Stocks Dip On Weak GDP Data; Monster Quarter For Amazon

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The stock market edged lower Friday as Wall Street weighed another strong earnings report from Amazon.com (AMZN) but worried about a weaker-than-expected preliminary reading on Q2 gross domestic product.

Leaderboard name Amazon added just over 1%. Late Wednesday, the company smashed earnings estimates and reported its second straight quarter of accelerating sales growth.

The Dow Jones industrial average gave back 0.4%, while the S&P 500 and Nasdaq composite eased 0.2% apiece. Volume on the NYSE and Nasdaq was tracking lower than Thursday’s levels in the stock market today.

In the other global markets, Tokyo’s Nikkei 225 bumped up 0.5% after the Bank of Japan voted for a mild increase in its monetary stimulus measures.

Exxon Mobil (XOM) and Chevron (CVX) were early laggards in the Dow as West Texas Intermediate crude oil dipped below $41 a barrel. Merck (MRK) and Microsoft (MSFT) outperformed with gains of around 0.5% each.

In economic news, a preliminary read on Q2 gross domestic product showed growth of 1.2%, well below the consensus estimate of 2.6%. Gold was mostly unchanged ahead of the GDP data but picked up steam afterwards, rising 0.7% to $1,341.50 an ounce. The 10-year Treasury yield picked up 1 basis points to 1.51%.

Medical-device maker Abiomed (ABMD) added 2%. Shares have been in a nice accumulation phase as the stock sits just 1% off an all-time high.


IBD’S TAKE: Abiomed is one of several leaders in the strong-performing Medical-Products group. See who the other Leaders are with IBD Stock Checkup.


IBD 50 name B&G Foods (BGS) soared 12% after reporting strong earnings late Thursday. Quarterly profit jumped 68% from a year earlier. Sales jumped 58% to $306.4 million. Results were helped by its acquisition last year of the Green Giant and Le Sueur brands from General Mills (GIS).