Shares of Linked sink in after-hours trading on cautious guidance. Stocks down on Thursday, but post monthly gains. Bobbi Rebell reports.
LinkedIn not connecting with investors. Shares dropped in after hours after it lowered its outlook, despite an earnings beat. Good news over at Gilead Sciences. Results beat forecasts, with profits nearly doubling driven by sales of its hepatitis C drug. And Visa earnings just barely beating forecasts. For the month, all three major indices posted gains. But Thursday - not so hot. The Nasdaq fell for the fourth straight session, dragged down by Apple. A batch of mixed economic data kept many investors away. On the positive side, wages rose in the first quarter, and the number of Americans filing for jobless benefits plunged last week. On the other hand, the personal consumption expenditures price index showed little sign of inflation last month, and consumer spending didn't rise as much as expected. Fordham University professor Laura Gonzalez: SOUNDBITE: LAURA GONZALEZ, ASSISTANT PROFESSOR OF FINANCE, FORDHAM UNIVERSITY (ENGLISH) SAYING: "We have heard that people are not spending as much as we'd like them to. And retailers don't need to have half sales, half price sales that they used to have. So, retailers still need to be extra aggressive, but not as much as in previous years." The Wall Street Journal reports that Apple has slowed the rollout of its watch due to a defective part made by Chinese supplier AAC Technologies. The company wouldn't comment, but CEO Tim Cook said demand continues to outrun supply. Shares of Apple and AAC fell. Avon Ladies are having a hard time. Avon Products' shares fell after the direct seller warned the strong dollar would hurt revenue this year much more than expected. Foreign sales account for more than four-fifths of revenue. The mighty buck also sowing discord at Harman International. It has pushed the maker of JBL and Harmon Kardon audio gear to cut its profit forecast this year. Harman was the biggest loser among S&P 500 stocks. Several brokerage analysts downgraded Yelp the day after the consumer review site reported local advertising accounts and revenue below Wall Street's targets. Over in Europe, shares staged a small advance after data showed that deflation had ended.