Yahoo Finance US economy still in a funk, new study reveals Clinton is more bullish than Trump
Wall Street is in for another seesaw kind of day. Stocks started the day mixed (^DJI, ^GSPC, ^IXIC) as investors weighed disappointing figures on second-quarter economic growth, an earnings miss from ExxonMobil (XOM) and stronger than expected results from Amazon (AMZN) and Alphabet (GOOGL). Meanwhile, oil prices (CL=F) remain in the red, with crude on track for its biggest monthly loss this year on nagging oversupply worries.
Q2 GDP disappoints
The US economy is still in a funk despite robust consumer spending, as businesses remain cautious. Gross domestic product grew at a seasonally adjusted annual rate of 1.2% in the second quarter, according the Commerce Department. That was much weaker than the 2.6% growth economists were looking for.
Stocks to watch
ExxonMobil (XOM) shares fell in early trading. The oil giant reported a big miss on earnings and revenue for the second quarter. Profit dropped 60%, while sales fell 22% from a year ago. Weak refining margins and low energy prices weighed on results. The company’s chief executive Rex Tillerson said the numbers “reflect a volatile industry environment.”
Amazon (AMZN) stock got a nice pop in early trading. The e-commerce giant delivered stronger-than-expected earnings and revenue for the second quarter. Profit hit another record, and revenue soared 31% as its cloud business continued to show robust growth.
Alphabet (GOOGL), Google’s parent company, reported a beat on both its top and bottom lines for the second quarter. Profit surged 24%, while revenue jumped 21% as a big increase in mobile usage drove ad growth.
The delivered earnings per share for UPS (UPS) came in right in line with forecasts for the second quarter, while revenue was a tad shy of estimates. Sales rose about 4% as revenue grew across all its business units, and the company benefited from cost-cuts.
Merck (MRK) posted second quarter earnings and revenue that topped analysts’ estimates. Sales rose about 1% thanks to growing demand for its new cancer and hepatitis treatments.
Clinton’s plan trumps Trump’s
The race for the White House is already heating up. Hillary Clinton and Donald Trump are both campaigning after their party’s conventions concluded. Meanwhile analysts are comparing the economic proposals of both candidates. In the video above, we explain why Moody’s thinks Clinton’s economic plan is far superior to Trump’s.
Chipotle looks beyond burritos
Chipotle (CMG) is branching out from burritos. The company is opening its first “Tasty Made” hamburger restaurant this fall. The chain will open in Lancaster, Ohio, and only serve hamburgers, French fries and milkshakes. The restaurant chain’s sales fell 24% in the second quarter as it struggles to recover from a series of food scares.
