Apr. 22 - Summary of business headlines: Netflix earnings big beat, Texas Instruments sees improving chip demand; Caterpillar profit miss; Home re-sales fall; Business economists upbeat. Bobbi Rebell reports.
Shares of Netflix soaring after the bell after it reported better than expected results. Profits rose as the company added 2 million new customers for its U.S. streaming service- and added a million in markets outside the U.S. Texas Instruments narrowly beating forecasts. Demand for its chips has improved despite concerns about a troubled global economy. As for the trading day: the New York Stock Exchange had a moment of silence at 2:50 pm to honor the victims of the Boston Marathon Bombings one-week later. Coming off their worst week since November, stocks posted gains with Microsoft boosting the Dow and the Nasdaq. Shares were up after CNBC reported ValueAct capital had taken a $2 billion stake in the company. Caterpillar posted a profit miss. The heavy equipment maker also lowered its 2013 profit forecast because of a drop in demand for from its mining customers. Halliburton shares rose after the company posted higher earnings- thanks to improving margins. U.S. home resales were down a little in March- according to the National Association of Realtors. But homes are getting more expensive. The median price for a home resale was $184,000 - that is up close to 12 percent from a year earlier. Steven Ricchiuto, Chief Economist, Mizuho Securities: SOUNDBITE: STEVEN RICCHIUTO, CHIEF ECONOMIST, MIZUHO SECURITIES: "I think what you are beginning to see is a recognition that what we saw in the late 4th quarter, in the first quarter was an overstatement of the pace of underlying economic activity. Especially in housing. Seasonal factors are very, very critical at that time of year, because so little real activity happens. That if you have any little disturbance whatsoever in the historical pattern, you can create seasonal factors that lift the level of economic activity abnormally high. And what we are seeing take place now is a rationalization of those numbers back to where they should be." A new survey of corporate economists from the NABE found businesses are becoming more upbeat in their economic outlook- and had higher expectations for hiring. A mostly higher day for European stocks. Signs of progress to break a political stalemate in Italy outweighed downbeat earnings news from Caterpillar and the lower U.S. home resale figures.