Stocks Drop as Amazon Misses Forecasts, Durable Goods Disappoints

NEW YORK (TheStreet) -- U.S. stocks were falling Friday, marking the first dip for the S&P 500 in three days, as a report on durable goods orders fell short of estimates and Amazon (AMZN), the world's largest online retailer, missed forecasts.

The weak open arrives also as investors await next week's July job report and Federal Reserve policy update, and digest soft data out of Europe overnight. But the market remains optimistic on the second-quarter earnings outlook, steadily raising growth predictions.

The S&P 500 (SPY) was down 0.41% to 1,979.73, though the index is still on pace to settle higher for the week. The S&P 500 booked its 72nd closing all-time high Thursday for this bull market since the market bottom on March 9, 2009, as analysts hiked their growth outlook for the second-quarter earnings season. The Dow Jones Industrial Average (DIA) was lower by 0.7% to 16,964.49 The Nasdaq (QQQ) was slipping 0.5% to 4,451.02.

Read More: Shares Plunge On Weak Earnings

Despite a handful of disappointments, including Amazon's earnings miss Thursday, 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.

Amazon shares were plunging 10.2% to $322.01 after reporting Thursday evening quarterly results that were in line with revenue estimates but missed on earnings per share.

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