U.S. stocks fell in early trading today, after the Standard & Poor’s 500 Index extended a record on Thursday, as earnings at Amazon.com Inc and Visa Inc. missed estimates and durable goods data fueled concern that corporate investment remains stop-and-go.
Amazon plunged 11 percent after trailing analysts’ predictions for the second successive quarter. Visa sank 4.4 percent after lowering its full-year revenue forecast. Pandora Media Inc. slid 13 percent after the number of active listeners reported by the biggest Internet radio service missed some analysts’ estimates. Baidu Inc. rose 7.8 percent after earnings topped projections.
The S&P 500 slipped 0.3 percent to 1,982.08 at 10:22 a.m. in New York. The Dow Jones industrial average lost 107.94 points, or 0.6 percent, to 16,975.86. Trading in S&P 500 stocks was 7.5 percent below the 30-day moving average at this time of day.
“The market is really looking at micro level numbers on a lot of these companies,” said Ian Kerrigan, global investment specialist at JP Morgan Private Bank in Seattle. “There is skepticism going into the weekend. We have a lot of important numbers coming out next week with GDP, inflation and jobs, so we might see some profit-taking today.”
The S&P 500 is heading for a second weekly gain as corporate earnings reports have boosted confidence in the economy and inflation data signaled the Federal Reserve won’t be compelled to raise interest rates in the near future. The Fed announces its next policy decision at the conclusion of a two- day meeting on Wednesday.
For more information, see The Buffalo News markets page.