(As of 7:10 am PST)
Stocks opened firmly lower today as disappointing
earnings results claimed the headlines.
Despite this morning’s decline, the major benchmarks are on pace for
modest weekly gains. Negative sentiment
began yesterday in the after-market when Amazon announced quarterly results
that missed expectations. The online retailer posted another huge sales quarter
but failed to turn a profit with losses widening more than in the year ago
period. Investors beat down the stock
with shares opening at $318, down 11% from the prior day close. Adding to the
negative earnings day were results from Pandora and Starbucks, with shares down
on a disappointing outlook. The bright spot of the day is a report on US
durable goods orders. Orders for durable
goods rose 0.7% in June, well ahead of the consensus estimate. Investors shrugged off the report to focus on
earnings related news. Next week is full
of economic data with the Labor Department’s monthly jobs report rounding out a
week that also includes the Federal Open Market Committee (FOMC) meeting. International markets remain cautious as
geopolitical tensions in Russia and Gaza persist. Expect this downward pressure
to persist throughout the day.
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