GDP Unexpectedly Contracts During Q4, Facebook Beats Earnings Estimates (FB)
The Federal Reserve announced on Wednesday that it would leave it's bond-buying plan in place at a rate of $85 billion per month. The plan to continue with this monetary policy was expected after it was reported that GDP contracted more than forecast in the US - this was the first decline since the 2007-2009 recession. After this news the euro reached a fourteen-month high against the dollar and the major US indices ended lower for the day. Facebook (FB) released quarterly earnings and shares dropped about 10% afterward. Electronic Arts Inc. (EA) announced a sharp revenue loss due to a decline in sales from traditional retailers.Chesapeake Energy (CHK) shares climbed 6.3% after announcing their CEO's retirement. Research in Motion (RIMM) announced that it will be changing it's name to BlackBerry and ticker symbol to BBRY as the company unveiled its new BlackBerry 10 smartphone. Also on Wednesday it was reported that the private sector added 192,000 new jobs in January.
Word on the Street
- US GDP unexpectedly shrinks for the first time in three-and-a-half years during Q4.
- Chairman Bernanke says the Fed will continue to buy securities at rate of $85 billion a month.
- Facebook (FB) set to post results - analysts expect a quarterly acceleration of growth.
- General Motors (GM) plans to invest $200 million to expand in Michigan by 2014.
- The ADP announces an increase of 192,000 jobs in the private sector.
- Research in Motion (RIMM) to change both its name and ticker symbol ahead of product launch.
- Time Inc. cuts 6% or about 500 jobs, the first major move from CEO Laura Lang.
Published on Jan 30, 2013By InvestorGuide Staff