Stocks Move Lower On Ukraine Worries, Disappointing Earnings - U.S. Commentary

(RTTNews) - Stocks have shown a notable move to the downside in early trading on Friday amid renewed concerns about the situation in Ukraine. The major averages have slid firmly into negative territory, with the tech-heavy Nasdaq showing a particularly steep drop.

The major averages have recently climbed off their lows for the young session but remain stuck in the red. The Dow is down 92.30 points or 0.6 percent at 16,409.35, the Nasdaq is down 38.82 points or 0.9 percent at 4,109.52 and the S&P 500 is down 7.46 points or 0.4 percent at 1,871.15.

The early weakness on Wall Street comes as traders are keeping an eye on the latest developments in Ukraine amid concerns about the impact of escalating tensions.

Yesterday's reports of Ukrainian forces killing several pro-Russian militants have raised the specter of a wider conflict, with Russian troops said to be conducting military exercises close to the border.

In remarks Thursday evening, U.S. Secretary of State John Kerry warned Russia that its window to change course is closing and reiterated that Russia faces further sanctions if it refuses to take steps to de-escalate the crisis.

Peter Boockvar, chief market analyst at the Lindsey Group, said, "While U.S. and European stocks yesterday responded to the news of Russian military exercises, that should not have been a surprise as they amassed tens of thousands of troops on the Russian side of the Ukrainian border weeks ago."

"The problem now though is the rhetoric and tension seems to be taking on a new level of height and concern," he added.

A negative reaction to some of the latest earnings news is also weighing on the markets, with auto giant Ford (F) under pressure after reporting weaker than expected first quarter earnings.

Shares of Amazon (AMZN) have also moved sharply lower after the online retailer reported first quarter earnings that matched analyst estimates but provided disappointing guidance.

Semiconductor stocks are turning in some of the market's worst performances in early trading, dragging the Philadelphia Semiconductor Index down by 2.1 percent. Freescale Semiconductor (FSL) is leading the sector lower despite reporting better than expected first quarter results.

Considerable weakness has also emerged among biotechnology stocks, as reflected by the 1.5 percent loss being posted by the NYSE Arca Biotechnology Index. ImmunoGen (IMGN) is falling sharply after reporting a wider than expected first quarter loss.

Networking, housing, and retail stocks are also seeing early weakness, while gold stocks are bucking the downtrend amid an increase by the price of the precious metal.

In overseas trading, stock markets across the Asia-Pacific region once again turned in a mixed performance on Friday. Japan's Nikkei 225 Index edged up by 0.2 percent, while Hong Kong's Hang Seng Index tumbled by 1.5 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the German DAX Index has fallen by 1.1 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are down by 0.6 percent and 0.3 percent, respectively.

In the bond market, treasuries are seeing modest strength after ending the previous session nearly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.4 basis points at 2.664 percent.