Wall Street declines due to Amazon; S&P 500 index rises that month Reuters

Caroline Valletkevich

NEW YORK (Reuters)-The US stock market fell on Friday. Amazon shares fell after the company predicted a slowdown in sales growth, but still rose for the sixth consecutive month.

Amazon (NASDAQ:) late Thursday announced that its second-quarter revenue was lower than analysts’ average expectations. The stock price fell, and said that as customers go out of their homes more, sales growth in the next few quarters will be Slow down.

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:), 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 consumer spending in the US increased more than expected in June, but the annual inflation rate was further higher than the Federal Reserve’s 2% target.

Informally, the S&P 500 index fell 146.36 points, or 0.42%, to 34,938.17, the S&P 500 index fell 23.58 points, or 0.53%, to 4,395.57, and 101.51 points, or 0.69%, to 16.76.

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 because it forecasted higher core earnings this year, while the US-listed shares of Canadian restaurant brand International (NYSE:) Inc after Burger King’s owners exceeded expectations The rise is quarterly profit.

However, Pinterest (NYSE:) Inc plummeted after stating that user growth in the United States was slowing down because of the increasing number of people using the platform for handicrafts and DIY projects during the peak of the pandemic.

caterpillar Inc (NYSE:) shares also fell, even though the company announced adjusted profits for the second quarter against the backdrop of recovery in global economic activity.

Refinitiv’s IBES data showed that the overall performance of this quarter was far better than expected, with approximately 89% of reports exceeding analysts’ earnings expectations. Earnings in the second quarter are now expected to increase by 89.8%, compared with the 65.4% forecast in early July.