Wall Street lower on earnings; Amazon weighs on Nasdaq

US stocks fell on Friday as a number of bellwether names, including Amazon and Ford, fell following their quarterly results, overshadowing positive numbers from Microsoft. Despite the decline on the day, the S&P 500 is on track for its second straight week of gains and it is 1.4 per cent away from its all-time high. Investors also continued to pay attention to intensifying geopolitical strife after Ukrainian forces killed up to five pro-Moscow rebels and Russia launched army drills near the border. The actions raised fears Russian troops would invade. Separately, local police said seven people were injured overnight at a pro-Ukrainian checkpoint near the Black Sea port of Odessa when an explosive device blew up. While the situation has taken a backseat to corporate earnings in recent weeks, investors remain on edge over what the potential fallout could be from any prolonged tension. Visa Inc late Thursday said US sanctions on Russia were hurting its card transaction volumes. Shares fell 4.4 per cent to $200.25. "Ukraine is starting to weigh on the market after being ignored for so long. I don't think it will be a long-lasting issue, and it creates opportunities in the oil and gas space, but we were overbought yesterday, so it is another reason for investors to take profits," said Chris Bertelsen, chief investment officer of Global Financial Private Capital in Sarasota, Florida. Amazon fell 9 per cent to $306.80 after posting a jump in revenue, offset by sharp increases in spending. Ford Motor Co fell 2.9 per cent to $15.85 after first-quarter earnings missed expectations, hurt by higher warranty costs in North America. On the upside, Microsoft Corp's earnings topped analyst forecasts, while investors were cheered by the software giant's new emphasis on mobile and cloud computing. Shares rose 1.5 per cent to $40.46. "I appreciate the growth side of Amazon, but this is a reaction to the fact that you can only go so long without growing profits," said Mr Bertelsen, who helps oversee $3.5 billion in assets. "Still, older tech like Microsoft still looks cheap." The Dow Jones industrial average was down 91.09 points, or 0.55 per cent, at 16,410.56. The Standard & Poor's 500 was down 7.10 points, or 0.38 per cent, at 1,871.51. The Nasdaq Composite was down 37.72 points, or 0.91 per cent, at 4,110.62. While companies are clearing a lowered bar for earnings, estimates have been improving. Profits are now seen rising 2.9 per cent this quarter, down from the 6.5 per cent growth rate estimated at the start of the year, but above the low of 0.6 per cent seen last week, according to Thomson Reuters data. Healthcare names were among the day's biggest gainers after LifePoint Hospitals Inc reported results. The stock rose 4.6 per cent to $55.95 while Tenet Healthcare was up 5 per cent at $44.38 and Community Health was up 4.1 per cent at $38.96. In the latest economic data, US consumer sentiment rose more than expected in April, moving to a nine-month high, according to the Thomson Reuters/University of Michigan index. But the US services sector expanded at a slower rate as job creation decelerated. Copyright @ Thomson Reuters 2014

Wall Street lower on earnings; Amazon weighs on Nasdaq

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