Global stocks and euro pressured by German data, U.S. results

Fri Jul 25, 2014 5:31pm EDT
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By Caroline Valetkevitch

NEW YORK (Reuters) - Some disappointing U.S. earnings, including, and weak German economic data pressured world stock markets on Friday, while the euro hit an eight-month low against the U.S. dollar.

Amazon was the biggest drag on the S&P 500. Its shares sank 9.6 percent to $324.01 a day after the online retailer reported an unexpectedly big loss for the second quarter. Visa's results also disappointed and its shares ended down 3.6 percent at $214.77.

"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.

Signs emerged that tensions between the West and Russia are starting to hurt confidence in Germany, Europe's largest economy and the driver of its recovery. Germany's Ifo survey showed a hefty fall in business confidence over the last few weeks, prompting concerns Germany could be stuttering.

MSCI's All-World Index was down 0.4 percent, and European stocks ended 0.7 percent lower.

The Dow Jones industrial average fell 123.23 points or 0.72 percent, to 16,960.57. The S&P 500 lost 9.64 points or 0.48 percent, to 1,978.34, after closing at record highs for two straight days.

The Nasdaq Composite dropped 22.54 points or 0.5 percent, to 4,449.56.

Goldman Sachs (GS.N: Quote) downgraded its global allocation to equities to neutral on a short-term basis although the brokerage remained overweight stocks for the longer term.   Continued...

Traders work on the floor of the New York Stock Exchange July 21, 2014. REUTERS/Brendan McDermid