Stocks fall, S&P 500 and Nasdaq post worst week since late May

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All 3 major U.S. indices fell today, ending the week on a loss amid earnings season and remarks from a top Fed official. The S&P dropped 0.61% and the Nasdaq slipped 0.74% while the Dow dipped 0.25%.

fell 68.77 points, or 0.3%, to close at 27,154.20 after rising more than 100 points earlier in the session. The indexes lost most of their earlier gains after Iran said it captured a British oil tanker.

Microsoft shares hit a record after the tech giant posted quarterly earnings and revenue that topped analyst expectations. The company's results were driven by a 39% year-over-year surge in cloud revenue. The stock closed just 0.15% higher, however. "So far, there have been no surprises," said Jeff Zipper, managing director of investments at U.S. Bank Private Wealth Management. "Most of the times when the bar is set so low, the results are likely to be in line or slightly better."

"Many believe CEO outlooks have been severely shaken by ongoing uncertainties, but 'behavioral indicators' suggest CEOs remain more confident than perceived," he said. "Second, the economic slowdown this year has produced an overlooked silver lining for earnings—it has enhanced the potential for renewed profit margin expansion as costs across the spectrum have declined.

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