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9/11

Stocks mixed; Netflix jumps after results

Wednesday, January 22, 2014 - 02:31

Summary: Netflix adds 2.3 million subscribers; eBay earnings beat forecasts; IBM earnings miss hurts Dow; Coach holiday sales slump; Apple shares rise in Icahn tweet; Texas Instruments to cut 1100 jobs. Bobbi Rebell reports.

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After the bell action in earnings- Netflix beating forecasts- subscribers jumping 2.3 million. That big number sent the stock soaring. Profits were higher for the 4th quarter- net income up to $48 million for the quarter. It was just 8 million a year ago. eBay reported a higher profit - more transactions were paid with its PayPal service-and announced a $5 billion stock buyback proposal. eBay stock rose in after the bell when the e-commerce company also said activist investor Carl Icahn had acquired shares and submitted a proposal to spin off its PayPal business. eBay said they routinely assess the company's strategic direction. As for Thursday's trading action- a mixed picture with the Dow taking a step back, the other major indexes posting gains. IBM was the biggest drag on the Dow. Investors selling after disappointing earnings after Tuesday's close. The company missed revenue expectations for a fourth straight quarter on weakening demand, particularly in growth markets like China. United Technologies was a bright spot. Shares rose after the world's largest maker of elevators and air conditioners reported fourth-quarter profit that topped Wall Street estimates, although revenue fell shy of expectations. Norfolk Southern - one of the best performers on the S&P 500. The railroad posted a 24 percent rise in quarterly income that beat Wall Street expectations. Coach U.S. holiday sales were even worse than forecasts- same store sales down almost 14 percent in North America. Overall earnings and revenues missed as well- customers passing over Coach's designs for the more popular ones from brands like Michael Kors and Kate Spade. They do say things are better in the Asian and European markets. Aside from earnings, Apple shares on the rise - Activist investor Carl Icahn urged Apple to return more cash to shareholders- tweeting that he had bought more than $500 million worth of shares in the company in just the past two weeks; that brings Icahn's total investment to more than $3 billion. Texas Instruments plans to cut 1,100 jobs in the United States, Japan and India, or about 3 percent of its global workforce, in a corporate restructuring to save $130 million by the end of 2014. And turning to Europe: McDonald's France has confirmed tax inspectors visited its local headquarters. But it is denying any wrongdoing. French media reported it had transferred more than $3 billion abroad since 2009 to avoid taxes. As the European trading, the major country indexes were mixed.

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Stocks mixed; Netflix jumps after results

Wednesday, January 22, 2014 - 02:31