U.S. Stocks Unable To Shake Off Negative Sentiment Surrounding Earnings

U.S. stocks ended sharply lower on Friday after disappointing earnings from several industry heavyweights unnerved investors. Also adding downside pressure was a slightly larger-than-expected drop in existing home sales.

Existing home sales slowed 1.7% last month to a seasonally adjusted 4.75 million annualized pace, according to new data released this morning by the National Association of Realtors. Economists polled by MarketWatch were expecting a 4.8 million rate for September. Home prices continued their rise, however, as inventories declined, falling 3.3% to 2.32 million units.

Earnings disappointments included Fortune 500 companies McDonald's (MCD), General Electric (GE), and Microsoft (MSFT).

MCD reported a lower quarterly profit that missed analysts' expectations. GE posted quarterly earnings that met Wall Street's expectations, but revenue fell short of estimates. The company has maintained its prior full-year earnings forecast. MSFT said late Thursday its quarterly profit fell a greater-than-expected 22%.

Commodities also fell in Friday's session. Oil for November delivery closed down 2.12% at $90.05 a barrel on the New York Mercantile Exchange. Oil futures fell as low as $89.93 in the session. Gold futures for December delivery shed more than $20 an ounce to finish at $1,724 an ounce on the Comex.

Here's where the markets stood at end-of-day:

Dow Jones Industrial Average down 205.43 (-1.52%) to 13,343.51

S&P 500 down 24.15 (-1.66%) to 1,433.19

Nasdaq Composite Index down 67.25 (-2.19%) to 3,005.62

GLOBAL SENTIMENT

Nikkei 225 Index up 0.22%

Hang Seng Index up 0.15%

Shanghai China Composite Index down 0.16%

FTSE 100 Index down 0.35%

UPSIDE MOVERS

(+) AONE, Settles with Johnson Controls, reportedly subject of bidding war.

(+) RVBD, Issues Q4 guidance In line with expectations.

(+) CALL, Beats Q3 earnings estimates.

DOWNSIDE MOVERS

(-) CMG, Misses on Q3; weak FY13 guidance.

(-) MRVL, Lowers Q3 revenue outlook below estimates; CFO departs.

(-) ATHN, Q3 beats on EPS but misses on revenues.

(-) PXLW, Reports Q3 EPS beat, revenues miss.