Ukraine Worries, Disappointing Earnings Weigh On Wall Street - U.S. Commentary

(RTTNews) - Stocks have moved sharply lower over the course of the trading day on Friday, partly offsetting the upward trend seen over the past several sessions. Worries about the situation in Ukraine are weighing on the markets along with some disappointing earnings news.

The major averages have recently climbed off their worst levels of the day but remain firmly in negative territory. The Dow is down 128.95 points or 0.8 percent at 16,372.70, the Nasdaq is down 58.14 points or 1.4 percent at 4,090.19 and the S&P 500 is down 12.83 points or 0.7 percent.

The 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.

On the other hand, Microsoft (MSFT) is posting a modest gain after the software giant reported better than expected fiscal third quarter results.

Traders have largely shrugged off a report from Thomson Reuters and the University of Michigan showing that consumer sentiment improved by more than previously estimated in April.

The report showed that the final reading on the consumer sentiment index for April came in at 84.1 compared to the preliminary estimate of 82.6.

The upwardly revised reading reflects a notable increase from the final March reading of 80.0 and is well above economist estimates for a reading of 83.0.

Sector News

Semiconductor stocks are turning in some of the market's worst performances in mid-day trading, with the Philadelphia Semiconductor Index plunging by 2.7 percent. The index is giving back ground after trending higher over the past two weeks.

Freescale Semiconductor (FSL) is leading the semiconductor sector lower, with the chipmaker tumbling by 12.2 percent despite reporting better than expected first quarter results.

Considerable weakness is also visible among biotechnology stocks, as reflected by the 2.1 percent loss being posted by the NYSE Arca Biotechnology Index. ImmunoGen (IMGN) is falling sharply after reporting a wider than expected first quarter loss.

Housing stocks have also come under significant selling pressure on the day, dragging the Philadelphia Housing Sector Index down by 1.7 percent. Building product makers Masco (MAS) is posting a substantial loss after reporting first quarter earnings that missed analyst estimates.

Networking, airline, retail, and steel stocks are also seeing notable weakness, while gold stocks are among the few groups bucking the downtrend amid an increase by the price of the precious metal.

Other Markets

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 all moved to the downside on the day. While the German DAX Index dropped by 1.5 percent, the French CAC 40 Index slid by 0.8 percent and the U.K.'s FTSE 100 Index dipped by 0.3 percent.

In the bond market, treasuries have moved moderately higher after ending the previous session nearly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.9 basis points at 2.659 percent.