Reuters - Video

EDITION: U.S. | U.K. | IN

Personal Finance

Stocks slump; LinkedIn, Tesla beat after hours

Thursday, July 31, 2014 - 02:21

Summary: Wall Street had one of its worst days of the year with investors worried about Ukraine, Russia, Argentina, and signs U.S. wage inflation and the labor market in general is heating up. LinkedIn and Tesla beat forecasts. Conway G. Gittens reports.

▲ Hide Transcript

View Transcript

July jitters bring the market to its first monthly decline since January. The S&P 500 giving up 1.5 percent for the month. After the bell, Tesla whizzed past sales and earnings forecasts thanks to higher delivery and production of the Model S. Shares initially jumped higher after the results. LinkedIn exceeded estimates and guided higher for the current quarter and for the year. The stock quickly rallied closer to the $200 mark Thursday's sell-off, the worst for the Dow since February, saw all the major indices down two percent - due in part to concerns about Ukraine, an Argentina debt default, and lousy corporate earnings. Economic data continue to present a mixed view. U.S. labor costs showed their biggest gain in more than 5-1/2 years, the four-week moving average on unemployment claims hit its lowest in more than eight years, but economic growth in the Midwest dropped to a low not seen in more than a year. The data add to confusion as to what to expect from the Federal Reserve. Jim Glassman of JPMorgan Chase: SOUNDBITE: JIM GLASSMAN, ECONOMIST, JP MORGAN CHASE (ENGLISH) SAYING: "A lot of people are claiming the Fed is behind the curve. If you listen to the commentary on Wall Street, it's very hawkish. It's 'the Fed's got to get moving here, they're being too slow.' If you look at the market pricing, it's the opposite. If you look at the futures market, where the market is building in a view about what the Fed's going to do, it's got a very cautious view of the Fed." T-Mobile US gets a buyout offer from French company Iliad, putting a long-talked about hook-up with Sprint in jeopardy. Revelation of the offer came on the same day as subscriber growth pushed the Number 4 U.S. mobile carrier to its first net profit in a year. Shares of T-Mobile surging 6.5 percent. Worries of a bidding war hurting Sprint by 5.3 percent. Shares of Yelp taking a nasty fall one day after posting good results and a positive outlook, but Raymond James downgraded the stock because the number of new local advertisers fell year-over-year. In Europe: pushback from Russia after sanctions. Moscow is banning soy imports from Ukraine and may restrict Greek fruit imports, according to Russian news agencies. Looking at stocks - Germany slumped almost two percent, France down 1.5 percent, U.K. lost less than a full percent.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Stocks slump; LinkedIn, Tesla beat after hours

Thursday, July 31, 2014 - 02:21

Top News »

Retirement »

Back to work- in retirement Back to work- in retirement

Wed, Oct 15, 2014 - (2:09)

Investing 201 »

Bond investors brace for the end of Fed stimulus Bond investors brace for the end of Fed...

Fri, Oct 10, 2014 - (4:03)

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

Money Clip »

Will Apple Pay transform mobile payments? Will Apple Pay transform mobile payments?

Thu, Oct 16, 2014 - (2:45)

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Dance of the northern lights Dance of the northern lights

Mon, Oct 20, 2014 - (1:08)

Images of September Images of September

Wed, Oct 01, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)