Economic Uncertaintly Grows; Facebook Propelled by Mobile (FB, YELP)
Stocks were not able to extend their gains on Wednesday and ended in the red for the most part. The Federal Reserve announced their plan to stick to its monetary policy, as expected. Officials also said that bond purchases could be increased or decreased depending on the economy. The ADP reported that the private sector added much fewer jobs than expected in April and the manufacturing sector also disappointed many with a drop in March construction. Merck (MRK) and Time Warner (TWC) both missed earnings estimates with their Wednesday reports.Facebook (FB) saw Q1 earnings grow 6.8% as their mobile presence continues to expand.
Word on the Street
- The Fed stands by the stimulus plan, believes tax increases and spending cuts have hurt the economy.
- Construction spending drops by 1.7% in March - a 0.6% gain was expected.
- General Motors (GM), Ford (F) and Chrysler all post strong sales.
- Yelp (YELP) exceeds expectations on sales and advertising.
- Businesses reportedly added 119,000 private sector jobs in April.
- Entropic (ENTR) shares tumbled on Wednesday despite matching earnings expectations.
- A look at five stocks to watch during the month of May.
Published on May 1, 2013By InvestorGuide Staff