(Updates everywhere, U. S. stocks)
* Nasdaq down 0. 9% while Amazon plunges 7%
* STOXX six hundred minus 0. 18%
* Dollar languishes near one-month low
By Koh Gui Qing and Simon Jessop
NEW YORK/LONDON, July 30 (Reuters) – U. S. stocks fell on Friday to move away from all-time highs as a disappointing earnings report from Amazon. com Inc hit market sentiment, while the dollar rose but remained around a weak month.
After making record profits from the pandemic, Amazon said Thursday night that its sales expansion would slow in the coming quarters as other people ventured out of their homes after the pandemic and reduced online shopping.
Investors sold inventory in the wake of those comments, even though the online retail giant still posted an impressive profit of $113 billion in the current quarter, $2 billion less than analysts’ forecasts.
At the start of Friday’s trading, Amazon shares fell 7. 3%, dragging the tech-focused Nasdaq Composite down 0. 91%. This has boosted profit-taking elsewhere, the S
“Amazon’s weak report and its effect on futures without delay caused them to have an effect on global markets,” said Paul Hickey, co-founder of Bespoke Investment Group, LLC.
But Hickey noted that “just because investors haven’t reacted enthusiastically to the company’s recent reports doesn’t mean Amazon has underperformed,” adding that the percentage has risen 17% over the next year.
Still, Amazon’s caution about slowing expansion has given investors an explanation for why they falsify the recent exuberance of the market and money into profits.
The pan-European STOXX 600 index lost 0. 18% and MSCI’s overall percentage indicator lost 0. 46%.
Investors’ failure to control assets reduced Treasury yields.
Yields on benchmark 10-year Treasuries fell to 1. 2406%, from 1. 269% due on Thursday. The yield on the 2-year note fell to 0. 1937% from 0. 201%.
The dollar, which touched a one-month low on Thursday, remained solid as dollar bullish investors have moved away from the dollar after the Federal Reserve gave the impression of adopting a dovish tone this week saying it would monitor economic knowledge before taking flight. support.
The dollar index rose 0. 09% and the euro also held steady, down 0. 07% at $1. 1878.
However, oil prices continued to rise as investors bet that vaccines would mitigate the effect of a resurgence of COVID-19 infections around the world and keep the call for expansion faster than supply.
Brent lost 0. 22% to $75. 88 a barrel and U. S. West Texas Intermediate crude. U. S. It traded 0. 43% to $73. 30. Crude oil is still up 2% on the week.
U. S. crude rose 0. 31% to $73. 85 a barrel and Brent to $76. 34, up 0. 38% on the day.
The value of gold, which rose this week on the hope that the bulldo would offer a hedge against inflation given a dovish Fed, succumbed to a slight profit-taking on Friday.
Spot gold fell 0. 2% to $1,824. 41 an ounce. U. S. gold futures fell 0. 31% to $1,825. 50 an ounce.
(Additional report by Andrew Galbraith; edited by Christopher Cushing, Kim Coghill, William Maclean, Timothy Heritage and Joe Bavier)