SAN FRANCISCO (MarketWatch) — Netflix Inc. rallied in the extended session Tuesday after the video streaming service topped earnings and subscriber expectations.

Netflix NFLX, -0.05% shares surged 16% to $404.04 on heavy volume after the company reported adjusted earnings of 72 cents a share on revenue of $1.49 billion. Analysts surveyed by FactSet had expected earnings of 45 cents and revenue of $1.49 billion. The streaming video-service said it added 4.33 million net subscribers in the fourth quarter, and expects to add 4.05 million new members in the current quarter, topping analyst expectations.

International Business Machines Corp. IBM, -1.72% shares fell 1.7% to $154.25 on heavy volume after the Dow component reported lower-than-expected sales, while topping profit estimates. IBM reported adjusted fourth-quarter earnings of $5.81 a share on revenue of $24.11 billion. Analysts had expected $5.44 per share on revenue of $24.83 billion.

Advanced Micro Devices Inc. AMD, -2.11% shares declined 0.5% to $2.23 on moderate volume after the chip maker reported it broke even for fourth quarter with revenue of $1.24 billion. Analysts surveyed by FactSet had estimated earnings of 1 cent a share on revenue of $1.24 billion.

Cree Inc. CREE, -1.98% shares rose 6.2% to $34.35 after the LED light maker posted fiscal second-quarter earnings of 33 cents a share on revenue of $313.2 million. Analysts expected 22 cents a share on revenue of $412.1 million.

Woodward Inc. WWD, -2.48% shares rose 12% to $47.76 on light volume after the aerospace and energy industry equipment supplier reported fiscal first-quarter earnings of 66 cents a share on revenue of $487.6 million. Analysts expected 46 cents a share on revenue of $446.9 million.

Arena Pharmaceuticals Inc. ARNA, +0.94% shares fell 7.2% to $4.91 on moderate volume after the drug developer said it will launch a secondary offering of its shares.

Google Inc. GOOG, -2.37% Class C shares advanced less than 0.1% to $507.20 on light volume after Elon Musk’s space venture SpaceX confirmed $1 billion in financingfrom Google and others.

Here were the stocks making notable moves Tuesday:

Gainers

Delta Air Lines Inc. DAL, -3.29% reported better-than-expected fourth-quarter adjusted results, with revenue of $8.24 billion, up 4.6%. The airline posted a $1.4 billion special-item charge related to hedging fuel costs. The stock was the best performer on the S&P 500 Index.

Smith & Wesson Holding Corp. US:SWHC raised its third-quarter outlook, saying it expects to see third-quarter sales in a range of $124 million to $126 million. Net earnings fell to $2.52 billion, or 89 cents a share, from $3.52 billion, or $1.23 a share, in the year-earlier period.

Newmont Mining Corp. NEM, -2.42% shares finished up as the S&P 500’s second-best gainer of the day as gold settled at its highest price in five months.

Baker Hughes Inc. US:BHI reported earnings that easily topped Wall Street expectations but warned that its 2015 results would likely be pressured by the recent drop in oil prices.

Halliburton Co. HAL, -2.49% reported better-than-expected but warned that 2015 could be a challenging year for the oil-field servicing company, which is planning to acquire Baker Hughes Inc.

Decliners

Morgan Stanley MS, -0.33% reported lower-than-expected fourth-quarter profit and revenue. Morgan Stanley posted a profit of $1.05 billion, or 47 cents a share, up from 95 million, or 2 cents a share, a year ago.

Johnson & Johnson Inc. JNJ, +1.36% posted generally better-than-expected fourth-quarter earnings, but revenue was below analysts’ estimates.

Michaels Cos. Inc. MIK, -0.24% estimated that it would see a 3.5% increase in holiday sales — its first holiday season since the arts-and-crafts retailer went public in June.

FXCM Inc. US:FXCM, won an agreement with Leucadia National Corp. US:LUK for $300 million in financing in the wake of volatility between the euro and Swiss franc that left FXCM with a negative equity balance equal to $225 million. The rescue package includes a steadily rising interest rate.