Yahoo Finance Stock selloff intensifies; Twitter growth stalls; Tesla optimism
It’s another ugly day on Wall Street. Stocks(^DJI, ^GSPC, ^IXIC) are sharply lower across the board as the selling in global markets took a turn for the worse and oil (CLH16.NYM) prices fell to 2003 lows. Investors will be watching the second day of Fed Chair Janet Yellen's testimony to Congress as concerns grow that central banks won’t be able to prop up a sinking global economy.
Meanwhile, the number of people for filing for first-time jobless benefits fell to a seven-week low. The Labor Department reported initial unemployment claims declined by 16,000 to 269,000 last week.
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Twitter (TWTR) shares are near a 52-week low in early trading after the micro-blogging service failed to show an increase in user growth for the first time since it went public in 2013. The company also provided a weaker-than-expected outlook for the current quarter. This as Twitter delivered better-than-expected earnings and revenue that matched estimates.
Cisco Systems (CSCO) posted a beat on both its top and bottom lines for the fourth quarter. Net quarterly profit jumped 31% from a year earlier, while sales rose 2%. Cisco also increased its quarterly dividend and stock-buyback plan, and its revenue outlook for the current quarter was better than analysts projected.
Amazon (AMZN) said it would buy back up to $5 billion worth of its stock. The buyback would replace a $2 billion repurchase plan approved in 2010. This comes amid a 23% drop in the stock since the beginning of the year.
Tesla (TSLA) was sharply higher in early trading. The luxury electric automaker assured investors it can start turning a profit this year and said production targets remain on track. This comes after Tesla reported an unexpected big loss for the fourth quarter due to huge costs related to developing two new models.
Pepsi (PEP) posted earnings per share that matched expectations, while revenue topped forecasts thanks to strong sales in North America, which helped offset the impact of the stronger dollar.
