Hot Stock Minute

Fed continues taper; Facebook embraces mobile; Buffett weighs in on executive pay

Weekly jobless claims rose 14,000 to 344,000. Economists were expecting 320,000 claims for last week. The previous week, claims had risen 25,000 to 330,000. Tomorrow, job numbers for April will be released. Analysts are expecting 215,000 jobs to be added, reducing the unemployment rate 0.1% to 6.6%.

The Fed said yesterday it will continue tapering it's quantitative easing program by another $10 billion, bringing the total bond buy down to $45 billion a month. At this rate, the taper would wrap up and QE would finish at the end of this year. The FOMC said an improving economy led to their decision.

Despite a disappointing Q1 GDP report, news from the Fed led to a new high for the Dow (^DJI). It reached its highest close in 2014 and a new all-time high yesterday. Meanwhile, the S&P 500 (^GSPC) closed in positive territory, breaking a streak of post-announcement moves lower that goes back 23 FOMC meetings or to April, 2009.

One of the stocks we’re watching is T-Mobile (TMUS) after they announced their quarterly earnings today. They reported a loss of $0.19 per share on $6.88 billion in revenue. Both numbers missed street estimates of a $0.10 loss on $6.92 billion. The stock, however, doesn't care and was up more than 8% in pre-market trading thanks to 2.4 million new customers. Keep an eye on this one as Sprint (S) readies their bid to buy their smaller competitor, merging the number three and four U.S. mobile carriers.

The Oracle of Omaha has spoken, by remaining silent. Warren Buffett abstained from a closely-watched Coca-Cola (KO) shareholder vote on executive compensation, that will likely pressure the company to revise the plan. Buffett’s Berkshire Hathaway (BRK-B) is the largest Coke shareholder, owning 9% of the company. The vote was approved by 83% of shareholders, but The Wall Street Journal reported that the company will likely revise the compensation plan because he abstained. The Journal also reports he had several meetings with Coke CEO Muhtar Kent about the matter.

At Facebook’s (FB) F8 developer conference, CEO Mark Zuckerberg focused on new mobile products in his keynote. He announced the ability to use Facebook to sign into third-party apps without sharing any personal information, something that was not previously possible. The company also announced the ability for apps within Facebook to communicate with one another for what they hope will be a more interactive mobile experience.

That leads us to today's poll question: Do you typically use Facebook on your desktop or on your mobile device? Vote in our poll and leave a comment below.

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