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U.S. stocks drop; AT&T earns miss

Wednesday, October 22, 2014 - 02:02

AT&T warned its revenues would be lower than its previous estimates, after its earnings and revenues missed forecasts. Bobbi Rebell reports.

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AT&T missing the call on earnings - coming in short of forecasts. Revenues were a miss as well - and the company lowered its revenue outlook for the year - because not as many customers have been signing up for its no contract phone plans. Shares fell in after hours trading. As for the overall stock market-a tough day- with all three major indexes erasing earlier gains to close lower- a shooting at the Canadian parliament unnerved investors- and Boeing and Biogen sold off after results. The Labor Department said consumer prices rose just a tad last month, leaving the Fed room to keep interest rates low. Economist Cary Leahey of Decision Economics: SOUNDBITE: CARY LEAHEY, CHIEF U.S. ECONOMIST, DECISION ECONOMICS, (ENGLISH) SAYING: "We don't have a tight labor market. How do you define a tight labor market is rising wages. You don't have that. You don't have rising prices. So you don't really have a big story for inflation or for tightening." Investors shouted yipee over Yahoo. Its stock shot up as a number of analysts raised their price targets. Yahoo's quarterly results beat expectations, disclosing its mobile revenue for the first time. It was more than $200 million dollars. Dow Chemical's earnings beat sparked buying in materials stocks. The plastics and chemicals maker said it would cut costs by $1 billion over the next three years. Boeing's stock went the other way even though its profit handily beat estimates. Analysts were disappointed at the aerospace giant's small cash flow and rising production costs for the wide body 787 Dreamliner. The anxiety over Ebola in the U.S. may have quieted somewhat, but investors were anxious to grab more shares of Tekmira. The Canadian drugmaker said it began limited production of an Ebola therapeutic that would be available by early December. In Europe, stocks rose in a volatile session amid concerns over bank stress tests.

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U.S. stocks drop; AT&T earns miss

Wednesday, October 22, 2014 - 02:02