* Durable goods data better than expected
* Visa and Amazon latest major names to disappoint
* El Pollo Loco rallies in trading debut
* Indexes down: Dow 0.8 pct, S&P 0.5 pct, Nasdaq 0.5 pct
(Updates to afternoon trading)
By Ryan Vlastelica
NEW YORK, July 25 U.S. stocks fell on Friday in
a broad consumer discretionary-led selloff after Visa and
Amazon, a pair of closely watched bellwether names, reported
Earnings season has largely come in better than expected,
with more companies than usual beating analyst expectations for
both profits and revenue. However, there have been high-profile
disappointments including Boeing Co and Caterpillar Inc
earlier this week.
Amazon.com Inc tumbled 10.3 percent to $320.70 in
its biggest one-day decline since January after reporting an
unexpectedly wide second-quarter loss, citing greater expenses
on investments. The stock was the S&P 500's biggest decliner,
and almost 15 million shares traded hands, many times its 50-day
average of 3.6 million.
The online retailer dragged on the consumer discretionary
sector, which lost 1.1 percent.
Visa Inc was the Dow's largest decliner, down 3.8
percent to $214.25 after the world's largest credit and debit
card company cut its revenue forecast for the year.
As the costliest stock in the price-weighted
index, Visa accounted for more than half the Dow's drop.
"The earnings season overall has been in-line, but when
companies with rich valuations disappoint, you're going to get
crucified," said Lawrence Glazer, managing partner at Mayflower
Advisors in Boston. "Amazon and Visa are significant components
of the overall market and bellwethers of their respective
industries. That gives you pause."
Only two of the 10 primary S&P 500 industry sectors were
positive on the day, while more than 60 percent of stocks traded
on both the New York Stock Exchange and the Nasdaq fell.
The Dow Jones industrial average fell 133.96 points
or 0.78 percent, to 16,949.84, the S&P 500 lost 9.82
points or 0.49 percent, to 1,978.16 and the Nasdaq Composite
dropped 23.65 points or 0.53 percent, to 4,448.46.
For the week, the Dow is down 0.9 percent, the S&P is flat
and the Nasdaq is up 0.4 percent and on track for its second
straight weekly rise.
The market did not 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 11.5 percent to $25.40 after it
forecast adjusted profit below analysts' estimates for the
On the upside, Baidu was up 10 percent to $224.71.
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.
El Pollo Loco Holdings Inc shares surged 52 percent
to $22.77 in their trading debut after the company's initial
public offering was priced at the high end of an expected range.
(Editing by Nick Zieminski)