Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Facebook soars on earnings

While you were sleeping: Facebook soars on earnings

Jan 31 (BusinessDesk) – Wall Street climbed, bolstered by better-than-expected corporate earnings including from Facebook and upbeat US economic data.

American GDP expanded at a 3.2 percent annual pace in the fourth quarter of 2013, according to Commerce Department data, following a 4.1 percent gain in the third quarter. Consumer spending climbed 3.3 percent.

"The economy was firing on almost all cylinders as 2013 came to a close. For today, the sun is out and shining," Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York, told Reuters.

Some believe the US Federal Reserve might have to consider accelerating the tapering of its bond-buying program because of the economy’s strength. Yesterday the Fed announced it would downgrade its monthly bond purchases by US$10 billion to US$65 billion, as was widely expected.

Still, not all US economic data were rock solid.

Separately, jobless claims rose more than expected, rising 19,000 to 348,000 in the period ended January 25. The National Association of Realtors’ gauge of pending home sales sank 8.7 percent in December, following a revised 0.3 percent slide in November that was initially reported as a gain.

“Unusually disruptive weather across large stretches of the country in December forced people indoors and prevented some buyers from looking at homes or making offers,” Lawrence Yun, NAR chief economist, said in a statement.

“Home prices rising faster than income is also giving pause to some potential buyers, while at the same time a lack of inventory means insufficient choice. Although it could take several months for us to get a clearer read on market momentum, job growth and pent-up demand are positive factors,” Yun said.

In afternoon trading in New York, the Dow Jones Industrial Average climbed 1.03 percent, the Standard & Poor’s 500 Index added 1.24 percent, while the Nasdaq Composite Index rallied 1.98 percent.

Advances in shares of Walt Disney, last up 3.1 percent, those of Nike, last up 3 percent, led the gain in the Dow.

Shares of Facebook soared, last up 15.7 percent, after the company posted stronger-than-expected revenue in the latest quarter as mobile advertising accounted for more than half of its advertising revenue.

“Mobile is so key for them,” Laurence Balter, an analyst at Oracle Investment Research who has a hold rating on the stock, told Bloomberg News. “It’s going to be a big battle between Facebook and Twitter, and it’s Facebook’s game to lose.”

Shares of Visa rose, last up 2.6 percent, as the company reported quarterly profit that surpassed expectations.

Shares of Google gained, last up 2.9 percent, after Lenovo Group agreed to buy its Motorola Mobility phone unit for US$2.91 billion.

In Europe, the Stoxx 600 Index ended the session with a 0.3 percent increase from the previous close. Germany’s DAX gained 0.4 percent and France’s CAC 40 rose 0.6 percent. The UK’s FTSE 100 fell 0.1 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news