Amazon Falls, Obamacare Repeal Fails - 5 Things You Must Know Before the Market Opens
Tech investors may feel a little poorer on Friday.
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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 Inc.'s ( AMZN) 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.
Merck & Co. ( MRK) reported second-quarter adjusted earnings of $1.01 a share, beating estimates of 87 cents. The stock rose 4.4% in premarket trading.
American Airlines Group Inc. ( AAL)  reported adjusted profit in the second quarter of $1.92 a share, topping forecasts by 7 cents. Passenger revenue in the quarter rose 7.5%.
Earnings are also expected Friday from Exxon Mobil Corp. ( XOM) , Chevron Corp. ( CVX) , AbbVie Inc. ( ABBV)  and Immunogen Inc. ( IMGN)  . 
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.
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. -- Inc. ( AMZN)   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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