Major Averages Pull Back More Firmly Into Negative Territory

(RTTNews) - After coming under pressure in early trading, stocks have seen some further downside over the course of the trading day on Friday. With the losses on the day, the S&P 500 is pulling back well off the record closing high that it set in the previous session.

A negative reaction to the latest batch of earnings news is contributing to the weakness on Wall Street, with shares of Amazon (AMZN) falling by 11 percent after the online retailer reported a wider than expected second quarter loss.

Credit card giant Visa (V) has also come under pressure after reporting better than expected third quarter earnings but lowering its full-year revenue guidance.

Adding to steep losses posted in the two previous sessions, semiconductor stocks have moved sharply lower on the day. The Philadelphia Semiconductor Index has plunged by 2.1 percent, hitting its lowest intraday level in well over a month.

Maxim Integrated (MXIM) is leading the semiconductor sector lower after reporting weaker than expected fourth quarter results and providing disappointing guidance.

Retail stocks are also seeing significant weakness in mid-day trading, with the Dow Jones Retail Index falling by 1.5 percent. The disappointing earnings news from Amazon is likely weighing on the sector.

Natural gas, biotechnology, and computer hardware stocks have also moved to the downside on the day, while gold stocks are bucking the downtrend amid an increase by the price of the precious metal.

The major averages have recently climbed well off their worst levels of the day but remain firmly in the red. The Dow is down 135.89 points or 0.8 percent at 16,947.91, the Nasdaq is down 31.63 points or 0.7 percent at 4,440.48 and the S&P 500 is down 10.37 points or 0.5 percent at 1,977.61.