Netflix results came up short, Square filed for an IPO, and Wal-Mart stock weighs on the markets. Bobbi Rebell reports.
After the closing bell, Netflix out with earnings that just barely missed forecasts. The company also added fewer U.S. subscribers than expected. And Square filed for to go public. CEO Jack Dorsey saying he is committed to his role leading both the payments company, and Twitter, where he is also CEO. During the regular trading day, stocks fell on Wall Street for the second straight day. Mild inflation in China, weak retail sales in the U.S. last month and a drop in wholesale prices left investors questioning whether the Fed could afford to raise interest rates soon. The biggest drag among the blue chips: Wal-Mart. Shares of the world's largest retailer plunged after it warned earnings next fiscal year would drop sharply. Independent market strategist Peter Kenny: SOUNDBITE: PETER KENNY, INDEPENDENT MARKET STRATEGIST, KENNY'S COMMENTARY (ENGLISH) SPEAKING: "If the middle class and lower middle class shopper that is shopping at Wal-Mart is not spending more money given the employment gains we've seen, that's a concern for the market." Mixed earnings from the big banks added to the dour mood on Wall Street. JPMorgan Chase's quarterly revenue fell. Shrinking legal expenses helped Bank of America swing to a profit. The purchase of loans from GE helped boost Wells Fargo's bottom line. TripAdvisor soared. The travel advice website is partnering with Priceline so its users can reserve hotel rooms listed by Booking.com instantly on the TripAdvisor site. In Europe, shares fell for the third straight session on lackluster earnings from the U.S.