Amazon on Defensive After Hefty Quarterly Loss

Morning Money Memo…

Amazon.com posted its largest quarterly loss in 14 years. AP

Amazon will be on the defensive this morning, as the web giant takes a hit from investors after posting its largest quarterly loss in 14 years. Amazon stock is down more than 10 percent in pre-market trading, after a third quarter earnings report which showed a far greater than expected net loss and revenue that did not meet expectations, as well as weak guidance for next quarter's earnings. The company has been criticized for many of its expansionist policies, including new products like the Amazon Fire phone, which has generally been seen as a an unsuccessful product.

Several companies reported earnings results above analysts' expectations this morning, despite some lackluster overall numbers. Ford beat estimates despite significantly shrinking profits from same quarter 2013. Bristol Myers Squib, Moody's and the NASDAQ OMX also posted higher than expected earnings results. Procter & Gamble narrowly missed estimates this morning. P&G stock is down more than 1 percent in pre-market trading.

U.S. markets could be facing a lower opening this market, despite Thursday's 216 point rally in the Dow. Futures are down slightly this morning, while worldwide markets are leaning negative for the day. Crude oil continued its record decline, down 1 percent to $81.25 per barrel. Gold is up $4 to $1,233 an ounce.

Fear looks to rule this weekend's box office, with Halloween drawing down to just one week away. Small budget horror "Ouija" is expected to take the top spot amidst of slew of competition, bringing in up to $25 million during its first run in theatres. Action flick "John Wick," starring Keanu Reeves, will make a strong run at the number 2 spot this weekend, expected to gross upwards of $10 million. It will compete with returning earnings stalwarts "Fury" and "Gone Girl," which could both bring in roughly $10 million apiece.

Could your overseas flight soon cost less than your baggage fees? Icelandic airline WOW Air announced its plan to offer flights from the U.S. to Europe for, get this, only $99. The discount airline is taking advantage of the growing sector of budget travelers, catered to by low cost airlines which generally skimp on traditional amenities in order to pass savings on to customers. The proposed flights would be one-way, and be limited to few cities at the onset; Boston and Washington DC with transatlantic flights to Iceland, London and Copenhagen. The deep budget flights could become available as soon as March 2015.