Stocks Drop as eBay, UnitedHealth Disappoint; Google Gains Afterhours

NEW YORK ( TheStreet) -- U.S. stocks fell Thursday as eBay ( EBAY) and UnitedHealth Group ( UNH) posted first-quarter earnings that fell short of expectations, fueling concerns about the U.S. economic recovery.

The S&P 500 lost 0.7% to close at 1,541.61.

Google ( GOOG) rose in after-market trading as the Internet search leader's quarterly results beat estimates. Shares were moving higher by 1.3% to $776.17.

EBay dropped 5.9% to $52.82 after the e-commerce giant provided second-quarter guidance Wednesday that fell short of analysts' estimates and posted first-quarter results that fell well short of expectations.

UnitedHealth Group lost 3.8% to $59.69 after the biggest U.S. health insurer stood by its full-year earnings forecast of $5.25 and $5.50 a share but warned of lower revenues due to changes in the sales relationship with a "very large" public-sector customer. Pepsico ( PEP) jumped to its highest since 1980, adding 3% to $81.25 after the snacks and beverages giant posted first-quarter earnings that beat estimates by six cents as higher prices contributed to an increase in profit margins.

Morgan Stanley ( MS) lost 5.4% to $20.33 on concerns the New York-based bank's investment and trading businesses trail competitors. Morgan Stanley's first-quarter profit did beat analyst expectations as the bank reported net income of 61 cents a share on revenue of $8.5 billion compared to forecast for earnings of 57 cents a share on revenue of $8.35 billion.

Written by Andrea Tse and Joseph Deaux in New York

>To contact the writer of this article, click here: Andrea Tse.

More from Markets

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

China Central Bank Governor Says Stay 'Calm and Rational' After Market Free Fall

China Central Bank Governor Says Stay 'Calm and Rational' After Market Free Fall

50 Stocks Goldman Sachs Thinks Can Triumph Over Labor Inflation

50 Stocks Goldman Sachs Thinks Can Triumph Over Labor Inflation

Trump Issues New Trade Threats, Apple, ZTE, GameStop - 5 Things You Must Know

Trump Issues New Trade Threats, Apple, ZTE, GameStop - 5 Things You Must Know

China-Focused Stocks Hit Hard as Beijing Responds to Trump Tariff Threats

China-Focused Stocks Hit Hard as Beijing Responds to Trump Tariff Threats