Markets

Stock markets across the Asia-Pacific region closed mixed on Friday on the back of some disappointing earnings. The Japanese stock market closed lower, paring early gains and reversing a two-day winning streak. The benchmark Nikkei 225 index closed down 0.7 percent.

Meanwhile, after showing weakness for most of the morning session, the major European markets have moved back into positive territory. The French CAC 40 Index and the German DAX Index are advancing 0.8 percent and 1.3 percent, respectively, while the U.K.’s FTSE 100 Index is gaining 1.1 percent.

Treasuries have moved to the upside after seeing earlier weakness. Subsequently, the yield on the benchmark ten-year note is currently down 3.5 basis points at 4.003 percent.

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Posted in Categories: Economy, Eurozone, Japan, Releases, USA.

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