* Durable goods data better than expected
* Amazon shares tumble after larger-than-expected loss
* Baidu jumps as net profit soars
* Indexes down: Dow 0.75 pct, S&P 0.47 pct, Nasdaq 0.58 pct
(Updates prices, adds to comment)
By Rodrigo Campos
NEW YORK, July 25 Disappointing earnings from
Amazon and Visa dragged U.S. stocks lower in afternoon trading
on Friday in a broad selloff led by consumer discretionary
Amazon tumbled 10.3 percent to $320.70 after reporting an
unexpectedly big loss for the second quarter, citing greater
expenses on investments. With more than 7 million shares
changing hands in the first 45 minutes of trading, volume was
already above the average for the past 10 days.
"Earnings have been the driving force of this market all
week. We had a series of good reports but Amazon in particular
was a disappointment and has led to some profit taking," said
Rick Meckler, president of investment firm LibertyView Capital
Management in Jersey City, New Jersey.
Amazon dragged on the consumer discretionary sector
, which lost 1.1 percent.
Visa was the largest decliner on the Dow index, with a
4.2 percent drop to $213.32 after the world's largest credit and
debit card company cut its revenue forecast for the year.
The blue-chip index was down nearly 130 points, and Visa -
the costliest stock in the price-weighted index - accounted for
more than half the drop.
"Consumer demand continues to be problematic for most
companies," said Meckler. "They've managed to adjust to it
through cost savings but at this level in the market you will
need a more robust consumer demand to keep the rally going."
The Dow Jones industrial average fell 128.61 points
or 0.75 percent, to 16,955.19, the S&P 500 lost 9.25
points or 0.47 percent, to 1,978.73 and the Nasdaq Composite
dropped 26.13 points or 0.58 percent, to 4,445.97.
The market didn't react to data showing orders for
long-lasting U.S. manufactured goods rose more than expected in
June, supporting hopes for a strong economic rebound in the
Starbucks fell 2.1 percent to $78.76 even as
quarterly sales at established stores in its Americas region
grew a stronger-than-expected 6 percent.
Pandora Media dropped 13.4 percent to $24.87 after it
forecast adjusted profit below analysts' estimates for the
On the upside, Baidu shares surged 8.7 percent to
$222.00 after China's biggest Internet search company blew past
Wall Street's targets with a 34.1 percent jump in quarterly net
profit, helped by a surge in mobile revenue.
(Editing by Bernadette Baum)