Despite concerns about an economic slowdown in China, stocks rebounded on Wednesday to close mostly higher. Bobbi Rebell reports.
The strong dollar hitting News Corp. revenue. The Rupert Murdoch controlled company also hurt by declining advertising sales at print publications, like the Wall Street Journal and the New York Post. Cisco earnings coming in better than forecasts. The company reporting revenue up nearly four percent helped by demand for its switching equipment and routers. During the regular session, a big comeback. Energy shares and Apple rebounded to lift stocks back from steep intraday losses to close mostly higher, despite concerns about a slowdown in China. Chinese e-commerce giant Alibaba's posted the slowest revenue growth in three years putting pressure on its stock. Wedbush Securities' Gil Luria downgraded the stock on the news. SOUNDBITE: GIL LURIA, MANAGING DIRECTOR, WEDBUSH SECURITIES (ENGLISH) SAYING: "Their revenue continues to decelerate. I think, that is the main concern. Volume growth took another step down. Revenue growth was only 28 percent. It was over 50 percent just a couple of quarters ago. And the trend continues to be worrisome in terms of the deceleration. Macy's said, it saw tepid spending by Americans and foreign tourists during the quarter - headwinds causing it to miss sales and earnings estimates. In a move to cut costs, newly merged Kraft Heinz said, it will cut 2,500 jobs or nearly five and a half percent of its workforce in the United States and Canada. Overseas, European shares extended the week's sell-off with export-focused stocks taking a hit for a second straight day.