Stocks fall as firms post weak earnings
Stocks logged their biggest drop in two weeks Thursday as investors assessed some disappointing earnings news.
Harman International, which makes audio systems for cars, and Yelp, an online listings company, were among the companies that fell sharply after posting weak earnings.
The stock market has sagged this week after climbing to record levels Friday.
The Standard & Poor’s 500 index fell 21.34 points, or 1%, 2,085.51. That was the biggest drop since April 17. The Dow Jones industrial average declined 195.01 points, or 1.1%, to 17,840.52. The Nasdaq composite decreased 82.22 points, or 1.6%, to 4,941.42.
Yelp was among the biggest losers Thursday. The stock plunged $11.89, or 23%, to $38.39 after it reported a loss of $1.3 million in its first quarter and gave a lowerthan-expected revenue outlook. Yelp said the number of visitors to its desktop site fell as more users browsed on smartphones and tablets.
Harman International also dropped after reporting earnings that fell short of analysts’ estimates and lowered its own forecast for revenue and earnings. The company blamed the impact of the appreciating dollar and weaker growth. Its stock fell $9.82, or 7%, to $130.38.
The bond market steadied after a sell-off Wednesday. The yield on the 10-year government Treasury note held at 2.04%. The yield on the note has been moving higher after dropping as low as 1.65% in January.
Oil rose nearly 2% Thursday and finished April with a gain of more than 20%. U.S. oil gained $1.05, or 1.8%, to $59.63 a barrel. Brent crude rose 94 cents to $66.78 a barrel. Analysts say recent reports showing fewer rigs drilling for oil in the U.S. and supplies leveling off are supporting higher prices.
In metals trading, gold dropped $27.60, or 3.3%, to $1,182.40 an ounce. Silver fell 54.6 cents, or 3.3%, to $16.12 an ounce. The price of copper rose 9.2 cents, or 3.3%, to $2.89 per pound.
The euro rose to $1.1240 from $1.1114 the day before. The dollar increased to 119.35 yen from 119.01 yen.