Amazon stock soared after it reported a profit. A loss was expected. Starbucks, AT&T and Visa, all reported better-than-expected results as well. Bobbi Rebell reports.
A huge earnings upside surprise from Amazon. They reported a solid profit of 19 cents a share. A loss had been expected. Revenue was up twenty percent. It's seeing higher sales in North America, and they continue to grow the Amazon Web Services unit. Amazon stock surged in after hours trading. We also had better than expected earnings from Starbucks, Visa and AT&T. Stocks fell for a third straight day. Weak earnings pulled down the Dow. Caterpillar's and American Express' quarterly sales fell sharply. 3M cut its 2015 forecast. They were the day's three biggest Dow losers. The Nasdaq and S&P 500 also finished in the red. Strong economic data strengthened the case for an interest rate hike. The number of Americans filing for jobless claims fell last week to its lowest level in more than four decades. Russell Investments' chief market strategist Stephen Wood: SOUNDBITE: STEPHEN WOOD, CHIEF MARKET STRATEGIST, RUSSELL INVESTMENTS (ENGLISH) SAYING: "These jobless data and these labor market data are not bad. Actually, they'd be more on the strong side. So I think the Fed is increasing confidence that it's going to move in September." Helping offset some of the S&P's loss: General Motors. The automaker more than doubled its quarterly profit. Healthcare stocks slipped despite news that Anthem is close to a deal to buy Cigna for $48 billion. The stronger probability of a U.S. rate hike pushed European stocks mostly lower.