The daily business briefing: January 31, 2019

1. Fed keeps rates unchanged in new 'patient' approach

The Federal Reserve kept interest rates unchanged and signaled that it's done with its steady pace of hikes, for now. In a shift, the Federal Open Market Committee said it "will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate." The news sent stocks rising sharply, with the Dow Jones Industrial Average rising 1.8 percent to close above 25,000 for the first time since Dec. 4. The broader S&P 500 closed up by 1.6 percent, while the tech-heavy Nasdaq surged by 2.2 percent. U.S. stock index futures were mixed early Thursday ahead of weekly jobless claims and other economic data.

Bloomberg CNBC

2. Facebook shares jump after earnings beat expectations

Facebook shares jumped by 8 percent in after-hours trading on Wednesday after the social media giant reported quarterly results that beat expectations, despite privacy scandals. Facebook shares had closed up by 4.3 percent in regular trading. The company said its net income rose to $2.38 per share in the fourth quarter, up from $1.44 per share a year earlier and higher than the $2.19 per share analysts expected on average, according to IBES data from Refinitiv. Total revenue rose by 30 percent to $16.9 billion, beating analysts' expectations of $16.4 billion. "The worst is over for this social media giant," said Haris Anwar, an analyst at Investing.com. "Its ad business and user engagement haven't been affected despite all the negative blows of the past year."

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Reuters

3. Tyson Foods recalls 18 tons of frozen chicken nuggets

The USDA this week announced that Tyson Foods is recalling more than 18 tons of frozen chicken nuggets after consumers complained of finding soft, blue pieces of rubber inside. No one has reported health problems from eating the product, "Tyson White Meat Panko Chicken Nuggets." The popular food was sold in five-pound plastic bags in grocery stores all across the country. Tyson had to make a similar recall last June, one in a series of notable food recalls last year. In December, the USDA recalled nearly 15 tons of Jimmy Dean Sausage. JBS Tolleson has recalled 6,000 tons of beef since October, and Cargill recalled meats twice in the second half of last year.

Fortune

4. Apple supplier Foxconn changes plans in Wisconsin

Apple supplier Foxconn said Wednesday that it is abandoning a plan to build a major new factory in Wisconsin, a project President Trump had touted as a massive source of new jobs, and will instead build a research and development center. The Taiwanese tech giant said that it still would hire 13,000 people but that they would be engineers and researchers instead of factory workers. "The global market environment that existed when the project was first announced has changed," Foxconn said. Wisconsin had agreed to give the company $3 billion in state tax credits and breaks, although critics complained that the state would make no money on the factory for 25 years. Under the contract, Wisconsin can withhold some of the breaks if Foxconn changes the deal.

The Washington Post

5. Tesla shares drop after news CFO is leaving

Tesla shares dropped by 5 percent in after-hours trading Wednesday after the electric-car maker announced that its chief financial officer, Deepak Ahuja, is retiring after almost 11 years. It is the second departure for Ahuja, who left in 2015 only to rejoin the company in 2017. Zach Kirkhorn, previously the company's vice president of finance, will step into the role. "I feel really good about Zach taking over," Ahuja said. "He's proven his self over the years with many tough challenges he's worked on." CEO Elon Musk announced the change in a conference call after Tesla posted quarterly results that missed expectations on earnings, but beat on revenue.

CNBC