US Stocks Slip, Dollar Have Worst Week in Nearly Two Months

NEW YORK: US stocks tumbled on Friday to pull ahead of record highs as Amazon.com Inc’s tremendous earnings report dented market sentiment while the dollar jumped from its lows, but still nearly doubled. It had the worst week in months.

After posting record profits during the pandemic, Amazon said late on Thursday that its sales growth would slow over the next few quarters as people stepped out of their homes post-pandemic and reduced online shopping.

Investors sold Amazon stock as the online retailer posted revenue of $113 billion in the second quarter, $2 billion shy of analysts’ forecasts.

Shares of Amazon were down 7.6%, dragging the tech-focused Nasdaq Composite down 0.7%. It posted gains elsewhere, with the S&P 500 down 0.5%. The Dow Jones Industrial Average fell 0.4%. Both the S&P 500 and the Dow touched record highs on Thursday.

“Amazon’s weak report and impact on futures immediately felt their impact 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 enthusiasm, it doesn’t mean that Amazon is underperforming,” adding that the stock’s decline over the past year. There has been an increase of 17%.

Still, Amazon’s warnings of slowing growth gave investors a reason to cash in on profits.

The pan-European STOXX 600 index was down 0.45% and MSCI shares around the world were down 0.74%.

Treasury yields fell as investors turned away from high-risk investments. Data released Friday showed annual inflation has accelerated above the Federal Reserve’s 2% target, but that did not appear to change investors’ bets that the Fed is in no hurry to tighten monetary policy. .

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

Currency investors took a slightly different approach, betting Friday that the Fed may not be as generous as some think.

The dollar, which hit a one-month low on Thursday, bounced after remarks from St. Louis Federal Reserve Chairman James Bullard that the Fed should begin reducing monthly bond purchases this fall.

The dollar index rose 0.275%, and a strong 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 it its worst week since May 9.

Oil prices kept their march high, as investors bet that vaccinations would ease the impact of a resurgence in COVID-19 infections around the world and drive demand faster than supply. [O/R]

US crude was recently up 0.18% at $73.75 a barrel and Brent 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, braced for marginal gains on Friday. A stronger dollar also weighed on the precious metal.

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

(Additional reporting by Andrew Galbraith; Editing by Christopher Cushing, Kim Coghill, William McLean, Timothy Heritage, Joe Beavier, Jane Merriman and Cynthia Osterman)

Disclaimer: This post has been self-published from the agency feed without modification and has not been reviewed by an editor

read all Breaking Newshandjob breaking news And coronavirus news Here

Leave a Reply