New advertising services and updates to its mobile app helped boost ad sales at Facebook. U.S stocks fell on Fed Chair Janet Yellen's comments. Bobbi Rebell reports.
Facebook reporting a better-than-expected forty percent jump in revenue after the market closed Wednesday. The social network's results helped by new advertising services and updates to its mobile app. The boost came despite spending more on Messenger, What'sApp, and Oculus, its virtual reality business. Fed chair Janet Yellen's remarks and strong economic data sent stocks south after two days of gains. She said a December interest rate hike was possible. Independent market strategist Peter Kenny: SOUNDBITE: PETER KENNY, INDEPENDENT MARKET STRATEGIST, KENNY'S COMMENTARY (ENGLISH) SAYING: "I think, December is more likely than it has been recently. And it's more likely than it was yesterday because of Yellen's commentary today." And positive data suggested the economy was strong enough to support a hike. The economy added more private jobs than expected, and growth in the services sector sped up last month. The trade deficit narrowed sharply in September. The market leader the past two days, energy shares like Chevron and ExxonMobil, helped drag down the Dow. Investors bagged shares of Michael Kors, the day's second leading gainer on the S&P 500. The addition of new stores helped boost the handbag maker's quarterly revenue. Profit fell but beat estimates. Tesla's shares jumped higher. CEO Elon Musk vowed to speed up production of its electric cars. In Europe, Yellen's remarks boosted shares. But Volkswagen's plunge pulled down Germany's DAX.