Wall St dropped sharply in wake of Fed statement. Facebook revenue jumps more than 50 percent as mobile drives ad sales. Roselle Chen reports.
Wall St. turns red after Fed fails to impress
Investors unloaded stocks on disappointment that the Fed did not clearly signal it would take a break from raising rates. The central bank held interest rates steady as expected and said it was closely monitoring global economic developments.
Mizuho Securities USA’s Steven Ricchiuto:
SOUNDBITE: STEVEN RICCHIUTO, CHIEF ECONOMIST, MIZUHO SECURITIES USA:
“Having a Federal Reserve that’s not your cheerleader is just not well received and that’s why we’re having the response we’re having from the markets.”
After the closing bell, Facebook out with better-than-expected results. The social media company reported a more than 50 percent jump in revenue for the final quarter of 2015. New advertising formats and an improved mobile app drove a sharp rise in ad sales.
Boeing shares dropped after the world’s largest jet manufacturer forecast weak earnings. It also sees itself delivering fewer planes this year.
Investors soured on Apple. Nearly a dozen analysts cut their price targets after the company reported the slowest quarterly increase ever in iPhone shipments.
No party for Tupperware investors. The food container maker’s shares sank to their lowest level in six years after its declining quarterly sales and profit missed analysts’ estimates.
More signs of a healthy housing market: New home sales surged last month. Mortgage applications spiked sharply higher last week.
In Europe, a rally in energy and telecom stocks drove shares higher.