- Pinterest sinks on stalled U.S. user growth
- U.S. consumer spending rises in June, inflation increases
- Indexes off: Dow 0.5%, S&P 0.5%, Nasdaq 0.7%
NEW YORK, July 30 (Reuters) – 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 (AMZN.O) 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. read more
Shares of other internet and tech giants that did well during the lockdowns of last year, including Apple Inc (AAPL.O), Google parent Alphabet Inc (GOOGL.O) and Facebook Inc (FB.O), were flat to lower.
“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. read more
The Dow Jones Industrial Average (.DJI) fell 160.7 points, or 0.46%, to 34,923.83, the S&P 500 (.SPX) lost 23.31 points, or 0.53%, to 4,395.84 and the Nasdaq Composite (.IXIC) dropped 106.08 points, or 0.72%, to 14,672.19.
Recent strong earnings and the continued rebound in the U.S. economy have helped to support stocks recently, but the rapid spread of the Delta variant and rising inflation have been concerns. read more
The S&P real estate index (.SPLRCR), generally considered a defensive play, hit an all-time intraday high.
Pampers maker Procter & Gamble Co (PG.N) rose 2.1% as it forecast higher core earnings for this year, while U.S.-listed shares of Canada’s Restaurant Brands International Inc jumped 5.0% after the Burger King owner beat estimates for quarterly profit. read more
Pinterest Inc (PINS.N), however, plunged 19.2% 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. read more
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.
Reporting by Caroline Valetkevitch in New York
Additional reporting by Sagarika Jaisinghani in Bengaluru
Editing by Arun Koyyur and Matthew Lewis
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