Facebook's results disappoint Wall Street; Revenues rise at eBay: Stocks rise on encouraging news from McDonald's, Visa. Bobbi Rebell reports.
Facebook posted its slowest growth in quarterly revenue in two years. Higher spending on research and development cut into profits. The disappointing results weighing on its stock in after hours trading. Higher revenue at its payments business, which includes PayPal, helped revenues rise at eBay. AT&T profits beat Wall Street estimates, though revenue was lower than forecasts. Qualcomm results coming in stronger than forecasts, but it had a disappointing outlook. During the regular session... stocks inched higher amid mixed earnings. A rally by Visa and McDonald's helped pull up the Dow. McDonald's says it'll announce its turnaround plan May 4th. Investors lovin' it. Shares rose despite yet another steep quarterly drop in profit and revenue at the restaurant chain. Boeing shares descending despite delivering a big profit. Analysts expressed concern over the jet maker's negative cash flow. Visa and Mastercard rallied after China said it would open its bank card clearing market to foreign companies. Sources tell Reuters, some big investors are pressuring Mylan's board to consider Teva Pharmaceutical's takeover offer, sending both shares lower. Manhattan Venture Partners' Max Wolff: SOUNDBITE: MAX WOLFF, CHIEF ECONOMIST, MANHATTAN VENTURE PARTNERS (ENGLISH) SAYING: "The returns to being a giant drug company are huge, and the model for large drug companies is to buy innovation." Investors got signs that the economy is regaining some momentum. Home resales rose in March to their highest level in 18 months. And mortgage loan applications rose last week. Google is getting into the U.S. wireless business, unveiling Project Fi, which will offer lower cost plans to users of its Nexus 6 phones. Disappointing earnings, especially from leading luxury goods companies, dragged European stocks lower, but French stocks escaped the downdraft.