Transcripts For CNBC Closing Bell 20240622

Media, all that coming up after the close tonight. Plus in case you missed it, former chair fed addressing. We have the sound for you coming up. Yes, well get responses to that as well. Oracle shares are down 11 this year so far. Jeffreys is upgrading that stock to buy with a 50 price target. You see the trading at 39 and three quarters. You have the analyst on oracle coming up moments from now. On markets today, the dow up four points. The s p higher. The nasdaq doing better up 20 points. Even though facebook is still low were after the earnings support. A lot of people liked what they saw on the numbers. By the way, apple is down today too. Lets get to our closing bell. For this thursday, ben willis, kind of a muted day today after tremendous volatile earlier this week. Whats going on today . Actually a very interesting trading day. Once again, we saw the ability to buy on the dip where the education from the Economic Data we saw took the dow jones and the s p to the loads of opening in fear that the rate increase is going to come in september, if you will. That being said, that created the buying opportunity. There was a lot of money lined up for that. Rick was talking earlier about the way the rates were moving on the short end of the yield curve. From the opportunity of trading in the marketplace, it was a great opportunity to scoop where people were selling and it probably wasnt in your best interest to sell today. You know, joe, tomorrow were going to hear from exon and mini chevron is going to tell us a lot about how the oil majors are surviving today. Are we worried about what we could hear from exon tomorrow morning . I think it could be interesting because it seems that the Big Oil Companies are focussed on paying dividends. We are seeing lay offs in the oil patch and they swore they wouldnt do it and oil prices were going up. Im not so sure this time Oil Stock Prices and the stock market in general are linked as they have been in the past. Generally, when u. S. Stocks follow the trend or the lead of oil stocks, i think because of whats happening in technology, the u. S. , potentially iran entering the world oil market. I think that may have changed this time. We will see. Especially if we have those predictions out well see oil in the 30 range later this year and what the impact will be. Rick, i want to get to you here. Spoke with paul and asked him about whether the rule named after him which prohibits banks from trading from their own account has created a lack of equitity in the market . Nonsense. Its the backbone of the liquidity in the market. Its important. People that want to buy securities and think they can sell it the next day, that shouldnt be the real world. After taking a risk they ought to be prepared for the risk. You better get a balance on liquidity. Are you concerned about the lack of liquidity. Im not concerned one bit. Im not concerned one bit. Why not . There can be too much. Im asking. Look, i told you. Why do we keep repeating it . Im not worried about the lack of liquidity in markets period. I know theres been a lot of chatter about on trading floors. What do you think, rick . Well, first of all, lets just say that hes right, treasuries are different. Treasuries are standardized. When i use to be on this trading floor, corporate traders without a Corporate Bond never figured out features and use to head corporates with treasuries. Corporates are important. Theyve blossomed all across the globe. I do say hes the man who slayed inflation so i ought to be careful. Hes a hero down here. I like what i finished up with. There needs to be a risk reward relationship. I think its out of context for his discussion. I like the fact he said that. We need to let investors know you cant have reward without the appropriate amount of risk. Believe me, were going to redefine the relationship in the quarters they had. On the point we talk about the Federal Reserve later this year raising rates, could that be the moment in which a lot of the trades either through Exchange Traded funds, bond market, et cetera, people have a quote, up quote liquidity moment. Well have to wait and see. Each time the feds move or does anything, the markets react. We had this discussion two years ago with tapering and the markets were going to have major issues. We saw they were going too much volatility and go on their merry way. Ben, do i see you nodding your head . 160 to 360 in 36 weeks. Its the atf market, i think, is your window into the liquidity that will not be there. The high yield market, particularly, the pressure were seeing out of the Energy Sector and the exposure there is, i think, the black swan of the whole story. Theres 18 trillion in etfs now. Theres not enough liquidity to support some of those likely leveraged unrefined structures when they break. It did not exist. They used the term odd ball securities. I would love to know which hes referring to. To either have a discount lid outside the market. Still, not a lot of people buying during the credit crisis. Thats why it was a crisis. Banks, nonbanks, everybody. Well see. Thank you so much for now though. About 15 minutes to go until the close. Back on wall street, 58 million due in bond payments in a few days. Were ginnjoined with whats at stake. Its t minus two until whats likely to be the most major defaults since 1933. The funds were never appropriate appreciated by t appropriated the puerto rican government. Also, due that day are also 90 million from the municipal finances authority, 170 million from the Government Development bank and about 250 million from the islands sales tax authority. This matters because the ownership of puerto rican bonds are far and wide. Also a healthy conteingent of investors. In anticipation, theyre trading at pennies on the dollar and there could be knock off effects as well. Well see what they are. Kate, to that point, this crisis has been below the surface now for at least a year. Are the people who through Municipal Bond funds had exposure in the past, has it gone away . Has there been steps to move away from this risk . As far as we know, kelly, not really. I cant rule out some sold off their positions. Isolated cases where people have but if you think about Franklin Templeton which are two of the Largest Mutual Fund families with exposure to puerto rico debt, morning star figures show they have dollar figures. The average u. S. Mutual fund has about half that average has exposure to puerto rico. Some 52 . On average, the size of the position is relatively small. 34 . The exposure is quiet broad within the u. S. Before we let you go, lets get to another beat. Bill, its interesting today we saw in a somewhat surprising mood the department of jus sis is going to file a request to have the Supreme Court review an aspect of u. S. Verses newman. U. S. Verses newman a key trading case brought by the u. S. It was overturned last december. Now the u. S. Justice is going to challenge this. They want the Appellate Court to take a look at this. If i give you a piece of information and you trade on it successfully, i expect that in return. Well see if that gets reviewed or not. Thanks very much. See you later. Thank you. Heading to the close now keeping an eye on the markets. The nasdaq, the out performer is still up by 19 and there goes the dow turning negative. Well see what happens. Brace yourselves though, were not finished. Linked in and expedia and Electronic Arts. You dont have to move anywhere. Just stay right there. Up next, the analyst who upgraded oracle explains why he raised his price target at 40 bucks. Find out if this is a stock you need to own when we come back. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. Welcome back. Look at mondelez up today. 45 and change. Thats an all time high on better than expected earnings and its a win, win for them. They have lower cost, lower input cost and the maker of oreo cookies and ritz crackers said they had pricing power. The cost go down for prof profitability for the accompany. Procter and gamble falls. Here on the show yesterday getting lighter than expected guidance. Negative competition and publicity are certainly taking its toll. Shares down 10 . Meantime, shares of oracle slightly higher. Jeffrey has upgraded that stock. Raised the price from 50 to 41. The picture not pretty so far, its down roughly 11 john, what does it take to make oracle a great stock . They missed the last quarter but really looks like they missed it because they ended up getting more business than they anticipated. People talk about the miss but in reality, the quarter wasnt any worse than its been over the last year and a half. It was an okay quarter. In order to fully push this forward, were counting on what we expect to be a meaningful product cycle that wont start for six more months. We think theyre going to maintain going forward. You mentioned theres a race there. Almost a scramble, a land rush to get to the cloud that a lot of Big Companies have been struggling to keep up with the smaller more nimble companies on that. Hows oracle doing on that and these alternative data bis technologies they have to deal with out there taking markets away too, right. Those are the two concerns most have for oracle. Oracle hasnt done a great job on the sass part of it, the applications part of it. In companies they have and its eating into their growth and base. On the other side though of platform as a service, we think theyre well positioned. If you think about the companies, the users that are moving to cloud, for the most part you have enterprising going there. Thats for the solutions but also enterprise is starting to move. If you think about oracle services, they primarily almost service the enterprise and large enterprise. Theyll move to the cloud but they think theyre clouds themselves. They think they can do it as well as amazon in a lot of places. What about oracle being qu quizittive . We think theyre more likely to go out and buy applications in the cloud. What could go wrong . What would take them lower than 50 . Thats another thing we like about it here. This transition to cloud you could see margins come down a little bit. By the way, we expect margins to come down a little bit. Most of the street expects margins to come down a little bit. Were probably going to see that happen. In the long term, if they have any success there, that should even out going forward. What else could go wrong, you mentioned the alternative database technologies, thats the core business of oracle. Thats the largest Software Business and it also generates the most profit. If some of the no sequel alternatives eat into the core business, that could be an issue. We think those businesses, technologies are great technologies that will do really well on the fringes of oracle that operates and oracle isnt well equipped to address. All right, john, thanks for joining us, appreciate it. John there with a 50 view on oracle from jeffreys. Heading to the close. 40 minutes left on trading day. Were in one of those situations where the dow could finish under today. It Artificial Intelligence and Virtual Reality for facebook. Wow. Futuristic. Also ahead, how does todays Economic Growth reading move the needle on whether the fed raises ratings on september or not . Our pros weigh in on that when we come back on the closing bell. Whehe trusts onlyon duracell quantum because it lasts longer in 99 of devices. You are looking at can you spot the difference . No . You cant see that . Alright, lets take a look. The one on the right just used 1 less fuel than the one on the left. Now, to an airline, a 1 difference could save enough fuel to power hundreds of flights around the world. Hey, look at that. Pyramids. So you see, two things that are exactly the same have never been more different. Ge software. Get connected. Get insights. Get optimized. Speaking of some of the biggest movers, take a look at western digital. The stock still down about 20 this year as p. C. Demands struggles. In the meantime, facebook falling today after the social networking giant posted an 82 increase in quartly expenses. That despite facebooks earnings beating a nearly every other metric last night. Last night on the Conference Call Ceo Mark Zuckerberg talked about it. Immersive 3d content. Got that . No, i dont. What are they talking about here . Well, kelly, facebook invisions far more than just gaining. Mike telling me hes aiming for a virtual communication. You get this thing on and feel like youre there and you can create whatever world and experience you want. They are also investing in Artificial Intelligence to help facebook anticipate and better serve its users. My hope for facebook in the next decade is you can sit down and tell facebook this is what i want to hear about today. Im having a bad day and want to hear some good news and reach out to my friends and talk to my mom and get all the stuff thats interesting for me. Facebook would like to create some sort of virtual experience. Its all about this idea facebook would be able to see what kind of thing youre looking for and news articles so you wouldnt have to search for them. They could deliver them to you. So if im like i need the best fuzzy cat video. If youre in a bad mood they would deliver them without you searching for them. You can pet them virtually. That i would highly value. You can put it in your virtual lap. Thanks a lot, julia. Sounds high in the sky for me. I dont know. Time for a news update with sue. Hey, bill. I kind of agree with you. Heres whats happening. A judge ruling green peace will be fined 2,500 per hour if the ship continues. It forced the ship back into the dock in portland, oregon this morning. The ship is trying to head to the arctic for a drilling operation. The Senate Approved a highway bill. The bill now goes to the president for his signature. Water use fell by 27 in june passing governor browns conservation target. 265 hit or nearly reached their savings goals. And as tom brady and his new england teammates practiced for the first time this season, a plane buzzed over head towing a banner that said dhecheaters lo up. Courtesy of new york jets fans. Guys, i think theres people out there who have a little bit too much time and money on their hands. You think . I was going to say maybe theyre giants fans but jets fans. Makes more sense. The judge says they have to come to terms on this. Well see if they do. Theres that banner again. There it is. Keep showing it. Thanks, sue. Thanks, guys. 30 minutes into the close. Heres where things could get interesting. Im thinking it over. This is why i love sports. I live in corporate america. This is creativity. Bill, look up. Right. Right. Anyway, the dow up now six pointsened s p by one. Nasdaq up. Big names reporting earnings after the bell tonight. Well preview the numbers and bring them to you the moment they hit the tape. Up next, how will this mornings Economic Growth rate effect the feds Interest Rate hike in more than a decade . Stay with us. Bennys the oldest dog in the shelter. He needed help all day so i adopted him. When my back pain flared up, we both felt it. I tried tylenol but it was 6 pills a day. With aleve its just two pills, all day. Now im back aleve. All day strong. Aleve. All day strong. Dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is, can your business deliver . Oil under a little bit of pressure today. Markets generally speaking in terms of stocks are fractionally higher. Air chemicals rising better than expected. The accompany said cost cuts helped out and yes, those sags Commodity Prices. Shares, bill, up 6 . Oh, look at the time. Were into the last half hour. That critical time where we head towards the close of trade. Here at the New York Stock Exchange is peter from empire executio executions. One thing we havent talked much about is the price of oil. It came back a little bit today. It continues lowering. I predict by the end of the year we could be in the 30 range. You know what, bill, someone told me that. They said 35. I tend to doubt that. Why . I think because with oil, it just, its a matter of e inqu y equilibrium. China is slowing down. We just added 21 rigs to the count last week. But they. Saudi arabia is still pumping out. Iran is coming on. That will probably take anywhere from 6 months to two years to get full production up. That will be something we have to worry about in six months to two years. We talked about how cheap the Oil Companies are and the stocks themselves. What is it going to take to move them if theres still downward pressure on oil . You know what, one thing thats going to happen, we havent seen that much of it, i think theres going to be more consolidation in the industry. You have companies that have positive cash flow. Thai goi theyre going to look to spend it and build a bigger picture. Youre going to see some of that. That should help as far as the amount of Companies Invest in the Energy Sector. I think youre going to see that within the next six months. I think that the oil will stabilize around 45 50. Im going to stick with that. Earnings. We have more coming out tonight. Linked in. Were watching linked in because a lot of our clients are in it. Its an evolving story. Continues to be. I think theyre in a great space. Thats the one were watching most. Amjen, bio tech sector, its not something our firm or any of our clients really get fully invested in. Were keeping it Pretty Simple this year. Got it. Thanks peter. Kelly. All right. We got a report this morning. The Second Quarter up 2. 3 on an annualized basis. Does it all add up to a rate hike come september in joining us is our very own steve and dennis, editor and publisher. Welcome to you. Steve, fairs of airst of all, w great number. Not only that but what about the one, the First Quarter of 2014, kelly . If you remember that one, it was fairly remarkable. A 2. 1 plunge causing concern about the possibility of recession. Remember, we had the severe storms and weather and couldnt explain it. Thats been a lesser decline. As you said, the last quarter. Growth is not strong but its, i guess, what you would say somewhat respectable averaging about 1. 5 over the two quarter period. Dennis, i bet you the first number janet looked at this morning was the price deflator they loved to look at for the inflation. Is that the kind of inflation number to get them where they want to go when they raise rate sns. Absolutely not. They want to see inflation above 2 . Grain prices under pressure, crude oil prices under pressure. Metals prices under pressure. You have problems in the Commodity Markets all around the world. Its not going above there. The bond market is rallying again telling you inflationary pressures are not existent. We have a fed thats overtly dubbish in its perspective. That number gave them no reason to consider monetary tightening going into the next quarter unless you have Commodity Prices spiking to the upside. That pce is going to remain under pressure and got get above 2 . Are you ruling out a rate hike for the rest of the year . I think the odds of a rate like are slim, kelly. I think they would like to raise rates and spoke about the ability to raise rates. Everyone wants to see them raise rates. I think their propensity to do so given the composition of the fmoc is very, very limited. What do you think, steve . I dont think i agree with my good friend and colleague on this. I would say given the mornings data, the odds of a rate hike increased. The i think the pec number, the rate hike would take it not panic on it but get some confidence things are moving the way they want them to move. You had the description yesterday of the jobs report saying solve the jobs. Its all going to come down to what the data says between now and the september meeting. Theres a couple of jobs report, data report. Its not a done deal. If i was a betting man and giving odds out there, i would give lower odds right now that there would be a rate hike in september. In other words, i would think the odds are high mentioned. Its only because the First Quarter is so weak. We just saw the confidence data that wasnt great. Unless its a blow out, they only have the september numbers to go on. Lets lean back, put our feet up and talk about what the world would look like for the Federal Reserve to hike rates. What do you think underlying growth is . Do you think its 2 . If thats the case and were doing two more or less, you hike. You watch carefully. Does wage growth come along . You look at the index and say to yourself in this world a 5. 3, 5. 4 . Do we want to be at zero . Where is the risk . I think when i hear janet say the economy is reaching a point, if the forecast goes the way we think, were at needs and can tolerate rate hikes. It tells me she want toss do it. Its easy for the economy. I just find it so ironic we sit here today and have a fed share who is actually rooting for higher inflation right now. Well, i was trading fed funds when mr. Volcer raised the fed funds rate. When we got fed funds, its hard for people to believe but we traded on 22 back in those days. I remember august of 82, 83 and 84 when he was doing that. His comment, that you cannot have too much liquidity, im going to make enemies here, thats one of the silliest ideas ive ever heard in my life. You cannot have too much. Its one of the most important aspects you can have. The fact he said you can have too much i thought was silly. Fair enough. I want to come back to this point you made about potential growth and how 2. 3 is better than a low bar. In fact, that bar may be really low. Potential growth may be 1 . Productivity was way weaker than expected. We knew it was bad. I didnt see that report. Thats a cool report. We know the fed staff came out with the report we reported that said 1. 8 which is low were than the two. They raise rates because the economy is out performing a bar thats getting lower, getting worse. I know models say thats the right thing to do but its not happening for the right listrea . The feds are not trying to win a popularity contest. When have they ever tried to win . Theyre not. The idea being if you have 1 underlying growth and doing 2 youre doing double what that should the potential of the econo economy. At some point you have to put the brakes on. Thank you. Good to see you. Thanks, steve. Thanks. Heading to the close with 19 minutes left in the trading session here. Not a lot of action. The dow down 3. 5 points. Holding steady now. Etch as home prices are rebounding though, shocking words today that nearly half of the homes in the nations top markets are actually losing value. We have di na on that story aftr this. Its been a big week for social media earnings today. Well cap it off with linked in. What to expect after the bell. You focus on making great burgers, or building the best houses in town. Or becoming the next highlyunlikely dotcom superstar. And us, well be right there with you, helping with the questions you need answered to get your brand new business started. Were legalzoom and weve already partnered with over a million new Business Owners to do just that. Check us out today to see how you can become one of them. Legalzoom. Legal help is here. 40 of the streetlights in detroit, at one point, did not work. You had some blocks and you had major thoroughfares and corridors that were just totally pitch black. Those things had to change. We wanted to restore our lighting system in the city. You can have the greatest dreams in the world, but unless you can finance those dreams, it doesnt happen. At the time that the bankruptcy filing was done, the Public Lighting Authority had a hard time of finding a bank. Citi did not run away from the table like some other bankers did. Citi had the strength to help us go to the credit markets and raise the money. Its a brighter day in detroit. People can see better when theyre out doing their tasks, young people are moving back in town, the kids are feeling safer while they walk to school. And folks are making investments and the community is moving forward. 40 of the lights were out, but theyre not out for long. Theyre coming back. Looking at a couple of the metals today. Gold continues to slide down another 5. 5 dlrs today. It hit a peak earlier this year above 1,300. Its come way back. Of course. Now trending back to a thousand dollars an ounce. Copper a little bit different store rhode isla story. Its been seesawing here lately. Its a much muore economically sensitive metal. Copper down 1. 2 today. Essentially unchanged for this one week period. Down 5 as well. Our next story feels a bit like a scene from the bill murray comedy groundhog day. Housing looking like the bad old days again. Diana joined us to explain why. Hi kelly. Not nearly as bad as it was. Thats for sure. Surprising numbers showing the recovery having a few more fits than starts at the moment. Tl there were 7. 4 homeowners who owed more than the worth of their mort aj. So how can this be when home prices are rising . Not all home prices are rising. S p still showed home price gains accelerating. It depends on how you look at the prices. Realty track looked at estimated values of all homes. Not just the homes that sold. Homeowners with more equity are more likely to be the ones that decide to sell in the mark. Nor are they seeing the tight supply issues. Not report claims half of the homes in the nations more metro markets are actually losing value and that is how we could see a gain in the underwater borrowers. Much more of this at cnbc. Com. Guys. Diana, theres been some talk in the connecticut area, some of the wealthier suburbs about whose going to be the buyer that moves into some of these big mansion homes when the buyers and people who live in the houses now are looking in the cities and different kinds of upscale properties. Is this the beginning that could protect a lot of the suburban markets . It could. We have seen home prices moderate in the more expensive neighborhoods because youre seeing the baby boomers who want to get rid of their hometowns. Because the home prices are flattening, youre seeing more inventory on the market and thats slowing things down. We could start to see that in a lot of markets across the nation. Okay. Sure. We are still seeing a derth of inventory for various reasons, not the least of which is builders are low to build these day, arent they. Absolutely. Theyre not building on a lower end either. You are not seeing that entry level product or even that little bit of a move up home and when you dont have the smaller entry level products selling then you dont start that sell of move up buyers. Home buying and selling is all about fuelling the bottom so it goes on up the chain. Were just not seeing that. If you look at inventory supply its the worst on the low end. Thats why you see the weird price jumps. Its all about supply and demand. Prices go higher where theres less supply. Thank you so much. 10 minutes to go into the closing markets trying to figure out what to make of all this. They said no pressure size there. Up next, well preview the earnings reports weve got for expedia, angen, Electronic Arts and linked in coming up in a moment. Youre watching cnbc first in Business World wide. Thanks for watching everybody. We have travel and video games in the mix today. Lets go to our reporters on top of the stories waiting for the numbers. Megahas t mega has the preview. Meg, why dont you start us off. Earnings revenue estimated at 5. 32 billion. Folks are going to be listening to new products and especially a cholesterol drug getting developed next month and a common competition in the form of bio similars. A lot to look forward to this afternoon, guys. Meg, thank you. Julia, back on the social media trail. Whats in store for linked in . Expect linked in revenue to go from 27 to 680 million. Earnings are expected to fall to 0. 30 per share. Beyond the top and bottom line numbers, in focus is the impact of all the investments that brought down the Companies Outlook last quarter. Changes to the solutions are recruiting and were also looking for any updates on the advertising business fulling in decline in display adds earlier this year. Shares are trading down half a a percent today. Bill. How about Virtual Reality social media meetings where you get together and talk about Job Opportunities there on linked in . Youre welcome. Okay. From social media to video gaming. Josh lipton. On Electronic Arts. Josh. Bill, thats a question for this one. That stock already up more than 50 so far this year. Today wall street looking for Electronic Arts to report 0. 03 on sales of 652 million. That would be a drop on the top. A year ago remember they ben amphetamined from fifa and ufc. The big number to watch though, Digital Sales that includes mobile games, console downloads. Michael is looking for 556 million. Kelly. Thank you, joshua. Analyst are looking for earnings of 1. 66 billion. Its name sake travel site will be scrutinized heavily for any kind of management necessary. Remember, earlier this year expedia said they would buy or bits. There are some concerns about whether the deal would face a loot of regulatory scrutiny. Currently it costs traders around 7. 5 share price to insure they get any wild swings up or down. A report for expedia. Look forward to that. Bob and i will have the closing count down in a moment. A new sea chance to tryew look. Something different. This summer, challenge your preconceptions and experience a cadillac for yourself. The 2015 cadillac srx. Lease this from around 339 per month, or purchase with 0 apr financing. Sup jj . Working hard . Here at the Td Ameritrade trader group, they work all the time. Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. [music] jackies heart attack didnt come with a warning. Today her doctor has her on a bayer aspirin regimen to help reduce the risk of another one. If youve had a heart attack be sure to talk to your doctor before you begin an aspirin regimen. By the time Police Arrive on a crime scene, they could have little to go on. A vague description. A single piece of evidence. A partial plate number. With an app from ibm, officers can now access over a billion police documents to find hidden connections, and identify potential suspects. Ibm analytics helps one hundred thousand officers work smarter every day. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. Wow. Were late. Let me show you quickly the dow today. The dough on tw closing today. We may see a different market tomorrow based on the earnings tonight. Based on the Companies Reporting tonight well be watching for the linked in number. Youre watching boston beer, bob. I care about boston beer. Im worried theyre going to reduce the volume. I cant get cherry wheat anymore in the stores. You better not dropped that. Thats my favorite beer of all time. Im coming after you if you dropped that. They drown that out for the summer. Its got a sweet and sour to it. The mix is perfect but its gone from the stores. We got to find out whats going on. This is what happens when the dow has unchanged for the day. Were lonely and have too much time on our hands. Going now with a gain of a whopping four points. Stay tuned. We are just about half way through the earning seasons im told and we have big numbers coming up. See you tomorrow. Thank you, bill. Welcome to closing bell everybody. Going out now with a decline of five and a half points. The s and n staying in the green. Nasdaq still up about a third of the percent today adding 17 points. We did have some performance from facebook and apple. Speaking of earnings, investors bracing for earnings today. Meg is watching for results for us. Josh following Electronic Arts and dominique waiting for expedia. Lets bring in todays panel. Eli here from the washington post. Become. Michelle is here. Michelle, that makies me nervou. Earnings to report. Lindsey bell from z and n capitol i queue. I apologize. Theres background noisz. We have a lot of cross points. Oil weeker today. A lot of earnings. What do you think traders are looking for . Looking for earnings and Revenue Growth. I heard you talking to steve before. I think at best the data has been mixed and the feds keep talking about being data dependent. At a certain point you cant look at every single number and change as you go. You cant lick your finger and put it up in the air. You have to take a stand at some point. I think the bond market is trying to tell you something. Now 10 years below. Still think were in a deflation their period. Crude oil has been cut in half. Something the going on people refuse to acknowledge. Lets see what they can tell us. The results are out. Meg has the numbers. Looks like a Second Quarter kate middlet coming in. Big beat on earnings. Also a beat on revenue. A bigger beat there on earnings than on sells. It looks like a reduction of r and b sells. Revenue toup 21. 4 billion compared to the previous of 21. 9 billion to 21. 3 billion. 955 to 980 a share from previous 935 to 965. Back to you. Well be back with more. Lindsey, what do you make of it . Health care has been so important. I think this is a great number. Falling suit of the rest of bio tech up for the quarter. Health care in general. This is just par for the course right here. Its a reduction in r and d spending. You wonder if the whole con tro ver si about bio tech and if theyre wasting money plays into that. Lets get to linked ins results. Julia, what are they saying . Linked in earnings beating estimates. Exmekations of 0. 30 per share. Theyve come in above last years quarter which is 0. 51 per share. Blowing away expectations sending linked . Shares 12. 5 . Revenue coming in better than expected compared to expectations of 680 million. So big beat on the top and bottom line. Linked in also announcing that those user numbers now up 15 . Julia, did they say anything . Hang on a second. Well come back to it in a noemt. Lets get to Electronic Arts. Josh, you have the numbers. What can you tell snus . Supporting 0. 15 on 693 million. They were looking for 0. 03 on 652 million. Also raising diets kelly looking for 4. 45 billion. Joshua, thanks. Well get back to julia here. It seems like theres been changes. Now, last quarter wleclinked in shares dropped. 745 to 750 million. 2. 94. Better than expected outlook. Definitely helping drive those shares higher. Now up about 13 . Impressive stuff, julia. Thanks. Looking through the results here as well, it looks like if you take talent solutions, is it bad . I hear theyre going to pull back on the number of emails. Im one of those usersengage. I think one of the numbers stay within the narrative of theres no major road block now that the fed has called out but there no real call forcing it to move. I thought what was notable is it didnt say. They didnt mention greece and china and the stabilization expectation in terms of oil prices. The fed is saying less and less as it seems to be getting closer to the time of movement. You wonder if their goal isnt to sur surprise wall street. Meanwhile, earning season more than half way completed. This is a really strong report here from linked in as well. These are great numbers from linked in. A change of times for social media. You saw facebook and twitter down. These numbers good out of linked in. I want to hear what Corporate Customer adds are. I want to hear more about the mobile nuclears and really hear about the lending acquisitioacq. Compared to what you saw apple that day, remember that day it was all bad. Oh yeah. Yesterday afterhours was a sea of red. Julia, as you dig through these linked in numbers, what else are you seeing . Some interesting things here in terms of engagement. The amount of users having vi t visited the site. Unique visiting members grew per month and member page views grew 37 . Heres whats key. Thats an acceleration ahead of unique member growth. People using linked in are using it more frequently than the First Quarter. Mobile continues to grow double the rate representing 52 up just a hair from the first kwauter. 97 million is the total number . They have 300 million total members and unique visiting members per month. Thats 93 million. Unlike facebook which basically their measure of viewers. Linked in has a total number of people who put up a profile and keep a profile up there. With the 97 million is the number of people who use it actively. Meanwhile, expedias earnings are out. What we have here is what looks like an earnings beat right now. Weve gone through the numbers. Revenues coming in line with expectations. 1. 66 billion. We got that number, 1. 66 billion. Now, of all as we look towards expedia, they are making commentary with regard of what they did over the year. They did say in terms of overall properties, they did add 27 properties, hotel properties, inventory, that sort of thing. They sold certain equity in Certain Companies and issued certain notes in terms of bonds and whatnot. Gross bookings increased by 20 . Thats the reason youre seeing some of these shares up. Remember, we are going to look for commentary. Also, this idea that we want to see any kind of comments with regard to what they think about their planned acquisition of orbits. Weve had a couple of senators that said they would like the d. O. J. Look closer. Any commentary coming up from that call . The shares showing nice gains. Last check we had shares up 8 . 7 now 111,000 shares. Thanks. If youve watched our show, kelly, which i know you do every day. You hang out and watch fast machine. The reason linked in was town in my opinion is what happened in facebook over the last couple of days is facebook got scared. They raised their guidance by 0. 29. 25 came this quarter. Its a very expensive stock. Youre going to blow out the shorts in the name. Any you got to retest the levels. If we cant capture that and hold it, it goes down. Great quarter, great price reaction and now the stock given has to prove itself. What is the most important for linked in . We were talking yesterday about the size of facebook and in twitters case about trying to add users. What does linked in have to do here . I think moving to mobile is important. Julia mentioned that growing in terms of adds. The one thing linked in has going for it in my opinion is it cant be replicated. I think its a valuable property but as you get closer to 270 in terms of stock, youre sort of getting into nose bleed territory. Nows not the time to chase it in my opinion. Nows time to look and evaluate and enter the trade if it breaks back down towards 200. 712 million and 680 million estimated. How is revenue doing . Going into the quarter were expecting a declean of 3. 6 . Were at a decline of 3. 5 . Health care leading the charge there with 90 of Share Companies there. Growth is limited. It seems like it. Wondered if were seeing more of top line growth. I guess its just the linked in health care names. All right. So fireeye has a good report here. Better than the loss analyst were looking for. Revenue looking better and their q 3 revenue outlook better than expected and their loss is seen in line with estimates. The reason why the shares are under a little bit of pressure, cfo is stepping down leaving the accompany to join a private technology firm. What you have here, a narrower than expected loss. A better than expected sales number and also a revenue outlook thats better and the cfo is weighing in. Youre talking about a stock thats up 51 so far this year. 2015 alone up 32 . Back to you guys. We know the talent in the Security Industry is a real concern. Dont miss it, were going to have an exclusive interview tonight on mad money at 6 00 p. M. Cant wait to see what jim asks him. Any themes jump out to you . Are we learning about whether the market is built on fundamentals and whether its overvalued in. Not to be a professor of the obvious, but clearly, the social media sites that can actually mono tiez mobile are clearly the huge winners here. Linked in is proving that as julia is highlighting as well. I knew that was the challenge. If you achieve it, youre rewarded. Last word to you here as well. What do you do tomorrow . How do you trade al this . You start and go back to amgen. Its not an expensive stock. Amgen, incredible slew of drugs they have out in the market. I think this stock still cheap. Meg talked about it as being a take out target. I think the stock stands on its own two feet. Talk about the market being built on fundamentals, no shot. Its all built on these crazy Federal Reserves and Central Banks around the would recall. Its true. Kelly, its absolutely true. Look at her. Shes nodding her head. Guys, thank you. Well have much more coming up at 5 00. Theyll be talking about all these and asking alpha one partner why hes heading two of his biggest positions in tech and where hes looking to go next. Amgen shares are higher after the earnings report. Except for linked in, it hasnt been a good week for social media. Should investors be getting social anxiety . Youre watching cnbc first in Business World wide. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is, can your business deliver . But with all this speed from xfinity, its all good. Hey, why dont we do some homework for a change . Gary, you too. Dad. Work stuff. Yes [laughs] lovin the new design konichiwa hirosan. Five minutes. All this speed is very empowering. Check out the new hardware. With the fastest, most reliable inhome wifi, xfinity is perfect for people who need to get a lot done at home. My name is jamir dixon and im a locafor pg e. Rk fieldman most people in the community recognize the blue trucks as pg e. My truck is something new. Its an 811 truck. When you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you dont hit them when youre digging. 811 is a free service. Im passionate about it because every time i go on the street i think about my own kids. Theyre the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then ill drive it every day of the week. Together, were building a better california. How long they can continue cutting if theyre Cutting Research and developments. Barbara, that was the point they just picked up on. Are you troubled by how much they can kroos based on the development in the quarter . I think theres a couple of things. One is weve seen the industry come more efficient. We seen that in corporate america. Its been going on for a long time and certainly we saw on monday reporting revenues. Theres one thing the investors will be focussed on is the fact were seeing the companies feed on the top line. Theyre feeding as a result of new products. Investors will be listening in for amgens comments on the upcoming date for their pcs. They have their pcs k 9 approved on friday. These are expected to be very, very successful drugs. The price tag is 14,900. Obviously, people are looking for what amgen expects their label to be. I dont mean to cut you off. 14,900, meg, and also the bio similars people are starting to come to market with. Youre right. We dont have the fist on the market yet. Theres generic versions. Amgen will have the first competitor bio similar to its markets. Amgen is also developing its own bio similars on the market. They say this could save the health care. Any other concerns they have since the five digit prices on drugs . Yeah, i think i talked about this on monday on squawk box. We are sighing a tremendous level of innovation in the industry. They are all special. Yes, theyre extremely expensive and i think bio similar is clearly going to be something that the industry and specifically going to create head room for the new products. If you look earlier this week, giliad reported 5 billion in their hepatitis c franchise. 5 billion in one quarter. I think the conversation shouldnt be about research and developme development. Thats an efficiency issue. I think the challenge is how are we going to afford these medicines and what the industry is going to do is value these benefits are generating in terms of patient outcomes, lower incomes and providing patients to be more productive. Adding to gdp, et cetera. Im based in d. C. And lawmakers are talking about a long Term Solution for paying for the highway trust fund. Theyre bringing up the issue of tax taxes. I wonder what you think that will mean for amgen going forward. This is a debate going on. This is a Global Industry and the reality is that the u. S. Based companies are at a disadvantage because we have the highest tax rate and so the cost of capitol for companies, thats why were seeing so Many Companies do inerses. The more money these companies generate, the better for the shareholders. The more money they can put back in r and b in order to invest in innovation. Weve heard bill burkely, the insurance giant as hes stepping down say the same thing. Guys, thank you so much. Barbara ryan and meg terrell on amgens results. Welcome back. Linked in social media stocks this quarter stepping up with the likes of twitter. Joining us on the break is lee drogan. Look at the performance. Almost 8 . Are they doing something right that the others arent . I think the last quarter freaked some people out. They had negative 5 year to year and negative growth in some of the business lines that were important. The accompany guided down big. They have a history of sam begging their guys but certainly not this big. They ended up crushing the wall treat consensus of independent analyst which is more honest regarding expectations. Well above but not this above. The big thing was the Revenue Growth. Theyre getting 32 Revenue Growth year to year which for a accompany their size is awesome. The reason is the unknown total market they have. If they continue to grow at this pace, theyre going to continue to receive the multiples they have. They have how many users . 300 million. The big question is how big is their market . Thats what i said jokingly earlier, what people dont know is how much more . Because facebook can be for everybody. It is. The question is can they make the something huge . Is this going to be a Global Platform . The other reason they crushed the quarter is they tend to see a lack of about a quarter in what the labor market is doing and were seeing some good numbers out of the labor market the last couple of weeks. What about the social media names that have reported this week . Others, what was really under pressure, is there a social media exhaustion happening here . Yelp is a special story. They have other issues facebook and twitter dont have. Twitter and facebook have an interesting problem in that theyre starting to get up in these large areas with their revenue and Growth Numbers and at that point people start saying do they deserve the multiples theyre getting. I dont think were quiet there yet where youre seeing the serious deterioration of multiples but were coming up on that time a year from now or sooner that while these stocks, especially facebook because its a safe who boar in the storm of social media, given a couple of quarters, the fidelities of the world may not see it the way they did. Facebook has one of the top three social media platforms itself. They have facebook, Facebook Messenger and whats app. They said these are just messaging platforms. Do you think were evolving in the way we use quote unquote social media . What is twitter . Public text messages. Talk about social media stock saturation. How many more platforms can one person use . I mean, twitter, facebook, linked in. Flip board earlier. To what extent are people out on the number of networks. . I dont think were at a saturation point. I think were more than ever the switching coast is so incredibly low. Heres a great example. Theres a great Group Messaging platform, mostly for corporations called slack and theyre replacing the one that had been really big called hip chat. This exemplifies the fact that the switching cost are so low. When investors look at the multiples they pay for social media stocks, the threat as its happening to yelp is very, very high. They get really squirmish when a bad quarter happens because it could lead to many other bad quarter. Im glad another corporation is using slack. Lee drogan. Time new for our cnbc news update. Hi, kelly. Heres whats happening this hour. The white house says president obama would oppose any efforts to defund planned parent hood. Republicans and congress have threatened to pull funding after videos surface that suggest profits. Day 6 in the search for two missing 14yearold boaters. Austin and perry were last seen friday when they went fishing on a 19 foot boat on jupiter, florida. Their families say they have no plans to stop the search. Chelsea clinton wrapping up her tour to haiti. She toured a farm and peanut enterprise. They also visited doctors and patients at the local hospitals there. And former u. S. Hockey goally jim craig is auctioning off his memorabilia from the 1980 miracle on ice hockey game. The collection includes the equipment he won plus the gold metal. The bidding starts saturday through leilands. Com. Hes going to use the funds to make his kids more secure. Nice, more power to him. Thank you, sue. Much more to come including a close were look to expedias results. Hillary clinton telling the white house to speed up the reform law. Implementing the law has been a huge distraction to other more critical issues. Dan gallagher tells us why hes no fan of dodd frank straight ahead. The Gillette Mach 3 turbo still feels better after 10 shaves than a disposable on its first. Mach 3 blades have twice the coatings. For a closer shave with zero redness. Get an incredible experience shave after shave after shave. Gillette. The best a man can get. Tmplts dow turned neg ti but the s p and nasdaq stayed in positive territory. More green today than yesterday for sure. Lets see. Last check they were down about 7 8 pest. Amgem up 2 and linked in up 3. Expedia up 7 . Last week marked the anniversary of a protection act signed into place after the financial crisis. The act in 2010 called for new regulations regarding disclosure of compensation. Many rules have yet to be put in place. That includes a requirement to publish the ratio between ceo pay and the paychecks of every day employees. Yet, it is precisely that specific requirement were about to talk about. Thanks very much, kelly. Great to be here. Candidate clinton is frustrated because you havent come out more quickly. Youre saying the pay ratio is holding them up from the work. Absolutely. The Commission Takes up unfortunately, next wednesday is an absolute political wish list. No legislative history by the labor union and its going to be extremely costly for Public Companies and shareholders that hold those companies. If the people want it and this is what the regulation taps into then fine. I think your point is a lot of these regulations going back to frank are nowhere close to being written. It is the five Year Anniversary last week. The scc, about to despite information, were halfway done. This has dominated the agenda. Many times to the distraction of other core issues. We asked if you guys had a lot more people or money, would that change the outcome . You know, dodd frank was a single legislation who only wanted the history of the united states. With the mind set we need to get this done. Buy in people who were elected by. It was not reasonable. So if somebody said to you tomorrow, fine, you can set the agenda. Whatever you think is most critical for the agency. The top five things you get to do now. First would be the income markets. I would take a hard look and resource it with the permanent staff. I would think about why do we have markets that look the same way they did 50 years ago . They talked about frequency trade in and michael loses. People still pick up the phone and trade tens of billions of dollars of securities in markets that would be first and forem t foremost. We have 11 trillion outstanding and we need a better understanding of the markets. We dont resource it. No market review. What about today, paul walker, former fed chair was asked about his concerns about whether his rule has diminishedly kwidty in the markets and he said no way, not happening. What do you think about that . I think thats bogus. I think theres a new narrative coming out of washington that the regulations, the liquidity ratio, all these things havent impactedly kwidty and maybe its High Frequency trading. Thats completely bogus. Theyre running away from the responsible they bare. They dont want to do that. One of the other things thats happening is more of a focus on the short term markets. Perhaps going back to starbucks and some of the other regulations over the years. Do you think whether its the investors themselves or what theyre being taught in finances school . Are markets too short term to the debt riment of longer Term Investment . Going back to its a real issue. The activism plays into it, our reporting regime plays into it and how do you fault management and boards. We focus on the short term when thats the incentive we put in front of them. These immediate returns investors want to get instead of looking at the long term which is much better than the economy. It allows a lot of companies to have a soul cycle. Seeing acquisitions. It sounds like thats good for the companies and what they like. Some are aware of what the financials are like. Any risks that the companies are too small and too early stabled to go out there. I think its successful. For sure, its fantastic. We have to really analyze them. Is it all companies who finalized and had access to equity . We can do more as an agency. They are still not ipoing. Right. Exactly. Youre leaving the agency, sthaeis that right . Yes. Its time for me to move on. Im sure my successor will pick up where we left off when that happens as part of the washington process right now. Ive had as a staffer and commissioner eight years or so into the agency. Im proud of them. Its time for me to move on. Thanks for joining us. Dan with us here at post nine this hour. Up next, another wild hour of extra earning session. Its disrupted how much actors can make. The stars of the hit orange is the new black. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is, can your business deliver . Isnt it beautiful when things just come together . Build a beautiful website with squarespace. Welcome back. Been a wild and crazy hour for earnings. First of all, you should know linked in shares are 1112 . 2. 19 million shares of trading. They did report earnings and sells at 12 million also beating the average. Their membership of 381 Million People and global accounts. Julia is going to be all over this report later on this afternoon in for fast money. Also, the accompany formerly known as coin star, also coming with earnings at 219. Estimates 1. 72. Theyll miss the mark slightly. Looking for 564 million. They did get a new ceo. Hell be taking over. Boston comes in over 218 per share. Analyst looking at 352 million. The outlook for 2015 unchanged. Shares up by 3 percent and relatively Light Trading and expedia earns the shares of 0. 85 and revenues in line. Gross hef knews jumped 20 . Revenue outlook also better than some were expecting. The loss was also seen in line with estimates. As up 7 in the after hours trade, kelly. Back to you. Thank you, don. Lets pick up more. In the travel, lets bring the staple. Com former ceo and president. Welcome to the show, cheryl. Thank you. Thanks for having me, kelly. I dont know how much you want to get on expedias quarter here but what kind of trends do you see more broadly . Well, its been a great start to the summer so far. Were seeing bookings up significantly at stayful. Were seeing very, very Strong Performance going through the rest of the summer and well into the fall. Do you compete with expedia . Were different than expedia and where we focus our attention is specifically and only the hotel market and we focus on independent hotels that are changed by having 40 of rooms go unsold on a regular basis. Trying to fill everything from empty parking spots to empty hotel rooms. Hows the demand, the consumer doing . Whats it going to take to figure out the momentum . Well, were seeing, weve seen our registered users grow by over a thousand and were seeing my lineals driving the change in the industry. Really driving the change in the independent boutique category creating definitely more demand for those hotel rooms which we look to serve and what we do is we basically charge a lower booking fee to the hotel and then the hotel is able to pass those savings on to the consumer allowing them to travel for often and there by filling more hotel rooms. Thanks for joining us, appreciate it. Thank you. Sharon is the ceo of stayful. Com. Changing actors earning potential. Up next, one of the actresses in orange is the new black joins us with her take on this. Be sure to tune into closing bell tomorrow. Richard will join us. You wont want to miss it. Welcome back. Netflix hasnt just disrupted the tv business but how actors get paid. Cofounder of friends recalled the eye popping raises and where shes producing grace and frank. 1 million an episode is kind of ridiculous. Its inflated and there is something unrealistic about it. That Salary Change to due to changes in the media model. There are no advertisers on netflix, the truth is its wonderful because there is only one thing were doing. Were not pandering to advertisers, not pandering to a network and were just making the show we want. Joining us to talk about this more is actress salina and you may know her from orange is the new black. Welcome to post nine. Thank you. What do you think when you hear people talk. Does netflix pay well . They do. Its not network tv. Those days are over and we have 16 series regular just on orange is the new black. I dont think any of us has the power to say we want 1 million an episode because we could be released. It has to be the most popular show. Its extremely popular but you have to reach friends status to get friends money or has that era passed . I think passed. Show runners are getting with ensemb ensemble. You dont have to rely on one or two or three people. Many people can go, it can switch up. I think that the there is all of a sudden this new wave of taking back control by producers and networks, et cetera where they are saying listen, i know youre good. We depend on you, but dont get carried away. Right. Michelle . Also, the fact there is no advertising, right . Drives the revenue for netflix, they have to believe your show being there keeps somebody subscribing, right . Its not the same thing as on a weekly met trick exactly. They got the numbers. They knew. We dont. Right, a total disappoint soesuation. Which is wonderful. Its a relief to be on show that gives us creative freedom. Netflix is that. You get to do things that havent been done, deal with things that people usually dont talk about. So were really creating, you know. I have to ask as an allwoman panel there is talk about the amount of money that women are paid in some of these netflix style shows versus man. There was controversy about what what they got paid in grace and frankie. I wasnt aware on the lily tomlin and jane fonda but thats always been the case and continues to be the problem in hollywood, where women are being paid less. Why . I dont know. You know, here is a perfect example on orange is the new black where you have a wonderful ensemble of women and were bringing in the numbers. Were bringing in the nominations. We are definitely, you know, playing with the big boys, and yet should get pay like the big boys. Would item power if you if netflix was transparent how many people are watching . I like it this way. I dont like the pressure of knowing numbers and this. Thats too much. What were doing is right, creating. I understand. Thank you so much for being here. Really appreciate it and good luck with everything. Youre involved with a lot of other stuff. Well be tuning in. Thank you so much. Minutes away from Conference Calls. Well get the key factors for you to listen in for after this. Welcome back. Were going to do a check of earnings because in a couple minutes time, a lot of Conference Calls will get underway. Down 6. 5 fire eye and the cfo leaving and jim cramer will speak with the ceo, maybe well get more detail. Take look at linkedin. Electronic arts down four, what do you make about this turn around . Clearly someone is going through the numbers. The opening numbers were great obviously. Often change our tune as we move to the hour. A final word before we leave . Im looking forward to the end of august when the big jackson hole conference happening. Looking forward to seeing russell. Its where the guest list tells you as much about the event. See if if there is reaction to no problem with lid liquid in the bond march kent. Fast money coming up, melissa lee, straight over to you. Thank you so much. Fast money starts now. Live from the Nasdaq Market overlooking new york citys raining times square. The blitz continues, cnbc live coverage is here to bring you the biggest headlines, Julia Boorstin is listening in. Meg terrell is covering the amgin call and tonight, we kick it off with linkedin. Melissa, linkeden with the outlook and investors and reorganizing in sales force and reorganizing the ad strategy are paying off. Plus, were seeinghe