Disappointing earnings from Amazon.com Inc. (AMZN)  and Starbucks Corp. (SBUX)  wiped out any chance of gains on the S&P 500 and Nasdaq on Friday, July 28. 

The S&P 500 fell 0.14% and the Nasdaq slid 0.12%. Meanwhile, the Dow Jones Industrial Average clocked a new record for its third day in a row. The blue-chip index rose 0.15% to 21,830.

Amazon.com Inc. tumbled 2.5% after a quarterly performance that fell well short of analysts' estimates. Earnings of 40 cents a share were a far cry from $1.41 consensus. Profit declined 77% from a year earlier. A sharp miss on the bottom-line was tied to the company's efforts to invest heavily in areas such as fulfillment, original content and international expansion.

Spending jumped in the second quarter. Amazon's fulfillment spending rose 33% to $5.16 billion, while technology and content spending grew 43% to $5.55 billion. Marketing expenses increased 44% to $2.23 billion.

Revenue jumped 25% year over year to $37.9 billion, however, surpassing analysts' projected $37.2 billion. Amazon Web Services, the company's cloud platform, continued to grow rapidly with sales of $4.1 billion, 42% higher than the $2.9 billion it generated in the year-earlier quarter. Wall Street expected cloud revenue of $4.08 billion.

Starbucks Corp. fell 9% after in-line earnings results and below-consensus revenue. The coffee shop chain also announced it would close all its Teavana stores, its tea-focused concept chain. Starbucks said it would close all 379 Teavana locations over the coming year, citing underperformance. In April, Starbucks said it was reviewing options for Teavana.

"We felt it was an appropriate time to take the decision and begin shutting down those stores," said Starbucks CEO Kevin Johnson.

Starbucks also said same-store sales in the quarter rose rose 4% globally, while U.S. same-store sales gained 5%. The company also said it now expects revenue growth to fall to the lower end of its previous guidance of 8% to 10% for the year.

Starbucks is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells SBUX? Learn more now.

"We have grown tired of the company's inability to turn this battleship around in any sustained way, and we think that the company's weak performance could continue trending through next year," said Jim Cramer and the AAP team.

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