Markets are in the red early in the U.S. trading session.
The Dow is down 158 points.
The S&P 500 is down 11.2 points.
The Nasdaq is down 32.9 points.
Leading the way down is Amazon.com, whch reported disappointing Q2 financial results on Thursday afternoon.
Amazon had a Q2 net loss of $US0.27 per share, which was much worse than the $US0.15 net loss expected. Management also warned that it expected to book an operating loss of $US410 million to $US810 million in Q3 as it aggressively invests for growth.
AMZN is down by around 11%.
Visa is down 5% after their earnings announcement.
Visa earned $US2.17 per share in Q3, beating expectations fo $US2.10. Total payments volume at the transactions company jumped 11% to $US1.2 trillion during the period. Visa CEO Charlie Scharf said the company’s earnings grew, “in the face of a continued, subdued global economy.”
Visa is a component of the Dow Jones Industrial Average, and each 1 point move in a Dow stock is equal to a 6.42 point move in the Dow. This means that Visa’s 10 point decline is hacking 64 points off the Dow.
Another big loser in the wake of earnings is Starbucks, which is down by 2% this morning.
Starbucks reported Q2 global comparable store sales grew by 6%, beating expectations for 5.1% growth. This helped earnings come in at $US0.67 per share, which was a penny ahead of analysts’ estimates.
“Our Q3 results give us confidence in our ability to deliver on our full year fiscal 2014 targets and support the strong 2015 revenue and profit growth targets we introduced today, despite continued challenging economic and consumer headwinds in many of the global markets in which we operate,” said Starbucks CFO Scott Maw.
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