3M and Netflix disappoint

October 25, 2011: 1:01 PM ET
3M, stock

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NEW YORK (CNNMoney) -- Hundreds of companies have already reported this earnings season, providing a glimpse into the state of different parts of the economy.

One disappointment came from 3M (MMM, Fortune 500), which reported significantly below the consensus estimates because of lower margins. The consumer technology conglomerate also gave lower guidance for next quarter, citing deteriorating economic conditions in all of its business segments. Its stock dropped 5% on the news.

While consumer confidence is near record lows, high-end brands continue to report strong growth numbers. The latest example is Coach (COH), which announced same-store sales increased 9% during the third quarter, significantly above expectations. Luxury brands have the pricing power to fight input costs and their sales are relatively immune to the economic cycle.

In other earnings news, Netflix (NFLX) lost one-third of its market capitalization overnight, and it is already trading 75% below its all-time high, reached this July. The streaming video provider disappointed with a grim outlook for next quarter earnings, once again confirming investors' fears that Netflix's management is swimming in deep and dangerous waters.

Netflix stock sinks 36% as subscribers flee

These are some of the themes attracting attention on StockTwits Tuesday:

AngrySpeculator: 3M already reporting how the AUSTERITY in Europe is affecting their business. We r in officially bear market territory. $SPY $AMZN $AAPL $MMM

firstadopter: $MMM call: Western Europe 4% decline organically in the quarter.

fundmyfund: $$ The huge guidance gap for $NFLX next quarter indicates they have little visibility ... that is scary.

jdells06: The issue with $NFLX has always been strong pending competition adding 2 costs 4 content. Shorts had it right timing off some.

EddyElfenbein: Just in case anyone forgot, $NFLX is in the S&P 500. The company they replaced was the New York Times. (I'm serious, they did.)

Retail_Guru: Now that's what I call pricing power - Coach sees selling prices rise on newness (84% of product is new), shopper strength $COH $RL $TIF

charlesrotblut: It continues to be a tale of two economies--$COH same-store sales rose 9.2% last quarter. To top of page

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