US stocks pause before earnings

Investors are adopting a "show me" attitude as they await a flood of corporate earnings the rest of this week and next. The Dow has only posted single digit moves the past two days, the first time that's happened in more than four months, although the S&P 500 has posted small gains for each of the past four days.

Dow components Dupont (DD), Travelers (TRV), and United Technologies (UTX) lead this morning's list of earnings releases, amid a busy list that includes Regions Financial (RF), RadioShack (RSH), Ryder (R), Wendy's (WEN), Domino's Pizza (DPZ), Illinois Tool Works (ITW), Avery Dennison (AVY), Forest Labs (FRX), Freeport-McMoRan (FCX), Lockheed Martin (LMT), and Lexmark (LXK).

Apple (AAPL) and AT&T (T) will be out with their quarterly reports after the closing bell, along with Panera Bread (PNRA), Juniper Networks (JNPR), Electronic Arts (EA), Discover Financial (DFS), Broadcom (BRCM) and Altera (ALTR).

Economic reports out this morning include the FHA's latest look at home prices at 9 a.m. ET, with economists expecting an increase of 0.8 percent in May compared to April.

The Treasury will auction $35 billion in 2-year notes, with the results of that sale available shortly after 1 p.m. ET.

Netflix (NFLX) leads our list of stocks to watch, with the company reporting second quarter profit of $0.49 per share, nine cents above estimates. However, investors were disappointed over the addition of 630,000 new video streaming customers during the quarter, below the 700,000 that Wall Street analysts had anticipated.

Texas Instruments (TXN) reported second quarter profit of $0.42 per share, excluding certain items, one cent above estimates, with revenues in line with consensus. The chipmaker also made upbeat comments about semiconductor demand for the remainder of the year.

Yahoo (YHOO) media chief Mickie Rosen is leaving the company this Friday. AllThingsD reports there may be more departures to come, as lucrative stock options vest for some high ranking executives.

Diageo (DEO) is expanding in China by taking a controlling stake in spirits producer Shuijingfang. The company is expanding its ownership to 39.7 percent from the current 21 percent in a deal worth $358 million.

Telecom stocks in general could get a boost today from overseas takeover activity. Spain's Telefonica is buying German mobile operation E-Plus from Royal KPN for $6.58 billion, while Vivendi is in talks to sell its controlling stake in Morocco's Maroc Telecom for $5.5 billion.

CapitalSource (CSE) is being bought by PacWest Bancorp (PACW) for $2.29 billion in cash. That follows PacWest's November deal in which it bought First California Financial for about $231 million in stock.

Yum Brands' (YUM) Taco Bell chain is discontinuing kids' meals and toys beginning later this month. CEO Greg Creed said in a statement that kids' meals and toys "no longer make sense to put resources behind".

Rent-A-Center (RCII) reported second quarter profit of $0.76 per share, one cent above estimates, and raised its full year earnings forecast.