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Here are five things you must know for Friday, July 28:
1. -- U.S. stock futures were pointing to losses for Wall Street on Friday, July 28, with technology shares taking a hit following Amazon.com Inc.'s (AMZN) - Get Report big miss on its its second-quarter results.
Also denting sentiment was the failure of the U.S. Senate to dismantle Obamacare.
European shares were declining and Asian shares finished Friday's session mostly in the red.
Stocks in the U.S. on Thursday, July 27, closed mixed as a sudden turn lower in tech shares dragged the Nasdaq from record highs. The Nasdaq slid 0.63% and the S&P 500 fell 0.10%. The Dow Jones Industrial Average added 0.40%, clinching a new record close of 21,797.
On Friday in the U.S., the economic calendar includes the first estimate of second-quarter Gross Domestic Product at 8:30 a.m. ET, Consumer Sentiment for July at 10 a.m., and the weekly Baker Hughes Rig Count at 1 p.m. Economists polled by FactSet expect GDP to have risen 2.7% in the second quarter.
2. -- 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.
The vote was the third time in three days that Republicans failed to coalesce around a way to repeal and replace Obamacare.
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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," McConnell said.
3. -- Amazon.com Inc. (AMZN) - Get Report shares tumbled 3.3% in premarket trading on Friday after the internet giant posted a substantial second-quarter earnings miss as it continued to invest heavily in areas such as fulfillment, original content and international expansion.
Adjusted earnings were 40 cents share, which fell well short of Wall Street expectations of $1.41. Earnings were down 77% from the year-ago quarter. Revenue jumped 25% from a year earlier to $37.9 billion, surpassing analysts' estimates of $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.
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.
Amazon said expects third-quarter sales to increase between 20% and 28% from the same quarter a year earlier. That would put third-quarter revenue in the range of $39.25 billion and $41.75 billion; Wall Street expects sales of $39.98 billion in the quarter. But Amazon also forecast that operating income would fall to a range of negative $400 million to positive $300 million, from a level of $575 million a year earlier.
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4. -- Starbucks Corp. (SBUX) - Get Report shares were falling 3.8% in premarket trading on Friday after the coffee chain reported fiscal third-quarter earnings in line with expectations and revenue that came in slightly below forecasts and after it announced it would close all its Teavana stores.
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.
"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 Model 3 has a starting price of $35,000, half the cost of Tesla's previous models. It has a range of 215 miles.
Tesla shares fell 2.8% in premarket trading on Friday.
Updated with additional earnings information.
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