By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market opened lower on Friday, weighed down by disappointing reports from companies such as Amazon.com and Visa Inc.
Nonetheless, the main benchmarks were on track to finish the week with marginal gains.
Stock-market investors showed virtually no reaction to stronger-than-expected orders for durable goods, released before the opening bell.
The S&P 500 (SPX) opened 9 points, or 0.4%, lower at 1,980.96, retreating from the record close reached on Thursday.
The Dow Jones Industrial Average (DJI) lost 117 points, or 0.7%, to 16,965.02 at the open, weighed down by losses in Visa inc.
The Nasdaq Composite (RIXF) began the session 30 points, or 0.7%, lower at 4,441.20, weighed down by Amazon.com and Pandora, both tumbling more than 10%.
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Investors were disappointed with Amazon.com(AMZN) and a wider-than-expected second-quarter loss late Thursday. Shares plunged 11%. Also read: Is Amazon spending like a drunken sailor?
Pandora Media(P) dived 13%, after the Internet-based radio company posted wider losses late Thursday.
Starbucks Corp.(SBUX)was another loser, off 2.6%. The company posted a 22% profit rise and lifted its outlook. But some viewed its 2015 outlook as cautious.
Shares in Visa Inc. (V) dropped 4.7% as the credit-card company trimmed its forecast for annual revenue growth.
The day's trading debuts include fast-food chain El Pollo Loco(LOCO), which priced shares at $15, the top of the range.
Cynk Technology (CYNK) plunged 76%, after trading in the stock resumed following the suspension by the SEC earlier this month.
For more on notable movers, read our Movers & Shakers column.
In the day's sole economic news, orders for durable goods such as computers, aircraft and heavy machinery rose a solid 0.7% in June, offering a sign of a general upswing in business spending.
Next week has the potential to be big for economic news, with a Federal Open Market Committee meeting and the monthly jobs report topping a long list of data on the docket.
Some analystssaid markets could make slow progress on Friday, given investors may be nervous about the potential for more geopolitical tensions from Russia or Gaza through the weekend. Read: U.S. says Russian artillery firing into Ukraine.
Naeem Aslam, chief market analyst at AvaTrade, said U.S. indexes have started to show signs of divergence.
"Technically speaking, when indexes have a divergence between them, it is an early sign of correction, and under the situation when one index is moving up and the rest moving in the opposite direction, it is like smoke coming out before the fire," said Aslam in emailed comments.
European stocks drifted into the red on Friday, with German stocks under pressure after weaker-than-expected German Ifo business sentiment data. The blue-chip MICEX in Russia fell 1.5%. Russia's central bank hiked interest rates on Friday, citing geopolitical tensions and the potential impact on the ruble and rising inflation as reasons. The European Commission submitted proposals on new sanctions for Russia linked to the Ukraine crisis on Thursday.
In Asia, the Nikkei 225 index rallied more than 1% on Friday to the highest settlement in six months, as the yen weakened and domestic inflation data met market expectations. China's Shanghai Composite also put on a strong performance, up 1.1%.
Crude oil (CLU4) was flat, and gold (GCU4) was slightly higher. The euro (EURUSD) fell against the dollar after the weak German Ifo data.
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(END) Dow Jones Newswires
July 25, 2014 09:54 ET (13:54 GMT)
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