US stocks drift lower on disappointing earnings

U.S. stocks drifted lower in midday trading on Friday, with the Dow Jones Industrial Average falling below the 17,000 mark, as disappointing corporate earnings offset stronger-than-expected durable goods data.
Amazon.com Inc. late on Thursday reported a second-quarter revenue that matched market consensus, but its quarterly loss of 27 cents per share came in much larger than expected. As a result, the e-commerce giant's shares slumped 10.78 percent to 319.94 U.S. dollars apiece by Friday noon.
Visa shares also dipped 4.46 percent to 212.81 dollars by midday, weighing down the blue-chip Dow, after the credit card company cut its revenue forecast for the year. However, Visa reported better-than-expected fiscal third-quarter results late on Thursday, with its net income up 11 percent over a year ago and net operating revenue also increasing by 5 percent.
On the economic front, the Commerce Department said on Friday that new orders for U.S. manufactured durable goods increased 0.7 percent in June, boosted by demand for transportation equipment. The increase exceeded market expectations.
Lingering geopolitical tensions continued to weigh on market sentiments. Four Israeli army tanks on Thursday reportedly shelled a UN-run school in a northern Gaza Strip town, killing 16 and wounding dozens of civilians who took refuge in the school.
Meanwhile, Ukrainian Prime Minister Arseny Yatsenyuk on Thursday announced his resignation over the parliament's " ineffectiveness" after two political parties withdrew from the ruling coalition.
By midday, the Dow sank 137.94 points, or 0.81 percent, to 16, 945.86. The S&P 500 lost 10.25 points, or 0.52 percent, to 1,977. 73. The tech-heavy Nasdaq went down 29.62 points, or 0.66 percent, to 4,442.48.
The three major stock indices are on track to end the week in mixed territory. The broader S&P 500 is set to log weekly gains after its three-day record rally, but the Dow is poised to end lower.