The daily business briefing: July 19, 2016

1. Netflix shares plunge on weak subscriber expansion

Netflix stock dropped sharply on Monday after the video streaming company reported its weakest subscriber expansion in two years, which was interpreted as a sign that its recent price increases have turned off subscribers. The company was aiming to add 2.5 million subscribers, but only managed 1.7 million. Netflix shares fell by as much as 16 percent in after hours trading. One reason the price hike is taking the blame: Netflix hit its target for new subscribers, but lost more old ones than anticipated.

The Wall Street Journal The New York Times

2. UnitedHealth beats profit forecasts

UnitedHealth shares jumped by 2.3 percent in pre-market trading on Tuesday after the giant health insurer reported quarterly profits that exceeded Wall Street's expectations. The company said its adjusted quarterly profit came to $1.96 per share, beating average expectations of analysts surveyed by Zacks Investment Research of $1.89 per share. UnitedHealth's revenue of $46.49 billion also beat expectations of $45.35 billion. UnitedHealth stock has gained 20 percent this year.

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The Associated Press

3. Goldman Sachs beats Wall Street forecasts

Goldman Sachs reported quarterly earnings that exceeded analysts' expectations as a string of reports this week by big U.S. banks continued. The results, released before the opening bell on Tuesday, sent the investment bank's stock rising by 1.6 percent in pre-market trading. Goldman shares have fallen by 9.4 percent this year, but its second quarter earnings of $3.72 a share — up from expectations of $3 — indicated that the Wall Street firm had rebounded from its painful start to 2016 as it earned more from bond trading and its expenses fell.

MarketWatch Reuters

4. Murdochs reportedly plan to force out Fox News chief Ailes

Media tycoon Rupert Murdoch's sons, Lachlan and James, plan to oust Roger Ailes as the head of Fox News, according to a report in New York magazine. The magazine, citing two sources briefed on the matter, says that Lachlan and James Murdoch, who serve as co-chairman and CEO of the cable news network's parent 21st Century Fox, determined that Ailes, 76, should go after they reviewed preliminary findings of a law firm's investigation sparked by sexual harassment accusations made against him by former Fox News host Gretchen Carlson. A 21st Century Fox spokesman said the matter was "not yet resolved."

New York CNN

5. Audit finds Takata manipulated air-bag inflator test results

Air-bag supplier Takata Corp. routinely manipulated air-bag inflator test results it reported to Honda, its biggest customer, according to an ongoing audit commissioned by both companies. Honda and Takata jointly hired auditor Brian O'Neill in late October days before Honda announced evidence of data manipulation regarding the inflators, which are behind the industry's biggest recall ever. O'Neill said his team found examples of "selective editing" that hid bad results in versions of reports sent to Honda.

Bloomberg