Summary: Geopolitical tensions continue to vex Wall Street; China meat scandal for Yum! Brands and McDonald's; Ackman's Herbalife stunner; Netflix, Chipotle, Halliburton earnings. Lily Jamali reports.
Major U.S. indices all finishing Monday in the red. But there was plenty of action after the closing bell. Shares of Netflix rallying. Revenue met estimates as the streaming media company added over a million users in Q2, saying a price increase didn't keep customers away. That overshadowed earnings that were slightly below estimates. And shares of fast casual restaurant chain Chipotle soared after hours. The company announcing traffic jumped despite a rise in menu prices. Profits were up 26%. Markets still on edge as geopolitical tensions - from Ukraine to Gaza - remain high. President Obama speaking out against Russia and Russian-backed separatists in Ukraine for blocking access to the crash site of Malaysian Airlines Flight 17 last week. The U.S. is stepping up ceasefire efforts in Gaza as the death toll mounts from violence, which is has on for two weeks. Brian Singer of William Blair says investors are responding to uncertainty: SOUNDBITE: BRIAN SINGER, HEAD OF GLOBAL MACRO STRATEGIES, WILLIAM BLAIR (ENGLISH) SAYING: "We saw the liquidiation last week, some early liquidation, and now, I believe, what we're seeing is basically a little more of a wait-and-see. We're a little bit in the doldrums. We need to see, as a market, how things are evolving." Those tensions are weighing on European markets. Major indices there all ended the day lower. U.S. sanctions on Russia could impact upcoming projects planning by Halliburton. Shares hit an all-time high in the session after the oilfield services giant said second quarter revenue was up 10 percent, beating expectations. Halliburton also raised its share repurchase program by a billion dollars. The maker of My Little Pony, Hasbro, finished the day lower. The nation's second largest toymaker saw second quarter sales rise 8.2%. But those sales missed analyst estimates and net income also took a hit. A stunner from Yum! Brands and McDonald's in a key market: China. A Chinese TV crew found workers at a local unit of an American supplier to both, picking meat off a factory floor, and repackaging fresh meat together with expired meat. The scandal sent shares of both companies lower. Herbalife shares plunging after activist investor Bill Ackman said he will "expose incredible fraud" about the company. He said on CNBC that Tuesday he will present the internal video and documents from employees proving it is a pyramid scheme. Allergan shares rising after the company announced it's cutting 1500 jobs, part of a restructuring aimed at staving off a takeover by Valeant Pharmaceuticals.