World stocks eye sixth month of gains, dollar near 1-mth low

0
49
imageEconomy20 minutes ago (Jul 30, 2021 15:41)

2/2
© Reuters. FILE PHOTO: A man watches an electric board showing Nikkei index outside a brokerage at a business district in Tokyo, Japan, June 21, 2021. REUTERS/Kim Kyung-Hoon/File photo

2/2

By Koh Gui Qing and Simon Jessop

NEW YORK/LONDON (Reuters) – U.S. stocks dropped on Friday to pull further from record highs as an underwhelming earnings report from Amazon.com Inc (NASDAQ:AMZN) dampened the market mood, while the dollar rose a shade but hovered near a one-month low.

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 the stock on the remarks even though the giant online retailer still earned an eye-watering $113 billion in revenues in the second quarter, albeit $2 billion shy of analysts’ forecasts.

In early Friday trade, Amazon shares slid 7.3%, dragging the tech-focused Nasdaq Composite down 0.91%. That fed profit-taking elsewhere, with the S&P 500 losing 0.44%, while the Dow Jones Industrial Average was flat, up just 0.04%. Both the S&P 500 and the Dow had struck record highs on Thursday.

“Amazon’s weak report and the impact on futures immediately made its impact felt on global markets,” said Paul Hickey, co-founder of Bespoke Investment Group, LLC.

But Hickey noted that “just because investors haven’t reacted to the company’s recent reports with excitement doesn’t mean Amazon has been a poor performer,” adding that the share has climbed 17% in the past year.

Still, Amazon’s warning of slowing growth gave investors a reason to tamper recent market exuberance and cash in profits.

The pan-European STOXX 600 index lost 0.18% and MSCI’s gauge of stocks across the globe shed 0.46%.

That investors were not scooping up risky assets nudged Treasury yields lower.

Benchmark 10-year Treasury yields retreated to 1.2406%, from 1.269% late on Thursday. The yield on the 2-year note fell to 0.1937%, from 0.201%. [US/]

The dollar, which hit a one-month low on Thursday, was flat, as bullish dollar investors shied the greenback after the Federal Reserve seemed to strike a dovish tone this week by saying it will watch economic data before withdrawing any policy support.

The dollar index inched up just 0.09%, and the euro was also flat, down 0.07% at $1.1878. [USD/]

Oil prices kept their march higher though, as investors bet that vaccinations would alleviate the impact of a resurgence in COVID-19 infections across the globe and keep demand growing faster than supply. [O/R]

Brent was down 0.22% at $75.88 per barrel and U.S. West Texas Intermediate crude traded down 0.43% at $73.30. Brent crude is still up nearly 2% for the week.

U.S. crude recently rose 0.31% to $73.85 per barrel and Brent was at $76.34, up 0.38% on the day.

Gold prices, which rose this week on hopes that bullion would be a good hedge against inflation given a dovish Fed, succumbed to slight profit-taking on Friday.

Spot gold dropped 0.2% to $1,824.41 an ounce. U.S. gold futures fell 0.31% to $1,825.50 an ounce. [GOL/]

U.S. stocks slip on Amazon earnings, dollar near 1-month low

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

LEAVE A REPLY

Please enter your comment!
Please enter your name here