U.S. stocks fell on Thursday, with technology stocks hit hard after Google's surprisingly weak earnings - released prematurely during the trading day - disappointed investors.
Shares of Google lost 8 percent - the stock's worst day since January 20 - to close at $695 after the Internet giant's third-quarter results showed earnings and revenue fell short of forecasts. The earnings report had not been expected until after the market's close. Trading of the stock was halted at 12:50 p.m. after Google had fallen as much as 10.5 percent to a session low of $676. Trading resumed at 3:20 p.m.
After the midday snafu and the stock's slide, Google was the biggest drag on the S&P 500. Tech stocks suffered, with the S&P 500 information technology index <.GSPT> losing 1.53 percent. Shares of IBM
"It's a huge impact on the market, and especially the tech stocks," said Paul Nolte, managing director at Dearborn Partners in Chicago. "What happened to Google is a continuation in the tech sector of some very poor earnings numbers. But we're not seeing the same lack of performance across the board from other sectors."
The Dow Jones industrial average <.DJI> dipped 8.06 points, or 0.06 percent, to close at 13,548.94. The Standard & Poor's 500 Index <.SPX> shed 3.57 points, or 0.24 percent, to 1,457.34. The Nasdaq Composite Index <.IXIC> fell 31.26 points, or 1.01 percent, to end at 3,072.87.
The day's declines snapped the S&P 500's three-day string of gains, which had pushed the benchmark index up 2.3 percent through Wednesday's close.
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The Dow's loss was limited by Travelers and Verizon.
Travelers
Verizon Communications Inc
Morgan Stanley
Technology was by far the day's weakest sector, but seven of the S&P 500's 10 sectors ended the session higher.
Weak jobs data released on Thursday also weighed on the market. Weekly jobless claims rose to 388,000 - or 32,000 more than analysts expected. A Labor Department official said it appeared that state-level administrative issues were distorting the data.
"On a longer-term basis and non-seasonally adjusted basis, the jobs numbers are in line with where they're been all year. And that's still indicative of very slowly improving employment," Nolte said.
Shares of eBay
After the close, Microsoft
In other earnings news after the bell, PC chipmaker Advanced Micro Devices Inc
SanDisk Corp
Fast-food restaurant chain Chipotle Mexican Grill Inc
Volume was roughly 6.9 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the year-to-date average daily closing volume of 6.52 billion.
Decliners slightly outnumbered advancers on the NYSE by a ratio of about 15 to 14. On the Nasdaq, two stocks fell for every one that rose.