© Reuters. File photo: October 28, 2013, Wall Street sign outside the New York Stock Exchange in New York. REUTERS/Carlo Allegri
NEW YORK (Reuters)-The US stock market fell on Friday and recorded a decline this week as Amazon’s stock price fell after the company predicted a slowdown in sales growth, but still rose for the sixth consecutive month.
Amazon (NASDAQ:) shares fell 7.6%-the largest single-day percentage drop since May 2020-the company reported late Thursday that its second-quarter revenue was lower than analysts’ average expectations, and Indicates that sales growth will slow in the next few quarters, as customers move out of their homes more.
The stocks of other Internet and technology giants that performed well during the blockade last year, including Google’s parent company Alphabet (NASDAQ:) Inc and Facebook (Nasdaq:), also mostly lower.
“The overall earnings have been good. But Amazon…and some of the winners from last year are removing some of the air from the market today,” said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma. “This market is driven by large technology companies. When technology companies perform well, the market seems to go with the flow, and when it doesn’t go well,” it fell.
Data released on Friday showed that US consumer spending increased more than expected in June, but the annual inflation rate was further higher than the Federal Reserve’s 2% target.
The S&P 500 index fell 149.06 points or 0.42% to 34,935.47, the S&P 500 index fell 23.89 points or 0.54% to 4,395.26, and fell 105.59 points or 0.71% to 14,672.68
This month, the S&P 500 index rose 2.3%, the Dow Jones index rose 1.3%, and the Nasdaq index rose 1.2%, while the major indexes all fell this Wednesday.
Strong earnings this month and the continued rebound in the US economy have helped support the stock market, but the rapid spread of the delta variant of the coronavirus and rising inflation have been worrying.
Dollarhide said: “There are still some distant unease, about the Delta variant, about the rumors about the increase in cases, I think some of the underlying concerns are concerns about the slowing of the reopening and the possible reversal.”
Also in terms of earnings, Pampers manufacturer Procter & Gamble (NYSE:) Co rose 2% because it predicts that its core earnings will be higher this year. Canadian restaurant brand International (NYSE:) Inc’s US-listed shares rose after the Hamburg IPO 5.1% of King’s owners’ quarterly profits exceeded expectations.
However, Pinterest (NYSE:) Inc’s stock price plummeted 18.2% after the company stated that user growth in the US is slowing because more people use the platform for handicrafts and DIY projects during the peak of the pandemic.
caterpillar Inc (NYSE:) shares also fell, closing down 2.7%, despite the company’s second-quarter adjusted profit growth amid the recovery in global economic activity.
Refinitiv’s IBES data shows that the overall performance of S&P 500 index companies this quarter was far better than expected, and about 89% of nearly 300 reports so far exceeded analysts’ profit expectations. Earnings in the second quarter are now expected to increase by 89.8%, compared with the 65.4% forecast in early July.
The trading volume on the US exchange was 8.86 billion shares, while the average trading volume for the entire trading day over the past 20 trading days was 9.74 billion shares.
The ratio of falling shares to rising shares on the New York Stock Exchange was 1.43:1; on the Nasdaq, the ratio of 1.58:1 favored the decliners.
The Standard & Poor’s 500 Index hit 65 52-week highs and 2 new lows; the Nasdaq Composite Index hit 84 new highs and 98 new lows.