Stocks sag fol­low­ing dis­ap­point­ing profit re­ports

The Denver Post - - BUSINESS - By Stan Choe

Stock mar­kets around the world sagged on Fri­day af­ter Ama­zon and other big com­pa­nies re­ported quar­terly re­sults that un­der­whelmed in­vestors.

The Stan­dard & Poor’s 500 in­dex lost 3.32 points, or 0.1 per­cent, to 2,472.10 and closed a week packed with cor­po­rate earn­ings re­ports al­most ex­actly where it started. It set a record dur­ing the mid­dle of it.

The Dow Jones in­dus­trial av­er­age gained 33.76 points, or 0.2 per­cent, to 21,830.31 and set an­other all-time high. The Nas­daq com­pos­ite fell 7.51, or 0.1 per­cent, to 6,374.68.

A lit­tle more than half the com­pa­nies in the S&P 500 have now shown how much profit they made dur­ing the spring, and the re­sults have been mostly en­cour­ag­ing. Earn­ings for the in­dex are on pace to be about 9 per­cent higher than a year ear­lier, ac­cord­ing to Fac­tSet.

Ama­zon dropped $25.96, or 2.5 per­cent, to $1,020.04 af­ter its profit missed ex­pec­ta­tions. Its fore­cast for op­er­at­ing in­come this fis­cal year was also be­low many an­a­lysts’ fore­casts, though rev­enue for the lat­est quar­ter beat ex­pec­ta­tions.

Earn­ings re­ports were the main fo­cus for mar­kets dur­ing a busy week, where the Fed­eral Re­serve also de­cided on Wed­nes­day to hold in­ter­est rates steady and the govern­ment on Fri­day gave an up­date on the econ­omy’s health.

The econ­omy grew at an an­nual rate of 2.6 per­cent in the sec­ond quar­ter, revved up by a rise in con­sumer spend­ing, the Com­merce Depart­ment re­ported. Last quar­ter’s growth rate was more than dou­ble that of the year’s first quar­ter, which was re­vised down to 1.2 per­cent. The faster growth, though, was still a shade be­low the 2.7 per­cent that economists ex­pected.

Al­tria Group, which sells Marl­boro and other cig­a­rettes in the U.S., fell $7.02, or 9.5 per­cent to $66.94.

Star­bucks fell $5.50, or 9.2 per­cent, to $54.00 af­ter it low­ered its fore­cast for earn­ings this fis­cal year, and Goodyear Tire & Rub­ber sank $2.97, or 8.4 per­cent, to $32.51 af­ter it gave a fore­cast for 2017 op­er­at­ing in­come that fell short of an­a­lysts’ ex­pec­ta­tions.

The price of oil capped off its best week since early De­cem­ber with an­other gain. Bench­mark U.S. crude rose 67 cents to set­tle at $49.71 per barrel and touched its high­est level since May. Oil gained nearly 9 per­cent over the week.

Brent crude, the in­ter­na­tional stan­dard, gained $1.03 to $53.53 a barrel Fri­day. Nat­u­ral gas fell 3 cents to $2.94 per 1,000 cu­bic feet.

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