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The stock market came out of its opening lows on Friday morning as the Nasdaq composite was hit hardest by weakness in Amazon.com (AMZN) in particular.
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Amazon.com slipped nearly 7% after the company reported second-quarter sales that ran out of views and gave disappointing third-quarter guidance. The stock, which is an important part of the Nasdaq and the S&P 500, was below its 50-day moving average in significant volume, but held above the 200-day average.
The Nasdaq fell back on the open and reduced its loss to 0.6%. The S&P 500 lost 0.4% as it also cut losses.
The Dow Jones Industrial Average plunged 0.2%. Procter & Gamble (PG) was the best performer in the Dow Jones, up 2% after the housewares company beat sales and profit expectations but warned of higher costs. On Thursday, P&G announced that David Taylor is stepping down as CEO. Chief Operating Officer Jon Moeller will succeed Taylor, who will assume the role of Executive Chairman.
Snapshot of the US Stock Market Today |
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|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Change |
| Dow jones | (0DJIA) | 35058.64 | +127.71 | +0.37 |
| S&P 500 | (0S & P5) | 4407.35 | +6.71 | +0.15 |
| Nasdaq | (0NDQC) | 14710.54 | -52.05 | -0.35 |
| Russel 2000 | (IWM) | 223.67 | +2.85 | +1.29 |
| MICI 50 | (FFTY) | 45.51 | -0.07 | -0.15 |
Last Modified: 10:02 AM ET 07/30/2021 |
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Small caps outperformed the stock market. The Russell 2000 climbed 0.5%.
Volume was lower on the NYSE and Nasdaq compared to the same time Thursday.
Earnings reports trigger stock market movements
Other earnings reports sparked major stock market movements.
Atlassian (TEAM) climbed more than 26% after the software maker’s profits exceeded estimates and the company forecast higher-than-expected subscription revenue for its 2022 fiscal year. The stock broke a base in June and was testing the 10-week moving average before Friday’s push.
Corn Pinterest (PINS) fell more than 17% after the social media company beat second-quarter expectations Thursday night, but missed user growth estimates. The stock remained below its 50 and 200 day moving averages.
Pinterest is an IBD 50 stock, and its downfall has cost the index. The Innovator IBD 50 ETF (FFTY) edged down 0.6%.
Oil majors beat earnings views
Exxon Mobil (XOM) and Chevron (CLC) reported better than expected earnings on Friday morning. Exxon Mobil fell less than 1%, while Chevron slashed gains to 0.1%. Chevron is facing upside resistance at the 50 day line.
Personal spending rose 1% in June, the Commerce Department reported on Friday, beating economists’ expectations for an increase of 0.6%. The gain follows a revised 0.1% drop in May. Also this morning, the US personal income report for June showed an increase of 0.1%. This was much better than the consensus forecast of a 0.7% drop.
Despite a positive reading of US consumption, Consumer Discretionary Select Sector SPDR (XLY) fell 1.7%, the worst ETF in the S&P sector on the stock market today. Blame it on Amazon, which accounts for around 23% of the ETF’s weighting. Still, the ETF finds support at the 21-day exponential moving average.
Juan Carlos Arancibia is IBD’s Markets Editor and oversees our market coverage. Follow him on @IBD_jarancibia
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