Closing Bell: Stocks End Slightly Higher After Weak Earnings, Early Losses

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Richard Drew/AP
Stocks managed to end in positive territory, but just barely, on a Friday filled with mixed earnings news.

The Dow Jones industrial average (^DJI) added just 3.22 points, or 0.02 percent, to end at 15,558.83, while the Standard & Poor's 500 (^GSPC) edged up 1.40 points, or 0.08 percent, to 1,691.65. The Nasdaq Composite index (^IXIC) rose 7.98 points, or 0.22 percent, to close at 3,613.16.

Amazon (AMZN) rose 2.84 percent, despite reporting a surprise quarterly loss after the market close on Thursday. Wall Street had expected a profit of five cents per share but got a loss of two cents per share instead. Revenue was hurt by warehouse expansions and spending on video streaming, but the $15.70 billion figure was at least close to estimates. Amazon gained $8.61 to $312.01.

Among big losers, Expedia (EXPE) plunged 27.4 percent, the worst fall in the S&P 500. The online travel site Thursday reported earnings that badly missed analyst expectations; higher costs were the main culprit. Shares of Expedia lost $17.80 to $47.20.

Before markets opened, Newmont Mining (NEM) reported a quarterly loss, largely a result of slumping prices for copper and gold. Analysts had predicted a slight profit. Newmont's stock still rose 40 cents, or 1.34 percent, to $30.33.

Starbucks (SBUX) posted results late Thursday that beat analyst estimates. Lower costs for coffee beans and better sales of salads and sandwiches helped. Starbucks jumped $5.17, or 7.6 percent, to $73.34.

In economic news, consumers are feeling more upbeat about the economy than they have in six years, according to data from the University of Michigan. The latest survey of overall consumer sentiment in July climbed to 85.1 from 84.1 in June, topping expectations.

More Stocks in the News:
  • Zynga (ZNGA) investors cashed in their shares after the maker of FarmVille and other online games said it was dropping its plans to pursue online casino-style games in the U.S. Shares lost 49 cents, or 13.9 percent, to $3.02. On Thursday, the San Francisco company said in its second-quarter earnings report that it had trimmed its losses.
  • Shares of Verisign (VRSN) rose $1.36, or 2.96 percent, to $47.29 after the Web domain-name registration company posted better-than-expected results for its second quarter and raised its revenue outlook. Verisign said it benefited from increased demand during the period and now expects annual revenue of as much as $92 million this year.
  • Tyco International's (TYC) adjusted net income topped Wall Street expectations, the first third-quarter financial report since it split into three entities last year. The Swiss security and fire-detection systems company reported adjusted net income of 50 cents a share, topping analyst forecasts of 48 cents a share, according to FactSet. Its stock lost 57 cents, or 1.61 percent, to $34.59.
  • Federal air safety regulators are seeking more than $2.7 million in fines from Boeing (BA) for quality control lapses in parts used in the 777 aircraft. The Federal Aviation Administration says in a statement Friday that Boeing discovered nearly five years ago it had been installing fasteners on the airplanes that didn't meet FAA safety standards. Boeing vowed to fix the problem but repeatedly missed deadlines to do so, the agency said. Boeing ended Friday's trading down $1.12, or 1.05 percent, to $105.58.
  • Shares of Halliburton (HAL) rose after the energy company agreed to settle a federal investigation into allegations it destroyed evidence connected to the 2010 Gulf oil spill and said it will buy back more than $3 billion in stock. Shares rose $1.65, or 3.72 percent, to $45.99.
  • Lumber company Weyerhaeuser (WY) said that its second-quarter net income more than doubled as it benefited from an improving housing market. But the stock fell 34 cents, or 1.17 percent, to $28.80, after it predicted a smaller third-quarter profit in its biggest segment, wood products, because of rising expenses and lower selling prices for some products.
What to Watch Monday:
  • The National Association of Realtors releases its pending home sales index for June at 10 a.m. Eastern time.
These companies are scheduled to report quarterly corporate earnings:
  • Caesars Entertainment Corp. (CZR)
  • Hertz Global Holdings Inc. (HTZ)
  • Loews Corp. (L)
-Compiled from staff and wire reports.

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dopey.obamite

Good night fellow welfare slugs! Time to go watch a michael moore movie!

YES WE CAN! YES WE CAN!

July 27 2013 at 11:40 PM Report abuse rate up rate down Reply
dopey.obamite

And on the 8th day, lord obama created the food stamp.

July 27 2013 at 11:21 PM Report abuse +1 rate up rate down Reply
dopey.obamite

My cornhole itches

July 27 2013 at 10:50 PM Report abuse -1 rate up rate down Reply
1 reply to dopey.obamite's comment
dopey.obamite

And I bite my nails

July 27 2013 at 10:53 PM Report abuse rate up rate down Reply
1 reply to dopey.obamite's comment
dopey.obamite

Would you like some hep. B with that today?

I don't need a job. Lord obama will take from you and give to me!

YES WE CAN! YES WE CAN!

July 27 2013 at 11:09 PM Report abuse +1 rate up rate down
dopey.obamite

Gonna do some blow like our lord and savior president obama.

July 27 2013 at 10:47 PM Report abuse +1 rate up rate down Reply
dopey.obamite

The AOL police wouldn't let me use the name carlos danger. Is it because I'm a dopey.obamite?

July 27 2013 at 10:33 PM Report abuse -1 rate up rate down Reply
WILLS

When you analyze the earning reports they are not that bad. It took the market ll day to figure it out.
Today's market is highly reactionary and moves quickly - usually without too much thought. Too bad Jay Gould is of a different era as he would have loved this time frame. Why spread rumor when everyone else is doing it for you?

July 27 2013 at 3:19 PM Report abuse +1 rate up rate down Reply
Raymond

Ya ever wonder how the stock market is so high and companies are not doing well? Hmmm. Monopoly money. It's all an illusion. Obama and the Fed are the magicians.

July 26 2013 at 9:26 PM Report abuse +1 rate up rate down Reply
rlynn2578

There is something inherently wrong with our society when the stock price of a company rises after it admits to destroying evidence in a case, or when a bank pays an 885 miilion dollar fine because of wrongful things it did to make billions in profit, but it still posts better than expected earnings. Don't worry. Continued quantatative easing and continued coordinated comments from the Central Banks around the world will save the day. There is a price to pay somewehere down the line. We are throwing away our children's and grandchildren's futures.

July 26 2013 at 5:36 PM Report abuse +1 rate up rate down Reply
1 reply to rlynn2578's comment
cpo1514

rlynn2578

Just like the phony WH President... after 5 years of ignoring the constitution and selective DOJ suits.....society is dumbed down after 30 years of NEA pass/ fail... no one fails... aske the 45% that support the 55% and illegals!

July 27 2013 at 9:32 AM Report abuse -4 rate up rate down Reply