Oracle stock fell after a big earnings miss blamed on the dollar. Stocks moved modestly higher after the Fed said the U.S. economy could withstand a rise in interest rates. Bobbi Rebell reports.
Oracle out with an earnings and revenue miss after the closing bell. The business software and database company hurt by a strong dollar and lower revenues from a new software licenses business. Shares fell after hours on the news. During the regular trading session, the Fed wrapped up its two-day meeting by saying the U.S. economy is strong enough to handle a rate hike. The implication - there will be two rate hikes before the end of the year. Fed Chair Janet Yellen though stuck to her "data dependent" script. SOUNDBITE: JANET YELLEN, FEDERAL RESERVE CHAIR (ENGLISH) SAYING: "For all of us, the appropriate policy decision is going to be data dependent, and all of us will be looking at the incoming data and our opinions about the appropriate timing of normalization are likely to shift as we look at how the data evolves." U.S. stock markets moved higher on the news, closing with modest gains. Decision Economics' chief U.S. economist Cary Leahey. SOUNDBITE: CARY LEAHEY. CHIEF U.S. ECONOMIST, DECISION ECONOMICS (ENGLISH) SAYING: "I thought Yellen and the rest of the crew didn't give a strong inclination they are going in September, though the market is still hanging on to that." Another day of deal activity: Kythera's shares catapulted higher. Allergan is buying the drug developer for $2.1 billion. The purchase will give the Botox maker access to a surgical treatment that gets rid of double chins. T-Mobile US' line could be doubly busy. Deutsche Telekom is in talks with Comcast to sell its US wireless business, according to the German monthly, Manager Magazin. It's also in talks with several other parties, including Dish Networks. Shares of Deutsche Telekom, T-Mobile US and Comcast rose, but Dish's stock eased back. Headwinds for FedEx. A strong dollar and pension costs sank the package courier into the red in the latest quarter. Shares fell. Shutdowns at Starbucks. The coffee chain is closing all 23 of its La Boulange pastry shops. But Starbucks will continue to carry the bakery cafe's branded items at its coffee shops. In Europe, a rise in crude prices buoyed energy stocks. But concerns over the Greek debt crisis sent stock markets lower.