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Stock Market Today: Dow Jones, S&P 500 Down As Amazon Misses Earnings

Markets opened in red today on pressure from mixed tech earnings.

Stock Market Today Mid-Morning Updates

On Friday, the Dow Jones Industrial Average is down by over 150 points as investors react to yet another slew of tech earnings. Apple (NASDAQ: AAPL) for instance, reported a strong quarter, with a revenue record of $97.3 billion, up by 9% year-over-year. It also beat earnings at $1.52 per diluted share. Things continue to escalate in Ukraine, with the mayor of Mariupol saying that more than 600 people were injured in the Russian bombing that struck the makeshift hospital facility within the besieged Azovstal steel complex.

Shares of Roku (NASDAQ: ROKU) are up by over 4% today after the digital media player manufacturer reported sales that exceeded expectations. For instance, its revenue for the quarter was $733.7 million. Chinese tech companies like Alibaba (NYSE: BABA) and Pinduoduo (NASDAQ: PDD) were also up after policymakers in the country signaled an easing of the crackdown on tech companies. BABA and PDD stock are up by over 10% on today’s opening bell.

Among the Dow Jones leaders, shares of Apple are up by 0.78% today while Microsoft (NASDAQ: MSFT) is down by 1.12%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading higher on Friday. Among the Dow financial leaders, Visa (NYSE: V) is down by 0.96% while JPMorgan Chase (NYSE: JPM) is up by 0.04%.

Shares of EV leader Tesla (NASDAQ: TSLA) are up by 5.18% on Friday. Rival EV companies like Rivian (NASDAQ: RIVN) are also up by 2.96%. Lucid Group (NASDAQ: LCID) is up by 2.67% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading higher today. 

Dow Jones Today: U.S. Treasury Yields Soars Above 2.9% As Favorite Fed Inflation Gauge Rises

Following the stock market opening on Friday, the S&P 500, Dow, and Nasdaq are trading higher at 0.68%, 0.15%, and 0.57%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 0.84% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also down by 0.76%. 

The benchmark 10-year U.S. Treasury yield pushed above 2.9% on Friday after the Federal Reserve’s favorite inflation gauge was out before the bell. Personal consumption expenditure prices rose by 5.2% in March year-over-year. This is a slight deceleration from February and is slightly below consensus estimates. However, the increase in prices could cement the central bank’s intention to hike interest rates by half a percentage in May.

The index measures costs that consumers pay across a wide variety of items and could indicate how they will respond to market dynamics. Chevron (NYSE: CVX) posted better-than-expected results today. Firstly revenue was $54.37 billion beating estimates of $47.94 billion. Secondly, it reported an earnings per share of $3.36. West Texas Intermediate crude currently trades at around $106 per barrel.

[Read More] Top Stock Market News For Today April 29, 2022 

Amazon Stock Slumps After Earnings Miss And Bleak Short-Term Outlook; AWS Cloud Business Gains

Among the top losers in the stock market today would be Amazon (NASDAQ: AMZN). For the most part, this would be thanks to the e-commerce goliath’s latest quarterly earnings release. Jumping right in, the company posted earnings of $7.38 per share on revenue of $116.44 billion for the quarter. For comparison, Wall Street’s consensus figures are $8.36 and $116.3 billion respectively. Despite barely beating revenue estimates, the company’s earnings miss is rather apparent. In fact, this is Amazon’s slowest revenue growth rate since the dot-com bubble of 2001. As a result of all this, AMZN stock is now diving by over 9% at today’s opening bell.

In detail, the company’s advertising business is also following a similar trend. For the quarter, Amazon raked in total revenue of $7.88 billion, below analyst projections of $8.17 billion. Overall, this is not all that surprising seeing as advertisers and consumers across the board are dealing with rising prices. As such, general spending on these parts of Amazon’s business would experience some deceleration. Moreover, the company’s loss of $7.6 billion from its investments in Rivian would also further increase the pressure all around.

Commenting on the overall outlook for Amazon’s businesses now is CEO Andy Jassy. He starts by saying, “The pandemic and subsequent war in Ukraine have brought unusual growth and challenges.” In response to this, Amazon is actively focusing on bolstering its fulfillment network. The likes of which are already returning to normal operational levels on the staffing and warehousing fronts. Also, Amazon’s AWS cloud division saw its revenue gain by 36.5% year-over-year, underscoring the firm’s leadership in the field. Amidst today’s losses, I could see some investors being keen on AMZN stock in the long run.

Source: TD Ameritrade TOS

[Read More] 5 Best Travel Stocks To Watch In May 2022

Tesla Stock In Focus After News Of CEO Elon Musk Selling $8.4 Billion In Shares To Buy Twitter

At the same time, investors could also be taking a look at the leading name in the electric vehicle (EV) industry, Tesla. For those who have not been keeping up with the latest stock market news on this end, this is thanks to CEO Elon Musk. Namely, the world’s richest man is currently on track to buy Twitter (NYSE: TWTR) with plans to bring it private. Worth mentioning, Musk is aiming to do so via a takeover price per share of $54.20, valuing the social media firm at about $44 billion. 

Before this, the billionaire investor did mention securing $46.5 billion in funding to enable the bid. Thanks to a recent SEC filing shedding more light on how he accomplishes this, things could get interesting for TSLA stock. Notably, Elon Musk has sold roughly $8.4 billion worth of Tesla shares over the past few days. A good chunk of his sales were made on Tuesday and Thursday earlier this week when TSLA stock dropped by 12%. Following the release of these filings, Musk posted on Twitter saying, “No further TSLA sales planned after today.” Arguably, updates like this could put TSLA stock on investors’ radars for now.

Source: TD Ameritrade TOS

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By Jonathan Phillip

Jonathan Phillip is an up and coming financial contributor in the stock market today. He's found a strong niche in writing about true growth industries. His main focus for the last 5 years has been on the cannabis industry and marijuana stocks. He is one of the top contributors to cannabis media outlets like MarijuanaStocks.com. He also is head of social media management for StockMarket.com.

Since an early age, Jonathan has been an active member of the cannabis culture. Coming from Miami, Florida, he's been able to identify emerging trends in the space including the emergence of cannabis derivatives, vapes, e-liquids, wax, and more. His ability to identify emerging niches has afforded him the ability to source valuable information from top industry names.

Jonathan has also managed to build a strong social media presence for companies. He has worked with hundreds of public companies to develop a digital presence. As an active blogger and social media influencer, his focus is on lifestyle segments of the market. You can find Jonathan reporting on anything from industry conferences and investor events to corporate disclosures and cannabis market movers.

Since the early days of marijuana companies going public, Jonathan has made it a point to find information before the crowd. The main target of his writing is on undiscovered or under-researched companies that could hold true, lasting market potential. Through his research, Jonathan has managed to be one of the early writers to identify the opportunity of cannabis over other things like alcohol and he was one of the first reporters to cover the multi-billion dollar deals that materialized in 2017 and 2018. He has also covered the emergence of multi-state operators in the U.S. after Canada paved the way in late 2018 and 2019 for legalization in North America.

Jonathan is also an active member of the underground hip-hop scene. He has worked with some of the biggest names in the rap community while also gaining valuable insight from top producers and business moguls focused on moving brands forward. In his free time, Jonathan builds social communities and continues to hone his skills as a leading financial writer.

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