Wall Street plunged, after the Standard $ Poor’s 500 Index expanded a record, as Amazon.com Inc. and Visa Inc. reported earnings that missed projections and durable goods data propelled fears that corporate investment still is volatile.
Amazon declined 9.9% after missing analysts’ outlook for the second quarter in a row. Visa lost 4% after lowering its revenue projection for the full year. Pandora Media Inc. was down 12% after the number of active listeners to the most popular online radio platform was lower than some analysts had forecast. Baidu Inc. advanced 10% after its earnings beat estimates.
The S&P 500 dropped 0.5% to 1,977.48 as of 1:50 pm in New York. The Dow Jones Industrial Average declined 141.92 points or 0.8% to 16,941.88 on Friday. The volume of shares changing hands in the S&P 500 was lower than the average for the past 30 days by 7.6% at the particular time of the day.
“The market is really looking at micro level numbers on a lot of these companies. There is skepticism going into the weekend. We have a lot of important numbers coming out next week with GDP, inflation and jobs, so we might see some profit-taking today,” Ian Kerrigan of Seattle-based JP Morgan Private Bank told Bloomberg.
The S&P 500 has seen little change this week. The index added 0.5% over the past 5 days as firms’ earnings reports bolstered confidence in the economy and inflation data indicated that the Federal Reserve will not have to hike rates in the foreseeable future. The Fed will reveal its next policy position after the conclusion of a two-day convention on July 30.
According to Reuters, Starbucks slid 2.1% to $78.76, despite its quarterly sales at established shops in its Americas market soared 6%, a rate that surpassed expectations.
El Pollo Loco Holdings Inc stock surged 52% to $22.77 in its IPO.
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