US Stocks Follow Global Markets Lower

NEW YORK (AP) -- U.S. stocks followed other markets lower on Friday after Amazon and several other big companies reported quarterly results that underwhelmed investors. Health care stocks fell, but by less than the rest of the market, after the Senate's latest stumble in its drive to revamp the country's health care system. Treasury yields dipped after the government said the U.S. economy accelerated in the spring but also revised down its growth for the first quarter.

KEEPING SCORE: The Standard & Poor's 500 index fell 7 points, or 0.3 percent, to 2,468 shortly before 10 a.m. Eastern time. The Dow Jones industrial average dropped 31, or 0.1 percent, to 21,765 to pull away from its record set on Thursday. The Nasdaq composite lost 27, or 0.4 percent, to 6,354.

EARNINGS ROUNDUP: Roughly half the companies in the S&P 500 have reported how much they earned during the spring, and the results have been mostly encouraging. But expectations were high coming into the reporting season, and companies have been punished for falling short of forecasts.

Technology stocks in particular came into the reporting season with big expectations. They have already jumped more than 20 percent this year on the hope that they can produce strong earnings growth even in a still slow-growing global economy.

AMAZON: Earnings for the online retailer fell short of expectations, and its forecast for operating income this fiscal year fell short of many analysts' forecasts. Revenue for the latest quarter beat expectations, though. Amazon's stock fell $36.70, or 3.5 percent, to $1,009.30.

STOPPED UP: Flowserve, which sells pumps, valves and other parts for the oil and gas industries, dropped to the biggest loss in the S&P 500 after reporting weaker earnings for the latest quarter than Wall Street had forecast. It sank $5.17, or 11.2 percent, to $41.19.

ECONOMIC UPDATE: The U.S. economy grew at an annual rate of 2.6 percent in the April-through-June quarter, the Commerce Department reported. A rise in consumer spending helped to rev up the economy during the spring.

Last quarter's growth rate was more than double that of the year's first quarter, which was revised down to 1.2 percent.

YIELDS: The yield on the 10-year Treasury note fell to 2.30 percent from 2.32 percent late Thursday. The two-year yield dipped to 1.35 percent from 1.36 percent, and the 30-year yield dropped to 2.91 percent from 2.93 percent.

TAKE CARE: Health care stocks in the S&P 500 dipped 0.2 percent after the Senate failed in its latest attempt to repeal and replace the Affordable Care Act.

Investors had come into the year with big expectations for the federal government to push through a series of policies to help businesses, but Washington's stumbles have raised doubts about whether tax reform or a big infrastructure plan will happen.

CURRENCIES: The dollar fell to 110.92 Japanese yen from 111.09 yen late Thursday. The euro rose to $1.1739 from $1.1681, and the British pound rose to $1.3095 from $1.3070.

COMMODITIES: Benchmark U.S. crude rose 29 cents to $49.33, capping a strong week. Brent crude, the international standard, gained 36 cents to $51.88 a barrel.

Gold gained $4.80 to $1,264.80 per ounce, silver added 11 cents to $16.68 per ounce and copper was flat at $2.88 per pound.

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