Stock Market Surges Midday on Aug 4, 2023: Amazon Soars 10% After Earnings Beat
U.S. stock markets climbed midday on August 4, 2023, driven by strong earnings reports and a softer-than-expected July jobs report, fueling hopes for a Fed pause in interest rate hikes.
Highlights from the Market on August 4, 2023
- U.S. stock indices rose midday, lifted by impressive earnings results.
- Amazon shares jumped over 10%, marking its largest earnings beat since 2020.
- Apple shares declined nearly 3% due to weaker iPhone and iPad sales, impacting the tech sector.
The U.S. stock market experienced gains midday on August 4, 2023, as robust earnings reports from major companies like Amazon boosted investor confidence. Additionally, a July jobs report showing slower-than-expected growth increased optimism that the Federal Reserve may slow its interest rate hikes aimed at curbing inflation. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posted gains.
Amazon (AMZN) led the S&P 500 with a surge exceeding 10% after reporting earnings per share nearly double analyst estimates, driven in part by strong advertising revenue offsetting slower cloud growth. This marked Amazon’s biggest earnings beat since 2020.
Travel sector stocks also rallied, with Booking Holdings (BKNG), owner of Booking.com, rising nearly 10% thanks to strong travel demand boosting quarterly sales. Rival Expedia (EXPE) rebounded 4.5% following a previous decline after missing booking and sales expectations.
Conversely, Apple (AAPL) shares fell about 3% after reporting lower sales of iPhones and iPads for the quarter, despite beating earnings per share estimates, weighing on the overall tech sector.
Cybersecurity firm Fortinet (FTNT) saw its shares plunge 24% after lowering revenue forecasts amid weak IT spending. Medical equipment maker ResMed (RMD) also dropped over 16% after missing earnings expectations due to rising manufacturing costs.
In the bond market, yields retreated with the 10-year Treasury note falling more than 10 basis points to 4.08%, following a recent peak spurred by Fitch’s downgrade of the U.S. credit rating earlier in the week.
WTI crude oil prices rose 1.3% to $82.60 per barrel. The U.S. dollar weakened against the euro, British pound, and Japanese yen. Major cryptocurrencies remained steady.
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