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“Friends congratulate me after a quarterly-earnings announcement and say, ‘Good job, great quarter,'” Bezos said to Forbes. “And I’ll say, ‘Thank you, but that quarter was baked three years ago.’ I’m working on a quarter that’ll happen in 2021 right now.”
It doesn’t look like July will end on a positive note for the equity markets. While the market was able to get through most of the mega-cap earnings reports relatively unscathed, Amazon.com’s (AMZN) revenue miss after the close Thursday has that stock trading down over 6% in the pre-market, sending Nasdaq futures down more than a full percent. Futures on the S&P 500 and Dow aren’t down by nearly as much, but they’re still firmly lower. AMZN’s weak report and the impact on futures immediately made its impact felt on global markets as well as they all closed out or are closing out the month of July on a down note. Even with today’s weakness, though, it would take a truly disastrous day for the S&P 500 to not finish the month higher which would mark the sixth straight month of gains.
In economic news today, we just got the releases of the Employment Cost Index (lower than expected) and Personal Income and Spending which both topped forecasts. At 9:45, the Chicago PMI will give investors a read on economic activity for the month of July, and then we’ll close out the week’s economic slate with Michigan Confidence at 10 AM.
Read today’s Morning Lineup for a recap of all the major market news and events from around the world, the latest US and international COVID trends including our vaccination trackers, and much more.
If there was ever a company that epitomizes playing the long game over the quarterly earnings dance, it’s Amazon.com (AMZN). And while we’re not quite sure that Jeff Bezos could have imagined what’s going on now with the economy and the world today three years ago, it was one of a handful of companies that was ready for it. Today, AMZN is on pace to open down over 6% in what would be the fourth straight quarter that the stock has traded lower in reaction to earnings. Similar to what we highlighted with Apple (AAPL) on Wednesday, just because investors haven’t reacted to the company’s recent reports with excitement doesn’t mean AMZN has been a poor performer. In fact, since the start of last July AMZN is still up 17%. Surely, that doesn’t make it one of the top-performing stocks during that span, but it’s still a respectable performance nonetheless.