U.S. stocks were little changed Friday as disappointing earnings from McDonald's Corp. offset better-than-expected results from Microsoft Corp. The Iraq elections on Sunday and the Federal Reserve's decision on interest rates next week also loomed over the market, strategists said. Also in the spotlight were Procter & Gamble Co. and Gillette Co. P&G said it would buy Gillette for about $57 billion in stock to form a consumer products powerhouse. Gillette rose 13 percent to $51.58, while P&G shares slid 2.2 percent to $54.10, weighing on the Dow. Microsoft, the world's largest software maker, on Thursday reported that its quarterly profit doubled on stronger demand for personal computers and video games as well as lower costs. Excluding stock-based compensation, Microsoft's earnings were higher than Wall Street estimates. Its shares were up 1.3 percent at $26.46. McDonald's Corp. dropped 2 percent to $31.48 after the world's largest restaurant company reported quarterly profit below analyst expectations. --More 1952 Local Time 1652 GMT
