Facebook reported better-than-expected earnings and revenue, thanks to growth in its mobile advertising business. Stocks closed higher. Bobbi Rebell reports.
Facebook reporting a 90 percent surge in profits- and 59 percent jump in third quarter revenue - edging past forecasts. Overall earnings also beat Wall Street targets. The online social network saw strong demand for its mobile ads - which now account for a majority of its ad revenue. Shares of facebook are up 47 percent so far this year. Stocks resumed their bullish rally after a one-day break with tech stocks leading the way. Strong earnings and upbeat consumer confidence spurred investors. The Dow, Nasdaq and S&P all posting gains. A new report showed consumer confidence rising to a seven-year high, just as Fed officials began its two-day policy meeting. But IHS Global Insight Chief Financial Economist Paul Edelstein says the Fed will focus on softening inflation: SOUNDBITE: PAUL EDELSTEIN, CHIEF FINANCIAL ECONOMIST, IHS GLOBAL INSIGHT (ENGLISH) SPEAKING: "The Fed is going to be worried that those declines in expectations are going to feed into actual inflation and really get us into a situation where inflation is just too low for this economy." Shares of Twitter nose-dived. The online messaging service's quarterly revenue more than doubled- and it added more users- but its key measure of user engagement fell. Coach's stock dropped. The retailer's profit plummeted as comparable sales in North America fell for the sixth straight quarter. Sales in China grew at the slowest pace in two years. The rise in single family home prices in August fell shy of expectations. But the housing recovery revved up sales and turbocharged profit at appliance maker Whirlpool. In Europe, shares rebounded from Monday's dip as earnings at a number of blue chips beat expectations..