Stocks End Higher Despite Disappointing Jobs Report

Morningstar

U.S. Market
Stocks were higher today despite another disappointing jobs report.

The U.S. economy added 113,000 jobs in January, well below the 189,000 expected by economists. The unemployment rate fell to 6.6% from 6.7% in December. Payroll numbers for December were revised slightly upwards while 33,000 jobs were added to November’s tally.

At market close the Dow, S&P 500 and Nasdaq were up 1.1%, 1.3% and 1.7% respectively.

Stocks on the Move
LinkedIn (LNKD) announced results for its fourth quarter that were generally in line with our revenue, adjusted EBITDA, and operating cash flow forecast, but the company outlook for 2014 is below our expectations. LinkedIn's revenue grew 47% to $447 million, paced by the talent solutions segment which grew 56% versus 2012 to $246 million. The premium subscriptions segment expanded revenue by 48% to $88 million, or 20% of the company's top line. Shares fell 6% on the disappointing guidance.

Shares of Apple (AAPL) were up 1.4% after CEO Tim Cook said that the firm had bought back $14 billion in stock over the last two weeks. The move came after the company came under pressure following disappointing earnings guidance for the current quarter. Cook also indicated that Apple was open to large acquisitions, a strategy the firm has shied away from previously.

Expedia (EXPE) reported strong fourth-quarter results that exceeded our expectations and consensus estimates. Revenue increased 18% to $1.15 billion, driven by a higher-than-expected 21% increase in gross billings. Excluding the impact of the acquisition of trivago, revenue increased 14%. Adjusted EBITDA increased 31% to $242 million and adjusted EBITDA margin increased 210 basis points, to 21.0%, with the increase driven by a leveraging of fixed costs. Expedia continued to aggressively buy back stock in the fourth quarter and in January, and the company repurchased a total of 9.3 million shares for $515 million. Shares were up 14% at market close.

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