U.S. Stocks Fall, Dollar Weakens After Growth Data: Markets Wrap

(Bloomberg) -- Most U.S. stocks fell amid disappointing earnings that have rattled technology shares, while the dollar weakened and gold climbed after data showed the American economy expanding at a slower-than-expected pace.

The S&P 500 Index ended the busiest week of earnings virtually unchanged from where it began, while the Nasdaq 100 Index fell in the five days as tech results failed to lift the high-flying sector. Chevron Corp. was the latest blue chip to rally on earnings, pushing the Dow Jones Industrial Average to a 1.2 percent gain in the week. The dollar fell against all most G-10 peers, while Treasury yields retreated as the rate of inflation slowed last quarter. Oil capped the best week of the year.

While the U.S. economy rebounded in the second quarter, results for the first three months of the year showed the economy had slightly more tepid growth than previously reported. Before Friday's selloff, signs of economic recovery had boosted stocks in the U.S. and globally to records. Technology shares have led the charge, with companies in the sector soaring 22 percent this year for the best performance among 11 groups in the S&P 500.

“With Amazon's earnings falling short of estimates, the U.S. market may readjust its expectations,” said Hideyuki Ishiguro, a senior strategist at Daiwa Securities Co. in Tokyo. “Investors are becoming increasingly wary over the historically low volatility levels, with a host of key economic data coming out in the U.S.”

Terminal clients can read more on our Markets Live blog.

Here are the main moves in markets:

Stocks 

• The S&P 500 Index fell 0.1 percent to 2,472.08 as of 4 p.m. in New York, 0.46 point lower for the week.
• Amazon.com Inc. lost 2.3 percent, while Starbucks Corp. fell 9.3 percent.
• Tobacco shares retreated after U.S. regulators proposed cutting nicotine levels in cigarettes. Altria Group Inc. tumbled 9.4 percent to lead declines in tobacco shares.
• The Stoxx Europe 600 Index declined 1.1 percent, the lowest in almost 14 weeks.
• Germany's DAX Index fell 0.5 percent.

Currencies

• The Bloomberg Dollar Spot Index declined 0.4 percent.
• The euro increased 0.6 percent to $1.1748.
• The British pound advanced 0.5 percent to $1.3135, the strongest since September.
• The Japanese yen gained 0.4 percent to 111.79 per dollar, the strongest in almost six weeks.

Bonds

• The yield on 10-year Treasuries fell two basis points to 2.29 percent.
• Germany's 10-year yield climbed one basis point to 0.54 percent.
• Britain's 10-year yield advanced two basis points to 1.218 percent.

Commodities

• West Texas Intermediate crude climbed 1.3 percent to settle at $49.71, the highest in eight weeks with its fifth straight advance. The contract surged 8.6 percent in the week.
• Copper rallied 5.3 percent the five days, the most since February.
• Gold futures climbed 0.7 percent to $1,274.80 an ounce, the strongest in six weeks.

Asia

• The MSCI Asia Pacific Index dropped 0.6 percent, erasing its gain for the week. Tech shares in the gauge fell 1.5 percent.
• South Korea's Kospi index slumped 1.7 percent, the most since November, with Samsung tumbling 4.1 percent. Hong Kong's Hang Seng Index lost 0.5 percent, with Tencent dropping 0.9 percent.
• Benchmark indexes in Australia, Taiwan and Singapore were down more than 0.7 percent. The Shanghai Composite Index rose 0.1 percent.
• Japan's Topix index fell 0.4 percent. Data on Friday showed that while household spending in Japan rose 2.3 percent, its first gain in more than a year, Japan's key price gauge was unchanged in June.

--With assistance from Samuel Potter and Robert Brand

To contact the reporter on this story: Jeremy Herron in New York at jherron8@bloomberg.net.

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Jeremy Herron