Wall Street is having a rough go of it today. Stocks (^DJI, ^GSPC, ^IXIC) are struggling to claw their way back to gains after the Bank of Japan surprised markets by keeping rates unchanged and didn’t provide any further stimulus.
Adding to the not so good news, the first reading of U.S. economic growth for the first quarter came in weaker than expected, as consumers and businesses spent less and exports continued to decline.
The Commerce Department reported gross domestic product grew by a meager 0.5% from January through March. That is down from 1.4% growth in the fourth quarter.
Facebook (FB) shares hit a new all-time high in early in early trading after the social media giant’s first-quarter revenue rose over 50%, crushing Wall Street expectations. The big beat comes as the company brought on new advertisers with its popular mobile app and live video feature. Facebook also announced a new shareholding structure designed to keep CEO Mark Zuckerberg in control.
Ford (F) delivered earnings and revenue that raced past analysts’ estimates as net income more than doubled to $2.5 billion for the first quarter driven by strong sales of trucks and SUVs, which helped propel revenue to record levels in North America.
Amazon (AMZN) is set to report first-quarter results after the close of trading today. Analysts are looking for Amazon to swing to a profit of $0.58 a share, compared to $0.12 loss last year. Revenue is projected to jump 23% to about $28 billion.
Priceline CEO’s abrupt exit
Priceline’s (PCLN) CEO Darren Huston is stepping down following a board-led investigation “surrounding a personal relationship with an employee.” Priceline has appointed former CEO and current chairman Jeffery Boyd as interim chief executive as it searches to find a successor.
St. Jude Medical (STJ) shares soared in early trading. Abbott Labs (ABT) is buying the medical device maker in a deal valued at $25 billion dollars. Abbott expects the deal to add significantly to earnings beginning in 2017.
Medivation (MDVN) shares rose sharply in early trading. French drug maker Sanofi made an unsolicited offer to buy the U.S. biotech firm after previous attempts failed. The all-cash deal is valued at $9.3 billion and would help Sanofi expand its cancer treatment business.
SpaceX prepares for unmanned mission to Mars
In just two years SpaceX plans to land an unmanned spacecraft on Mars. Even with NASA’s help, SpaceX has a very small window for a successful mission.
Trump to overhaul foreign policy
Donald Trump is calling for a big shakeup in foreign policy. During a speech, Trump pledged a major buildup of the military, destruction of ISIS, and changes to current trade deals.
- Investment & Company Information