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Visa, others pull stock market lower

Trader Benedict Willis uses his cellphone as he

Trader Benedict Willis uses his cellphone as he works on the floor of the New York Stock Exchange on Wall Street on July 16, 2014. Photo Credit: AP / Richard Drew

Disappointing results at Visa and Amazon dragged on the stock market Friday, and put the Dow Jones industrial average on course for a weekly loss.

KEEPING SCORE: The Dow Jones industrial average lost 123.3 points, 0.72 percent, to 16,960.57 at the close of trading on Friday. The Standard & Poor's 500 index fell 9.64 points, or 0.48 percent, to 1,978.34. The tech-heavy Nasdaq composite dropped 22.54 points, or 0.50 percent, to 4,449.56.

For the week, the S&P 500 is flat and the Dow is off 0.8 percent.

MISSED: Amazon's stock slumped 9.65 percent after the online retail giant posted a much wider loss than analysts had forecast, hit by expenses. The Seattle-based company is focused on spending the money it makes to expand into new areas and products, including a smartphone, the Fire, which starts selling Friday. Amazon fell $34.60 to $324.01 on Friday and was the biggest decliner in the S&P 500 index.

NOT EVERYWHERE: Dow member Visa fell $7.97, or nearly 4 percent, to $214.77. The credit card processing giant reported an 11 percent rise in quarterly profit but cut its full-year forecast on concerns about growth overseas. Visa is a closely watched company because of its heavy exposure to U.S. and global consumer spending.

'COMPLACENCY': "I continue to see the level of complacency in the (stock) market to be unnerving," Scott Clemons, chief investment strategist at Brown Brothers Harriman, which manages $25 billion in assets for private investors. "All of this geopolitical tension, the market trading near all-time highs, I think the market is at a critical state right now."

Clemons said he doesn't believe the market is poised for a major sell-off, but instead thinks investors should brace for more volatility and more heavy-handed reaction to disappointing earnings or data, like Friday's Amazon and Visa results.

NEEDS A PICK-ME-UP: Starbucks fell $1.71, or 2.13 percent, to $78.74 despite the company reporting a profit that came in above analysts' expectations. The company also raised its full-year profit forecast.

BONDS AND OIL: The yield on the 10-year Treasury note eased to 2.47 percent from 2.50 percent late Thursday. Bond yields fall when prices rise. Benchmark U.S. crude oil was up 2 cents to $102.09 a barrel on the New York Mercantile Exchange.


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