(Updates, details)
* Nasdaq falls 0. 7% while Amazon collapses 7%
* Dow, S
* STOXX six hundred minus 0. 45%
* The dollar recovers after statements by the president of the St. Fed. Louis, Bullard.
By Koh Gui Qing
NEW YORK, 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 near a one-month low.
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 Amazon’s stock even though the online store still made $113 billion in profits at the time of the quarter, $2 billion less than analysts’ forecasts.
In Friday afternoon trading, Amazon shares fell 7%, dragging the tech-focused Nasdaq Composite down 0. 7%. This boosted profit-making elsewhere, with 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 also said, “Just because investors haven’t reacted enthusiastically to the company’s recent reports doesn’t mean Amazon has underperformed,” adding that stocks are up 17% over the next year.
Still, Amazon’s caution about slowing expansion gave investors an explanation of why they invest in profits.
The pan-European STOXX 600 index lost 0. 45% and the MSCI global equity index lost 0. 74%.
Treasury yields fell as investors moved away from high-risk investments. Data released Friday showed annual inflation accelerated further above the Federal Reserve’s 2% target, but that didn’t seem to settle investors’ bets that the Fed is in no hurry to tighten financial policy. .
Yields on benchmark 10-year Treasuries fell to 1. 2306%, from 1. 269% due on Thursday. The yield on the 2-year note fell to 0. 1898% from 0. 201%.
Currency investors took a different view, betting Friday that the Fed might not be as dovish as some think.
The dollar, which touched a one-month low on Thursday, rallied following statements by the Chairman of the St. Federal Reserve. Louis, James Bullard, that the Fed would start cutting monthly bond purchases this fall.
The index rose 0. 336% and the firmer index fell 0. 28% to $ 1. 1853.
Oil costs continued to rise as investors bet that vaccines would mitigate the effect of a resurgence of COVID-19 infections around the world and maintain a faster-than-supply expansion of demand.
U. S. crude rose 0. 64% to $74. 09 a barrel and Brent to $76. 35, up 0. 39% 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. A firmer dollar also weighed on the valuable metal.
Spot gold fell 1. 0% to $1,810. 41 an ounce. U. S. gold futures fell 1. 02% to $1,812. 60 an ounce.
(Additional reports by Andrew Galbraith; edited by Christopher Cushing, Kim Coghill, William Maclean, Timothy Heritage, Joe Bavier and Jane Merriman)