Equities New York Outlook: Moderate losses – Amazon disappoints with numbers | 07/30/21

NEW YORK (awp international) – After new highs for the Wall Street Index Dow Jones Industrial and the broad S&P 500, the US stock exchanges should start a little weaker on Friday. In addition, the US online retail giant Amazon disappointed with its quarterly report. The data on consumer spending and labor costs, however, provided positive sentiment, as US consumption is developing robustly again in June after a weaker previous month. In addition, labor costs increased less than expected in the second quarter.

Shortly after the start of trading, the Chicago PMI is still in view, which reflects the mood of purchasing managers in the important Chicago economic region.

The broker IG valued the Dow around three quarters of an hour before the start of trading, 0.2 percent lower to 35,000 points, which would result in an equal minus over the course of the week. As recently as Thursday, the world’s best-known index topped its record high at 35,172 points. The technology-heavy selection index Nasdaq 100 is expected to be 1.2 percent weaker on Friday to 14,875 points.

The main focus of investors is likely to attract Amazon. Although the group continued to benefit from the trend towards online shopping and booming cloud services in the second quarter, the momentum is gradually waning. Slower growth and higher investments would come in the second half of the year to the Internet retailer, wrote about JPMorgan analyst Douglas Anmuth and capped his price target. Before the trading session, the share went down by almost 7 percent.

At the same time, the share of Pinterest plummeted by as much as 20 percent. The trigger was that the photo app fell short of expectations in terms of user numbers in the past quarter.

Procter & Gamble gained a little more than one percent before the start of trading. The consumer goods group made another final spurt at the end of its 2020/21 financial year, but higher raw material costs nibbled on the gross profit margin, which fell in the final quarter.

Quarterly reports also came from the two oil companies Chevron and ExxonMobil, whose shares rose pre-market. The recovery of the global economy played into their cards. Exxon surprised positively with higher than expected earnings per share and Chevron was in the black again in the second quarter.

The Deutsche Telekom subsidiary T-Mobile US gained many new customers in the past quarter and increased its profit significantly. In addition, Mike Sievert’s management raised the annual forecast slightly. The share did not benefit from the pre-trading session, however, but fell by a little more than one percent. However, it had only reached a record high at just over 150 US dollars in mid-July./ck/jha/

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