Stocks slide as Amazon, other companies detail virus fallout

Stocks closed broadly lower on Wall Street Friday after Amazon and other big companies reported disappointing results, the latest evidence of how the coronavirus pandemic is hobbling the economy and hurting corporate earnings.

A day after closing out its best month since 1987, the S&P 500 fell 2.8%. The slide gave the benchmark index its second-straight weekly loss.

The selling accelerated as the day went on, with energy stocks taking the biggest losses. Technology stocks and companies that rely on consumer spending accounted for a big slice of the decline.

Amazon sank 7.6% after it reported profit for the latest quarter that fell short of Wall Street’s forecasts. A sharp increase in costs related to providing deliveries safely during the pandemic outweighed a big increase in revenue. The retail giant’s movements have an outsized sway on the S&P 500 because it’s the third-largest company in the index.

“We all had these great expectations for Amazon,” said J.J. Kinahan, chief strategist with TD Ameritrade. “The stock ran up amazingly because we were expecting their earnings to be good.”

The S&P 500 gave up 81.72 points to close at 2,830.71. The Dow Jones Industrial Average fell 622.03 points, or 2.6%, at 23,723.69. At one point, the index was down 700 points.

The Nasdaq, which is heavily weighed with technology stocks, slid 284.60 points, or 3.2%, to 8,604.95. The Russell 2000 index of smaller company stocks fell more than the rest of the market, shedding 50.18 points, or 3.8%, to 1,260.48.