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Stocks slump; LinkedIn, Tesla beat after hours

Thursday, Jul 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.

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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.

Stocks slump; LinkedIn, Tesla beat after hours

Thursday, Jul 31, 2014 - 02:21

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