GDP misses

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July 28, 2017

Stocks took a summer Friday.

All three major indices barely budged over the course of the day.

First up, the scoreboard:

Dow: 21,830.31, +33.76, (+0.15%)
S&P 500: 2,472.10, -3.32, (-0.13%)
Nasdaq: 6,374.68, -7.51, (-0.12%)
US 10-year yield: 2.289%, -0.021
WTI crude: $49.76, +0.72, +1.47%

1. GDP misses. Stronger consumer spending accelerated the US economy in the second quarter. This preliminary report, based on incomplete data, showed that GDP increased by 2.6%, signaling that the growth slowdown in the first three months of this year was temporary.

2. Tobacco stocks tanked after the FDA said it plans to cut nicotine in cigarettes to non-addictive levels. The agency said its policy won't affect any current requirements for cigarettes and smokeless tobacco, and would only impact newly regulated products like cigars and e-cigarettes.

3. Amazon tumbled after missing Wall Street's earnings estimate by a mile. The e-commerce behemoth announced earnings of $0.40 a share, missing the Wall Street consensus of $1.42 by a wide margin. However, the news wasn't all bad, as revenue spiked 25% versus last year to $38 billion.

4. JPMorgan is reportedly planning $200 million in cost cuts to the Chase Sapphire Reserve card unit. Senior JPMorgan employees have reviewed models questioning whether the card would make money and when, the Journal reported, citing people familiar with the matter.

5. Wells Fargo will pay out $80 million to as many as 570,000 customers it wrongly charged for car loan insurance. Wells Fargo has been engulfed in scandal since September, when it reached a $190 million settlement with regulators over complaints that its retail banking staff had opened as many as 2.1 million unauthorized client accounts.

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