(RTTNews) -  Stocks declined by sizable margins on Friday, despite a number of upbeat corporate earnings releases and positive indicators on the health of the housing market. An increase in the value of the U.S. dollar may have generated some of the selling pressure.

With the losses on the day, the major averages all closed modestly lower for the week following two consecutive weeks of gains. The S&P 500 fell 0.7 percent for the week, while the Dow and the Nasdaq posted more modest weekly losses of 0.2 percent and 0.1 percent, respectively.

The weakness in the markets came despite the release of some positive earnings news, with cautious remarks from some companies offsetting the upbeat sentiment generated by the release of better than expected results from companies like Microsoft (MSFT) and Amazon (AMZN).

Stocks finished the day lower even though American Express (AXP), Honeywell (HON), Whirlpool (WHR), and Broadcom (BRCM) largely beat estimates.

In economic news, existing home sales increased by much more than expected in the month of September, according to a report released by the National Association of Realtors, with first-time home buyers driving sales up to their highest level in over two years.

Existing home sales jumped 9.4 percent to an annual rate of 5.57 million units in September from a 5.10 million unit rate in August. Economists had been expecting a more modest increase to a 5.35 million unit rate.
Additionally, Federal Reserve Chairman Ben Bernanke said this morning that policymakers must now take action to implement programs that will limit the severity of future economic crises.

While gains by Microsoft and Amazon limited the downside for the Nasdaq, the major averages all closed firmly in negative territory. The Dow closed down by 109.13 points or 1.1 percent at 9,972.18, the Nasdaq fell by 10.82 points or 0.5 percent to 2,154.47 and the S&P 500 finished down by 13.31 points or 1.2 percent at 1,079.60.

In overseas trading, the major Asian markets ended Friday's session on the upside, with Japan's benchmark Nikkei 225 Index edging up by 0.2 percent while Hong Kong's Hang Seng Index rose by 1.7 percent.

Meanwhile, the major European markets closed on a mixed note, with the U.K.'s FTSE 100 climbing by 0.7 percent, while the German DAX Index and the French CAC 40 Index fell by 0.4 percent and 0.3 percent, respectively.

In the bond markets, treasuries closed notably lower on the day. The yield on the benchmark ten-year note, which moves opposite of its price, finished at 3.475 percent, posting a gain of 5.4 basis points.

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