Economic report stops Wall Street rally...Facebook's mobile ad revenue growing...Medicare price cuts

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Associated Press

Posted on January 30, 2013 at 6:02 PM

NEW YORK (AP) — Stocks have closed lower after today's economic report, putting the brakes on a January rally that has pushed stocks toward record levels. The Dow fell 44 points to 13,910, its biggest decline in three weeks. The S&P 500 fell 6 points to 1,501 and the Nasdaq dropped 11 points to 3,142. The S&P's drop was its largest of the year.

WASHINGTON (AP) — It's a downward turn that was not expected. The U.S. economy shrank from October through December -- the first quarterly drop since 2009. The Commerce Department said today the economy shrank at an annual rate of 0.1 percent mainly because companies restocked at a slower rate and the government slashed defense spending.

UNDATED (AP) — Oil has maintained its momentum despite the U.S. economy contracting. It rose 37 cents to finish at $97.94 per barrel on the New York Mercantile Exchange. That's the ninth increase in the last 11 trading sessions. Oil shows a gain of $6 a barrel for the year so far.

NEW YORK (AP) — Facebook has delivered fourth-quarter results above Wall Street's expectations and says its mobile ad revenue -- a closely watched figure -- is growing. Facebook, earned $64 million, or 3 cents per share, in the October-December period. That's down from $360 million, or 14 cents per share, a year earlier when it was still a privately held company. The company says it generated 23 percent, or $306 million, of advertising revenue from mobile, up 14 percent in the third quarter.

WASHINGTON (AP) — There's good news for Medicare patients as a price cut is on the way. Medicare says diabetes testing supplies, which now average about $16 a month for beneficiaries, are going down to around $4.50. Savings are also coming for many patients who rent home oxygen gear, hospital beds, wheelchairs and other equipment. A Medicare spokesman says the price cuts are due to competitive bidding making inroads against wasteful spending.

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