US stocks retreated, with the Standard $ Poor’s 500 Index reversing a weekly gain as firms such as Amazon and Visa posted disappointing results and tensions in Ukraine deteriorated.
Amazon.com fell 9.1% after forecasting an operating loss in the second quarter. Visa lost 3.8% after its revenue fell below analysts’ estimates. Microsoft Corp added 0.5% as profits surpassed estimates. Ford Motor Co. declined 3.1% after reporting below-estimates earnings.
The S&P 500 plunged 0.7% to 1,865.09 as of 11:46 am in New York, according to Bloomberg. The Dow Jones Industrial Average slipped 133.94 points or 0.8%, to 16,381.27. Visa is the most dominant player in the Dow index.
The volume of stocks traded at the S&P 500 was 6.4% above the 30-day average.
Tom Stringfellow of Frost Investment Advisors LLC in San Antonio said that activities of Russian troops along the Ukraine border were sufficient events to make investors throughout Europe worried.
“The great earnings surprises from some of the big tech stocks haven’t quite been enough to bring down the wall of worry. We’ve become sensitive to having too many days of gains, and eventually there has to be a move down,” he added.
Investors paid attention to geopolitical events on Friday after John Kerry, US Secretary of State, told Russia President Vladimir Putin that time was not his side as tension in Ukraine escalated. Kerry warned that Russia would be making a costly blunder by deviating from an agreement reached in Geneva a week ago.
On Thursday, Russia commenced new military exercises along Ukraine’s border.
In the meantime, German Chancellor Angela Markel said new sanctions against Russia are being prepared by the Group of Seven countries.
But as Reuters report, there were some winners today, with healthcare firms leading gains. LifePoint Hospitals Inc advanced 4.6% to $55.95. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Jonathan Millet at email@example.com