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U.S. stocks slip, dollar has worst week in almost two months

EconomyJul 30, 2021 04:36PM ET
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2/2 © Reuters. FILE PHOTO: Visitors look at an electronic stock quotation board at the Tokyo Stock Exchange (TSE) in Tokyo, Japan, October 1, 2018. REUTERS/Toru Hanai 2/2

By Koh Gui Qing

NEW YORK (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 bounced from its lows but still suffered its worst week in nearly two months.

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 Amazon stock as the online retailer revenue of $113 billion in the second quarter was $2 billion shy of analysts' forecasts.

Amazon shares slumped 7.6%, dragging the tech-focused Nasdaq Composite down 0.7%. That fed profit-taking elsewhere, with the S&P 500 losing 0.5%. The Dow Jones Industrial Average shed 0.4%. Both the S&P 500 and the Dow 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 also said: "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 shares have climbed 17% in the past year.

Still, Amazon's warning of slowing growth gave investors a reason to cash in profits.

The pan-European STOXX 600 index lost 0.45% and MSCI's gauge of stocks across the world shed 0.74%.

Treasury yields edged lower as investors shied away from higher-risk investments. Data released on Friday showed annual inflation accelerating further above the Federal Reserve's 2% target, but that did not appear to alter investors' bets that the Fed is in no hurry to tighten monetary policy.

Benchmark 10-year Treasury yields retreated to 1.2289%, from 1.269% late on Thursday. The yield on the 2-year note fell to 0.1898%, from 0.201%. [US/]

Currency investors took a slightly different view, betting on Friday that the Fed might not be as dovish as some think.

The dollar, which hit a one-month low on Thursday, bounced following remarks by St. Louis Federal Reserve President James Bullard that the Fed should start reducing its monthly bond purchases this fall.

The dollar index rose 0.275%, and a firmer greenback pushed the euro down 0.23% to $1.1859. [USD/]

For the week, however, the dollar was still down 0.8% against a basket of six major currencies, making this its worst week since May 9.

Oil prices kept their march higher, 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]

U.S. crude recently rose 0.18% to $73.75 per barrel and Brent was at $76.33, up 0.37% 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. A firmer dollar also weighed on the precious metal.

Spot gold dropped 0.8% to $1,813.26 an ounce. U.S. gold futures fell 1.01% to $1,812.70 an ounce. [GOL/]

U.S. stocks slip, dollar has worst week in almost two months
 

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Comments (6)
TARA CHAND AGRAWAL
TARA CHAND AGRAWAL Aug 01, 2021 10:23AM ET
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Gold prices are up about $1905 this weekend as investors expect the economy will slide and hedging is expected to best option
almagnifico almagnifico
almagnifico almagnifico Jul 31, 2021 10:53PM ET
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just buy dollar dip 91.300-91.800 bybit to 94.7-95 im not like other just shout buy on nothing this lowest point on two month ok cftc is flip bullish doller in last 16 month MM buying dollar dips why you not post dollar positioning by big participant in forex market.. Dont sell the dolllar You want sell sell the gbp usd (cot negative) euR usd ( getting weeker)
Stan Smith
Stan Smith Jul 30, 2021 10:49AM ET
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Don't forget also: Inflation Expectations Hit 13 Year High
Yosif Yosifov
Yosif Yosifov Jul 30, 2021 2:14AM ET
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US indices will dip as well .. cant wait for the US sessions
Sarunas Simkus
Sarunas Simkus Jul 30, 2021 2:14AM ET
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They should dip after the PCE index numbers
Antonio Fernanda
Antonio Fernanda Jul 30, 2021 2:14AM ET
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Yes, the rise of market value is at the coner and only the wise will earn
Pablo Blanc
Pablo Blanc Jul 30, 2021 1:31AM ET
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America needs to cut ties with the criminals
John Thompson
John Thompson Jul 30, 2021 1:31AM ET
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u want to collapse the world economy cool....usa and china are joined to the hip with cheap products manufactured by cheap labour
zen cool
zen cool Jul 30, 2021 1:31AM ET
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throw your iphone / ipad away, they are made in china
Antonio Fernanda
Antonio Fernanda Jul 30, 2021 1:31AM ET
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John is right
Simon Meszaros
Simon Meszaros Jul 30, 2021 1:31AM ET
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us economy was built on slaves work, on occupied new lands. now running on dirty oil. not much to be proud of, but you managed to get out of it with some dignity. china is doing its best. us is frontrunner thats the only difference.
GR Mishra
GR Mishra Jul 30, 2021 12:15AM ET
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" Japan's Nikkei dipped 1.71%, set for an 11th straight month of falls on the last trading day in the month." 11th straight month of falls?
Koragit Kong
AlwaysKong Jul 30, 2021 12:15AM ET
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It means that on the last trading day of the previous 11 months, Japanese market always ends lower than the day before.
Antonio Fernanda
Antonio Fernanda Jul 30, 2021 12:15AM ET
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Thats the reason is been advised to earn from UK based companies on crypto. To me thats the safer means of making money everyday
 
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