U.S. stocks surged Thursday after Mario Draghi said the European Central Bank will do whatever it takes to preserve the euro. With that, the Dow gained 212 points, the Nasdaq added 39, and the S&P 500 surged by 22. All three major averages rose at least 1.4%.
For the week, stocks are split. The Dow is up 0.5% and the Nasdaq is down 1.1%.
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Investors get a glimpse today of how much the U.S. economy has hit the brakes. The first look at GDP for the second quarter is due out at 8:30 a.m. ET. Most economists agree the U.S. economy slowed to a 1.5% pace, down from 1.9% in the first quarter, and from 3.0% at the end of last year. The second quarter figure will be revised two more times.
Facebook (NASDAQ:FB) shares are down 10% in pre-market trading. In its first earnings report as a public company, Facebook said it lost money because of IPO-related charges, and while its revenue did grow to nearly $1.2 billion, Wall Street was hoping for a surprise blow out.
For a look at how disappointed Wall Street really is, here's the stock price: Facebook went public in May at $38 a share with a market valuation of more than $100 billion; Facebook shares closed under $27 yesterday, and after the earnings report last night, they fell below $24 for a decline of 37% from the May 18th IPO. As for that market valuation, it's down to $60 billion.
Some bright spots for the world's #1 social network: Facebook's new "sponsored stories" ads are raking in $1 million a day and it's working to ramp-up its mobile ambitions.
Starbucks (NASDAQ:SBUX) shares are also down 10% in pre-market trading. The coffee giant reported quarterly profits that missed analyst expectations and offered a weak outlook. Starbucks, like Ford (NYSE:F), UPS (NYSE:UPS) and some other companies that have recently reported, is battling weakness in Europe.
J.C. Penney (NYSE:JCP) is bringing clearance is back, and is confusing its customers in the process. In February, J.C. Penney initiated a three-tiered pricing strategy that essentially got rid of sales in exchange for permanent sale prices. That strategy didn’t work, and now Penneys is getting rid of one of those tiers and changing another. "Month Long" deals are gone, "Best Prices" will be renamed "Clearance" and "Every Day" prices will stay.
If you feel confused by the changes, you're not alone. J.C. Penney hopes to clear everything up in new advertising.