US shares finish week lower

Apple wowed investors this week while a disappointing outlook from Amazon revived anxiety about the overall tech sector as the busiest week of first-quarter earnings season concluded. Deep losses on Friday pushed the market into the red for the week, with the tech-rich Nasdaq Composite Index suffering the biggest losses, shedding 19.96 points (0.49 per cent) to 4,075.56. The Dow Jones Industrial Average declined 47.14 (0.29%) to 16,361.46, while the broad-based S&P 500 slipped 1.45 (0.08%) to 1,863.40. Broad selling pressure, which had receded a bit for about a week and a half, came back with a vengeance on Friday after Amazon delivered a skimpy outlook for profit margins and projected a second-quarter operating loss of as much as $ 455 million. Despite the weak Amazon report and a handful of other earnings disappointments, the bulk of the reports thus far have bested expectations. Of the 203 companies that reported through Thursday, 138 beat expectations, 45 missed and 20 met expectations, according to S&P Capital IQ. Industrial heavyweight Caterpillar, which has had disappointing results in recent quarters, raised its profit forecasts as improved performance in the energy, transportation and construction sectors that offset continued weakness in mining. Fellow Dow member Boeing also pleased Wall Street as it raised its 2014 profit outlook on strong demand for new jetliners. Perhaps the biggest standout of the week was Apple, which surged nearly nine per cent in the two days since releasing its report on Wednesday. In addition to reporting profits that beat expectations by a wide margin, the company unveiled a dividend increase, a ramp-up in stock buybacks and a seven-for-one stock split. Still, analysts cautioned that Apple faces pressure to introduce another blockbuster product. Other strong reports came from American Airlines, Comcast, Dow Chemical, Lockheed Martin, Microsoft and Travelers. The disappointments included Ford Motor and United Airlines, according to AFP.