US stocks have fallen sharply on continued unease over emerging markets and a number of high-profile earnings disappointments.
At the closing bell on Friday, the Dow Jones Industrial Average sank 150.41 (0.94 per cent) to 15,698.20.
The broad-based S&P 500 fell 11.60 (0.65 per cent) to 1,782.59, while the tech-rich Nasdaq Composite Index lost 19.25 (0.47 per cent) at 4,103.88.
Anthony Conroy, head of global trading at Bank of New York Convergex Group, said Friday’s losses were prompted by a confluence of factors, including some weak earnings reports and the sense of some investors that a correction was inevitable after the 2013 rise in stocks.
“The economy is probably okay,” Conroy said. “I think the emerging markets are probably weaker than expected.”
Amazon sank 11.0 per cent after earnings came in at 51 cents per share, well below the 66 cents forecast by analysts. Results were hit by a sharp rise in expenses.
Dow component Chevron fell 4.1 per cent after earnings slumped 32 per cent compared with last year and revenues of $56.2 billion badly underperformed the $63.1 billion forecast by analysts.
Microsoft gained 2.7 per cent on reports the company is closer to naming Satya Nadella, head of the cloud and enterprise division, as its next chief executive.
Google jumped 4.0 per cent after reporting that revenues on “click” ads rose by nearly a third. Google also announced a new dividend payment.
Chipotle Mexican Grill jumped 11.7 per cent after earnings jumped 30 per cent on a 9.3 per cent rise in comparable restaurant sales. The company also raised its 2014 sales forecast
Earnings at MasterCard were 57 cents per share, three cents below expectations, sending its shares down 5.1 per cent.
Mattel tumbled 12.0 per cent after earnings missed the $1.20 per share estimate by 13 cents due to a six per cent decline in worldwide sales.
Social games company Zynga shot up 23.6 per cent after announcing it was buying mobile game and animation firm NaturalMotion for $527 million.
Bond prices rose. The yield on the 10-year US Treasury fell to 2.67 per cent from 2.69 per cent, while the 30-year declined to 3.62 per cent from 3.64 per cent. Bond prices and yields move inversely.