Dow J down triple digits (195.84), or 1.13%, while the S&P500 down 27.39 points, or 1.35%.
U.S. stocks edged lower Wednesday, January 28th, due to the Federal Reserve’s newest policy announcement. The central bank reiterated the fact that it will be ‘patient’ with raising rates, but that it has some concerns over low inflation. Inflation has stayed low because of plunging energy prices and a strengthening dollar.
In terms of how the different sectors performed today, 7 of the 10 sectors in the S&P500 were down. Energy fared the worse of the 10 sectors with another drop in oil prices, while Technology was up for the day.
Company Earnings Update:
Facebook (FB):
Facebook delivered quarterly earnings and revenue that surpassed of analysts’ expectations on Wednesday as mobile active users increased some 34 percent. The company posted fourth-quarter earnings of 54 cents per share, up from 31 cents a share in the year-earlier period. Revenue increased to $3.85 billion from $2.59 billion a year ago.
Facebook expects mobile usage growth to be the primary driver for its overall user growth. The following chart displays the significance of their growing mobile usage.
Source: Facebook filings
Qualcomm (QCOM):
Qualcomm stock fell more than 8 percent in after-hours trading after the company lowered its chip guidance for the second half of the year. The company reported Q1 adjusted earnings of $1.34 per share, compared to Wall Street estimates of $1.25. Revenues for the quarter came in at $7.10 billion, beating estimates of $6.94 billion.
The technology firm said it lowered the outlook on its semiconductor in part because of a “shift in share among [original equipment manufacturers] at the premium tier. Qualcomm’s Snapdragon processor has a major buyer in Samsung, and the lowered outlook may reflect Apple’s share gains in the smartphone market.
Capitalist Square 