Stock Market Today: Netflix Speeds Up and Red Lobster Gears for a Fight

Why Netflix, Darden Restaurants, and Armstrong World Industries stocks are on the move today.

Feb 24, 2014 at 9:04AM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

Investors can expect a flat start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) has gained a modest 34 points in premarket trading. Global indexes didn't move much overnight, with European shares rising slightly after a reading on German business confidence came in surprisingly high. 

Today's U.S. economic calendar is light, but tomorrow we'll get a fresh estimate on consumer confidence that should register a solid 81 out of 100 for the month of February, on par with January's result.

Meanwhile, news is breaking this morning on several stocks that could see heavy trading in today's session, including Netflix (NASDAQ:NFLX), Darden Restaurants (NYSE:DRI), and Armstrong World Industries (NYSE:AWI).

Netflix struck a deal with Comcast (NASDAQ:CMCSA) over the weekend that will give it a direct connection to the cable operator's massive broadband network. While the financial terms weren't disclosed, the agreement looks like a win for both companies: Netflix can now deliver a faster experience for millions of its users, while Comcast gets paid for its part in carrying the data load, which has been spiking higher as Netflix's subscriber base swells. Netflix stock is up 1.2% in premarket trading, while Comcast is up 1.5%.

Darden Restaurants' plan to spin off its Red Lobster chain is under attack again, as an activist investor is expected to launch a new challenge to the spinoff today, according to The Wall Street Journal. Red Lobster has been struggling lately, most recently posting a brutal 4.5% decline in quarterly sales. But some investors have argued that Darden would be better off making more dramatic changes to its corporate structure than just separating the struggling chain from its business. Darden stock is unchanged in premarket trading.

Finally, Armstrong World Industries said this morning that fourth-quarter sales improved by a strong 7.9% to $661 million as sales volumes rose across its sales markets. However, operating income for the floor and ceilings manufacturer dove by 28% thanks to spiking lumber costs. EPS clocked in at $0.32, below Wall Street's expectations of $0.41. Armstrong said it is "cautiously optimistic" that it should see modest growth this year, with sales coming in around $2.9 billion -- about even with analysts' expectations. The stock is unchanged in premarket trading.

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Demitrios Kalogeropoulos owns shares of Netflix. The Motley Fool recommends Netflix. The Motley Fool owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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