S&P 500 drops as U.S. consumer sentiment declines
Data from the United States on Friday showed that consumer sentiment was declining, as Americans continued to worry about rising inflation.
Figures from the University of Michigan’s Consumer Sentiment Index, dropped to 81.2 last month, which is its lowest level since February.
Although markets had expected the index to fall to 80.8, the decline still puts a dent to recent rises in U.S. consumer confidence.
In a statement accompanying the report, Survey Director Richard Curtain stated that, “While most consumers still expect inflation to be transitory, there is growing evidence that an inflation storm is likely to develop on the not-too-distant horizon”.
As of writing the S&P 500 was trading 0.43% lower on the news.
Amazon shares were trading in the red for most of today’s session as the tech giant missed its Q2 revenue targets.
It was shown that revenue had grown by 27% year over year to $113.08 billion, however this missed forecasts of a $115.2 billion increase.
However, earnings per share were better than expected, coming in at $15.12 vs expectations of $12.30 per share.
The disappointing earnings call comes just as it was announced that the company had also received a record $886.6 million fine for breaching European data protection laws.
Shares in Amazon were down by as much as 7% in today’s session.
Exxon reports earnings as oil prices head higher
One company that did have a positive earnings call was Exxon, as the oil giant reported that its Q2 figures were better than anticipated.
The company seems to have benefited from the recent rise in energy prices, which have come as demand has increased in recent months.
Exxon reported that it had earned $1.10 per share compared to market expectation of 99 cents.
Revenue numbers were also better than expected, and came in at $67.74 billion, which was ahead of the anticipated $66.81 billion.
WTI crude rose for a third consecutive day as a result, hitting an intraday high of $74.37.
Quote of the day – “Short-term volatility is greatest at turning points and diminishes as a trend becomes established.”– George Soros