Economic Data: U.S. Q2 GDP accelerated to 6.5% lower than expected 8.4%, but better than pre-pandemic level and investors seemed to have shrugged off as market moved up. GDP falling short is attributed to supply-chain constrains, labor demand and drop in inventories, according to analysts.
Employment: Initial Jobless claims lowered to 400K from 419K but higher than expected 384.5. Continued jobless claim moved up 3.269M from 3.236M also higher than expected 3.183M.
Market Activity: All of the main American stock indices were up, with the S&P 500 and DJIA touching records. Amazon fell in extended trading after its sales forecast fell short, pulling futures in the Nasdaq and S&P lower as of 6pm.
- FB fell about 5% despite topping estimates but warned of slower growth ahead. All major indices are up through out the day.
- Robinhood (ticker: HOOD) dipped 10% below its IPO price of $38 on it debut. At the company’s $38 opening price, Robinhood has a $32 billion valuation. HOOD debut added its founders Vlad Tenev and Baiju Bhatt to the list of new billionairs.
- AMZN lost more than 7% after hours after it’s earning report of missing revenue estimates about $2 billions ($113.08 actual vs $115.2 expected), although it beats its bottom line (EPS) by $2.82 ($15.12 actual vs $12.3 expected). Amazon expects to book sales between $106 billion and $112 billion, growth of 10% to 16% compared to the same period last year, but well below consensus estimates of $119.2 billion. AMZN’s weaker guidance pushed the stock down of about $260 ($290 in total for the day as of 6pm).
- Federal prosecutors accused Nikola founder fand former CEO Trevor Milton of misleading investors about the capabilities and technologies of the electric vehicle start-up and pressed fraud charger. He pled not guilty and was freed on $100 million bond. NKLA lost about 16% today.
Notable Events: Federal workers will be required to prove their coronavirus vaccination status or submit to a series of rigorous safety protocols, President Joe Biden announced.
The GOP is urging the Securities and Exchange Commission to enforce Chinese company transparency requirements.