{"id":202,"date":"2017-08-29T11:39:32","date_gmt":"2017-08-29T11:39:32","guid":{"rendered":"http:\/\/127.0.0.1\/wordpress25\/amazons-earnings-miss-is-being-felt-around-the-world-this-morning.html"},"modified":"2017-08-29T11:39:32","modified_gmt":"2017-08-29T11:39:32","slug":"amazons-earnings-miss-is-being-felt-around-the-world-this-morning","status":"publish","type":"post","link":"https:\/\/www.moneymethods.net\/?p=202","title":{"rendered":"Amazon\u2019s earnings miss is being felt around the world this morning"},"content":{"rendered":"

Amazon CEO Jeff Bezos<\/span>Getty Images<\/span><\/span> <\/figcaption><\/p>\n
\n


Reuters <\/p>\n

July 28, 2017
10:03 AM EDT<\/p>\n

Filed under Facebook Twitter Email More Share this storyAmazon\u2019s earnings miss is being felt around the world this morningTumblrPinterestGoogle PlusLinkedInReddit <\/p>\n

By Abhinav Ramnarayan<\/strong><\/p>\n

LONDON \u2014 An earnings miss by Amazon that hit U.S. technology stocks overnight rippled through into other markets on Friday, with Asian stocks retreating from recent highs and European tech shares opening sharply lower.<\/p>\n

U.S. stock indexes opened lower as Amazon\u2019s profit miss spooked investors and dragged down shares of other technology companies.<\/p>\n

Amazon\u2019s shares were down 4.21 per cent after it reported a 77 per cent drop in profit as its rapid and costly expansion into new shopping categories and countries showed no sign of slowing.<\/p>\n

The stock was the biggest drag on the S&P 500 and the Nasdaq. The consumer discretionary index, of which Amazon is a component, was the worst performer among the 11 major S&P sectors.<\/p>\n

Facebook, Google parent Alphabet and Netflix, part of the high-flying \u201cFANG\u201d stocks, were also lower.<\/p>\n

\n

In terms of one story shaping sentiment it is quite remarkable<\/p>\n<\/blockquote>\n

Amazon\u2019s stock tumbled on Thursday after it reported a slump in profits, as its rapid and costly expansion into new shopping categories and countries showed no sign of slowing.<\/p>\n

\u201cIt has been a pretty good season for earnings and this is the first big company that has sown a few doubts on that, and it also raises question on where the broader tech sector is headed from here,\u201d said Investec economist Victoria Clarke.<\/p>\n

Amazon has been one of the companies powering the sector this year, with a 40 per cent rise up until Thursday.<\/p>\n

Though other U.S. sectors were resilient, Wall Street\u2019s \u201cfear index,\u201d the VIX, rose sharply on Thursday from a record low of 8.84 per cent to an intra-day high of 11.5 per cent.<\/p>\n

Amazon is one of the so-called \u201cFANG\u201d group of the most influential tech stocks, along with Facebook, Netflix and Google, hence the broad impact of its setback, which hit Asian shares as well knocking the U.S. tech sector off recent highs.<\/p>\n

MSCI\u2019s broadest index of Asia-Pacific shares outside Japan fell 0.8 per cent, with Samsung Electronics , Asia\u2019s largest company by market capitalisation, dropping 3.5 per cent.<\/p>\n

Europe\u2019s tech index fell 1.4 per cent in early trading on Friday, the region\u2019s worst-performing sector.<\/p>\n

\u201cIn terms of one story shaping sentiment it is quite remarkable, but markets are also a bit nervous ahead of U.S. GDP numbers due out today,\u201d said Investec\u2019s Clarke.<\/p>\n

\u201cThe trigger was Amazon but developments overnight on U.S. healthcare has not helped sentiment.\u201d<\/p>\n

U.S. Senate Republicans failed early on Friday to overturn the healthcare law known as Obamacare, in a stinging blow to President Donald Trump that may end the Republican Party\u2019s seven-year quest to repeal the Affordable Care Act.<\/p>\n

The dollar dipped against its major peers on Friday, though second quarter U.S. economic growth data due later could potentially give it some respite from the recent sell-off.<\/p>\n

Economists expect the world\u2019s largest economy to have grown about 2.6 per cent in the second quarter, from 1.4 per cent in the first quarter.<\/p>\n

SWISS FALL<\/p>\n

The Swiss franc was one of the biggest movers in the currency market and is on track to post its biggest weekly drop against the dollar for more than 22 months.<\/p>\n

The franc has been falling as investors bet the Swiss National Bank will keep monetary policy loose as other central banks move towards tightening.<\/p>\n

Oil prices held near eight-week highs hit on Thursday after key OPEC members pledged to reduce exports and the U.S. government reported a sharp decline in crude inventories.<\/p>\n

Brent crude futures were at US$51.52 per barrel, up slightly in European trading and close to highs of US$51.64 hit on Thursday.<\/p>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Amazon CEO Jeff BezosGetty Images Reuters July 28, 201710:03 AM EDT Filed under Facebook Twitter Email More Share this storyAmazon\u2019s earnings miss is being felt around the world this morningTumblrPinterestGoogle PlusLinkedInReddit By Abhinav Ramnarayan LONDON \u2014 An earnings miss by Amazon that hit U.S. technology stocks overnight rippled through into other markets on Friday, with Asian stocks retreating from recent highs and European tech shares opening sharply lower. U.S. stock indexes opened lower as Amazon\u2019s profit miss spooked investors and dragged down shares of other technology companies. Amazon\u2019s shares were down 4.21 per cent after it reported a 77 per <\/p>\n","protected":false},"author":1,"featured_media":194,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","has_thumb"],"_links":{"self":[{"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=\/wp\/v2\/posts\/202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=202"}],"version-history":[{"count":0,"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=\/wp\/v2\/posts\/202\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=\/wp\/v2\/media\/194"}],"wp:attachment":[{"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}