* Dow, S&P 500 on track for first negative week in five
* Expedia sheds more than 25 percent after results
* Zynga won't pursue real-money gaming, shares tumble
* Dow down 0.3 pct, S&P 500 off 0.2 pct, Nasdaq off 0.03 pct
By Alison Griswold
NEW YORK, July 26 U.S. stocks dipped on Friday,
putting the Dow and the S&P 500 on pace for their first negative
week in five ahead of a data-packed week and the conclusion of a
With three trading days left in the month, the Dow and the
S&P 500 are set to post their best month since January. The
Nasdaq's advance makes July so far the best month in a year and
Seven of the 10 S&P 500 industry sectors declined and 21 of
the 30 Dow components were also down. Drew Nordlicht, managing
director and partner at HighTower San Diego in San Diego,
pointed to the broad downturn as evidence of profit-taking.
"Traders are booking in profits, knowing that next week
you're going to have some significant data that could dictate a
large move in all asset prices to the upside or downside," he
"Next week couldn't be a more pivotal, economically-packed
The busy calendar includes the advanced GDP report for the
second quarter, the July non-farm payrolls report and a meeting
of the Federal Open Market Committee.
Investors will scrutinize the FOMC policy statement for any
additional clues about the Federal Reserve's intended timeline
for scaling back its massive monetary stimulus.
The Dow Jones Industrial Average was down 51.15
points, or 0.33 percent, at 15,504.46. The Standard & Poor's 500
Index fell 4.04 points, or 0.24 percent, at 1,686.21, and
the Nasdaq Composite Index lost 1.26 points, or 0.03
percent, at 3,603.93.
Expedia ranked among the most active names traded
on the Nasdaq. Shares of the online travel agency plunged 25.5
percent to $48.41 a day after it reported a quarterly profit far
short of market estimates.
Starbucks gave the biggest boost to the S&P 500 a
day after the world's biggest coffee chain reported a
bigger-than-expected jump in quarterly profit. Shares of the
company rose 6.7 percent to $72.76
Halfway through earnings season, 67.6 percent of S&P 500
companies have beaten analysts' expectations - in line with the
67 percent average beat in the last four quarters.
About 56 percent of the companies have beaten revenue
expectations, more than the 48 percent of revenue beats in the
past four earnings seasons, but below the historical average.
The S&P 500 is facing resistance at the 1,700 level.
For the week, the S&P 500 is down about 0.36 percent. But
the benchmark index is up 5 percent so far in July, its best
month since January.
The Dow is down about 0.26 percent for the week. For July,
the Dow is up 4 percent.
The Nasdaq is up 5.9 percent in July so far, its best
monthly gain in a year and half. For the week, the Nasdaq is up
about 0.47 percent.
Zynga Inc shares plunged 14.9 percent to $2.98 a
day after the company announced it will largely abandon plans
for real-money gaming in the United States.
Amazon shares turned higher despite a forecast that
disappointed on income and revenue. The stock rose 3 percent to
$312.62, a rebound from a session low at $295.55. Earlier on
Friday, Amazon's stock hit a 52-week high of $313.62. UBS raised
its price target on the stock to $305 from $275.
Vivendi plans to sell the bulk of its stake in
Activision Blizzard Inc to the video game maker and its
management for $8.2 billion in the French conglomerate's second
blockbuster deal in a week. Activision shares surged 14.5
percent to $17.38.