Stocks slide as Amazon weighs down tech sector

Amazon Inc.’s revenue topped $100B for third straight quarter.

U.S. stock indexes were lower Friday as investors digested the latest inflation data and sorted through another batch of earnings from high-profile companies.

The Dow Jones Industrial Average fell 63 points, or 0.18%, while the S&P 500 index and the Nasdaq Composite index dropped 0.6% and 1.02%, respectively. All three of the major averages on Thursday ended just below all-time highs. 

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES34951.27-133.26-0.38%
SP500S&P 5004398.32-20.83-0.47%
I:COMPNASDAQ COMPOSITE INDEX14683.828878-94.43-0.64%

The core personal consumption expenditures price index rose 3.5% annually in June, making for the biggest increase since July 1991. Prices were up 0.4% month over month. Both readings were below what analysts surveyed by Refintiv were expecting. 

In stocks, Amazon Inc.’s quarterly revenue topped $100 billion for the third straight quarter but was below analyst estimates for the first time in three years. The e-commerce giant’s revenue growth forecast for the current quarter came in well below what was expected, with CFO Brian Olsavsky blaming difficult year-over-year comparisons due to the pandemic. 

TickerSecurityLastChangeChange %
AMZNAMAZON.COM, INC.3,353.05-246.87-6.86%

Chevron Corp. reported its second straight quarterly profit as demand for oil products bounced back amid a reopening of the economy and crude prices rose. The oil major reinstated its share buyback program, stating it would purchase shares in the current quarter at a rate of $2 billion to $3 billion per year.  

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

TickerSecurityLastChangeChange %
CVXCHEVRON CORP.101.60-1.04-1.01%
XOMEXXON MOBIL CORP.57.45-1.49-2.53%

Caterpillar Inc., a bellwether for global economic activity, reported equipment sales spiked 31% from a year ago amid strong demand in North America and Latin America. The heavy-equipment maker said demand is likely to remain strong in the current quarter, but that supply chain disruptions will weigh on its operating profit.  

TickerSecurityLastChangeChange %
CATCATERPILLAR, INC.205.02-7.53-3.54%
PGPROCTER & GAMBLE CO.142.90+3.45+2.47%

Proctor & Gamble Co. beat on both the top and bottom lines but warned rising commodity and freight costs would take a bite out of its bottom line during the current fiscal year. The consumer goods producer already announced plans to raise prices for some of its products in September.