Summary: stocks see biggest fall in over a week after a money-losing quarter for Amazon and a warning from Visa put investor confidence on the skids; McDonald's sued in Russia; Pollo Loco's hot debut. Conway G. Gittens reports.
Wall Street takes it on the chin as earnings released the day before cast a cloud of uncertainty on the trading floor. The Dow, the S&P 500 and the Nasdaq each had their biggest drops in a little over a week. A mixed showing for the week: blue chips were down, while the Nasdaq was up. Amazon was the tech wreck du jour. $16 billion in market value wiped away as investors responded negatively to another money-losing quarter. Visa added to worries. The world's largest credit and debit card company slashed its outlook because a stronger dollar is hurting international business. The stock - falling to its second lowest close of the month. Pandora is lowering expectations for the current quarter as it beefs up spending to fight off a growing list of deep pocketed rivals. The music streaming service was another big loser in the market. But El Pollo Loco sizzled in its Nasdaq debut. The chicken restaurant chain with a Spanish flair raised over a $100 million in its IPO. Look at the stock - surging 60 percent right out of the gate. In economic news...orders for large-ticket items - jumping more than expected last month. Data leading up to next week's Federal Reserve meeting confirm the economy is getting stronger, but not strong enough to change the Fed's message, says Greg Davis of Vanguard Funds. SOUNDBITE: GREG DAVIS, HEAD OF FIXED INCOME, VANGUARD FUNDS (ENGLISH) SAYING: "I think in general, I think they want to keep with the consistent tone of their messaging that they are data dependent and that they are going to continue focusing on the labor market and signs of inflation in the market place. They're not in a rush in terms of raising interest rates and that would be a very positive message to the overall market place." On the international front, McDonald's is being sued by Russia's consumer protection agency, which wants to have some sandwiches and milk shakes pulled off the menu. The charge: Mickey Ds is misleading consumers about the energy and nutritional value of some products. McDonald's says it has not heard about the lawsuit. Separately, the European Union is moving closer to imposing economic sanctions on Russia over the Ukraine situation. As for markets - losses were steep in Germany and France - less severe in the U.K.