CitiGroup adjusts earnings lower on legal costs. GroPro reports revenues above estimates. Better-than-expected economic growth and solid earnings pushed up U.S. stocks. Bobbi Rebell reports.
A stunner after hours: Citigroup revising its previously reported third quarter earnings - taking them lower and blaming a $600 million increase in legal related costs. The original $1.07 now down to 88 cents a share. Revenue also lowered. Citi says the increase is because of rapidly evolving regulatory inquiries and investigations. Starbucks earnings came in in-line with forecasts and issued an outlook that was below Wall Street expectations. U.S. sales falling short of forecasts as well - despite the early return of the ever popular Pumpkin Spice latte. GoPro going strong- revenues up 46 percent- the company beating earnings forecasts- thanks to strong demand for their cameras. The improving job market helped Linked in earnings beat forecasts- revenue jumped 45 percent- business are using its service to hire employees. But the corporate networking site guided lower on revenue for the fourth quarter A stronger than expected GDP report and solid earnings drove stocks higher on Thursday - one day after the Fed ended its quantitative easing bond buying program. The major indexes all closing the day out to the upside. The U.S. economy expanded at a 3.5 percent pace in the third quarter. That was faster than forecasts. The GDP report , combined with the Fed's less dovish policy statement, led some investors to believe the central bank could hike interest rates sooner than expected. Clear Alternatives CEO Diane Garnick: (SOUNDBITE) DIANE GARNICK, CHIEF EXECUTIVE OFFICER, CLEAR ALTERNATIVES (ENGLISH) SPEAKING: "The Federal Reserve and the GDP data are making it really clear that we are looking at March or April as the first rate increase. And what we should expect right now is for consumers to go out borrow that last bit of money and spend on probably durable goods, the things that they borrow for all the time." But the Fed has made it clear it will take more than a couple of data reports to spur higher rates. Visa's rally accounted for the bulk of the Dow's gains. It and rival, Mastercard, produced quarterly profits that beat analysts estimates. Investors were also jazzed by news that China will open its market so that foreign companies could set up their own credit card clearing operations. Weight Watchers' stock shed a lot of weight. Its profit fell 13 percent to its lowest level in four years as free fitness apps bit into its bottom line. Oil prices fell further, taking down oil shares and energy ETFs, such as the Energy Select Sector SPDR Fund. In Europe, the Fed's latest policy stance also put a damper on investor sentiment, but stocks managed to post slight gains.