U.S. stocks little changed on Fed stimulus speculation, earnings

Facebook Advances

Facebook advanced 1.3% to $49.66, reversing a decline of as much as 5.1%, after the operator of the world’s largest social network yesterday reported third-quarter profit that beat analyst estimates.

The shares slid earlier after Facebook said younger teens aren’t using its website as much as they used to and it will limit its news feed advertisements that have driven revenue gains.

Pivotal Research Group LLC upgraded the shares to buy from hold, saying Facebook retains its advantage in ad sales and the negative reaction to comments about lower teen use was overdone.

Boeing gained 1% to $130.98. The world’s largest plane-maker plans to speed the monthly production tempo of its best-selling 737 jets by 24% to 47 a month by 2017, the highest rate ever.

Expedia Inc. rallied 19% to $59.28. Adjusted earnings were $1.43 per share in the third quarter, the online travel company said in a statement, more than the $1.36 predicted by analysts.

Visa lost 2.9% to $197.95 for the largest decline in the Dow. Fourth-quarter net operating revenue rose 8.9% to $2.97 billion, missing the $3.02 billion average estimate of analysts in a Bloomberg survey.

Avon Falls

Avon tumbled 24% to $17.06. The world’s largest door-to-door cosmetics seller posted a third-quarter net loss, while its profit excluding some items fell short of analyst estimates.

Avon and the government have investigated whether former employees in China and other countries bribed officials in violation of the Foreign Corrupt Practices Act. The Securities and Exchange Commission offered a settlement last month with monetary penalties that were “significantly greater” than the $12 million the company had offered, Avon said in a filing today.

Computer Sciences

Computer Sciences Corp. lost 4.7% to $49.20. The provider of technology consulting to governments and companies signaled that a probe by the SEC is escalating.

As part of an almost three-year investigation by the SEC, former U.S. executives, along with some current employees outside the country, have received Wells notices from the commission, CSC said today in a filing. The SEC sends a Wells notice to notify that investigators may recommend an enforcement action.

JDS Uniphase fell 9.9% to $13.29. The provider of network analytics for the telecommunications and broadband industries was cut to hold from buy at Jefferies by equity analyst James Kisner after forecasting sales below analyst estimates for this quarter.


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