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

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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.

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

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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

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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