Stocks Turn Mixed on Strong US Growth, Amazon's Profit Jump – TheStreet.com

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Here Are Three Hot Things to Know About Stocks Right Now

  • The Dow Jones Industrial Average  rose on Friday and was on track for its fourth straight positive week.
  • Amazon.com Inc. (AMZN)  rose 2.3% after the online retailing giant’s second-quarter profit topped $2 billion for the first time. 
  • Twitter Inc. (TWTR)  dropped 17.6% after it disclosed that monthly active users in the second quarter had declined. 

Wall Street Overview

Stocks turned mixed on Friday, July 27, after the U.S. economy grew at its fastest pace in nearly four years.

Gross domestic product rose at an annualized rate of 4.1%, accelerating from last quarter’s 2.2% clip, the U.S. Bureau of Economic Analysis said in a statement. The mark exceeded the 4% growth rate expected by economists.

The Dow Jones Industrial Average  rose 34 points, or 0.14%, to 25,561 and the S&P 500   fell 0.03%. The Nasdaq  slipped 0.16% after it fell more than 1% on Thursday, July 26, following Facebook Inc.’s  (FB) drop of almost 19%.

The GDP report follows a blowout quarter from Amazon.com Inc. (AMZN) , which rose 2.3% on Friday after posting second-quarter earnings of $2.5 billion, or $5.07 a share, the first time Amazon topped $2 billion in quarterly profit.

Revenue in the quarter was $52.9 billion, rising from $37.96 billion a year earlier but slightly below analysts’ estimates of $53.37 billion. The company said sales growth accelerated in North America, internationally and at Amazon Web Services. AWS revenue rose 49% year over year to $6.11 billion, matching the first-quarter’s growth rate and topping a consensus estimate of $5.98 billion.

Amazon said it expects third-quarter operating profit in a range of $1.4 billion to $2.4 billion vs. estimates of $1.28 billion. Revenue in the third quarter is expected at $54 billion to $57.5 billion, which is below consensus of $58.1 billion.

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Twitter Inc. (TWTR) shares plunged 17.6% after the social media company posted solid second-quarter earnings and a robust outlook, but noted that changes to its content rules meant fewer people were using the microblogging website.

Chevron Corp. (CVX) reported second-quarter earnings of $1.78 a share, well below analysts’ forecasts. Shares fell 0.9%.

Exxon Mobil Corp. (XOM) posted quarterly earnings of 92 cents a share, below foreasts of $1.27. Revenue of $73.5 billion beat forecasts. The stock tumbled 3.1%.

Merck & Co. (MRK) posted second-quarter adjusted earnings of $1.06 a share, 3 cents ahead of estimates. Revenue rose to $10.47 billion from $9.93 billion, and beat forecasts of $10.28 billion. Shares fell slightly.

Intel Corp. (INTC) fell 6.2% after the chipmaker said one of its key next generation chips wouldn’t be released until next year and cautioned that profit margins may narrow in the second half of 2018.

Intel on Thursday reported adjusted earnings of $1.04 a share on revenue of $16.96 billion, beating analysts’ expectations of 96 cents a share on revenue of $16.76 billion.

Colgate-Palmolive Inc.’s (CL) second-quarter adjusted earnings of 77 cents a share met analysts’ forecasts. But sales of $3.87 billion came in below analysts’ forecasts. The stock fell 1.3%.

Starbucks Corp. (SBUX) earned 62 cents a share on an adjusted basis in its fiscal third quarter, 1 cent above Wall Street estimates. The stock fell 1.9%.

Sales at the coffee retailer rose 11% to $6.31 billion from $5.66 billion a year earlier. Analysts were looking for sales of $6.26 billion. Global comparable-store sales rose 1%, meeting estimates.

The company lowered its expectations for fiscal global same-store sales growth to just below 3%, from its previous estimate of 3% to 5%. The stock rose xx on Friday.

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