Earnings that could change the tone of trading tomorrow. First, netflix which disappointed investors when it said not as many people as expected subscribe to the streaming service in the most recent quarter. Price hikes put off customers and contributed to the sharp slowdown in user growth. On the surface, numbers looked pr scene the. Revenue was inline with expectations and up about 28 from a year ago, it was that subscriber number that sent shares lower initially in after hours trading. Julia bore step has more on netflix results. The big surprise in netflix earnings. Disappointing subscriber additions and projections. The company said the number of new subscribers was on target, the amount of turn or the number of people dropping the service as a result of a price incr kicking in was higher than expected and will continue to impact subscriber numbers in q3. The disappointing numbers are not the result of competition or market saturation, finishing the quarter with over 83 million me
While many investors are selling weve got an apple analyst holding ton his rating and well explain why. While tech is weak, energy is outperforming. Remember, this was the opposite last year. Were going to debate whether this tech weakness represents a buying opportunity. Also joel ackman along with Michael Pearson will get grilled on capitol hill. Theyre scheduled to testify after the close. We will have live coverage of that in the next hour. Lets tart with the tech wreck, an outperforming rating on apple but just lowered his price target from 130 down to 120. Julia boorstin spoke with twitter Ceo Jack Dorsey. He said ball street doesnt understand his company. And Dominique Chu looks at the role reversal between tech and energy this year. Lets begin with you, on apple, a loss on the open, at least, this morning of another 46 billion in market value for this stock. As it experiences its First Sales Decline in 13 years. Why are you hanging in there with this outperformed rating right n
Rates begin to rise . Four reasons to be bullish still about the American Housing market ahead. And get a load of this one. American airlines actually flew the wrong plane from los angeles to hawaii. It wasnt certified to fly that distance over water. How in the world does Something Like that happen . That is the question were going to try to find answers to. But we do begin ty with the possibility of a rate hike this week, which would be the first fed increase in about a decade. Dominic chu has been taking a closer look at the stocks that are the most sensitive to a rate hike. Arguably by what im going to show you, investors and traders have already been positioning themselves for a possible rate hike from the fed. So you have heard it before, well say it again. Utility stocks are often viewed as one of the big sentiment gauges or proxies for what happens with Interest Rates. The reason why is because when Interest Rates rise or are threatened to rise, utility stocks tend to sell off.
Financial trading revenue saw a drop of 15 . Hear what the companys ceo has to say about the results with shares down almost 6 on the session today. Many of its competitors are not down today. All right. We have a brain drain at yahoo evan has been talking about, two more people, high level people, have left the technology giant. We will discuss the impact of yahoos executive exodus coming up. And ibm set to report right after the bell. The companys cfo will join us live before the Conference Call for an exclusive interview, shares down about 1 ahead of that report. Lets start with chinas economy, that has september Oil Prices Lower today, dominic chu has the story for us. So, bill, kelly, we understand right now that the china slow down effect has been anticipated for quite some time. You could argue perhaps priced into the market but still we finally got confirmation of some of the worst levels of Economic Activity that we have seen since the Global Financial crisis back in 2008, 200
This morning. So, Phil Mattingly is here which makes me so lucky. All the way from washington, d. C. , survived the blizzard thing. Wrote to have you. Start with the bulletin. The top business stories shares of apple surging, up almost 8 after it reported a recordsetting 18 billion profit in the last quarter. Give credit to the new, bigger iphone. The company sold 75 million of them in three months. Yahoo is rising as well. The Internet Company plans a taxfree spinoff of its entire stake in alibaba. Investors had pushed Ceo Marissa Mayer to return cash to shareholders and to find ways to cut taxes. It sounds like investors cannot get enough of the burgers and shakes. Shake shack is increasing the amount it might raise in an ipo to 95 million, adding value at about 675 million. The shake shack i feel is expected to ipo is expected to price tomorrow. New england is digging out of the blizzard that dont two feet of snow that dont two feet of snow on boston. The Transit System is up and ru