- US stocks slipped on Friday as weak sales forecast from
Amazon clouded the outlook forBig Tech . - The PCE inflation gauge rose 0.5% in June, showing prices continued to rise amid supply chain distortions.
- The yield on the 10-year Treasury note was 1.231%, down by 3.8 basis points.
US stocks closed lower on the last trading day of the month, as a weak sales forecast from Amazon clouds the outlook for technology stocks.
After the close on Thursday, Amazon reported quarterly earnings that fell short of expectations, with the company missing quarterly sales estimates for the first time since 2018. Its sales and profit forecasts were below expectations, stoking concern among investors.
Shares of the e-commerce giant took their biggest tumble since May 2020, falling by as much as 8%. This translated to a loss of around $148 billion to Amazon's market value.
Tech giants have been some of the pandemic's biggest winners. However, Amazon's latest report underscores the challenge of keeping the strong pace of sales as the economy reopens.
"While outlook was disappointing, and bears could argue Amazon is investing in 1-Day fulfillment out of competitive necessity, we think Amazon remains in a solid position, with US retail growth likely above industry growth rates," Bank of America analysts Justin Post and Michael McGovern said in a Friday note.
Here's where US indexes stood shortly after the 4:00 p.m. ET close on Friday:
- S&P 500: 4,395.26, down 0.54%
- Dow Jones Industrial Average: 34,935.47, down 0.42% (149.06 points)
- Nasdaq Composite: 14,672.68, down 0.71%
Pinterest shares tumbled by 19% to a two-month low after the company reported a quarterly loss in active users on the social media site as easing of COVID-19 restrictions led more people to engage in other activities.
US stocks in recent weeks have climbed mostly higher as investors cheered robust corporate earnings and the accelerating pace of global economic recovery. The COVID-19 Delta variant, along with inflationary concerns, has dampened positive sentiment.
The
The yield on the 10-year Treasury note was 1.231%, down by 3.8 basis points.
The Personal Consumption Expenditures price index - a closely monitored measure of nationwide inflation - gained 0.5% last month, suggesting that prices continued to climb amid supply chain issues across the US.
The reading exceeded the median estimate of a 0.4% increase from economists surveyed by Bloomberg. It also matched the May print of 0.5% growth.
Oil prices were up. West Texas Intermediate crude rose 0.41%, to $73.92 per barrel. Brent crude, oil's international benchmark, increased 0.37%, to $76.33 per barrel.
Gold slipped 0.93% to $1,813.49 per ounce.