NEW YORK: US stocks Friday slumped after a dim earnings outlook from Amazon sparked a big retreat in tech stocks and as world leaders signaled growing worry over Ukraine.
The Dow Jones Industrial Average dropped 140.19 points (0.85 percent) to 16,361.46, while the broad-based S&P 500 lost 15.21 (0.81 percent) at 1,863.40.
The tech-rich Nasdaq Composite Index suffered the deepest losses of the three indices, plummeting 72.78 (1.75 percent) to 4,075.56.Amazon sank nearly 10 percent after reporting a skimpy outlook for profit margins and projecting a second-quarter operating loss of $455-$55 million.
"What you see today is a continuation of the trend of the high-growth stocks struggling and Amazon is the poster child for that today," said David Levy, portfolio manager for Kenjol Capital Management.
Other trendy tech names to see big drops included Facebook (-5.2 percent), LinkedIn (-7.8 percent), Priceline (-4.9 percent) and Netflix (-6.4 percent).
Investors are also keeping a close eye on Ukraine as military activity rises and rhetoric becomes more heated. On Friday, Ukraine ratcheted up military operations against pro-Russian rebels in the east.
Ukrainian Prime Minister Arseniy Yatsenyuk said Russia´s actions suggested it "wants to start a third world war.
"Following a conference call with other leaders, German Chancellor Angela Merkel announced that European Union ministers would meet soon to agree new sanctions targeting Russia.
Ford Motor reported weaker first-quarter sales in its key North America market amid severe winter weather, notching a 39 percent drop in earnings that missed expectations.
Shares fell 3.3 percent.
Dow member Visa said profits rose 20.5 percent to $1.6 billion. But analysts at Citigroup noted the credit and debit card company lowered the range of its estimate for the upper range on revenue growth to 11 percent from 13 percent. Shares fell 5.0 percent.
Investors pummelled Pandora Media after it reported a loss of $38.7 million and forecast second-quarter revenue below analyst forecasts. "The big worry is that Pandora´s growth is stalling," according to Motley Fool. Shares sank 16.6 percent.
Oil-services company Weatherford International bolted 11.2 percent higher after announcing a series of measures to trim costs. The company plans to cut 6,600 jobs, close 20 underperforming operating locations and divest assets. Bond prices rose. The yield on the 10-year US Treasury fell to 2.67 percent from 2.69 percent Thursday, while the 30-year dropped to 3.44 percent from 3.46 percent. Bond prices and yields move inversely. (AFP)
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