Stocks Surged, Dow Ended Up 200 on Draghi
U.S. stocks surged Thursday after ECB President Mario Draghi said the central bank would do whatever it takes to support the euro and after some positive U.S. data reports. The Dow Jones Industrial Average rose 211.88 points, or 1.67%, to 12,887.93. The S&P 500 rose 22.13 points, or 1.65%, to 1,360.02. The Nasdaq Composite rose 39.01 points, or 1.37%, to 2,893.25.
European Central Bank President Mario Draghi pledged to do “whatever it takes” to protect the euro zone from collapse, including fighting unreasonably high government borrowing costs.
Ford is recalling nearly 485,000 Escapes and Mavericks to fix sticking gas pedals that can cause crashes. The worldwide recall affects vehicles from the 2001 through 2004 model years that are powered by 3-liter V-6 engines with cruise control. It comes just over a week after U.S. safety regulators began investigating the small SUVs, which are called Mavericks in Europe.
Amazon.com Inc.’s (NASDAQ:AMZN) second-quarter earnings fell 96% as the online retailer’s heavy spending continued to outpace revenue growth and margins weakened. Amazon posted a profit of $7 million, or a penny a share, down from $191 million, or 41 cents a share. Net sales increased 29% to $12.83 billion. Operating margin narrowed to 0.8% from 2%.
Facebook Inc. (NASDAQ:FB) , posting its first quarterly results as a public company, swung to a second-quarter loss as the social-networking giant’s surging revenue was overshadowed by ever-higher costs, mostly stemming from share- based compensation expenses. Total costs and expenses surged to $1.93 billion from $488 million. Advertising revenue was up 28% at $992 million and payments and other fees were $192 million.