U.S. stocks drop on Amazon, Visa earnings; Dow falls 0.72%
Published Jul 25, 2014 04:26PM ET
Stocks end lower on earnings, geopolitical concerns
Investing.com - Disappointing earnings from online retailer Amazon.com Inc (NASDAQ:AMZN) and credit card company Visa Inc (NYSE:V) sent broader stock indices falling on Friday in a selloff also fueled by fears that conflict in Ukraine and Gaza will drag on global recovery.
At the close of U.S. trading, the Dow 30 fell 0.72%, the S&P 500 index rose 0.48%, while the NASDAQ Composite index fell 0.50%.
The Volatility S&P 500 index, which measures the outlook for market volatility, was up 6.59% at 12.62.
Amazon.com Inc (NASDAQ:AMZN) reported a second-quarter loss of $126 million, which disappointed markets despite a 23% hike in revenue.
Visa Inc (NYSE:V), meanwhile, cut its full-year revenue forecast, which also bruised equities along with geopolitical concerns.
The Pentagon said earlier that Russia may be set to provide more sophisticated weapons to Ukrainian separatists, which spooked investors.
Israel, meanwhile, rejected calls for a ceasefire and continued its ground offensive in Gaza, with reports that Israel's defense ministry may widen the campaign rattling nerves even further, offsetting otherwise positive economic indicators.
The Census Bureau reported earlier that U.S. durable goods orders rose 0.7% in June, beating expectations for a 0.5% gain, after declining of 1% in May, whose figure was revised from a previously estimated 0.9% contraction.
Core durable goods orders, which are stripped of transportation items, grew 0.8% in June, beating expectations for a 0.6% gain, after a 0.1% downtick in May, whose figure was revised from a previously estimated flat reading.
The data came a day after the U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending July 19 declined by 19,000 to 284,000, defying market forecasts for claims to rise by 5,000.
Leading Dow Jones Industrial Average performers included Cisco Systems Inc (NASDAQ:CSCO), up 0.52%, Verizon Communications Inc (NYSE:VZ), up 0.46%, and McDonald's Corporation (NYSE:MCD), up 0.37%.
The Dow Jones Industrial Average's worst performers included Visa Inc (NYSE:V), down 3.73%, American Express Company (NYSE:AXP), down 1.34%, and UnitedHealth Group Incorporated (NYSE:UNH), down 1.17%.
European indices, meanwhile, ended the day lower.
After the close of European trade, the DJ Euro Stoxx 50 fell 1.49%, France's CAC 40 fell 1.82%, while Germany's DAX fell 1.53%. Meanwhile, in the U.K. the FTSE 100 fell 0.44%.
On Thursday the U.S. is to produce data on unemployment claims, manufacturing activity and new home sales.
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Written By: Investing.com
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