NEW YORK (AP) — U. S. inventory indexes fell Friday, and much of the weight of the problem came from a high-flying stumble at Amazon.
The S
The Dow Jones Industrial Average fell 149. 06, or 0. 4%, to 34,935. 47, and the Nasdaq composite fell 105. 59, or 0. 7%, to 14,672. 68.
Combined trading on Friday, with nearly two stocks down on the S
Amazon fell 7. 6% after a sharp sales expansion for its final quarter that, while still enviable at 27%, wasn’t as strong as analysts had hoped. He also gave profit forecasts for the existing quarter that were lower than those of Wall Street.
Because Amazon is one of the largest corporations in the S
Amazon has been one of the biggest winners of the pandemic, which has forced other people to hide and shop at home, but other people returned to retail outlets and other pre-pandemic activities.
Pinterest found a factor in its last quarter: its inventory fell 18. 2% after posting a slower-than-expected expansion in its number of users.
It’s been a busy week for corporate profits reports, and around 3 of the S’s
Perhaps even more so is the way corporations do this,” said Sal Bruno, chief investment officer at IndexIQ.
“What’s encouraging is that the wonder of sales is positive,” he said. “This tells me that businesses are growing, which goes hand in hand with economic reopening. “
So far, 88% of corporations have reported sales even higher than analysts expected in the last quarter, according to FactSet. This is more than usual.
Strong earnings reports have helped help the stock market; recently, other considerations have made trading operations more volatile. Concerns are developing about whether a new variant of the coronavirus could damage the economy, while Beijing’s crackdown on Chinese tech corporations has helped destabilize investors around the world. High inflation also remains a threat to the market.
Treasury yields fell after several reports on the economy and inflation.
One showed that customer spending, which makes up the bulk of the economy, has strengthened more than economists expected in June. A key measure of inflation also accelerated at its fastest pace since 1991, but not as high as economists thought.
Americans’ incomes rose in June, when their inflation expectations were slightly lower than economists’ forecasts.
The yield on 10-year Treasuries fell to 1. 23% from 1. 27% on Thursday.
The market can simply revel in more hectic trading through August, Bruno said.
“The basic outlook is sometimes solid for the future, even if there is weakness and volatility in the short term,” he said.
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