Share

US stocks tumble after Amazon loss

New York - Wall St stocks Friday moved sharply lower in early trade following a disappointing earnings report from Amazon and despite a positive report on US durable goods orders.

About 30 minutes into trade, the Dow Jones Industrial Average fell 102.19 points (0.60%) to 16 981.61.

The broad-based S&P 500 dropped 5.92 (0.30%) to 1 982.06, while the tech-rich Nasdaq Composite Index declined 19.04 (0.43%) to 4 453.07.

Amazon sank more than 10% after reporting a net loss of $126m for the second quarter, much bigger than the $7m loss a year ago. Analysts said the market is losing patience with the online retailer despite strong revenue growth.

US durable goods orders rose 0.7% in June, much stronger than the 0.3% increase expected by analysts and a positive sign of momentum in the manufacturing industry.

Equity markets in Britain, France and Germany were all lower after the IFO economic institute's index of German business confidence fell sharply to 108.0 points in July from 109.7 points in June, attributed to anxiety over violence in Ukraine and the Middle East.

Dow member Visa lost 4.9% after shaving its 2014 revenue growth forecast a full percentage point, to 9.0% to 10.0%.

Starbucks fell 1.7% despite reporting a 22.7% rise in profit to $512.6m. The coffee chain scored a 7% rise in comparable store sales in the US.

Pandora Media plummeted 13.5% on a disappointing earnings forecast. The online music service expects to earn between five cents and eight cents per share in the upcoming quarter, whereas analysts projected eight cents.

Chemical company LyondellBasell gained 3.9% as second-quarter earnings jumped 26.9% to $1.2bn.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.48% from 2.51% Thursday, while the 30-year dropped to 3.26% from 3.30%. Bond prices and yields move inversely.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Voting Booth
Do you think corruption-accused National Assembly Speaker Nosiviwe Mapisa-Nqakula will survive a motion of no confidence against her?
Please select an option Oops! Something went wrong, please try again later.
Results
No, her days are numbered
42% - 382 votes
Yes, the ANC caucus will protect her
58% - 524 votes
Vote
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,016.25
+1.4%
Gold
2,220.89
+1.2%
Silver
24.88
+1.0%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE