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July 31, 2021, 9:03 a.m. EDT

U.S. stocks fall Friday, booking weekly losses, but S&P 500 index up for 6 straight months

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By Christine Idzelis and Mark DeCambre

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A final reading of the University of Michigan’s consumer-sentiment index fell to 81.2 in July from a reading of 85.5 in June, though it exceeded the initial July figure of 80.8. Economists had expected a reading of 80.5, according to a Wall Street Journal survey.

“Consumers expressed greater pessimism over the outlook in July as higher inflation and greater Delta spread weighed on sentiment,” wrote Oxford Economics economist Mahir Rasheed, in a Friday research note.

“Concerns over inflation continue to plague sentiment as buying conditions for housing, vehicles, and other household durables slumped to a new cycle low and their lowest level since the early 1980s,” the U.S. economist wrote.

But considering the dovish stance of central banks along with strong corporate earnings as the economy continues to reopen, “it’s very, very unlikely that the delta variant is going to create anything like we saw in the pandemic at the front-end,” according to Tom Mantione, a managing director with UBS Private Wealth Management.

With stocks trading lower Friday, Mantione suggested in a phone interview that investors might seek buying opportunities in stocks tied to the reopening trade, such as energy and banks, as well as longer-term opportunities in thematic tech trends that could tie into areas like health care.

“In our view, investors can use this volatility to round out portfolios,” he said.

Read: Will the passing of the ‘performance ba t on’ keep U.S. stocks moving higher?

Which companies were in focus?

  • Amazon AMZN late Thursday reported second-quarter earnings of $7.78 billion, or $15.12 a share, up from $10.30 a share a year ago, when shelter-in-place requirements from the COVID-19 pandemic began and led to big uptakes in e-commerce. Sales grew to $113.1 billion from $88.9 billion a year ago, missing expectations as sales that had been growing more than 40% in recent quarters fell to growth of 27%. Shares closed 7.6% lower Friday.

  • Shares of Robinhood Markets Inc.  HOOD   rose 1%. The stock of the newly public, no-fee trading app  debuted on Thursday at $38.00 .

  • Shares of Exxon Mobil Corp /zigman2/quotes/204455864/composite XOM -2.60% fell 2.3%, after the oil giant swung to the highest second-quarter profit since the end of 2019 as revenue more than doubled to well above forecasts.

  • Shares of Chevron CorpCVX fell 0.7%, after the oil giant swung to a second-quarter profit and reported revenue that beat expectations, with free cash flow reaching the highest in two years.

  • Shares of Baker Hughes CoBKR  gained 0.3% after the oilfield products and services company said it set a $2 billion stock repurchase program

  • Shares of Procter & Gamble Co /zigman2/quotes/202894679/composite PG -0.71% increased 2% after the consumer products giant reported fiscal fourth-quarter profit and sales that rose above expectations, with the strongest growth in its healthcare and beauty businesses. 

  • Shares of Caterpillar Inc . /zigman2/quotes/203434128/composite CAT -1.76% dropped 2.7% after the construction and mining equipment company reported a second-quarter net profit that tripled and revenue that topped forecasts, even as the largest construction business came up short.

  • Illinois Tool Works Inc.   ITW   reported second-quarter that more than doubled and beat expectations, and raised the full-year outlook, as the all business segments saw double-digit organic revenue growth in the face of rising raw materials costs and supply chain challenges. Its stock slipped 0.8%.

  • L Brands IncLB said Friday it will invest $45 million over at least the next five years to implement a suite of corporate governance measures agreed to as part of a settlement of stockholder derivative claims. Shares of L Brands, parent of Victoria’s Secret and Bath & Body Works, rose 0.7%.

  • Capri Holdings LtdCPRI  shares rose 12.5% after the luxury company, and parent of Michael Kors, reported fiscal first-quarter earnings that blew past expectations and gave guidance ahead of consensus.

  • Bloomin’ Brands Inc. shares  BLMN  fell 0.2% even as the parent of Outback Steakhouse beat consensus estimates for the second quarter and offered upbeat guidance.

  • VF CorpVFC , represented by brands Vans, The North Face and Timberland, reported fiscal first-quarter net income of $324.2 million, or 82 cents per share, after a loss of $285.6 million, or 73 cents per share, last year. Shares fell 5.1%.

What did other markets do?

  • The yield on the 10-year Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y -3.76% fell 3 basis points Friday to 1.239%, down about 20 basis points for the month.

  • The ICE U.S. Dollar Index DXY , a measure of the currency against a basket of six major rivals, was up 0.3%.

  • Oil futures ended higher Friday for a fourth straight monthly gain, with the U.S. benchmark /zigman2/quotes/211629951/delayed CL.1 -0.67% up nearly 0.5% to settle at $73.95 a barrel; while December gold futures GC00 GCZ21 fell 1% to settle at $1,817.20 an ounce, but booked weekly and monthly gain s.

  • In European equities, the Stoxx 600 Europe index XX:SXXP ended 0.5% lower, while London’s FTSE 100 UK:UKX closed down 0.7%. For the week, the Stoxx 600 is up 0.05%, and locked a 2% monthly rise, while the FTSE 100 notched a weekly advance of 0.07% but booked a decline in July of less than 0.1%.

  • In Asia, Hong Kong’s Hang Seng closed 1.4% lower and booked a nearly 5% loss for the week. The index ended down nearly 10% in July. The Shanghai Composite CN:SHCOMP finished down 0.4% and logged 4.3% weekly slump and fell 5.4% for the month. Meanwhile, Japan’s Nikkei 225 JP:NIK declined 1.8% overnight in Asia, falling 1% for the week and 5.2% for the month. The China CSI 300 /zigman2/quotes/210598128/delayed XX:000300 -1.31% closed down 0.8% for the day, 5.5% for the week and booked a nearly 8% monthly decline.

— Barbara Kollmeyer contributed to this report.

/zigman2/quotes/204455864/composite
US : U.S.: NYSE
$ 64.13
-1.71 -2.60%
Volume: 21.76M
Oct. 27, 2021 4:02p
P/E Ratio
N/A
Dividend Yield
5.43%
Market Cap
$278.74 billion
Rev. per Employee
$2.47M
loading...
/zigman2/quotes/202894679/composite
US : U.S.: NYSE
$ 141.83
-1.02 -0.71%
Volume: 9.64M
Oct. 27, 2021 4:02p
P/E Ratio
25.92
Dividend Yield
2.45%
Market Cap
$345.69 billion
Rev. per Employee
$753,644
loading...
/zigman2/quotes/203434128/composite
US : U.S.: NYSE
$ 196.13
-3.51 -1.76%
Volume: 3.40M
Oct. 27, 2021 4:00p
P/E Ratio
24.59
Dividend Yield
2.26%
Market Cap
$109.30 billion
Rev. per Employee
$429,044
loading...
/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
1.55
-0.06 -3.76%
Volume: 0.00
Oct. 27, 2021 4:57p
loading...
/zigman2/quotes/211629951/delayed
US : U.S.: Nymex
$ 82.11
-0.55 -0.67%
Volume: 3,424
Oct. 27, 2021 7:07p
loading...
/zigman2/quotes/210598128/delayed
XX : China Securities Index
4,898.16
-64.93 -1.31%
Volume: 14.71B
Oct. 27, 2021 3:00p
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