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At Netflix green is the new black

Monday, October 21, 2013 - 02:10

Oct. 21 - Summary: Netflix suprises with stronger subscriber numbers, profits and revenues; S&P 500 holds near all-time, McDonald's leaves blue chips hungry; JPMorgan shares flat on settlement talks; Oil falls below $100; Home resales cool. Conway G. Gittens reports.

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Wall Street takes a break with the S&P 500 in record territory and another full week of earnings ahead. The S&P 500 just makes it three in a row in terms of closing at historic highs. After the bell, Netflix beat sales and profit forecasts. The number of new subscribers coming in at the high end of expectations and so is Netflix's profit outlook for the fourth quarter. Shares were up more than 6 percent in the regular session and continued to climb in after-hours trading. Different story for McDonald's. Revenues not as high as predicted and the world's largest restaurant chain is warning things may not improve this quarter. McDonald's is blaming economic pressures, but there's a growing belief Mickey D's is losing customers to Wendy's and Burger King. JPMorgan Chase close to making a record $13 billion settlement over issues emerging from the financial crisis, according to a source familiar with the matter. But the deal still leaves the bank open for other litigation, including criminal charges and investor lawsuits. Government data is flowing once again. Official statistics show U.S. oil supplies rose for the first time in 15 weeks, that inventory build led to a price drop for oil. NYMEX crude dropping below $100 a barrel for the first time since July. And in the housing market, sales of previously owned homes fell nearly 2 percent in September and prices, while still up double digits, saw their slowest gains in five months, according to the National Association of Realtors. A delayed September jobs report comes out on Tuesday. Here's Anthony Chan of JP Morgan Chase Private Client. SOUNDBITE: ANTHONY CHAN, CHIEF ECONOMIST, JP MORGAN CHASE PRIVATE CLIENT (ENGLISH) SAYING: "We expect a pretty healthy number. Non-farm payrolls probably rising something in the neighborhood of 185,000 to 190,000. And given the fact that the household survey actually registered a negative reading in terms of employment changes in the prior month we should expect a bounce back - given that bounce back I would not be surprised if the employment rate came down from 7.3 percent to 7.2 percent." Earnings from Dutch manufacturer Philips and German software provider SAP sending European stocks mostly higher.

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At Netflix green is the new black

Monday, October 21, 2013 - 02:10