Stocks Hit from ECB Disappointment
U.S. stocks fell for a fourth day on Thursday after European Central Bank President Mario Draghi disappointed investors hoping for immediate action to contain the euro zone debt crisis. After falling as many as 193 points, the Dow Jones Industrial Average lost 92.18 points, or 0.71%, to end at 12,878.88. The S&P 500 index shed 10.14 points, or 0.74%, to 1,365.00. The Nasdaq Composite declined 10.44 points, or 0.36%, to 2,909.77.
The ECB signaled plans to push down borrowing costs for euro zone countries through upcoming bond purchases, though the move is likely weeks away. The central bank, which said it would wait to see if the euro zone economy slows further before cutting interest rates, pledged last week it would do what it takes to support the euro.
LinkedIn reported better than expected revenue and profit in line with expectations. It reported revenue of $228.2 million, compared to Wall Street analyst estimates of $216.5 million.It posted an EPS of $0.16, which was in-line with analyst estimates.
American International Group says its net income rose in the second quarter as its property and casualty and life insurance business brought in more revenue. AIG earned $2.33 billion or $1.33 per share, versus $1.84 billion or $1 per share in the same period a year ago. AIG’s revenue rose 3 percent, to $17.12 billion from $16.68 billion in the same period a year earlier.
Shares of Facebook Inc (FB.O) dipped below $20 for the first time on Thursday, pummeled by ongoing doubts about its growth prospects, a string of recent executive departures, and the August 16 expiration of a lockup period on insiders’ share sales.
Activision Blizzard Inc. (NASDAQ:ATVI) on Thursday reported earnings of $185 million, or 16 cents a share, on $1.08 billion in revenue, compared with earnings of $335 million, or 29 cents a share,
Kraft Foods Inc reported higher q uarterly profit and stood by its full-year goals on Thursday, helped by price increases.The company, which plans to split into two separate companies on Oct. 1, reported net income of $1.03 billion, or 58 cents per share, compared to $976 million, or 55 cents per share, a year earlier. Revenue fell to $13.29 billion.