Stocks fall as Ukraine fears return

Written By limadu on Jumat, 25 April 2014 | 22.17

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NEW YORK (CNNMoney)

The Dow, S&P 500 and Nasdaq all fell in morning trading as investors weighed renewed concerns about the situation in Ukraine and whether key companies like Amazon (AMZN, Fortune 500) are growing at the pace Wall Street likes to see.

The latest reading on CNNMoney's Fear & Greed index shows sentiment is still languishing in "fear" mode.

Related: Fear & Greed Index still gripped by fear

Senior government officials told CNN that the U.S. could impose new sanctions on Russia as early as Friday for failing to take steps to reduce the tension in eastern Ukraine. Sanctions would target key allies of Russian President Vladimir Putin, high-profile oligarchs and possibly companies.

Even without additional sanctions, Russia is struggling economically. Standard & Poor's downgraded Russia's credit rating to one step above junk status, and the country was forced to raise its interest rate from 7 to 7.5% since its currency is dropping sharply. This was the second increase in two months.

Related: S&P cuts Russia's credit rating

Meanwhile, quarterly results keep rolling in.

Amazon (AMZN, Fortune 500) reported better-than-expected earnings and revenue Tuesday, but investors weren't surprised, and shares tanked over 9% as worries about rising costs at the tech giant surfaced. Starbucks (SBUX, Fortune 500) rose slightly after reporting a gain in sales and earnings.

Ford (F, Fortune 500) shares fell about 3% after the automaker reported its first quarterly earnings decline since 2012. Profits also were below analysts' estimates.

Shares of Dow component Visa (V, Fortune 500) tumbled after the credit card giant missed revenue forecasts.

Microsoft (MSFT, Fortune 500) bounced after the company reported first-quarter sales that exceeded analysts' expectations and it announced the completion of its deal with Nokia.

Related: CNNMoney's Tech 30

European indexes were lower in afternoon trading, with Germany's DAX down 1%. Germany is Russia's largest trading partner in Europe. New sanctions would hurt both economies.

Most major Asian markets finished the day down as well. To top of page

First Published: April 25, 2014: 9:50 AM ET


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