Jan. 30 Premarket Briefing: 10 Things You Should Know (Update 1)
Here are 10 things you should know for Thursday, Jan. 30:
1.-- U.S. stock futures were pointing higher on Thursday after the Federal Reserve reduced monetary stimulus for the U.S. economy and after Facebook
European stocks were declining in early trading Thursday. Asian shares ended the session with losses. Japan's Nikkei 225 index fell 2.5%.
2.-- The economic calendar in the U.S. Thursday includes weekly initial jobless claims at 8:30 a.m. EST, the advanced estimate of fourth-quarter gross domestic product at 8:30 a.m., and pending-home sales for December at 10 a.m.
3.-- U.S. stocks on Wednesday tumbled after the Federal Reserve said it will reduce its bond-buying by $10 billion, bringing down the size of the economic stimulus program to $65 billion. The decision was unanimous among central bank policymakers.
The S&P 500 fell 1.02% to 1,774.20, the Dow Jones Industrial Average declined 1.19% to 15,738.85, and the Nasdaq slipped 1.14% to 4,051.43.
Google CEO Larry Page confirmed the deal in a posting on the company's corporate blog, describing the sale as "an important move" for Android users.
Page said that Google acquired Motorola in 2012 to "help supercharge the Android ecosystem by creating a stronger patent portfolio for Google and great smartphones for users." Nonetheless, the CEO acknowledged the "super competitive" smartphone market, adding that it "helps to be all-in when it comes to making mobile devices."
"It's why we believe that Motorola will be better served by Lenovo, which has a rapidly growing smartphone business and is the largest (and fastest-growing) PC manufacturer in the world," he added. "This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere."
The deal represents a massive write-down for Google, less than two years after it spent $12.5 billion on Motorola Mobility.
In his blog posting, Page said that Google will retain the vast majority of Motorola's patents, which it will "continue to use to defend the entire Android ecosystem."
Google is scheduled to report fourth-quarter earnings after Thursday's closing bell.
Google shares rose 2.5% in premarket trading to $1,135.
The stock rose 17.8% to $63.06 in early trading.
The Menlo Park, Calif.-based company earned 31 cents a share on revenue of $2.59 billion, as advertising revenue jumped 76% from a year earlier to $2.34 billion. Facebook's mobile ad revenue accounted for 53% of advertising revenue, and revenue from other segments, including payments, was $241 million. Europe continued to be a huge area of expansion for Facebook, as revenue rose to $727 million in the fourth quarter from $538 million in the third quarter, an sequential increase of 25%.