Stocks edge lower as some earnings disappoint; oil rises

NEW YORK (Reuters) - Stock markets fell worldwide on Friday as results from some big U.S. companies disappointed and tobacco shares dropped, while oil prices had their biggest weekly percentage rise this year.

Altria Group (MO.N) fell 9.5 percent and was the biggest drag on the S&P 500, while U.S.-listed shares of British American Tobacco (BATS.L) (BTI.N) dropped 7 percent, after the U.S. Food and Drug Administration said it aims to reduce nicotine levels in cigarettes while exploring measures to shift smokers towards e-cigarettes.

"It's going to take some time to play out, but those names all moved" on the news, said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

Amazon's (AMZN.O) stock fell after the world's largest online retailer reported late Thursday a jump in retail sales along with a profit slump. Results from Exxon Mobil (XOM.N) and Starbucks (SBUX.O) also disappointed.

Despite Friday's share reactions, second-quarter results have come in mostly better than expected, and stocks are trading near record highs.

The Dow Jones Industrial Average .DJI rose 33.76 points, or 0.15 percent, to close at 21,830.31, the S&P 500 .SPX lost 3.32 points, or 0.13 percent, to 2,472.1 and the Nasdaq Composite .IXIC dropped 7.51 points, or 0.12 percent, to 6,374.68.

MSCI's 47-country All World share index .MIWD00000PUS was down 0.2 percent, while the European STOXX 600 index was down 1 percent.

Oil prices rose, extending this week's strong rally built on news that key OPEC members pledged to reduce exports and bigger-than-expected U.S. inventory drawdowns.

Morgan Stanley, RBC, others settle currency rigging lawsuit in U.S.

NEW YORK (Reuters) - Morgan Stanley (MS.N), Royal Bank of Canada (RY.TO) and three other banks agreed to pay a combined $111.2 million to settle U.S. litigation accusing them of rigging prices in the roughly $5 trillion-a-day foreign exchange market.

The preliminary settlements were detailed in filings late Friday in the U.S. District Court in Manhattan, and require a judge's approval.

Fourteen of the 16 banks that were sued have settled, for a total payout of $2.12 billion, court papers show.

Friday's settlements include $50 million for Morgan Stanley, $15.5 million for RBC, $18 million for Societe Generale (SOGN.PA), $17.2 million for Standard Chartered Plc (STAN.L) and $10.5 million for Bank of Tokyo-Mitsubishi UFJ (8306.T).

The banks denied wrongdoing. Their settlements were reached with help from Kenneth Feinberg, a mediation specialist who previously oversaw funds to compensate victims of the Sept. 11, 2001, attacks and the 2010 Gulf of Mexico oil spill.