LinkedIn forecasts current-quarter profit below forecasts; Stocks rise for second day. Bobbi Rebell reports.
After hours, LinkedIn earnings came in better than forecasts, but the company gave disappointing guidance for the current quarter and for 2016, putting intense pressure on the stock. U.S. stocks closed the regular trading day higher. Weak economic data capped the gains: a huge jump in job cuts in January, an increase in weekly jobless claims, and orders for manufactured good fell in December. Kevin Kelly, chief investment offer, Recon Capital: SOUNDBITE: KEVIN KELLY, CHIEF INVESTMENT OFFICER, RECON CAPITAL PARTNERS (ENGLISH) SAYING: "There is a little bit of an overhang of economic data. We even saw that with the GDP numbers, and that's why people are thinking the Fed won't be raising four times as they have indicated." Viacom named Sumner Redstone's replacement as chairman, CEO Philippe Dauman, overriding the objection of his daughter, vice chair Shari Redstone. Shares pared their gains. Retail stocks fell, sparked by earnings warnings from Kohl's and Ralph Lauren. Both are working on clearing their inventories after reporting weak holiday sales. Mobile game players will soon be able to play a new game by Glu Mobile featuring pop superstar Taylor Swift. The announcement of the partnership made Glu Mobile's shares one of the day's top gainers on the Nasdaq. In Europe, the weak U.S. economic data led stocks lower during the trading day, but by the close, they were mostly higher.