FOX Business: Capitalism Lives Here
Continue Reading Below
U.S. equity markets dropped on Friday, with the broad S&P 500 shedding its gains for the week, as traders fretted about turmoil in Eastern Europe.
The Dow Jones Industrial Average fell 140 points, or 0.85%, to 16361, the S&P 500 dipped 15.2 points, or 0.81%, to 1863 and the Nasdaq Composite slumped 72.8 points, or 1.8%, to 4076.
For the week, the Dow dropped 0.3%, the S&P 500 dipped 0.1% and the Nasdaq slumped 0.5%.
Wall Street had so far this week posted moderate gains, with the broad S&P 500 advancing about three quarters of one percent. However, sentiment took a hit on Friday.
Continue Reading Below
"Rallies in a skittish tape don't age well," said Michael Block, chief strategist at Rhino Trading Partners. Block cited "confusion" over mixed corporate earnings, along with issues striking new highs on stock-market averages.
Tension between Russia and Ukraine did little to settle Wall Street's mood. Standard & Poor's cut Russia's credit rating to "BBB-," while the country's central bank hiked interest rates by 0.5 percent. The move sparked a selloff in Russian markets that pervaded into Western European markets and then into U.S. stock-index futures, according to Peter Boockvar, chief market analyst at The Lindsey Group.
"The problem now though is the rhetoric and tension seems to be taking on a new level of height and concern," Boockvar said in an e-mail to clients.
In corporate news, software giant Microsoft (MSFT) posted better-than-expected quarterly results after the closing bell on Thursday. Fellow Dow component Visa (V) revealed results that narrowly topped estimates. Amazon.com (AMZN), the online retail behemoth, logged stronger-than-expected sales and profits that were in-line with estimates.
Ford (F), meanwhile, posted weaker-than-expected profits.
United Technologies (UTX), the industrial conglomerate, disclosed an investigation by the Securities and Exchange Commission into practices by non-employee sales representatives in China.
Elsewhere, U.S. crude oil futures fell 68 cents, or 0.66%, to $101.27 a barrel. Wholesale New York Harbor gasoline dipped 0.64% to $3.07 a gallon. Gold rose $10.20, or 0.79%, to $1,301 a troy ounce.