The daily business briefing: July 28, 2016
Strong sales boost Facebook's stock, the Fed holds interest rates unchanged, and more
1. Facebook ad sales beat expectations
Facebook shares jumped by as much as eight percent in after-hours trading on Wednesday after the social media giant reported ad sales that smashed Wall Street expectations. Second quarter revenue increased by 59 percent to $6.44 billion, up from $4.04 billion in the same period last year. Analysts had forecast just $6 billion. One factor driving the gains was an increase in Facebook ads sold for high prices. Profits hit 71 cents a share, up from an expected 57 cents, and just 25 cents a share reported a year ago.
2. The Fed holds interest rates steady as outlook brightens
Federal Reserve policy makers left interest rates unchanged, as expected, at the conclusion of a two-day meeting on Wednesday. The Fed said, however, that looming economic risks had faded, suggesting the U.S. central bank could be open to a slow resumption of interest rate hikes from near zero in coming months. The Fed hit the brakes earlier this year as oil prices and stocks plummeted, then put off resuming the hikes after a terrible May jobs report and the U.K.'s June vote to exit the European Union.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
3. Samsung's profits rise on strong Galaxy sales
South Korea's Samsung on Wednesday reported its biggest quarterly profit in two years on strong sales of its Galaxy S7 smartphone, with net income rising by a slightly better-than-expected 2 percent to $5.2 billion. Galaxy sales benefited from a lack of new gadgets from rivals, helping to offset lower income from sales of other Samsung products, such as semiconductors and display panels. Samsung, the world's largest smartphone maker, forecast continued "solid" performance on strong lucrative high-end smartphone displays.
4. Ford sales decline despite incentives
Ford's second-quarter auto sales dropped by nine percent compared to a year earlier, the company reported Thursday. Bob Shanks, Ford chief financial officer, said a recent boom in car and truck sales appears to be cooling down despite industry incentives. Ford earned 52 cents a share, falling short of expectations of analysts surveyed by Thomson Reuters, who forecast 60 cents a share. Ford shares fell by more than six percent in pre-market trading.
5. Shell says weak oil prices hurt quarterly profits
Royal Dutch Shell on Thursday reported that its quarterly profits had dropped by 72 percent due to weak oil prices. Shell's net income fell $1.1 billion short of analysts' expectations. Shell shares dropped by more than three percent Thursday after the announcement, the worst day in two months for the energy giant's stock. Two Shell rivals — BP and Statoil — also reported quarterly results that disappointed Wall Street this week due to cost reductions that fell short of expectations.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
Are 'judge shopping' rules a blow to Republicans?
Today's Big Question How the abortion pill case got to the Supreme Court
By Joel Mathis, The Week US Published
-
Climate change is driving Indian women to choose sterilization
under the radar Faced with losing their jobs, they are making a life-altering decision
By Theara Coleman, The Week US Published
-
'A great culture will be lost if the EV brigade gets its way'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
The daily business briefing: January 24, 2024
Business Briefing The S&P 500 sets a third straight record, Netflix adds more subscribers than expected, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 23, 2024
Business Briefing The Dow and S&P 500 set fresh records, Bitcoin falls as ETF enthusiasm fades, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 22, 2024
Business Briefing FAA recommends inspections of a second Boeing 737 model, Macy's rejects Arkhouse bid, and more
By Harold Maass, The Week US Published
-
Geopolitics and the economy in 2024
Talking Point The West is banking on a year of falling inflation. Don't rule out a shock
By The Week UK Published
-
The daily business briefing: January 19, 2024
Business Briefing Macy's to cut 2,350 jobs, Congress averts a government shutdown, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 18, 2024
Business Briefing Shell suspends shipments in the Red Sea, December retail sales beat expectations, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 17, 2024
Business Briefing Judge blocks JetBlue-Spirit merger plan, Goldman Sachs beats expectations with wealth-management boost, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 16, 2024
Business Briefing Boeing steps up inspections on 737 Max 9 jets, Zelenskyy fights for world leaders' attention at Davos, and more
By Harold Maass, The Week US Published