By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market moved lower on
Friday, weighed down by disappointing reports from companies such
as Amazon.com and a cut in Visa Inc's outlook.
Nonetheless, the main benchmarks were on track to finish the
week with marginal gains.
Stock-market investors showed virtually no reaction to
stronger-than-expected orders for durable goods, released before
the opening bell.
The S&P 500 (SPX) was 5 points, or 0.3%, lower at 1,982.55,
retreating from the record close reached on Thursday. The benchmark
index was set to record a slight gain for the week.
The Dow Jones Industrial Average (DJI) lost 102 points, or 0.6%,
to 16,981.73, weighed down by losses in Visa inc. The blue-chip
index was on track to record a weekly loss.
The Nasdaq Composite (RIXF) shed 18 points, or 0.4%, to
4,453.82, weighed down by Amazon.com and Pandora, both tumbling
more than 10%. The tech-heavy index still looked to book weekly
gains.
Follow MarketWatch's live blog of today's stock-market
action.
"Today's action is all earnings-related. At this point, markets
are not paying much attention to economic news," said Kate Warne,
investment strategist at Edward Jones.
"Investors pay attention to guidance from companies, and the
lowering of the outlook from Visa signalled that perhaps the second
half is not going to be as strong as previously thought," Warne
added.
Investors were disappointed with Amazon.com(AMZN) and a
wider-than-expected second-quarter loss late Thursday. Shares
plunged 12%. Also read: Is Amazon spending like a drunken
sailor?
Pandora Media(P) dived 14%, after the Internet-based radio
company posted wider losses late Thursday.
Shares in Visa Inc. (V) dropped 4.8% as the credit-card company
trimmed its forecast for annual revenue growth.
Fast-food chain El Pollo Loco(LOCO) surged 28% to $19.10 on
debut, after pricing shares at $15, the top of the range.
Cynk Technology (CYNK) plunged more than 80%, after trading in
the stock resumed following the suspension by the SEC earlier this
month.
For more on notable movers, read our Movers & Shakers
column.
In the day's sole economic news, orders for durable goods such
as computers, aircraft and heavy machinery rose a solid 0.7% in
June, offering a sign of a general upswing in business
spending.
Next week has the potential to be big for economic news, with a
Federal Open Market Committee meeting and the monthly jobs report
topping a long list of data on the docket.
Some analysts said markets could make slow progress on Friday,
given investors may be nervous about the potential for more
geopolitical tensions from Russia or Gaza through the weekend.
Read: U.S. says Russian artillery firing into Ukraine.
Naeem Aslam, chief market analyst at AvaTrade, said U.S. indexes
have started to show signs of divergence.
"Technically speaking, when indexes have a divergence between
them, it is an early sign of correction, and under the situation
when one index is moving up and the rest moving in the opposite
direction, it is like smoke coming out before the fire," said Aslam
in emailed comments.
European stocks drifted into the red on Friday, with German
stocks under pressure after weaker-than-expected German Ifo
business sentiment data. The blue-chip MICEX in Russia fell 1.4%.
Russia's central bank hiked interest rates on Friday, citing
geopolitical tensions and the potential impact on the ruble and
rising inflation as reasons. The European Commission submitted
proposals on new sanctions for Russia linked to the Ukraine crisis
on Thursday.
In Asia, the Nikkei 225 index rallied more than 1% on Friday to
the highest settlement in six months, as the yen weakened and
domestic inflation data met market expectations. China's Shanghai
Composite also put on a strong performance, up 1.1%.
Crude oil (CLU4) was flat, and gold (GCU4) was slightly higher.
The euro (EURUSD) fell against the dollar after the weak German Ifo
data.
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