Updated from 5:49 a.m. EDT
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Here are five things you must know for Thursday, July 28:
Facebook's revenue in the second quarter rose 59% from a year earlier to $6.44 billion, an acceleration from the first quarter's 52%. Ad sales rose 63% to $6.24 billion, after having risen 57% in the first quarter and fourth quarter. The social media giant said 84% of second-quarter ad revenue came from mobile.
Facebook cautioned that ad growth will slow in the third and fourth quarter as it deals with tougher annual comparisons and smaller increases in ad load.
The company's adjusted earnings earnings in the quarter nearly doubled to 97 cents a share, despite a 47% increase in adjusted costs and expenses to $2.7 billion. Free cash flow rose 66% to $2.2 billion.
Facebook had 1.71 billion monthly users as of June 30, up 15% from a year earlier.
"Bottom line: Facebook has mastered how to advertise on mobile and social effectively and profitably while maintaining the incredible user experience," wrote TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS Charitable Trust Portfolio, and research director Jack Mohr. (AAP holds Facebook in its portfolio). "The balance is key in this business in order to keep both users and advertisers happy. Facebook has put together a team that can cater to both sides of the spectrum. What a glorious time to be a Facebook shareholder, indeed."
2. -- European energy company Royal Dutch Shell (RDS.A) posted a sharp fall in second-quarter earnings, badly missing analysts' estimates amid low oil and gas prices, weaker refining margins and the cost of integrating the recently acquired BG business.
Shell said second-quarter profit was $1 billion, down 72% from the same period in 2015 and less than half the $2.16 billion consensus of 22 analysts that cover the company.
Shares were falling almost 4% in European trading, and were down 3.3% in premarket trading in the U.S.
All of the company's major operations disappointed, though none so much as its upstream oil business, which posted a loss of $1.3 billion, wider than expectations that called for a loss of $556 million.
3. -- U.S. stock futures on Thursday moved higher following what was considered an upbeat assessment of the U.S. economy from the Federal Reserve.
European stocks traded to the downside while Asian shares ended the session mostly lower as investors hoped for fresh stimulus efforts from the Bank of Japan.
U.S. stocks on Wednesday ended mixed following an announcement from the Fed that it wouldn't raise interest rates this month but indicated the U.S. economy is doing far better now after a shaky couple of months earlier in the year.
The S&P 500 closed 0.12% lower, the Dow Jones Industrial Average ended flat, and the Nasdaq rose 0.6%.
The economic calendar in the U.S. Thursday includes weekly Initial Jobless Claims at 8:30 a.m. EDT, and International Trade in Goods for June at 8:30 a.m.
5 -- Restructuring Swiss lender Credit Suisse (CS) - Get Reportunexpectedly swung back into the black in the second quarter, reporting a net profit of 170 million Swiss francs ($172.6 million).
Analysts expected a loss of 192 million Swiss francs.
Wealth management, a focus for the group since CEO Tidjane Thiam arrived a year ago, helped propel earnings. The division was particularly strong in Asia Pacific, a region which Thiam has said the bank will rebalance its business toward.
The stock was down 2.8% in U.S. premarket trading on Thursday.