NEW YORK (TheStreet) -- Earnings and consumer sentiment did little to lift the major indices Friday morning. The Dow, Nasdaq and S&P 500 each fell more than half-a-percent in the wake of disappointing results from online retail giant Amazon (AMZN) and Ford (F). Strong results from Microsoft (MSFT) didn't silence chatter about a tech bubble. And a nine-month high in consumer sentiment failed to counter rising concerns about war in the Ukraine.
Amazon fell more than 8.5% after investors decided the company's declining operating income didn't warrant an 80X price to 2015 earnings multiple. Some investors said the severity of the sell-off showed that the five-year bull market was officially in the midst of a correction.
That's how bull mkts act-bad ER are lightly sold off,no damage-good ER pop and gr8t ER explode. Corrections/bear mrkts react different $AMZN- Optionshero (@OptionsHero) Apr. 25 at 10:10 AM
Sentiment on the ETFs that track the S&P 500, $SPY, Dow, $DIA, and Nasdaq, $QQQ, was majority bearish, according to StockTwits? analytics. This despite consumers feeling the best they have in a long time. A Thomson Reuters/University of Michigan survey showed consumers felt more positively about the economy than they had in nine months. The index hit 84.1, beating consensus estimates and preliminary numbers.
Investor bearishness, however, put a damper on the markets. It even took down some of the better earnings performers by midday. Baidu (BIDU), which reported better than expected profits and spiked before the open, was up less than a percent by 10:30a.m.
Does $bidu ever just get to glow in the after affects of a good earnings? Everyone one of them just fades to red the next day...- Dave lerch (@Dlerch) Apr. 25 at 10:08 AM
At the time of publication the author had no position in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.