Amazon, the world's largest online retailer, plunged 9.7% to $324.01 after reporting a net loss of 27 cents a share, far wider than an expected 15 cents a share loss, and guiding for a third-quarter operating loss as deep as $810 million.
Visa shares pulled the Dow Jones Industrial Average lower after downwardly-revising its annual revenue growth to 9% to 10% from a previous forecast of 10% to 11%. Shares closed 3.6% lower to $214.77.
International markets also weighed on investor sentiment. The UK FTSE 100 closed 0.44% lower and the DAX in Germany was down 1.53% after the German Ifo business climate index dropped to a nine-month low of 108 amid escalating geopolitical tensions.
The S&P 500 ended the session down 0.48% to 1,978.34, after booking its 72nd closing all-time high for this bull market Thursday as analysts hiked their growth outlook for the second-quarter earnings season. The Dow was lower by 0.72% to 16,960.57 The Nasdaq slipped 0.5% to 4,449.56.
The S&P 500 is looking to end the session little changed from the beginning of the week as investors await next week's July jobs report and Federal Reserve policy update.
Despite a handful of disappointments in earnings reports Thursday evening, S&P Capital IQ wrote that second-quarter S&P 500 earnings growth is now expected to come in at 8.1% year-over-year, with earnings per share of $29.11. That's up from the prior day's estimate of 7.3% year-over-year growth, with EPS of $28.89.
Pandora (P) shares tumbled 10.3% to $25.75. Although the online radio company's earnings report was slightly better than expected, a drop in users concerned Wall Street.
In other corporate headlines, real estate site Zillow (Z) is seeking to buy out rival Trulia (TRLA) for up to $2 billion in cash and stock. Both companies collect fees from real-estate agents as well as advertising revenue on a combined 85 million unique visitors in June alone. Zillow shares were up 9% to $158.86 and Trulia was gaining 4.9% to $56.35.
Rupert Murdoch isn't just convulsing American media markets with his 21st Century Fox bid for Time Warner (TWX). His BSkyB (BSYBY) British TV company is looking to spend $9 billion to buy Fox's pay-TV stations in Germany and Italy.
The Chinese tainted-meat scandal is still in the headlines. While Yum! Brands (YUM) has dropped the offending supplier, Shanghai Husi Food, and its U.S.-based owner, OSI, McDonald's (MCD) has stuck with the company out of necessity.
The headline U.S. June durable goods orders reading rose by a more-than-expected 0.7% in June, the Commerce Department reported Friday. However, underlying components to the number indicated tepid capital goods interest and very weak core shipments with a downward revision, which CRT Capital strategist David Ader said will extract from second-quarter GDP.
"We'd say this is a bit more disappointing as a result," Ader said in a note.
--By Andrea Tse and Keris Alison Lahiff in New York