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Disappointing earnings from Inc. (AMZN) - Get, Inc. Report  and Starbucks Corp. (SBUX) - Get Starbucks Corporation Report  wiped out any chance of gains on the S&P 500 and Nasdaq on Friday, July 28. 

The S&P 500 fell 0.14% and the Nasdaq slid 0.12%. Meanwhile, the Dow Jones Industrial Average clocked a new record for its third day in a row. The blue-chip index rose 0.15% to 21,830. Inc. tumbled 2.5% after a quarterly performance that fell well short of analysts' estimates. Earnings of 40 cents a share were a far cry from $1.41 consensus. Profit declined 77% from a year earlier. A sharp miss on the bottom-line was tied to the company's efforts to invest heavily in areas such as fulfillment, original content and international expansion.

Spending jumped in the second quarter. Amazon's fulfillment spending rose 33% to $5.16 billion, while technology and content spending grew 43% to $5.55 billion. Marketing expenses increased 44% to $2.23 billion.

Revenue jumped 25% year over year to $37.9 billion, however, surpassing analysts' projected $37.2 billion. Amazon Web Services, the company's cloud platform, continued to grow rapidly with sales of $4.1 billion, 42% higher than the $2.9 billion it generated in the year-earlier quarter. Wall Street expected cloud revenue of $4.08 billion.

Starbucks Corp. fell 9% after in-line earnings results and below-consensus revenue. The coffee shop chain also announced it would close all its Teavana stores, its tea-focused concept chain. Starbucks said it would close all 379 Teavana locations over the coming year, citing underperformance. In April, Starbucks said it was reviewing options for Teavana.

"We felt it was an appropriate time to take the decision and begin shutting down those stores," said Starbucks CEO Kevin Johnson.

Starbucks also said same-store sales in the quarter rose rose 4% globally, while U.S. same-store sales gained 5%. The company also said it now expects revenue growth to fall to the lower end of its previous guidance of 8% to 10% for the year.

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"We have grown tired of the company's inability to turn this battleship around in any sustained way, and we think that the company's weak performance could continue trending through next year," said Jim Cramer and the AAP team.

The U.S. economy picked up significant speed in the second quarter. Economic growth came in at 2.6% from April to June, more than double the first quarter's 1.2% growth. Consumer spending increased 2.8%, while business fixed investment rose 2.2%. Analysts anticipated growth of 2.4% over the second quarter.

In a statement, the Bureau of Economic Analysis said the increase "reflected positive contributions from personal consumption expenditures (PCE), nonresidential fixed investment, exports, and federal government spending that were partly offset by negative contributions from private residential fixed investment, private inventory investment, and state and local government spending."

"Today's data are consistent with our view that the weakness in [the first quarter] was likely to be short lived and growth would rebound in the second quarter," Barclays' Blerina Uruci wrote in a note. "In addition, we see further confirmation in the GDP data that consumer spending continues to drive the recovery and that investment spending is now finally starting to pick up following the sustained period of solid demand."

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Employment costs increased 0.5% over the second quarter, according to the employment cost index. The rise was slightly below expected growth of 0.6%. Employment costs have increased an unadjusted 2.4% over the past 12 months.

Crude oil prices held higher even as drilling activity in the U.S. picked up in the past week. The number of active rigs drilling for oil in the U.S. gained by two to 766 in the past week, according to Baker Hughes. The increase reversed a minor drop in the previous week.

West Texas Intermediate was up 1.4% to $49.71 a barrel on Friday. Crude settled at its highest level since late May. 

Consumer sentiment retreated in July, though not as fast as analysts anticipated. The measure decreased to 93.4 in July from 95.1 in June. Analysts expected a reading of 93.1. 

Senate Republican leaders early Friday took their best shot at repealing portions of Obamacare but failed on a "skinny" repeal, with the legislation being voted down 49-51. Even as the vote continued to be tallied, it became apparent the bill would be sunk as Republican Sens. Susan Collins of Maine, Lisa Murkowski of Alaska and John McCain of Arizona voted no early during the balloting.

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The vote was the third time in three days that Republicans failed to coalesce around a way to repeal and replace Obamacare. Donald Trump voiced his displeasure with the vote in a tweet on Friday: "3 Republicans and 48 Democrats let the American people down. As I said from the beginning, let ObamaCare implode, then deal. Watch!"

"This is clearly a disappointing moment," said Senate Majority Leader Mitch McConnell after the voting closed. "It's time to move on."

Democratic leader Charles Schumer of New York said, "We are not celebrating, we are relieved." Passage would have meant adding millions to the ranks of the uninsured.

"With the failure of Republican policymakers to repeal and replace the Affordable Care Act this week, many are adopting the view that tax reform might be unobtainable," Wells Fargo analysts wrote in a note. "We still expect tax cuts to materialize." Wells Fargo anticipates more progress on tax reform after a number of legislative deadlines in September, including lifting the debt ceiling. 

Healthcare stocks were mostly higher on Friday. UnitedHealth Group (UNH) - Get UnitedHealth Group Incorporated Report  , Aetna Inc (AET)  , Cigna Corp. (CI) - Get Cigna Corporation Report  and Anthem Inc. (ANTM) - Get Anthem, Inc. Report climbed. Health insurance groups had come out against the Republicans' proposed plans. 

Tobacco companies took a dive on Friday after the Food and Drug Administration announced plans to pursue lowering nicotine content in cigarettes. The FDA's strategy aims to limit the substance amount in cigarettes to a non-addictive level as a way to combat U.S. addiction rates. Philip Morris International Inc.  (PM) - Get Philip Morris International Inc. Report , British American Tobacco PLC (BTI) - Get British American Tobacco plc Report  and Altria Group Inc. (MO) - Get Altria Group Inc Report were each sharply lower on the news. 

North Korea has launched another missile in the latest development of rising tensions in Asia, according to Reuters. The launch, possibly of an intercontinental ballistic missile, was detected by Japan and South Korea and later confirmed by the U.S. Defense Department. 

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