Despite strong revenue, investors worried about LinkedIn spending. Stocks were mixed after a report showing U.S. economic activity increased in the second quarter. Bobbi Rebell reports.
Linkedin shares shooting higher in after hours trading on a revenue beat, but then turned lower on worries about spending. Premium subscription revenue was up 22 percent. The social network says it is seeing some early success since incorporating Lynda.com. Amgen also coming in with better-than-expected results. But Electronic Arts revenue dropped more than 10 percent. During the regular session, despite a weaker-than-expected initial reading of economic growth stocks were mixed. GDP grew at 2.3 percent annual rate in the second quarter, and consumer spending rose. That rise in spending will lead the Fed to hike rates in September, says Barclay's Michael Gapen: SOUNDBITE: MICHAEL GAPEN, CHIEF U.S. ECONOMIST, BARCLAY'S CAPITAL (ENGLISH) SAYING: "The Fed was really looking at where consumption would be. It was worried that the economy was too soft in the first quarter." A further sign the labor market is gaining momentum: jobless claims rose last week but remained relatively low. Soulcycle has filed for an initial public offering. The indoor cycling fitness chain said it sees an opportunity to expand into the digital sphere, hoping to cater to an "at-home" audience. P&G's stock was the biggest loser on the Dow. The strong dollar hurt the world's largest consumer products maker. Sales fell for the sixth quarter in a row. Facebook stock heavily traded one day after the company reported profits fell because the social network spent more money on its mobile business. Whole Foods' shares plunged. The scandal over overcharging customers in New York hurt the upscale supermarket chain's same-store sales. Several brokerages downgraded the stock. In Europe, solid earnings from the likes of Nokia and Siemens lifted shares for the third straight day.