Stocks tumble as Amazon weighs in on tech sector

U.S. stock indices were down on Friday as investors digest the latest inflation data and sort through another batch of top-tier corporate earnings.

The Dow Jones Industrial Average fell 63 points, or 0.18%, while the S&P 500 Index and the Nasdaq Composite Index fell 0.6% and 1.02%, respectively. Thursday’s top three averages ended just below all-time highs.

The basic personal consumption expenditure price index rose 3.5% per year in June, the largest increase since July 1991. Prices increased 0.4% month to month. ‘other. Both readings were lower than analysts polled by Refintiv expected.

FED’S FAVORITE READ OF INFLATION SHOWS PRICES DROP 3.5% PER YEAR

In stocks, Amazon Inc.’s quarterly earnings topped $ 100 billion for the third consecutive quarter, but fell below analyst estimates for the first time in three years. The e-commerce giant’s revenue growth forecast for the current quarter is much lower than expected, with CFO Brian Olsavsky blaming year-over-year comparisons on the back of the pandemic.

Chevron Corp. reported its second consecutive quarterly profit as demand for petroleum products rebounded amid a reopening of the economy and rising crude prices. The oil major has reinstated its share buyback program, saying it will buy shares in the current quarter at a rate of $ 2-3 billion per year.

The rebound in demand and oil prices also benefited ExxonMobil Corp., which posted its biggest quarterly profit in over a year. The company’s bottom line was helped by the cost reductions that were implemented during the pandemic.

Caterpillar Inc., an indicator of global economic activity, said its equipment sales were up 31% from a year ago amid strong demand in North America and Latin America. The heavy-equipment maker said demand is expected to remain strong in the current quarter, but supply chain disruptions will weigh on its operating profit.

Proctor & Gamble Co. beat both revenue and revenue, but warned that rising commodity and freight costs would reduce revenue during the year in Classes. The producer of consumer goods has already announced its intention to increase the prices of some of its products in September.

Restaurant Brands International Inc. said digital sales jumped nearly 60% from a year ago, as its Burger King and Tim Hortons brands saw strong same-store sales growth. Popeyes Louisiana Kitchen saw a slight drop in same store sales after facing difficult comparisons from last year.

In commodities, West Texas Intermediate crude oil slipped 11 cents to $ 73.51 per barrel and gold fell $ 7.10 to $ 1,828.70 per ounce.

Overseas markets were generally weaker.

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European stock markets were all down with the UK FTSE 100 down 0.83%, the German DAX 30 down 0.65% and the French CAC 40 down 0.04%.

In Asia, the Japanese Nikkei 225 fell 1.8% while the Hang Seng index of Hong Kong and the Shanghai Composite of China fell 1.35% and 0.42% respectively.