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Wall Street falls with Amazon; S&P 500 posts sixth straight month of gains

Stock MarketsJul 30, 2021 06:30PM ET
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© Reuters. FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange in New York, October 28, 2013. REUTERS/Carlo Allegri

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks fell on Friday and registered losses for the week as Amazon.com shares dropped after the company forecast lower sales growth, but the S&P 500 still notched a sixth straight month of gains.

Amazon.com Inc (NASDAQ:AMZN) shares sank 7.6% - their biggest daily percentage drop since May 2020 - after the company reported late on Thursday 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.

Shares of other internet and tech giants that did well during the lockdowns of last year, including Google parent Alphabet (NASDAQ:GOOGL) Inc and Facebook Inc (NASDAQ:FB), were mostly lower as well.

"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.

The Dow Jones Industrial Average fell 149.06 points, or 0.42%, to 34,935.47, the S&P 500 lost 23.89 points, or 0.54%, to 4,395.26 and the Nasdaq Composite dropped 105.59 points, or 0.71%, to 14,672.68.

For the month, the S&P 500 rose 2.3%, the Dow gained 1.3% and the Nasdaq added 1.2%, while for the week all three of the major indexes posted declines.

Strong earnings and the continued rebound in the U.S. economy have helped to support stocks this month, but the rapid spread of the Delta variant of the coronavirus and rising inflation have been concerns.

"There are still some distant jitters, whispers about the Delta variant, about cases rising, and I think some underlying worries about a slowdown of the reopenings and possible reversal," Dollarhide said.

Also on the earnings front, Pampers maker Procter & Gamble (NYSE:PG) Co rose 2% as it forecast higher core earnings for this year, and U.S.-listed shares of Canada's Restaurant Brands International (NYSE:QSR) Inc jumped 5.1% after the Burger King owner beat estimates for quarterly profit.

Pinterest (NYSE:PINS) Inc, however, plunged 18.2% 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.

Caterpillar Inc (NYSE:CAT) shares also fell, ending down 2.7%, even though the company posted a rise in second-quarter adjusted profit on the back of a recovery in global economic activity.

S&P 500 company results on the quarter overall have been much stronger than expected, with about 89% of the nearly 300 reports so far beating analysts' profit estimates, according to IBES data from Refinitiv. Earnings are now expected to have climbed 89.8% in the second quarter versus forecasts of 65.4% at the start of July.

Volume on U.S. exchanges was 8.86 billion shares, compared with the 9.74 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.43-to-1 ratio; on Nasdaq, a 1.58-to-1 ratio favored decliners.

The S&P 500 posted 65 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 84 new highs and 98 new lows.

Wall Street falls with Amazon; S&P 500 posts sixth straight month of gains
 

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Comments (5)
Pi Fo
Pi Fo Jul 30, 2021 4:56PM ET
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GDPR anyone?
CHADWICK RICHINGTON
CHADWICK RICHINGTON Jul 30, 2021 12:42PM ET
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Amazon is garbage I will never buy anything from that site
Simon Meszaros
Simon Meszaros Jul 30, 2021 12:42PM ET
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cloud services are good imho. but yes amazon market is garbage. also not a fan of support this globalistic approach on goods
Benjamin McIntire
Benjamin McIntire Jul 30, 2021 12:42PM ET
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Simon Meszaros i agree the massive supply chain length is carbon intensive and not ideal
Dominic Mazoch
Dominic Mazoch Jul 30, 2021 12:02PM ET
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People will go out, see how bad it is to shop in person, and go back to big A.Tired of going into stores with no product, no checkers, no knowledge of produce, and most customers walking around as if they are the walking dead.
Ronald Warren
Ronald Warren Jul 30, 2021 12:02PM ET
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Dominic! You're absolutely right. Society has morphed. I'm not a conspiracy theorist, but last year I was reading how 5G tech has mind control capability. Make you feel good about your Amazon purchase, etc.What's going on?
zen cool
zen cool Jul 30, 2021 11:22AM ET
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No stock can be legend forever, admit it. 3700 that's already rose enough! leave room to others!
Parvez Babu
Parvez Babu Jul 30, 2021 7:21AM ET
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Not bad
 
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