NEW YORK (TheStreet) -- U.S. equities opened the trading session lower on the back of some bad news about China's economy and violent Nikkei trading. Giving us the morning rundown is TheStreet's Debra Borchardt.
The Nikkei closed down 3% during the overnight trading session due to a higher-than-expected inflation result. Adding to the downward pressure is China's order to slash output from its industrial producers. Borchardt noted this could be a sign of further slowing in the world's second largest economy.
Amazon (AMZN) is essentially flat after reporting its second-quarter earnings results. Although the online retailer reported a 22% increase in revenues, the company also posted a quarterly loss.
However, Amazon is one of the few stocks that trade based on a CEO's vision, rather than its valuation. Borchardt said management talked very little about the cloud and wouldn't release specific Kindle sales, which she said was unusual.Unfortunately, the same flat price action cannot be said for Zynga (ZNGA), which actually beat top- and bottom-line estimates. Instead, the stock sold off on a 45% drop in subscribers over the past 12 months and the company's reversal on its plans to enter online gambling. Also moving on Friday in reaction to its quarterly results was Starbucks (SBUX), which beat on just about every metric possible. The company beat top- and bottom-line estimates, posted better-than-expected same-store sales, higher comps and raised full-year guidance on top of it. As a result, the company made new 52-week highs this morning. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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