Markets seen opening lower after dismal U.S. GDP data and Amazon earnings

Wall Street

Futures drift lower

U.S. stock futures were down in premarket trading Friday, a day after the three major Wall Street indices rose despite data that showed GDP rose 6.5% during the April-June quarter, falling short of estimates.

Economists expected the U.S. economy to have grown at a rate of 8.5% through the quarter, according to a survey conducted by Bloomberg.

Nonetheless, the data brought the nation’s output back above its pre-Covid level for the first time since the onset of the pandemic, and the economy is projected to record strong growth for the rest of 2021.

As of 4:55 a.m. ET, futures tied to the blue-chip Dow were down 87 points, or 0.25% to 34,887. S&P 500 futures dropped 27.75 points, or 0.63% to 4,384 while the tech-heavy Nasdaq 100 futures gave away 169 points, or 1.12% to 14,868.75.

Robinhood shares sink on stock market debut

Robinhood Markets (NASDAQ: HOOD) stock made a disappointing market debut on Thursday, marking a rocky start for one of the most awaited initial public offerings of the year.

Shares of the popular trading app opened at $38 and fell more than 10% in early trading before recovering some of the losses to close at $34.82. Its market capitalization was about $29 billion at the closing bell.

According to reports, Robinhood broke Wall Street tradition by offering 20% to 25% to individual investors. The company offered 52.4 million shares and raised nearly $2 billion.

Amazon stock tumbles on Q2 revenue miss

Shares of (NASDAQ: AMZN) were under pressure this morning after the company released second-quarter financial results, which showed its pandemic-induced surge in online retail sales is beginning to ease.

Amazon said late Thursday that it earned $15.12 per share in the April-June quarter, smashing expectations of $12.22 per share. Revenue was $113.1 billion, up 27% from the second quarter of 2020 but below estimates of $115.07 billion.

Amazon Web Services, the company’s cloud business, generated sales of $14.8 billion in the quarter, up from $10.8 billion in the same period a year ago.

For the current quarter ending September, Amazon expects revenue to come in at between $106 billion to $112 billion. Analysts have called for revenue of $118.6 billion in the third quarter.

As of this writing, Amazon stock was down $214.92, or 5.97% to $3,385.00 per share in the premarket trading session.