U.S stocks end mixed on Fed outlook, earnings misses; Dow dips 0.03%

U.S. stocks ended mixed on Friday, buoyed by hopes that U.S. monetary policy will remain accommodative for the long term, though disappointing earnings out of the technology sector dampened the session.

At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.03%, the S&P 500 index rose 0.16%, while the Nasdaq Composite index fell 0.66%.

Stocks inched higher on sentiments that U.S. monetary policy will remain loose long after the Federal Reserve winds down its monthly USD85 billion asset-purchasing program, which lowers interest rates to spur recovery, sending stocks gaining as a result.

Fed Chairman Ben Bernanke told U.S. lawmakers in his semi-annual congressional testimony this week that monthly asset purchases will remain in place for the foreseeable future though they may begin to wind down later this year if the economy improves.

Still, the top U.S. central banker stressed that an end to stimulus programs does not mean tighter monetary policy such as hikes to benchmark interest rates will quickly follow suit, which was bullish for stocks Friday.

Disappointing earnings from tech giants Google and Microsoft dampened gains, though better-than-earnings at General Electric offset those losses somewhat.

Leading Dow Jones Industrial Average performers included General Electric, up 4.66%, Johnson & Johnson, up 2.31%, and Pfizer, up 2.18%.

The Dow Jones Industrial Average's worst performers included Microsoft, down 11.48%, Hewlett-Packard, down 4.63%, and IBM, down 2.26%.

European indices, meanwhile, finished lower.

After the close of European trade, the EURO STOXX 50 fell 0.07%, France's CAC 40 fell 0.06%, while Germany's DAX 30 finished down 0.07%. Meanwhile, in the U.K. the FTSE 100 finished down 0.06%.