U.S. stocks slip, dollar has worst week in almost two months



* Nasdaq drops 0.7% as Amazon slumps 7.6%

* Dow, S&P 500 shed 0.4-0.5% each

* STOXX 600 down 0.45%

* Dollar bounces after remarks by St. Louis Fed President Bullard

By Koh Gui Qing

NEW YORK, July 30 (Reuters) - U.S. stocks dropped on Friday to pull further from record highs as an underwhelming earnings report from Amazon.com Inc AMZN.O dampened the market mood, while the dollar bounced from its lows but still suffered its worst week in nearly two months.

After making record profits during the pandemic, Amazon said late on Thursday that its sales growth would slow in the next few quarters as people ventured outside their homes post-pandemic and reduced online shopping.

Investors sold Amazon stock as the online retailer revenue of $113 billion in the second quarter was $2 billion shy of analysts' forecasts.

Amazon shares slumped 7.6%, dragging the tech-focused Nasdaq Composite .IXIC down 0.7%. That fed profit-taking elsewhere, with the S&P 500 .SPX losing 0.5%. The Dow Jones Industrial Average .DJI shed 0.4%. Both the S&P 500 and the Dow struck record highs on Thursday.

"Amazon's weak report and the impact on futures immediately made its impact felt on global markets," said Paul Hickey, co-founder of Bespoke Investment Group, LLC.

But Hickey also said: "Just because investors haven't reacted to the company's recent reports with excitement doesn't mean Amazon has been a poor performer," adding that the shares have climbed 17% in the past year.

Still, Amazon's warning of slowing growth gave investors a reason to cash in profits.

The pan-European STOXX 600 index .STOXX lost 0.45% and MSCI's gauge of stocks across the world .MIWD00000PUS shed 0.74%.

Treasury yields edged lower as investors shied away from higher-risk investments. Data released on Friday showed annual inflation accelerating further above the Federal Reserve's 2% target, but that did not appear to alter investors' bets that the Fed is in no hurry to tighten monetary policy.

Benchmark 10-year Treasury yields US10YT=RR retreated to 1.2289%, from 1.269% late on Thursday. The yield on the 2-year note US2YT=RR fell to 0.1898%, from 0.201%.

Currency investors took a slightly different view, betting on Friday that the Fed might not be as dovish as some think.

The dollar, which hit a one-month low on Thursday, bounced following remarks by St. Louis Federal Reserve President James Bullard that the Fed should start reducing its monthly bond purchases this fall.

The dollar index =USD rose 0.275%, and a firmer greenback pushed the euro EUR=EBS down 0.23% to $1.1859.

For the week, however, the dollar was still down 0.8% against a basket of six major currencies, making this its worst week since May 9.

Oil prices kept their march higher, as investors bet that vaccinations would alleviate the impact of a resurgence in COVID-19 infections across the globe and keep demand growing faster than supply.

U.S. crude CLc1 recently rose 0.18% to $73.75 per barrel and Brent LCOc1 was at $76.33, up 0.37% on the day.

Gold prices, which rose this week on hopes that bullion would be a good hedge against inflation given a dovish Fed, succumbed to slight profit-taking on Friday. A firmer dollar also weighed on the precious metal.

Spot gold XAU= dropped 0.8% to $1,813.26 an ounce. U.S. gold futures GCc1 fell 1.01% to $1,812.70 an ounce.



Global assets Link
Global currencies vs. dollar Link
Emerging markets Link
MSCI All Country World Index Market Cap Link



Additional reporting by Andrew Galbraith; Editing by
Christopher Cushing, Kim Coghill, William Maclean, Timothy
Heritage, Joe Bavier, Jane Merriman and Cynthia Osterman



Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.