Stocks Shed Gains in the Close Momentum
Stocks in the US got off to a mixed start on Thursday as investors reevaluated the comments from both the BOJ and the Federal Reserve. The US central bank stood pat and left interest rates unchanged while telling investors that their bond purchase program would remain intact, and will likely stay this way for the foreseeable future. In the final 10 minutes of trading stocks movements accelerated to the downside, as investors took profits on a terrific month.
Facebook’s (NASDAQ:FB) earnings generated significant volatility for the social network giant. The stock price gyrated nearly 10% in the overnight trading session. Facebook’s mobile ads where the main source of revenue which helped the company top earnings forecasts. Facebook’s third quarter earnings beat expectations as ad revenues rose to 49% from 41% in the second quarter. Facebook’s third quarter adjusted profit doubled year over year to $621 million, while earnings per share came in at $0.25 and revenue jumped 60% to $2.02 billion.
Starbucks (NASDAQ:SBUX) shares fell in early trade following earnings. Starbucks’ fiscal 4th quarter net profit rose to $481.1 million from $359 million as earnings per share of $0.63 surpassed forecasts, and revenue increased 13% to $3.80 billion and met expectations. Trading was defensive after the company reiterated earnings per share guidance for FY 2014 that was below analyst estimates, while sales growth slowed in Asia.
The Nasdaq 100 turned lower in the final minutes of trading despite a positive close for Facebook shares. Momentum is flattening and the MACD is poised to generate a sell signal which could foreshadow a correction for the tech heavy index. The RSI has come off overbought territory and is printing near 67 which is on the upper end of the neutral range.
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