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NEW YORK – Stock wavered Friday after a report on economic growth did little to reassure investors about the health of the economy.

The Dow Jones industrial average fell about 20 points in midday trading.

Gross domestic product, the broadest measure of the nation's economy, grew at a 2 percent annual pace in the third quarter. That was in line with economists' expectations and only slightly better than the 1.7 percent growth rate during the second quarter.

Signs of meager growth come as investors grow more cautious heading into next week's midterm elections and are uncertain about the size of economic stimulus measures the Federal Reserve is expected to announce next week.

Normally such slow GDP growth would have driven stocks much lower. But signs of weak economic expansion provide further support for the Fed's anticipated stimulus plan.

"Because GDP was so lackluster, we don't see the Fed pumping the brakes" on its plan, said Tony Zabiegala, a partner at Strategic Wealth Partners.

Stocks rose sharply during the first half of October as expectations mounted that the Fed would start buying Treasury bonds to drive interest rates lower. That, in turn, is supposed to spark spending and lending. In recent days, however, the size of the bond-buying program has been questioned, putting a market rally on hold.

John Apruzzese, a partner and portfolio manager at Evercore Wealth Management, said reaction in anticipation in the program is typical of the market.

"This is a classic situation where all the market movement is done in anticipation," Apruzzese said.

The market could be stuck in a holding pattern until the Fed wraps up its meeting Wednesday where it is expected to announce details about the bond-buying program.

A day before the Fed completes its meeting, voters will head to the polls for the midterm elections. Traders have been betting that Republicans will at least take control of the House of Representatives, which could slow government action.

Analysts say uncertainty over tax issues and potential costs from health care and financial regulation reform bills have been major reasons employers have been hesitant to start hiring new workers. The results of the election should provide more clarity about those questions.

With so many people unsure about their jobs, they have cut back on their spending, which accounts for the biggest piece of the nation's economy. While the latest GDP report showed a rise in consumer spending, its still well below pre-recession levels.

The Dow rose fell 19.19, or 0.2 percent, to 11,094.61 in midday trading.

The Standard & Poor's 500 index fell 1.99, or 0.2 percent, to 1,181.79, while the Nasdaq composite index rose 2.38, or 0.1 percent, to 2,509.75.

Bond prices rose slightly following the GDP report. The yield on the benchmark 10-year Treasury note fell to 2.62 percent from 2.66 percent late Thursday.

Another batch of earnings news came in mixed. Microsoft Corp. rose after reporting higher income late Thursday, while Merck & Co. and Chevron Corp. fell following disappointing results. Merck was hurt by disappointing revenue figures, while Chevron fell short of earnings forecast after charges tied to foreign exchange.

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