Major indexes maintain monthly gains even as U.S. stocks fall on Friday
By Ishika Dangayach on Jul 31, 2021 | 02:31 AM IST
Stocks in the United States fall on Friday, while major
indexes appeared to be on track to maintain their monthly gains.
The S&P 500 dropped 0.5 %. The Dow Jones Industrial
Average fell 0.4 %, while the Nasdaq Composite fell 0.7 %.
A month-long run in US stocks has faltered in recent weeks,
owing to signals that the rate of economic development is slowing and that
snarls in the global supply chain for products continue. Concerns over China'scrackdown on internet and technology companies, as well as high expectations
for corporate results, have also impacted mood this week. Wall Street was also
shaken by Amazon’s dismal sales report late Thursday, WSJ reported.
The S&P 500 is up 2.2 % in July, putting it on track for
its sixth straight month of gains, while the Dow industrials are up 1.5 %. The
Nasdaq Composite is up 0.8 % this morning.
Amazon.com Inc fell 7.6 %, marking the firm's worst day
since March 2020, after the company predicted sales growth will slow in the
coming quarters as customers shopped more outside the house.
Other technology giants, Apple Inc rose 0.2 %, Google-parent
Alphabet Inc declined by 0.8 %, Facebook Inc and Microsoft Corp dropped by
0.6%.
Pinterest Inc shares plummeted 17.8% after the online sharing platform reported a drop in monthly average users in the U.S. during the second
quarter.
Atlassian Corp Plc's stock climbed 21.8 % as the company's loss
reduced as sales increased owing to high demand for its products and
team-collaboration software products during the pandemic.
According to data released on Friday, consumer spending in the U.S. increased more than predicted in June, but annual inflation surged over the Federal Reserve's 2 % target.
Economically sensitive sectors such as industrials, energy,
and financials dropped, while value stocks were expected to beat growth-linked
companies such as technology for the week.
Procter & Gamble Co climbed 2.1 % as it predicted
stronger profits this quarter while Caterpillar Inc. fell 2.7 % after
reversing direction. The firm increased its adjusted profit in the second
quarter as global economic activity improved.
Chevron Corp shares plummeted roughly 1%, while Exxon Mobil Corp
shares slid 2.34 % but both announced quarterly results that above analysts' forecasts.
According to IBES statistics from Refinitiv, overall results
for the quarter were significantly higher than predicted, with about 89 % of
reports exceeding analysts' profit forecasts. Earnings are now projected to
have risen 89.8 % in the second quarter, compared to 65.4 % forecasted at the
start of July, Reuters reported.
Overseas, the Stoxx Europe 600 and shanghai composite index
fell 0.4 % while Hang Seng Index fell about 1.35 % on Friday.