Both Amazon and LinkedIn reported well received quarterly earnings reports, after the market close on Thursday. Bobbi Rebell reports.
Amazon, LinkedIn report surging revenue
Amazon revenue surging 28 percent. The company’s Prime loyalty program attracting more customers and its cloud services business continues to grow. The company’s quarterly results were better-than-forecasts.
LinkedIn out with a 35 percent revenue jump- beating forecasts. The world’s biggest online network for professionals said demand grew for its hiring services and that cumulative members grew 19 percent to 433 million in the quarter.
During the regular trading session, a late day decline in Apple as well as news that the Bank of Japan held off on expanding its monetary stimulus weighed on stocks. Among the winners: Facebook. Shares hitting an all time high a day after reporting stellar earnings.
U.S. economic growth increased at just half a percent in the 1st quarter. Advance GDP at its slowest pace since the first quarter of 2014. Jobless claims increased slightly but the underlying trend still shows strength in the labor market.
David Nelson, chief strategist at Belpoint.
(SOUNDBITE) DAVID NELSON, CHIEF STRATEGIST, BELPOINT, (ENGLISH) SAYING:
“We are struggling. Look there is no question about it. We saw it in the earnings for a lot of companies revenues are down in here. The good news is that it is a backward looking number.”
Comcast confirming plans to buy DreamWorks Animation SKG for $3.8 billion. At $41 a share that represents about a 27 percent premium. Dreamworks Animation shareholders cheered the news.
Abbott Labs is buying St. Jude Medical for $25 billion. The deal will expand its heart device business. It’s facing heavy competition from rivals like Medtronic and Boston Scientific. Shares of St. Jude’s soared on the news.
Ford stock rose after the the automaker reported first quarter net income that more than doubled- thanks to strong pickup sales in North America, and a profit rebound in Europe.
Domino’s Pizza stock hit hard on an earnings miss- blamed in part on the strong U.S. dollar.
European shares were mostly higher with the CAC 40 closing a bit to the downside.