U.S. stocks drop as Fed keeps stimulus pace amid growth signs

LinkedIn Forecast

LinkedIn lost 9% to $224.79 as the world’s biggest professional-networking site said fourth-quarter revenue will be $415 million to $420 million. That trailed the average analyst estimate of $438.9 million.

Western Union Co. tumbled 12% to $16.86 for the biggest slide in the S&P 500. The largest money-transfer business reported a drop in third-quarter profit. Operating income won’t increase next year because of additional investments needed to comply with new and existing regulations, Chief Executive Officer Hikmet Ersek said.

U.S. Steel Corp. slid 2.4% to $24.86. The largest U.S. producer of the metal will permanently close parts of two plants as it cuts costs after four unprofitable quarters. The company was downgraded to hold from buy at Deutsche Bank by equity analyst David Martin.

General Motors gained 3.6% to $37.37. The largest U.S. automaker posted third-quarter profit that beat estimates as North American earnings, boosted by redesigned large pickups, helped buffer international losses.

Wings, Games

Buffalo Wild Wings jumped 8.6% to $140.59 after saying late yesterday it expects full-year earnings growth of 28%, up from a previous estimate of 25%. That implies adjusted profit of $3.83 a share, surpassing the average analyst projection of $3.64.

Electronic Arts Inc. rallied 7.9% to $26.03 for the biggest gain in the S&P 500. The second-largest U.S. video-game publisher was raised to strong buy from hold by Needham & Co. by equity analyst Sean McGowan.

Sealed Air Corp. jumped 7.2% to $30.57. The manufacturer of packaging materials raised its full-year profit forecast above analyst estimates.

Gilead Sciences Inc. gained 4.5% to a record $72.60. The drug maker reported third-quarter adjusted profit that beat analyst estimates as antiviral revenue rose 14%. The company raised its product sales forecast for the year.

www.bloomberg.com

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