Stocks were under pressure after strong data increased the odds of a September rate hike, though the S&P 500 managed a small gain. Bobbi Rebell reports.
Strong economic data once again pressured stocks amid concerns that the Federal Reserve could raise rates in September. But the S&P managed to eek out a small gain on strength in financials and energy. Investors saw further signs that the economy was regaining momentum. U.S. job openings rose to a record high in April. Small business confidence increased last month. Facebook earned the majority of its ad revenue overseas in the first quarter at 51 percent versus 36 percent a year earlier. Executives at the social media giant told Reuters, growth in Asia was the fastest in the world, at 57 percent. Facebook is benefiting from exporters in China trying to reach people outside its country, and from an influx of venture capital funding into India, giving start-ups funds for advertising. GM shares rose after CEO Mary Barra said, the automaker cooperated with a Justice Department probe. The Wall Street Journal reported that prosecutors are weighing criminal wire fraud charges over the company's failure to recall vehicles equipped with faulty ignition switches. Home builder Hovnanian's quarterly loss more than doubled, and margins shrank. Shares tanked. Quiksilver's shares did, too The money losing youth apparel retailer withdrew its forecast, saying it's still working on "execution issues." Its loss and revenue missed analysts' estimates. Signs of a recovery at Lululemon. The yoga pants maker hiked its profit and revenue forecast, and quarterly earnings topped Wall Street's' targets. Shares jumped higher. Concerns over the timing of a U.S. rate hike sparked a global equities sell-off, and European shares dipped to a 3-1/2 month low.