Investors look set to end a rough January with more volatility. Stocks are in the red at this hour after disappointing data on U.S. economic growth in the last three months of 2014.
The Commerce Department reporting GDP (Gross Domestic Product) slowed to 2.6% in the fourth quarter, following a 5% gain in the third quarter. Even though consumers continued to do the heavy lifting with spending up 4.3%, it was still offset by weakness in business investment, government spending and trade.
Yahoo Finance Columnist Rick Newman doesn’t think this changes Federal Reserve policy.
“I think one of things they’re waiting to see is…now that we’re getting these dramatic moves overseas, especially in Europe by the ECB...what might the knock-on effects of that be? Will the Fed have to ride to the rescue there? But if not… we’re looking for that modest rate increase second or third quarter of this year still,” Newman points out.
Investor’s appetite for restaurant IPOs doesn’t seem to be abating.
Shake Shack (SHAK) stock surging on its Wall Street debut. The company priced its initial public offering late Thursday above its expected range at $21 a pop, raising $105 million. The stock is trading on the New York Stock Exchange under the ticker "SHAK.”
And earnings also a hot menu item on Wall Street today.
Google (GOOGL) shares gaining ground in early trading. The world's biggest internet search engine company is the latest big firm to feel the pinch of the strong dollar. Google blaming what it calls "strong currency headwinds" as fourth quarter revenue and earnings missed analysts' forecasts. The company also says it had some unusual charges in the period.
Amazon (AMZN) shares soaring after the e-commerce giant returned to profitability in the holiday quarter with earnings per share topping forecasts thanks to growth in prime memberships. But even though revenue rose 15% from a year earlier, it still missed estimates as the company continues to spend heavily on new ventures.
Mattel (MAT) posting big earnings per share miss and revenue also fell short of forecasts as sales of Barbie continued to decline during the holiday period. The company vowing to act with urgency to improve results after its CEO quit abruptly earlier this week. Shares of Mattel were lower on the news in early trading.
MasterCard (MA) beat on both its top and bottom lines. Revenue rose more than 13% from a year earlier as more customers swiped their cards to shop during the holiday quarter.