Stocks end lower after Amazon disappointment, but S&P 500 logs 6th straight monthly gain

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MarketWatch 30 July, 2021 - 03:03pm 50 views

US STOCKS-Wall Street falls as Amazon earnings disappoint

Yahoo Finance 30 July, 2021 - 11:15am

  * Amazon falls as sales growth slows 

  * Pinterest sinks on saying U.S. user growth stalling 

  * U.S. consumer spending rises in June, inflation increases 

  * Indexes off: Dow 0.39%, S&P 0.53%, Nasdaq 0.68% (Updates to early afternoon) 

  July 30 (Reuters) - Wall Street's main indexes fell on Friday following a glum quarterly earnings report from Amazon.com, while data showing a strong rise in June consumer spending reinforced optimism about a steady economic rebound. 

  Amazon.com Inc sank 6.9%, tracking its worst day since March 2020, after the company said sales growth would slow in the next few quarters as customers ventured more outside the home. 

  Shares of other technology behemoths, including Apple Inc , Google-parent Alphabet Inc, and Facebook Inc , which benefited last year from people staying indoors due to the COVID-19 curbs, fell between 0.6% and 1.8%. 

  The S&P real estate index, generally considered a defensive play, hit an all-time intra-day high. 

  "Expectations across the board were quite high for corporate earnings and the reason we are seeing some of the shares drop despite positive results is because people expect exponential growth, which, to be honest, is too high to expect," said Randy Frederick, managing director of trading and derivatives at Charles Schwab. 

  By 12:06 p.m. ET, the Dow Jones Industrial Average was down 0.39%, the S&P 500 was down 0.53% and the Nasdaq Composite was down 0.68%. 

  Hopes of a steady post-pandemic rebound in the U.S. economy have put the benchmark index on course for its sixth straight monthly gain, but the rapid spread of the Delta variant and rising inflation have kept sentiment in check. 

  Data on Friday showed U.S. consumer spending rose more than expected in June, although annual inflation accelerated further above the Federal Reserve's 2% target. 

  Economically-sensitive stocks including industrials , energy and financials fell, but for the week, the so-called value stocks were set to outperform growth-linked stocks such as technology. 

  "We are bullish about cyclicals and consumer spending," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles. 

  "Cyclical sectors are likely to continue to expand and consumer spending is going to increase. Restaurants and specialty retail are two areas for which we have a pretty optimistic scenario." 

  Pampers-maker Procter & Gamble Co rose 2.8% as it forecast higher core earnings for this year, while U.S.-listed shares of Canada's Restaurant Brands International Inc jumped 4.7% after the Burger King-owner beat estimates for quarterly profit. 

  Pinterest Inc, however, plunged 19.2% to its lowest in more than two months after saying U.S. user growth was decelerating as people who used the platform for crafts and DIY projects during the height of the pandemic were stepping out more. 

  Caterpillar Inc reversed course to fall 3.8%. The company posted a rise in second-quarter adjusted profit on the back of a recovery in global economic activity. 

  Overall, second-quarter results have come in from about half of the S&P 500 companies, of which nearly 91% have beaten profit estimates, according to Refinitiv data. 

  Declining issues outnumbered advancers 1.48-to-1 on the NYSE and 1.43-to-1 on the Nasdaq. 

  The S&P index recorded 56 new 52-week highs and one new low, while the Nasdaq recorded 67 new highs and 61 new lows. (Reporting by Sagarika Jaisinghani, Shashank Nayar and Sruthi Shankar in Bengaluru; editing by Aditya Soni and Arun Koyyur) 

U.S. stocks fell on Friday and registered losses for the week as Amazon.com shares dropped after the company forecast lower sales growth, but the S&P 500 still notched a sixth straight month of gains. Amazon.com Inc shares sank 7.6% - their biggest daily percentage drop since May 2020 - after the company reported late on Thursday revenue for the second quarter that was shy of analysts' average estimate and said sales growth would ease in the next few quarters as customers ventured more outside the home. Shares of other internet and tech giants that did well during the lockdowns of last year, including Google parent Alphabet Inc and Facebook Inc, were mostly lower as well.

Stocks were lower midday Friday, with the Dow Jones Industrials down about 120 points. But it was the mildest decline of the major indexes.

“After this eight-day rally, bitcoin may well need to reset,” one analyst said.

Stocks fell Friday, leaving major averages negative for the week but still holding monthly gains as July trading came to a close. Equities were pressured after e-commerce giant Amazon.com Inc. late Thursday delivered disappointing quarterly results. The S&P 500 fell around 24 points, or 0.5%, to close near 4,395, according to preliminary figures, while the Nasdaq Composite fell around 106 points, or 0.7%, to finish near 14,673. The Dow Jones Industrial Average fell around 149 points, or 0.4%, en

U.S. stocks fell on Friday and registered losses for the week as Amazon.com shares dropped after the company forecast lower sales growth, but the S&P 500 still notched a sixth straight month of gains. Amazon.com Inc shares sank 7.6% - their biggest daily percentage drop since May 2020 - after the company reported late on Thursday revenue for the second quarter that was shy of analysts' average estimate and said sales growth would ease in the next few quarters as customers ventured more outside the home.

Robinhood's IPO has some unique — but not unheard of — characteristics. And they could have an impact on the company's business down the road when it comes to defending its territory to competitors.

The bearish divergence between the NASDAQ and the other major indexes could be an early sign of a major top.

Shares of cryptocurrency stocks jumped sharply this week, according to data provided by S&P Global Market Intelligence, as cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) made a sharp recovery. Bitcoin jumped on reports over the weekend that Amazon was looking to accept the cryptocurrency as early as this year for retail orders. Bitcoin rose 15.7% between the close of trading a week ago Friday to early this Friday and reached over $40,000 during the week.

Robinhood rose in its second day of trading after a weak IPO, but fund manager Cathie Wood continued amassing a large stake.

Stocks rallied Thursday with the Dow Jones Industrial Average up nearly 200 points despite disappointing GDP and jobless claims data.

There are a few different ways to define the most popular stocks on Wall Street. For others, it’s about so-called “meme stocks” like GameStop (GME) and AMC Entertainment (AMC) that are lighting up message boards and social media.

U.S. stocks were lower in afternoon trading on Friday with Amazon.com falling after it forecast lower sales growth, but the S&P 500 was still on track to post a sixth straight month of gains. Amazon.com Inc sank 7.2%. Late on Thursday it reported revenue for the second quarter that was shy of analysts' average estimate and said sales growth would ease in the next few quarters as customers ventured more outside the home.

Top news and what to watch in the markets on Friday, July 30, 2021.

Robinhood shares are now trading on the public markets.

The U.S. Securities and Exchange Commission will not process registrations of securities by Chinese companies unless they provide disclosures on the implications of a regulatory crackdown by Beijing and other risks, the agency said on Friday, confirming an exclusive https://www.reuters.com/business/finance/exclusive-us-regulator-freezes-chinese-company-ipos-over-risk-disclosures-2021-07-30 Reuters report. In a number of sectors in China, companies are not allowed to have foreign ownership and cannot directly list on overseas exchanges.

NEW YORK (Reuters) -U.S. stocks dropped on Friday to pull further from record highs as an underwhelming earnings report from Amazon.com Inc dampened the market mood, while the dollar bounced from its lows but still suffered its worst week in nearly two months. After making record profits during the pandemic, Amazon said late on Thursday that its sales growth would slow in the next few quarters as people ventured outside their homes post-pandemic and reduced online shopping. Investors sold Amazon stock as the online retailer revenue of $113 billion in the second quarter was $2 billion shy of analysts' forecasts.

ZURICH (Reuters) -A "lackadaisical" attitude towards risk and "a lack of accountability" were to blame for Credit Suisse's $5.5 billion loss on investment fund Archegos, according to a review published on Thursday, as the bank reported a near-80% fall in second-quarter profit. The collapse of Archegos rocked Wall Street in March as its highly leveraged stock bets went sour, sending banks scrambling for the exit. In a $10 billion bloodbath, Credit Suisse was the biggest loser, a devastating double whammy for a bank already reeling from the insolvency of a key associate, Greensill Capital.

Sales of masks rose 24% for the week ending Tuesday, compared with the prior week, reversing weekly declines since May, according to the Adobe Digital Economy Index.

Amazon.com Plunge Hits Nasdaq Harder As Stock Market Drops; This Software Stock Soars 26%

Investor's Business Daily 30 July, 2021 - 09:31am

The stock market was off its opening lows Friday morning as the Nasdaq composite took the hardest hit from weakness in Amazon.com (AMZN) in particular.

Amazon.com slid nearly 7% after the company reported second-quarter sales that missed views and gave a disappointing forecast for the third quarter. The stock, which is a sizable piece of the Nasdaq and S&P 500, gapped below its 50-day moving average in heavy volume but held above the 200-day average.

The Nasdaq gapped down at the open and trimmed its loss to 0.6%. The S&P 500 lost 0.4% as it also pared losses.

The Dow Jones Industrial Average dipped 0.2%. Procter & Gamble (PG) was the Dow's best performer, up 2% after the household goods company beat sales and profit expectations, but warned of higher costs. On Thursday, P&G announced that David Taylor was stepping down as CEO. Chief Operating Officer Jon Moeller will succeed Taylor, who will serve as executive chairman.

Small caps outperformed the stock market. The Russell 2000 climbed 0.5%.

Volume was lower on the NYSE and Nasdaq compared with the same time on Thursday.

Other earnings reports sparked major stock market moves.

Atlassian (TEAM) soared more than 26% after the software maker's earnings topped estimates and the company forecast higher-than-expected subscription revenue for its fiscal 2022. The stock broke out of a base in June and was testing the 10-week moving average before Friday's surge.

But Pinterest (PINS) plummeted more than 17% after the social media company beat second-quarter expectations late Thursday but missed user growth estimates. The stock gapped below its 50-day and 200-day moving averages.

Pinterest is an IBD 50 stock, and its plunge cost the index. The Innovator IBD 50 ETF (FFTY) was down a modest 0.6%.

Exxon Mobil (XOM) and Chevron (CVX) reported better-than-expected earnings early Friday. Exxon Mobil dipped less than 1%, while Chevron pared gains to 0.1%. Chevron faces upside resistance at the 50-day line.

Personal spending rose 1% in June, the Commerce Department reported Friday, beating economists' expectations for a 0.6% increase. The gain follows a revised 0.1% dip in May. Also this morning, the U.S. personal income report for June showed a 0.1% increase. That was much better than a consensus forecast for a 0.7% decline.

Despite a positive reading on the U.S. consumer, Consumer Discretionary Select Sector SPDR (XLY) fell 1.7%, the worst S&P sector ETF in today's stock market. Blame that on Amazon, which is roughly 23% of the ETF's weighting. Still, the ETF is finding support at the 21-day exponential moving average.

3:18 PM ET The major indexes slipped last week but more leading stocks flashed buy signals. Know these Amazon earnings lessons.

3:18 PM ET The major indexes slipped last week but more leading stocks...

The Covid-19 pandemic is driving more Americans to relocate to suburbs, smaller cities and rural towns. (© Dave Cutler)

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Wall Street falls with Amazon; S&P 500 posts sixth straight month of gains

Reuters 30 July, 2021 - 06:10am

Amazon.com Inc shares sank 7.6% - their biggest daily percentage drop since May 2020 - after the company reported late on Thursday revenue for the second quarter that was shy of analysts’ average estimate and said sales growth would ease in the next few quarters as customers ventured more outside the home.

Shares of other internet and tech giants that did well during the lockdowns of last year, including Google parent Alphabet Inc and Facebook Inc, were mostly lower as well.

“Overall earnings have been good. But Amazon ... and some of last year’s winners are taking some of the air out of the market today,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. “This market has been driven by big tech and when tech does well, the market seems to go right along with it, and when it doesn’t,” it falls.

Data on Friday showed U.S. consumer spending rose more than expected in June, although annual inflation accelerated further above the Federal Reserve’s 2% target.

The Dow Jones Industrial Average fell 149.06 points, or 0.42%, to 34,935.47, the S&P 500 lost 23.89 points, or 0.54%, to 4,395.26 and the Nasdaq Composite dropped 105.59 points, or 0.71%, to 14,672.68.

For the month, the S&P 500 rose 2.3%, the Dow gained 1.3% and the Nasdaq added 1.2%, while for the week all three of the major indexes posted declines.

Strong earnings and the continued rebound in the U.S. economy have helped to support stocks this month, but the rapid spread of the Delta variant of the coronavirus and rising inflation have been concerns.

“There are still some distant jitters, whispers about the Delta variant, about cases rising, and I think some underlying worries about a slowdown of the reopenings and possible reversal,” Dollarhide said.

Pinterest Inc, however, plunged 18.2% after saying U.S. user growth was decelerating as people who used the platform for crafts and DIY projects during the height of the pandemic were stepping out more.

Caterpillar Inc shares also fell, ending down 2.7%, even though the company posted a rise in second-quarter adjusted profit on the back of a recovery in global economic activity.

S&P 500 company results on the quarter overall have been much stronger than expected, with about 89% of the nearly 300 reports so far beating analysts’ profit estimates, according to IBES data from Refinitiv. Earnings are now expected to have climbed 89.8% in the second quarter versus forecasts of 65.4% at the start of July.

Volume on U.S. exchanges was 8.86 billion shares, compared with the 9.74 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.43-to-1 ratio; on Nasdaq, a 1.58-to-1 ratio favored decliners.

The S&P 500 posted 65 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 84 new highs and 98 new lows.

Reporting by Caroline Valetkevitch in New York; Additional reporting by Sagarika Jaisinghani in Bengaluru; Editing by Arun Koyyur and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

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Asian stocks tumble as delta variant worries rise

MarketWatch 30 July, 2021 - 12:49am

Japan reported relatively strong economic data for the previous quarter, before the government began tightening coronavirus restrictions as cases surged.

“Retail sales, industrial production and employment all rebounded strongly in June, pointing to a sizeable recovery in activity in between the alpha- and delta-driven coronavirus waves,” Capital Economics said in a report.

However, the current situation has Japanese officials sounding the alarm as Tokyo has reported record-breaking coronavirus cases for two straight days with the Olympics well underway.

Chief Cabinet Secretary Katsunobu Kato said new cases are soaring across the country at an unprecedented magnitude.

Stocks on Wall Street bounced back from a two-day slide Thursday, placing the S&P 500 on pace for its second straight weekly gain.

The modest rally came as the latest government data showed continued economic growth and investors reviewed another batch of mostly positive corporate earnings reports.

Helping ease some concerns on Wall Street about the pace of the economic recovery, the Commerce Department said the U.S. economy grew at a solid 6.5% annual rate last quarter. The economy’s total size has now surpassed its pre-pandemic level. It also revised its figures for 2020, showing that the economy contracted by a slightly smaller amount than previously reported.

The latest GDP figure fell short of economists forecasts for 8.5% growth, but investors largely brushed off the wide miss.

There also was encouraging news on the broader employment picture, which has tended to lag the rest of the recovery. Claims for unemployment benefits dropped by 24,000 to 400,000 last week, the Labor Department reported.

In other trading, U.S. benchmark crude oil lost 46 cents to $73.16 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude oil declined 50 cents to $74.60.

U.S. stocks fall on the last trading day of the month, booking weekly losses after disappointing results from Amazon.com and Covid-19 concerns.

Nasdaq Futures 150 Pts Lower; Amazon, Pinterest Results Drag By Investing.com

Investing.com 30 July, 2021 - 12:00am

Investing.com - U.S. stocks are seen opening lower Friday, with the tech-heavy Nasdaq Composite underperforming after disappointing results from e-commerce giant Amazon (NASDAQ:AMZN) late on Thursday.

At 7 AM ET (1100 GMT), the Dow Futures contract was down 75 points, or 0.2%, S&P 500 Futures traded 25 points, or 0.6%, lower, while Nasdaq 100 Futures underperformed, dropping 150 points, or 1%.

That said, this has been a generally positive month for the major indices, with the Dow Jones Industrial Average up 1.6%, the broad-based S&P 500 up 2.8% and the NASDAQ Composite 1.9% higher.

This has been the busiest week for quarterly corporate earnings so far, and the deluge continued after the close on Wall Street Thursday with numbers from Amazon setting the tone.

The online retailer, one of the big winners of the pandemic, saw its extraordinary sales growth start to slow, with revenue growing only 27% in the second quarter, down from 44% in the first quarter.  It fell even more to the 'mid-teens' in the period after its Prime Day marketing event.

This resulted in a number of brokerages, including JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS), Piper Sandler and UBS (SIX:UBSG), cutting their price targets, a rare event in an age of almost universal enthusiasm for Internet platform stocks. The stock has fallen more than 6% premarket.

Pinterest (NYSE:PINS) stock slumped 18% premarket after the social media platform saw overall monthly active users fall short of expectations, creating concerns that the end of social distancing restrictions could see the gains made during that period disappear.

The onslaught of earnings continues Friday, with oil giant Chevron (NYSE:CVX) reporting its highest profit in six quarters and Caterpillar (NYSE:CAT) reporting a sharp rise in second-quarter profit. Other results are due from the likes of Procter & Gamble (NYSE:PG), Exxon Mobil (NYSE:XOM), Berkshire Hathaway (NYSE:BRKa) and AbbVie (NYSE:ABBV), among others. 

The economic data slate Friday includes the second-quarter employment cost index, widely seen as the Federal Reserve’s preferred measure of inflation, personal income and spending for June and the final July University of Michigan consumer sentiment index. Investors will be looking for signs of economic recovery after Thursday’s GDP number showed 6.5% growth in the second quarter.

Earlier Friday, the Eurozone economy expanded 2% in the second quarter of this year, exiting the recession of the previous two quarters.

Elsewhere, oil prices edged lower Friday, but are set to end the second consecutive week higher as investors remained confident about the global demand recovery.

At 7 AM ET, U.S. crude futures traded 0.3% lower at $73.39 a barrel, while the Brent contract fell 0.3% to $74.86, but both contracts are set for gains of around 2% for the week.

Additionally, gold futures fell 0.2% to $1,827.60/oz, while EUR/USD traded 0.1% higher at 1.1898.

(Reuters) -The war against COVID-19 has changed because of the highly contagious Delta variant, the U.S. Centers for Disease Control said, proposing a clearer message, mandatory...

By Michael Erman and Carl O'Donnell (Reuters) -Top U.S. infectious disease expert Dr. Anthony Fauci said on Friday he hopes regulators as soon as next month could start granting...

(Reuters) - Walt Disney (NYSE:DIS) Co said on Friday it was making vaccination mandatory for all its on-site salaried and non-union hourly employees in the United States, as the...

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S&P 500 closes Friday lower as Amazon shares slide, but notches sixth straight positive month

CNBC 29 July, 2021 - 05:08pm

U.S. stocks fell on Friday amid a slide in Amazon shares, but the S&P 500 notched its sixth straight positive month.

The broad equity benchmark fell 0.5% to 4,395.26, dragged down by the consumer discretionary and energy sectors. The tech-heavy Nasdaq Composite slipped 0.7% to 14,672.68. The Dow Jones Industrial Average dipped 149.06 points, or 0.4%, to 34,935.47.

Amazon sank nearly 7.6% after it reported its first quarterly revenue miss in three years and gave weaker guidance. Pinterest fell even further, down 18.2%, after saying it lost monthly users during the three months ended June 30.

The major averages managed to wrap up a solid month, although volatility has picked up amid concerns about the economic recovery in the face of the spreading delta variant. The Nasdaq and Dow added about 1.2% and 1.3% respectively in July, while the broad S&P 500 gained close to 2.3% over the same period. Utilities, health care, real estate and technology stocks have led the S&P 500 higher for the month, while energy and financials have lagged.

"There has been quite a bit of volatility and price choppiness in the market in recent weeks," Brian Belski, chief investment strategist at BMO, said in a note. "Increased concerns over the delta variant and its potential implications for reopening momentum seemed to play a key role in the price action, while peak themes related to economic growth, earnings, and policy support also remained an overhang on risk sentiment."

Investors digested a key inflation indicator that showed better-than-feared price pressures on Friday. The core personal consumption expenditures price index rose 3.5% in June year over year. It marked a sharp acceleration in inflation, but came in slightly below a Dow Jones expectation of a 3.6% jump.

Weaker-than-expected readings on the U.S. economy further eased concerns about the Federal Reserve dialing back asset purchases.

U.S. second-quarter gross domestic product accelerated 6.5% on an annualized basis, considerably less than the 8.4% Dow Jones estimate. Meanwhile, the latest weekly jobless claims also came in higher than expected.

Fed Chairman Jerome Powell on Wednesday noted that while the economy has come a long way since the Covid-19 recession, it still has a ways to go before the central bank considers adjusting its easy-money policies.

Procter & Gamble shares rose nearly 2% after the consumer giant topped analysts' estimates for quarterly earnings and revenue. However, the company warned that increasing commodity costs could hit its earnings in the upcoming year.

Shares of online brokerage Robinhood rebounded shy of 1% in volatile trading on Friday after closing its debut session 8% lower.

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