Apple, Amazon, Tesla stocks dive into the red after inflation data – MarketWatch
Shares of technology behemoths, and electric vehicle maker Tesla Inc. TSLA, -6.63%, pulled sharp U-turns in premarket trading to dive into negative territory after data showing that inflation rose more than expected in June. Of the top-5 companies by market capitalization, shares of Apple Inc. AAPL, -0.14% fell 1.9%, Microsoft Corp. MSFT, -0.26% dropped 1.8%, Alphabet Inc. GOOGL, -0.61% GOOG, -0.55% slid 2.0%, Amazon.com Inc. AMZN, -1.24% shed 2.0% and Tesla sank 3.3%. The consumer price index (CPI) rose 1.3% in June, compared with expectations of a 1.1% advance, as year-over-year inflation increased to 9.1% to the highest rate since November 1981. In addition, inflation-adjusted wages fell 1% in June. Prior to the CPI release, shares of Apple, Microsoft, Amazon and Tesla were all gaining more than 1%, while Alphabet’s stock was only down about 0.2%. Meanwhile, futures ES00, -0.12% for the S&P 500 SPX, -0.16% swung from a gain of about 0.9% just before the data to a loss of 1.6%.
July unemployment rate, at 3.5%, equals pre-Covid low. Corporate borrowers rush bond offerings to market, indicating they see higher rates—not an economic downturn—in the future.
Tomi Kilgore is MarketWatch’s deputy investing and corporate news editor and is based in New York. You can follow him on Twitter @TomiKilgore.
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August 6, 2022 at 05:26PM