July 18, 2016
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Facebook's Fantastic Quarter

Facebook reported stellar results, including a 52 percent surge in revenue. Stocks closed mixed after the Fed left rates unchanged.


Facebook reporting a 52 percent jump in revenue thanks to a surge in mobile ad sales. Daily active users were up 16 percent year over year. Facebook's mobile app and push into live video continued to attract new advertisers and encouraged existing ones to spend even more.

Stocks were mixed after the Federal Reserve decided to keep interest rates steady. But tech stocks with weak earnings kept the Nasdaq in the red.

The central bank's statement showed policy makers were confident in their outlook for the domestic economy.

Stifel's Lindsey Piegza, Chief Economist, says "They removed the international risk language and replaced it instead with a promise to continue to monitor events occurring abroad. So, the Fed really giving an opportunity for a June rate hike should domestic conditions continue to improve back to a moderate level. "

Investors got positive data. U.S. pending home sales rose in March to their highest level in almost a year.

Yahoo averted a proxy fight. It bowed to pressure from activist investor Starboard Value, agreeing to add four new independent directors to its board. Shares eased.

DreamWorks Animation's shares shot higher after the Wall Street Journal reported the movie studio is in talks to be bought by Comcast for more than $3 billion.

At least 16 analysts cut their price targets on Apple and Twitter. Quarterly sales of iPhones fell for the first time ever. Twitter's revenue rose but fell short of estimates, and the micro blogging service issued a weak revenue outlook.

In Europe, stocks edged higher. Energy and utilities shares spearheaded the rally.


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