Market Minute: Netflix Growth Sours Investors; Taco Bell Nixes Kids Meals

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Netflix and Apple are the stocks you want to watch today. Those and more are what's in the news Tuesday on Wall Street.

The Dow industrials (^DJI) edged just slightly higher Monday, the S&P 500 (^GPSC) added 3 points -- to mark its 23rd record high of the year -- and the Nasdaq (^IXIC) rose 12.

netflix earnings stocks investing kevin spacey house of cards wall street
Melinda Sue Gordon, Netflix/APActor Kevin Spacey in a scene from the Netflix series "House of Cards."
Netflix says its quarterly profit soared nearly fivefold from a year ago, even better than Wall Street had expected. But subscriber growth to the movie streaming service was a bit off target.

Last week Netflix received 14 Emmy nominations for its original series, including best drama for "House of Cards." Now investors want to see if it can turn those nominations into new subscribers. Netflix (NFLX) shares have more than tripled in price during the past year, but they're set to slide Tuesday morning.

Dow components DuPont (DD), United Technologies (UTX) and Travelers Cos. (TRV) are also out with quarterly numbers this morning. In addition to its earnings, DuPont says it may sell its performance chemicals business, which is the company's second largest revenue producer.

After the closing bell, we'll hear from Apple (AAPL) and AT&T (T). Apple's net is likely to drop from a year ago as it's been quite a while since the company has introduced an important new product.

On the merger front, CapitalSource (CSE) has agreed to be acquired by Pacwest Bancorp (PACW) in a deal valued at $2.3 billion dollars.

Taco Bell is taking the toy out of the taco. The Yum Brands (YUM) unit says its will stop selling kids meals and toys, probably early next year. It wants to focus on attracting young adults. The company says kids meals account for less than 1 percent of its overall sales.

Finally, how much money do you need to have to be rich? A survey by UBS (UBS) found $5 million is the magic number for most people, with $1 million of that in cash. Half of the respondents also said being rich means having "no financial constraints."

-Produced by Drew Trachtenberg.


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8 Comments

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blackeyeliner

Its probably a good move for taco bell. The commercials use the food as the selling point rather than relying on toys like McDonalds. I don't think I've seen kids ordering kids meals any time I've been to one.

July 23 2013 at 2:24 PM Report abuse rate up rate down Reply
Mel

I think Taco Bell may be short sighted unless they figure out how children are going to stop into the stores without their parents driving them. No kids, no parents. They say they want to concentrate on young adults. What if the young adults have young children? Do you think Mickey D's would be in business if it were not for the kids? I don't think so. DUH!

July 23 2013 at 10:54 AM Report abuse -1 rate up rate down Reply
1 reply to Mel's comment
LizAndrsn

TB's kid meals are all packaging, nothing else. Their "toys" are on par with the junk Sonic puts in theirs. If you want to draw the kids, you gotta bait them with SpongeBob or the latest Pixar tie-in, simple as that.

July 23 2013 at 11:46 AM Report abuse +1 rate up rate down Reply
1 reply to LizAndrsn's comment
blackeyeliner

They don't really need to use toys to bring customers in though. Kids ask to go because they want a type of food offered, my son would ask to go for a nachos. He never asked for the kids meal. If they don't need the expensive licencing for a toy to sell their food why bother?

July 23 2013 at 2:38 PM Report abuse rate up rate down
Angele

When they STOP WITH THE GIANT FB WINDOW OVER THE PAGE, I WILL REJOIN! You're not able to close it or choose it without going to other places to do that. It's HIGHLY annoying and several of my friends have agreed. Take the FB window OFF the main page or at the VERY LEAST, allow us to close that and check a box to KEEP IT FROM APPEARING EACH TIME WE go to the MAIN PAGE !!!

July 23 2013 at 10:24 AM Report abuse rate up rate down Reply
juantvman

Original programming on Netflix is whats going to push this "Psudo-Cable" revolution.

July 23 2013 at 10:14 AM Report abuse -1 rate up rate down Reply
sigmastef

Once people get hip to xbmc, Netflix is finished. There is about to be a television revolution and these greedy cable companies have nobody but themselves to thank for it. But I do subscribe to Netflix. I like what they are trying to do.

July 23 2013 at 8:44 AM Report abuse +2 rate up rate down Reply
1 reply to sigmastef's comment
captainjaneway26

shill

July 23 2013 at 8:59 AM Report abuse rate up rate down Reply