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Stocks sag following disappointing profit reports

Trader Kevin Lodewick works at the NYSE, Wednesday,

Trader Kevin Lodewick works at the NYSE, Wednesday, July 26, 2017. Credit: AP / Richard Drew

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.

The few companies that have fallen short of forecasts have seen their stock prices punished.

Amazon dropped 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.

Tobacco stocks were some of Friday’s worst performers after the U.S. government said it’s considering limiting the amount of nicotine in cigarettes so that they’re no longer addictive. Altria Group, which sells Marlboro and other cigarettes in the U.S., fell 9.5 percent to $66.94.

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