US OPEN: Amazon shares drag Nasdaq lower

• US stocks launched lower on Friday
• US core PCE inflation below expectations
• Amazon (AMZN.US) revenue missed forecasts for the 1st time in 3 years

US indices launched today’s session lower as investors digested today’s upbeat economic data. Both personal income and spending for June beat analysts' estimates and core PCE inflation came in slightly below expectations. Meanwhile, contracts on the Nasdaq and S&P 500 were dragged down by a glum quarterly earnings report from Amazon. Shares of other technology giants, including Netflix, Alphabet and Facebook which benefited last year from people staying indoors due to COVID-19 restrictions, fell between 0.4% and 1.1%.

US100 fell sharply at the end of yesterday’s session however buyers managed to halt declines at support at 14,800 pts which coincides with lower limit of the triangle formation. As long as the price sits above it, one should expect the price to continue to rise. However, breaking below may open the way towards a bigger downward correction. In such a scenario, the next important support to watch lies at 14,670 pts and 14,450 pts, where the previous price reactions are located. Source: xStation5

Amazon (AMZN.US) stock plunged 7% in premarket after the e-commerce giant posted disappointing quarterly figures. Company reported Q2 EPS at $15.12 (exp. $12.30) and revenue at $113.1 billion (exp. $115.2 billion). AWS cloud revenue reached $14.81 billion (exp. $14.2 billion). Company expects Q3 revenue to come in at $106-112 billion. Amazon said sales growth would slow in the next few quarters as customers venture more outside the home, following an acceleration in COVID-19 vaccinations.

Amazon (AMZN.US) stock price broke below the lower limit of the triangle formation at the end of yesterday’s session. Today stock launched session with a massive bearish price gap and is heading towards support at $3200. Source: xStation5

Robinhood (HOOD.US) yesterday debuted on the US stock exchange. Shares of the online broker dropped over 8% and finished at $34.82. CEO Vlad Tenev told CNBC that is not concerned about daily market fluctuations and that he takes a long-term view on the trading platform provider’s fortunes.

Chevron (CVX.US) stock jumped nearly 2% in premarket after the oil giant reported strong quarterly figures. Company earned $1.71 per share while analysts' expected earnings of $1.59 per share. Revenue also topped market estimates, as oil prices rose and market conditions improved.

Procter & Gamble (PG.US) stock rose more than 1% in premarket after the consumer products giant posted upbeat quarterly figures. Company earned $1.13 per share, beating market expectations by 5 cents. Revenue also came in above Wall Street estimates. Company did warn of continuing inflation pressures as input costs rise. Separately, after 6 years CEO David Taylor will step down in November and will become executive chairman. His place will be taken by Chief Operating Officer Jon Moeller.

Exxon Mobil (XOM.US) rose 0.7% after the company reported quarterly earnings of $1.10 per share for the second quarter, 11 cents above analysts' estimates, while revenue also topped market estimates. Exxon benefited from an improved cost structure and better market conditions.