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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