Stocks Move Lower On Disappointing Earnings News

Stocks are seeing modest weakness in morning trading on Friday following the mixed performance seen in the previous session. The major averages have all moved to the downside, with the Nasdaq and the S&P 500 pulling back further off their record highs.

Currently, the major averages remain in negative territory. The Dow is down 10.16 points or 0.1 percent at 21,786.39, the Nasdaq is down 27.41 points or 0.4 percent at 6,354.77 and the S&P 500 is down 9.10 points or 0.4 percent at 2,466.32.

The weakness on Wall Street partly reflects a negative reaction to the latest batch of earnings news, including disappointing results from Amazon (AMZN).

Shares of Amazon are moving to the downside in morning trading after the online retail giant reported second quarter earnings that came in below analyst estimates.

Energy giant Exxon Mobil (XOM) also reported second quarter earnings that came in below expectations despite better than expected revenues.

Shares of Mattel (MAT) have also come under pressure after the toy maker reported a wider than expected second quarter loss on weaker than expected sales.

On the other hand, semiconductor giant Intel (INTC) has moved to the upside after reporting second quarter results that beat analyst estimates on both the top and bottom lines.

Concerns about the latest developments in Washington are also weighing on the markets after Republicans failed in their latest attempt to repeal Obamacare.

The so-called “skinny repeal” failed by a vote of 49 to 51, with three Republican Senators joining with Democrats to stop the bill.

In U.S. economic news, the Commerce Department released a report showing that economic activity increased in line with economist estimates in the second quarter.

The report said real gross domestic product climbed by 2.6 percent in the second quarter after rising by a downwardly revised 1.2 percent in the first quarter.

Economists had expected GDP to increase by 2.6 percent in the second quarter compared to the 1.4 percent growth…

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