NEW YORK -- Investors drove the stock market lower for a second straight day Friday as they grew anxious that earnings growth was faltering.
Weaker earnings at JPMorgan Chase dragged bank stocks lower. And big drops in once-soaring tech stocks pushed the Nasdaq composite down for a third week.
"The market has been trying to come back, but each time the selling just picks up," said Quincy Krosby, a market strategist at Prudential. "The buyers are just not stepping in."
So much for buying on the dip.
Stocks fell from the open on news that JPMorgan had missed analysts’ earnings estimates. Investors, who were worried that technology shares were overvalued, dumped those for a second day, with some of the biggest gainers of late falling sharply. Facebook fell 1.1 percent, after a 5 percent drop on Thursday.
The first-quarter earnings season has just started, but investors already seem anxious about what lies ahead. Financial analysts expect earnings for companies in the Standard & Poor’s 500 index to drop 1.6 percent from a year earlier, according to FactSet, a financial data provider. At the start of the year, they expected a jump of 4.3 percent.
If profits do fall, it would be only the second quarterly drop in three years.
"Earnings are going to come in on the sloppy side," said Peter Cardillo, chief market economist at Rockwell Global Capital. "The market needs to correct," he added, referring to sharp downturn in stocks.
On Friday, the Nasdaq dropped 54.
The Dow Jones industrial average fell 143.47 points, or 0.89 percent, to 16,026.75. The S&P 500 fell 17.39 points, or 0.95 percent, to 1,815.69.
All ten industry sectors in the S&P 500 dropped. Consumer discretionary stocks fell the most, down 1.4 percent, followed by technology stocks, down 1.2 percent.
Last year, earnings for S&P 500 companies rose 6 percent, a decent showing. Stocks rose much faster -- up nearly 30 percent for the index. Helping stocks rise was the Federal Reserve bond buying designed to stimulate the economy.
"Investors haven’t worried about earnings because it hasn’t mattered. Fundamentals haven’t mattered," said Prudential’s Krosby. "All that has mattered ... is what is the Federal Reserve was going to do."
She said a so-called correction in indexes -- a drop of 10 percent from highs -- would be healthy for the market, giving its sturdier base on which to rally.
The Nasdaq is already well on its way. It is now 8 percent below its recent high in March. The S&P 500 is 4 percent off its recent high on April 2.
Among tech stocks making big moves Friday, Netflix fell 2.4 percent, Amazon, 1.7 percent and Google’s new Class C shares, 1.9 percent.