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Markets rebound on GDP, Facebook profits

Thursday, Jan 30, 2014 - 02:03

Jan. 30 - Summary: Amazon, Google earnings miss; Markets rally on Facebook profits; GDP hits 3.2% target; jobless claims rise, Visa, Under Armour earns beat forecasts, Exxon Mobil misses estimates. Bobbi Rebell reports.

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Amazon investors not happy with the online retailer's earnings - a big miss after the closing bell. Revenues were not as strong as expected, and growth was less than many had hoped for, pushing its stock down in after hours trading. Google earnings missed estimates, though revenue beat Wall Street targets. Paid clicks jumped 31 percent, but there was a sharp decline in prices for its online ads, and deepening losses at Motorola. Google is selling Motorola to Lenovo for close to $3 billion. Stocks bounced back on Thursday, helped by gains in the tech sector a day after Facebook reported stellar earnings. Its stock jumped about 15 percent adding to gains in both the Nasdaq and the S&P 500. Also helping to lift stocks - new data confirming the economy grew as expected in the 4th quarter. GDP came in at a solid 3.2 percent annual rate thanks to robust exports and strong household spending. Ellen Zentner of Morgan Stanley: SOUNDBITE: ELLEN ZENTNER, SENIOR U.S. ECONOMIST, MORGAN STANLEY: "I am very encouraged that consumers are going to have better spending power this year because we are going to have another year of job gains and wage growth under our belt. Past increases in equities will continue to drive spending among the higher income households. " The GDP data also lifted European markets which came back from earlier losses to close mostly higher. A separate report showed the number of Americans filing for new unemployment benefits rose more than expected. Earnings highlights included: Visa. Shares rose after the top credit and debit card company reported a 9 percent jump in quarterly profits. Under Armour also a winner. Shares of the hi-tech sportswear maker soared after it reported its 13th consecutive quarterly profit beat. Harley-Davidson also had a good quarter, but its stock fell back after initial gains despite an optimistic forecast for the legendary motorcycle maker. Profits tumbled at Exxon Mobil after it failed to offset declining production, but spent heavily to find fresh reserves.

Markets rebound on GDP, Facebook profits

Thursday, Jan 30, 2014 - 02:03

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