Transcripts For CNBC Closing Bell 20240622

Today. This is the day, bill, people will look back on and remember. Disney seized a little bit in the earnings. As you can see there, disney shares down about 9 . Putting the cable bundle front and center after talking about espn. Not just disney. Other big media stocks falling today as netflix is hitting an alltime high. 21st century fox down 7. 5 . Time warner, not the cable piece, twx down 8. 7 . Comcast down 4. 7. And well debate whether its time for investors to get out of disney and into the unbundled media plays. Comcast is our parent company. Approving a new rule from dodd frank that requires Public Companies to essentially reveal the gap between the ceos pay and the rest of the companys employees, corporate americas not happy about it. But the director Heather Corzo says this rule doesnt go far enough. Shell be with us to explain her side of the story coming up in a bit here. Weve got great earnings on tap. Fitbits first report, cbs and fox which will be interesting against what we talked about. All slated for after the bell. What to expect, well bring you the numbers as soon as they hit the tape. So many moving parts and pieces to this story today. This morning on squawk box. Jay powell, he said a september rate hike is not necessarily set in stone. Nothing has been decided. And i havent made any decisions about what i would support and certainly the committee hasnt. Were still working with the same framework. Were looking for some further improvement in the labor market and reasonable confidence on inflation going back to 2 in the medium term. And im going to be very, very focused on the data between now and the meeting. Particularly the labor market data. Of which we got some today, as a matter of fact. Im sure todays Closing Bell Exchange panel has an opinion on all of those. Joining us with the thoughts, weve got jonathan corpino at post 9 00 with us today and our own Rick Santelli joining us from chicago as is jack. So, jonathan, how closely are you guys watching the data with the thought that the feds going to be watching it at the same time deciding fed policy . Were clearly watching this data. Everyone has this september date on the calendar. Weve been waiting for it, and every trading day getting closer and closer. Clearly the Economic Data will be the driving force of what the feds going to do. And theyve waited long enough. Theyve pushed this down the road and kept it on the sideline long enough. And theyre going to have to make a move now. Everything they said they wanted and needed to support this, i believe in some fashion they have gotten it. And the longer we wait, i think investors are going to continue to get a little bit restless. Were stuck in this range and market here. This market is being dictated by headline news. And every time we move higher and lower, we kind of find ourselves back in the middle here. I think the fed is going to have to make a move come september. Youve been all bullish on this market all year. But all year, weve been trying to break to new highs. And while we do that a little bit here and there for the most part, were unchanged since january. You think that changes significantly in the five or six months we have left . I do, kelly. I think the first 7 months of this year has been a precursor to what were going to see happen over the next few months. What we have seen is the market digesting everything that we have been throwing at it. Not only the geopolitical concerns, but think about the fact that weve seen oil go down, and youve had the Energy Sector leading the way for the last couple of years. On top of that, this looming rate hike. I mean, the most widely anticipated rate hike, i think, in my career. And heres the real secret behind that rate hike. It doesnt matter. The fed moving will not stop this bull. Bull markets are not stopped by fed raising rates. Theyre stopped when the fed stops raising rates. And thats one of the things we need to keep in mind. Aside from all of that, what we have been seeing and ive been saying this time and time again, a spring that is winding up. That capital sitting on the sidelines. And if you notice whats been happening to treasuries and my good friend rick has been talking about it for months, weve seen capital coming out of fixed income. That needs to be redeployed. We will see stocks go higher. Rick, lets talk about that rise in treasury yields again today. The jobs number was soft, but the ism Services Sector number was the best in a decade. Well, listen i think it was a weak number, but yes, it was powerful on nonmanufacturing for the july read. Led line, the best in ten years. My issue is this. I dont know how thats going to change tax policy, lack of capital investment. There are head winds we normally look at the signals of such a strong nonmanufacturing ism and think that theres relationships there. It was a good number. Michael jackson had his walk. Monte python had the silly walk. Now a walkback by the fed. This doesnt jive with what i saw with lockhart or bullard and goes to the exact issue that jonathan brought up. If it was all about data dependent, im sorry, i still contend the 6month stretch of data has a lot of question marks. The issue is, are they going to tighten for some insurance against future flat lines . Were long in the tooth on the business cycle. No matter what they do, i can simplify in that regard. The markets are paying more attention. If i look at november and december, fed fund futures, forget all the percentages, they are at the lowest level if they close here since mid june. In terms of direction, the percentages of investors that are at least buying into may tighten in september is moving up. Hey, rick, whats the fed got to do with taxes. Whats the fed got to do with regulation and overregulation . Nothing nothing the fed what does their policy have to do their policy isnt accomplishing what the lack of congress hasnt done. So the unintended consequences what do you expect them to do . They have to stay accommodative because they dont have to do anything. We have steady prices and we have an employment picture that has improved. If you forget the people that stopped looking for work. Theyre job was done, shouldve raised a while ago. Theyre missing the boat and the piers looking far away. One issue for a lot of investors, theyre kind of lost figuring out if they should pile into the markets and do better when the economys improving and they are. Do you see that tension beneath this market . I do. That tension and that questioning talking to clients. The real issue is, rick said, theres money sitting on the sideline waiting to come into this market. Where do we go with the uncertainty with the fed, unfortunately, the answer is you really cant move it just yet because we dont know exactly how this market is going to fully react to this major headline that we know is coming in september that weve been waiting for for 18 months. In the meantime, weve had these weve been within unchanged slicing through it in both directions, historic amount of times. On the one year, everybodys convinced were going to tighten. I think thats pretty clear correlation. Youve left them speechless, rick. Johnen that, you want to respond to that real quick . I do agree, the market has been very tight. Weve traded in this range. Its the market doesnt know what to do and how its going to react. I think when we do get something in september, were going to get some shorts on volatility in this market. Well get shorts on volatility in this market and then as the end of the year comes, we will continue to trade higher. Last word, jack. Go ahead. You know, the last time this market traded as tight as it has, you have to go back to 1904. And you know what was followed by that . A second half of the year where the market went up 41. . I do expect a similar type of action where that sideways move over the course of the first year has set the tone and the foundation for what is going to be a very surprising bull with a lot of that pessimism out there, which we just talked about. Yeah, i did see that research by thomas lee, as well. Jack, thank you. Lets get to the shares of disney sinking today and taking a bite out of the dow on deep concerns about crown jewel espn. And viewers changing tv habits. An increase in profit, but not enough to take the stock, which is down 9 today higher. That has been a lead dog for this market for a couple of years now. And to see that 9 pullback is just unbelievable. Meanwhile, netflix is hitting an alltime high. It has some thinking that investors may be moving out of disney and into netflix. The ceo addressed the competition earlier today on squawk on the street. We view netflix as friend not faux. Theres no reason for us to beat netflix. We actually are taking advantage of netflix great growth and maybe you could argue weve helped netflix great growth. Were selling product that is off network, abc and other networks. Were fortunate that we have product like how to get away with murder, for instance, that netflix really covets. Were also selling our movies to netflix, the output deal for our movie studio. Kicks in at netflix starting with our 2016 slate. And netflix has come guard as an aggressive buyer of original programming. All right, lets talk about this. Bring in tim nolin, brett harris, as well. What do you make of todays developments . Is this a market fleeing some of the content providers fearing whats going to happen when they unbundle . It is something of a knee jerk reaction. But its justified. Disney ran strongly into numbers. Its only traded back down to about may or april levels currently. Clearly, this was the First Public Company comment i have heard of a Company Actually reducing guidance on the basis of cord cutting. Its been a concern in the markets for a long, long time. This is the first actual tangible evidence weve seen from a company of it. Certainly investors are concerned about the prospect. Youd think if unbundling was the concern that Cable Companies themselves would be hit the hardest. Theyre down, but charter time warner cable, theyre not down as much as disney as the other time warner, as a cbs, as fox, as comcast. Why is it that the content providers are under far more pressure here than the Cable Companies themselves . Well, the content providers have a lot more operating leverage. And a lot more leverage to the cable bundle. With 50 margins, very little capex, any decline in subscribers is going to hit those Companies Bottom lines a lot harder than the cable providers. Remember, the cable providers also provide broadband services, theyre not going to be as hard hit by a shift in consumers from the traditional cable bundle to over the top alternatives like netflix or hbo now. So, brett, is this selloff overdone . Would you buy some of these companies at these levels . Or is this a justified concern . Look, i think its a justified concern. I think both discovery and fox are pretty good buys here and we can walk through the case on that. Disney remains fully valued compared to its peer. It trades something on the order, 14 times ebitda versus take, discovery and fox. And disneys a special company, but is it worth a 40 premium to fox and discovery . No. Tough to make that argument, i think. Tim, before we go here. So why do you think it is that at a time when netflix, for example, is offering another platform as bob said for disneys content that its seen like this will crush margins for the content providers . Is netflix undercutting what they used to get from their traditional bundling partners . No, i think as bob said. Netflix, amazon, hulu, absolutely depend on the studio content from disney and Warner Brothers and the traditional providers. I think in disneys case, cord cutting. Even if it declines gradually, some of that can be offset with alternative skinny bundles. And in disneys case, they have the option, potentially to offer espn as a direct to consumer over the top service the way hbo now did. And there are very few companies that can do that. Disney is one. Those two points, i think, the option to go over the top if they choose to and the fact they produce so much studio content in the disney studios, the films and the tv studios that get sold on to i think that actually is supportive to disney shares here. Okay. Guys, thank you, well leave it there for now. Thanks for having me. Yep, see you later. We have breaking news. This is news here for me, as well. Another Movie Theater shooting. Whats going on, sue . Well, whats going on, Nashville Police at 1 13 this afternoon central time received a call of a shooter inside the Carmike Hickory 8 theater. Those are live pictures from our nbc affiliate there in antioch, which is where that theater is. The global mall put on lockdown and the Carmike Hickory 8 theater on lockdown at that time. Nashville police saying that the shooter is dead, we do not have any information as to whether there were casualties. So far, the only casualty is the shooter who is dead. Thats from Nashville Police. It was the Carmike Hickory 8 Movie Theater in antioch, tennessee. When we get more details, kelly and bill, we will give them to you. Back to you. Soon, do you know which movie . Are you saying which movie it was . We have no information on that. Its all still developing. We only know what Nashville Police told nbc and cnbc. The report came in as an active shooter situation at 1 13 central time. Its no longer, obviously, an active shooter situation because the shooter is dead. Thats all we know. We just know the name of the Movie Theater. Got it. Thank you, sue. Again yeah. 45 minutes to go in the session. Dow still up about 14 points at this moment. Broad index, which were looking nice this morning, but struggling to hold these gains, although disney taking a big piece out of the dow. Decent day, up. 5 . The nasdaqs doing well. Its up 80. 6 . You know, the argument could be made for a rotational correction going on in this market right now. Various sectors are being hit individually here. And brace yourselves, another flood of earnings after the bell tonight. Tesla, fitbit, 20th century fox, cbs, reporting within the hour. Well preview the numbers and deliver them to you right when they hit the tape. And up next, apples recent downturn reverberating through the supply chain. A top wall street veteran tells us which suppliers could be worth buying on the dip. Stay with us. 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When i do get a chance, an opportunity to work with him, its always a pleasure. I love my job and i care about the work i do. I know how hard our crews work for our customers. I want them to know that they do have a safe and reliable system. Together, were building a better california. Welcome back. Lets look at some of the stocks moving the markets today. First solar posting its best gain in about a year and a half. The largest solar manufacturer in the u. S. Reporting better than expected earnings, giving an upbeat outlook for the future, as well. Cowan upgraded from outperform to neutral citing efficiency gains. And Motorola Solutions is gaining ground today. The maker of Public Safety communication equipment announcing a 1 billion investmentrom private equity firm silver lake. Motorola Solutions Posted better than expected earnings and unveiled a stock buyback of up to 2 billion. Kelly . Apple on pace to snap the losing streak, up about 1 today and causing a Chain Reaction across the supplier network, which typically move in tandem with apple. That includes Companies Joining us now to talk about it. Theres the question. Is it . I think so. Theres been a lot of negativity since apple reported its iphone units. And the downdraft to the suppliers actually worse. A lot of them down 25 . You think its overdone . It does feel like its overdone. This weakness is shortterm. You know, you look at the fact that, you know, iphone the iphone install base, only a third is converted over iphone 6. Thats supportive of the view, come the fall, a lot of suppliers will see a strong channel built. Why is it that apples gone through the recent correction . Well, this is a transitional quarter for them. Youre going from iphone 6 to iphone success. The channel has to prepare for this transition. When you get into the fall and winter months, thats when units start to accelerate and the suppliers start to see a pickup. Heres the question i have. If the suppliers are that sensitive to movements in apple, that suggests they are theyve hitched their wagon too much to at and arent diversified enough for the marketplace. You know what i mean . Yeah, it mean, listen, apples an important customer. Yes, it is. If theyre doing well. These guys are going to do well. When they stumble, if in fact, thats whats going on here, these guys are going to suffer, as well. You know, some less than others, bill. And what id point out is that some companies are gaining content in the iphone. A great example of a company that makes rf components. Their content in the iphone has increased with every successive generation. We they will be the case with to the best of my recollectionphone iphone success. This is a stock down about 15 in the last few weeks. We think this is a great opportunity. Who else . I like analog devices. Theyve never been in the iphone. But earlier this year, Apple Incorporated their chips into their force touch technology, which you see in the iwatch and the max. We think theres a good chance apple will incorporate this technology into the iphones. So for adi, theyre going to see an iphone ramp for the first time here. I dont think thats incorporated when they report in the next two weeks. You mentioned the transition that may be causing some of the glitch in the stock, but there are those who feel the slowdown in china is having a big impact on apple. What do you think . Historically, gdp has not correlated well. The only exception being 2008. And hopefully todays environment is nowhere near as bad as 2008. All right. Roman shaw. Good to see you. Thanks for joining us today. Now weve got breaking news on baxter international. Whats happening now . We have baxters response to the sec filing announcing the stake in baxter. Thats according to sec filing. Now making a statement saying it maintains open communication with the shareholders and values constructive input towards enhancing value. Baxter has engaged in various discussions with representatives of third point and expects to continue a constructive dialogue. They are committed to enhancing value for all baxter shareholders and baxter has a proven track record, they say, of taking action to create significant value and will continue to evaluate shareholder input. So youre up to date. Were getting a response from baxter. Back to you guys. Crazy volatility in that stock. Yeah, especially today. Absolutely. Thank you, sue. See you later. All right, weve got 37 minutes left in the trading session here. The dow not really telling the story. All kinds of individual stocks, sectors that are having big moves today, which were itemizing right now. The industrial average is up just 8 points. S p up 9, the nasdaq up 42 right now. Up next, closing bell, we have reporters on the ground, sort of on the west end, the east coast. To find out how labor issues are affecting competition in the multibillion dollar port industry. Stay with us. In the us, three in ten College Students drop out. But how can you spot whos at risk . The one who lives far from campus . The one who works the night shift . The one with new responsibilities . One thing cant tell you, but the right combination can. Universities are using ibm analytics to understand pressures in and out of the classroom some expect to cut dropout rates by twentyfive percent. Ibm analytics is working to make education smarter every day. Turns out that labor standoff earlier this year we all covered tipped some business over to the east coast. Question is now that if labor could swing business back the other way. Well, our jane wells live on the west coast. While morgans got the east on lockdown from newark, new jersey. Lets start with jane. Kick things off for us. Kelly, im at the ssa terminal. This is the longest container port complex in the country. 40 of shipped goods comes into the complex, 12 of gdp. Business is back. In fact, in l. A. In june, volumes hit a threeyear high. And its a good thing. Last winters showdown between labor and management here caused a 5 drop in total volumes to other ports. Theres a 20 drop in imports. It took a couple of months to really kind of clear everything out. Now officials have to win back confidence of customers. But trucks in many cases are still waiting a long time, investments and improvements are not yet completed. But this remains the cheapest and fastest way to get goods shipped from china to america. If you think about it, its not just the port. Its the port eco system. Its the 12,000 drivers that we have servicing the port. Its the millions and millions square feet of warehouse that can be reply indicated easily. Some are trying to replicate it. These two ports are going to spin 6 billion in improvements in the next few years to remain competitive. Kelly and bill . Thank you. And morgan, im surprised to hear the east coast ports are doing as well as they are. Thats right, kelly, and jane just talked about some of that diverted cargo. That diverted cargo here to the east coast, some of it is so far continuing to stick here. As importers move more of their goods through these hubs, were seeing shipping lines like evergreen, cma, cgm, all expanding east Coast Operations in a longterm bet. The bad business is here to stay. Take a look at this, container volume in all of the major east coast ports is at record levels right now. And piers says 7 of the 10 Fastest Growing ports in the u. S. Are on this coast. Including here, the newark new jersey complex. We think that a certain percentage of that cargo will stay in new york and new jersey and stay on the east coast. We are in constant touch with shippers through the u. S. And throughout the world. Theres no question that the issue of reliability has come into their equation. Reporter so that reliability is really key since it can take a week extra or even longer to ship here from asia and at double the cost of what it would be to send those goods to l. A. Or long beach. Its also the reason youre seeing east coast ports begin labor negotiations on contracts that dont expire for three more years. But more containers here also means more congestion. And that is the biggest challenge facing ports like this one where we now see hours long waits for some truckers and where there arent enough available chassises where they need to be positioned to get these containers off the docks and you out to where they need to go. How much market share are these east coast ports contain is going to come down to the solutions that officials and operators come up with to address this burgeoning congestion. Back over to you. And i think you said it best, morgan, its going to come down to cost. Thats really what, i think the decider becomes. A deciding factor. And jane, do you think the west coast can compete on cost when as morgan points out, it sometimes is as much as double to get to los angeles rather than keeping it to the east coast . Oh, no, its the opposite, bill. If its all about money, the west coast wins, on average, im told, to ship from shanghai to chicago, if you go through here, its 1,800 in maybe 17 days. If you go through the panama canal to the east coast of chicago, its 4,200 and its going to be a week longer. So cost only, the west coast wins also these super, super more than half the ships on order right now are too big to go through the panama canal even after its expanded. The real competition, many believe, is the suez canal. Some of the ships will go from the suez to the east coast. You want to defend the east coast here before we go . Yeah, i think what jane said is right on the money. The suez canal, the new part is actually opening this week. Thats in focus when the panama canal expansion comes online next year, thats expected to drive down shipping costs to the east coast, as well. But the key for the east coast right now is the fact its considered so reliable. And shippers after getting backed up on the west coast want to have multiple plans and multiple ways to get their goods out. And so much stuff, of course, this is the most populous part of the country. So much stuff comes in and lands on store shelves in the east. So as shipping costs do start to come down even though its more expensive than the west, that reliability factor and the guarantee that stuffs going to get on to store shelves seems to be the thing driving the record volumes here right now. Its a great point. Thank you, both. Thank you. Appreciate it. Morgan, brennan and jane wells on each coast here for us. Time for a cnbc news update. Yes, bill, and we have more information right now at this hour about that shooting incident at a Movie Theater this afternoon. This time, as we told you, it was an antioch, tennessee, right outside of nashville. Police confirming that the suspect in that shooting is dead. There are conflicting reports on whether anyone else was injured. The suspect may have also been carrying a hatchet. According to police, the suspect did manage to fire at least one shot. He was also carrying two backpacks. Police are going to investigate those. So an ongoing story that well keep you posted on. Malaysias Prime Minister confirming that a wing fragment found on reunion island last week was from the missing Malaysia Airlines flight 370. It is the first real breakthrough in the search for the missing plane since it disappeared 16 months ago carrying 239 passengers and crew. Three members of ron pauls president ial Campaign Including Jessie Benton have been charged by the department of justice. Of concealing payments to an iowa lawmaker in 2011. Bepton who was ron pauls 2012 Campaign Manager now heads up rand pauls super pac. Boston mayor marty walsh announcing he will officially file an ordinance with the city council that would prohibit the use of smokeless tobacco at sporting events next year. He was joined by kurt shilling who blamed the chewing tobacco for his recent bouts with cancer. Back to you and ill keep you posted next hour. Thank you very much, sue, back at headquarters. Little less than half an hour to go here. Well see if the dow can finish positive on the session when disney is weighing on it to the tune of 70 plus points. You see how big that effect is. The s p still up about. 4 and the nasdaq about. 75 . When we come back, were going to look at this story the sec adopting that new rule that requires Public Companies to disclose total ceo compensation as a ratio to their workers pay we have someone who says the rule doesnt go far enough after this. E 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. I take prilosec otc each morning for my frequent heartburn. Because it gives me. Zero heartburn prilosec otc. The number 1 doctorrecommended frequent heartburn medicine for 9 straight years. One pill each morning. 24 hours. Zero heartburn. Welcome back, the dow is up six points. That doesnt tell the whole story. It would be up almost 80 points if it were not for the effect of disney down 9 today and taking out roughly 70, 75 points out of the industrial average. More on that to come here. Meanwhile, h r block popping the most in two years. Receiving the go ahead from regulators to sell its bank unit to b of i federal bank. What this does, the approval frees h r block from not being regulated thatll do it, bill. Thank you, less than half an hour to go in the session. Joined by steven gilfoy. Can this market, can the dow stay positive into the close here . Well, the dows a little tricky with the 60, 70 points taken out of it. Im not sure about the dow. But im sure well have a positive close on the s p 500. Did you get burned by disney . Burned a little by disney and a few other guys, too. I know how to defend myself, i was able to soften the blow. We get hurt sometimes. What about the earnings after the bell . We get tesla. About 20 worth of volatility. Im thinking something bearish, but im not sure about that. I am playing it both ways. Bearish should be better for me. What about the indexes broadly . We heard from fed officials last 24 hours, Interest Rates creeping higher. You saw that with the treasuries today. Little pressure there. But the markets played by the numbers today. Resistance where youre supposed to. Right around 21. 10, support at 2095, right where youre supposed to. And volumes light today. So were coloring within the lines. Are we waiting on the jobs report to some extent . Well, some guys are. You might see a little lapse except the futures tomorrow morning with the jobless claims. Some guys are going to play that 830 number on friday morning and well see where we go dfrom there. Thank you very much. Appreciate it. On we go here. The sec today voted 32 to adopt rules that require Public Companies to disclose median worker pay and then compare it with ceo compensation. This marks the culmination of years of debate over this measure, which is outlined by dodd frank. Itll go into effect in fiscal year 2017. We asked sec commissioner Dan Gallagher about the rule last week on closing bell. Heres what he said. This pay ratio requirement next wednesday is just an absolute political wish list item thrown into the act in the 11th hour of negotiations with no legislative history by the labor unions. And its going to be costly Public Companies and the shareholders that own those companies. I mentioned the vote was 32. That was the three democrats that voted for it. Mr. Gallagher is among the republicans who voted against it. That is Heather Corzo director of the office of investment. And shes here to give us her reaction to all of this. You know, clearly the republicans didnt like this. And interestingly, you at the aflcio dont think this goes far enough, right . Yes, thank you for having me on. And to be clear, i think that the commission deserves a lot of credit for finally getting this rule done after five years. And we applaud them for completing the mandate under the dodd frank legislation. The same time, this rule is clearly a compromise. The statute clearly states that the disclosure should be of the median of all workers of the company except for the ceo as compared to the compensation of the ceo. And there are some significant exclusions from the ratio that are clearly intended to appease some of the concerns that have been raised by the corporate community. Just a few examples, it allows companies to exclude 5 of the foreign workforce. Right. Theres also a provision that allows for statistical sampling to make it easier for the company to comply with. Are those big enough to really 5 of a foreign workforce and statistical sampling. We use it every day. Well, exactly. And we have been supportive of statistical sampling because we think its a way to ease the burden on companies while still providing relatively accurate number. There are additional weaknesses of the rule. Another example is it allows companies to take a snapshot of their workforce. On any given day within three years within the fiscal year end. And if you think about a Retail Company that is going to have a big surge in their workforce around the holiday season. If they choose a number, say in mid october instead of mid december to take the snapshot of the workforce, therell be a lot of people left out of that number. Im curious, what in your view are the aflcios view, what is an acceptable ratio for corporate america. You know, i think that varies based on the company. I wouldnt say theres a single number that were looking for. What were really hoping is that as investors are now making their say on pay votes and determining making assessments on what compensation packages, you know, how theyre structured and whether rewards are being shared among the executives and the workers, as well. This information will provide critical context for why is it im curious, why should it vary base ed on the company . Company to company . Why shouldnt there be a set well ratio that is either acceptable or not acceptable for corporate america, im curious. And i dont think this is a black and white question. Like i said, this is for context for investors as theyre looking at companies, as theyre evaluating the compensation practices. Both for the executives and the workers. Right now, investors have a lot of information about executive compensation practices from company to company. And thats fantastic. They dont have any context for the way they consider that because theres not that much Information Available about how workers are being compensated. And thats something thats important to investors and its important to society more generally. Heather, thanks for joining us. Appreciate your response to this. Were going to move on, we already mentioned you talked to Dan Gallagher about this issue. Includes how much you make, how much your home is worth. Its all public. I could look up yours, you can look up mine. By the way, that 5 exclusion for some Foreign Workers in part is the result of some Foreign Workers dont allow the r regulation of what theyre paying their workers. The top number of one of the reports said only affected the number by 3. 5 . Lets move on, 15 minutes to go into the close. The dow up one point. Well see if it can hold on to that. S p having a better session, though. You jinxed it. Up a third of a percent and the nasdaq up a strong 36 points today. We are revving up, it says here for the tesla earnings out in about half an hour. Well give you a preview of the numbers with a top analyst when we come back in a moment. And the Floyd Mayweather pacquiao fight was far from a knockout for boxing fans or general fans like this one. But it could punch up cbss earnings today. A preview for you coming up. 80 of the poor in africa are rural farmers. 96 of them are doing rainfed agriculture. 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Like a custom screener on your desktop, that updates to all your devices. And you can share it with one click. Wow. How do you find the time to do all this . Easy. We combined every birthday and holiday into one celebration. different holidays being shouted back to work, guys i love this times of year. For all the confidence you need. Td ameritrade. You got this. 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 . Shares of tesla slightly higher ahead of the earnings after the bell tonight. The company shipped a Record Number of model s cars in the Second Quarter this year. And it is building a massive battery factory, as you know, near reno, nevada. How those and other developments will impact the electric car makers earnings, were joined by collin of ubs. What numbers does tesla have to hit to satisfy the market this afternoon . Well, consensus is expecting a 60sent loss. Were a bit cautious heading into the quarter. Were expecting a 67cent loss. I think the focus, though, is probably going to be on the deliveries, particularly for q3. And if they could hold there, 55,000 target. You have a sell rating on that stock. Why . I mean, were very cautious about the stationary storage opportunity. I think theyve hyped that opportunity. The stock has run a lot based on that news. But we really think that markets getting slow to evolve. Well see today, its going to be tepid. Little impact for this year and probably not much into next year. What about deliveries of these newer models, collin. It seems people have written these numbers off for a moment. What could that do to the stock . Obviously, if they come in better than expected. We know the quarters deliveries. I think, you know, they i think its unlikely that they raise them. But thats always a possibility. You know, i think at this point theyre expecting a 50 increase from the first half to the second half, at the same time, theyre laump launching the model s. Id be more cautious about them lowering it. Any update on the model three. Is it fair to say that peoples expectations are pretty low for those two . Because weve heard so little concrete from the company on these yet . Or is it still pretty lofty expectations for both of those baked into the stock . I think they are definitely pretty High Expectations for both. They havent talked about them much, but the model s is coming at the end of q3. There could be some slippage and that would be a concern heading into the quarter. The model 3 will be a 2017 launch. If youre buying the stock today, youre betting that the volume will be quite large. Thats the mass market offering. And thats really what is has to be a lot of the value in the stock. All right, collin, thank you very much. Thanks for having me on. Collin getting ready for those tesla earnings to come out in a few minutes here. While we were talking to him, art cashin stepped in. 200 million to buy going into the close. Its a quietly traded day, maybe itll have an impact toward the close. But the dow right now down a point mainly because of the big decline in disney stock. And we talked about tesla earnings, but another disrupter is fitbit. And itll make its first Earnings Report after the bell today, as well. Well bring complete analysis to you. We are watching cnbc, first in business worldwide. Two streetlights. The only difference that little blue thingy. You see it . Thats a sensor. Using ge software, the light can react to its environment getting brighter only when its needed. In a night, it saves a little energy. But, in a year it saves a lot. And the other street . Its been Burning Energy all night. For frank. Franks a cat. Now, two things that are exactly the same, have never been more different. Ge software. Get connected. Get insights. Get optimized. Have you touched the stuff . Its evil. And ladders. Sfx [screams] they have all those warnings on em. Might as well say. youre gonna die, jeff. you hired someone to clean the gutters. Not just someone. Angies list helped me find a highly rated Service Provider to do the work at a fair price. Everyone can shop, but members get more with reviews, live customer support, and better pricing. Come see what the new angies list can do for you. Of fixodent plus adhesives. They help your denture hold strong more like natural teeth. And you can eat even tough food. Fixodent. Strong more like natural teeth. Fixodent and forget it. Media and tech earnings on the docket today. Julia boorstin joins us with what to expect. And dom, what to watch on fitbit. Lets start with julia and what to look for with cbs and 20th century fox. Julia . Bill, advertising rates and cord cutting trends are in focus. Investors are looking for for insight into the ad sales as well as the launch of the show time app. Revenues projected to grow 8 to 3. 2 billion. Earnings also projected to grow 1 to 72 cents per share. And its the First Quarter since Rupert Murdoch handed the reins to son james. They shall looking for hints of the acquisition strategy. Fox is expected to take a hit from the strong dollar revenue projected to slide 24 to 6. 4 billion. While earnings per share are projected to drop 12 to 37 cents. Well see if they talk about any impact of skinny bundles and cord cutting. All right. Thank you. An historic day for fitbit. The wearables going to release the first ever earnings. What are we watching for . Big day for them for sure here. What to watch for, at least, for fitbit on average. Looking for earnings of 8 cents per share. Expected to come in at 319 million. What to look for behind the headline numbers, fitness wearables, tracking devices, its a very competitive business. Any kind of info on Profit Margins or what the future outlook of products will be will be a key focus. Any indication of the future product plans will be a big point for investors. A lot of it is up in the air. Like you said, this is their first report as a Public Company. Unprecedented in terms of these kind of reports. Expectations for the stock are not on the modest side. Shares up by nearly 4 in todays trading, theyre up 66 just since the opening ipo trade price. And theyre up a staggering 150 over the 20 actual offering price. As for what the Options Market is saying, its going to cost around 11 of the current share price just to protect against any kind of swings in the stock. So, perhaps, volatility in store for its first ever Earnings Report. Bill kelly, back over to you guys. This shall will be very interesting. Thank you, both, the top of the hour when those Earnings Reports come out. In the meantime, well come back, bob and i will have the closing countdown. 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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. All right. Inside the twominute mark here. Very quickly. What happened today . Disney, the big feature on the dow components who get this comparison chart of disney stock today with the dow. It took out about 75 points out of the industrial average with that 9 plus percent decline on what has been a huge gainer for the market the last several years. Also, other feature today, price of oil went lower, the Inventory Data took the wind out of the sails. We had this selloff. After that, it had been rallying, finishing down 1. 1 at this hour. And then the tenyear, when you had the good ism Services Number out, best in a decade. We had a punch up in the yield on the tenyear. Its up to 227 right now, got to 228 at one point. Thing about disney, despite the 9 drop. Still the second or third best performer of the dow jones so far this year, up about 17 or 18 . Still very respectable. Multiple year. I would think very respectable. Yeah. The s p is flat, internet, steel, having a good week. The stock of the day, a little bit of disappointment, ipo business, how do you sell popcorn to millennials . Well, heres a company, priced at 18. Its a bit of a disappointment today. But billion dollar market cap on a popcorn company, skinny pop, every millennial woman in america. Right. Eats the popcorn. Brand marketing and feel good campaign. Really can make a difference in the food business. Thank you, bob. See you later. Going out down 12, but that doesnt tell the whole story for the dow. A lot of earnings coming up. Stay tuned now, for the second hour of the closing bell. See you tomorrow. Thank you, bill. Welcome to the closing bell, everybody. Im kelly evans, and the dow couldnt do it. Weighed down by disney today. Going out with a decline of about nine points, 17,541 is the level. The nasdaq adding 34 points, good enough for. 6 . Weve got another huge day of after the bell earnings. Full Team Coverage of results coming up from 21st century fox. Cbs, tesla, fitbit, Green Mountain. We even brought sarah back from her vacation. Weve got everybody on standby for those numbers. Mike santoli here from yahoo finance. And for more on these earnings, we have guy adami and christine short. Welcome one and all. I dont know where to start. Dr. Jay, let me start with you on this market today. I mean, disney, all you can say is wow. Who wouldve thought that this single handedly would a name like disney down almost 10 on the session and then whack all the other content providers. How are you trading it . Well, i think it was overdone. I think disney even with cord cutting and so forth, its obviously going on. I think thats exaggerated. I think that the impact to disney and the rest of the content providers will not be nearly as big as indicated by this kind of a selloff. An 11 selloff out of disney, one of the best companies in the world. I dont buy it. So, instead, i will buy the stock because i think its overdone. And well be hearing from cbs and fox shortly, too. First, though, dominic, what have you got . What we have right now is shares are not yet trading anywhere in the market in the aftermarket right now. But keurig Greene Mountain reports 80 cents, that beats by a penny. The sales, though, falling a bit light. 970 million. Analysts were on average looking for 1. 04 billion. Theyve also made comments about a new 1 billion Share Repurchase program. So, again, an earnings beat ever so slight. A revenue miss, and also a 1 billion Share Repurchase. Those are some of the headlines coming out right now. And, again, we do not yet have a real trade in afterhours for keurig greenmountain just yet. Well see what happens. Well bring you any details on the stock reaction as it starts to reopen for trading, guys, back over to you. Thank you very much. Christine, what do you make of this . You know, they actually missed our consensus by two cents on the bottom line and mised most of the consensus on the top line. Not too pleased with this. Theyve had issues in the secured transition 2. 0. Not a lot of people moved over to that system. You couldnt use the unlicensed kcups anymore. Theyre trying to turn that around. And keurig kohls, is it delayed . Is it later this year . Love to hear their comments on that and when that release. That could really be a gamechanger for them. And thats what i think they need at this point. Do you want to add to that . Well, everybody trying to play this on the long side has been waiting for the next headline from cocacola to come out and it hasnt happened in a long time. You thought you had that embedded put. And heres a stock thats probably 40 lower from the peak. Probably more than that. 1 billion repurchase plan for them is not insignificant. Its probably about, i dont know, 10 , 8 , 9 . Its interesting, and until you get another coke headline, i think you stay away from it. Good point. Lets get back to dominic with an Earnings Report on cbs. The first in the big media is going to come out. Earnings per share of 74 cents, that beats the average estimate of 72 cents. They also report sales that were pretty much in line. 3. 22 billion. On average, looking for 3. 12 billion. They did make comment that 7 cents per share. This time around. But still, cbs corp. Down lightly. Now just about flat on afterhours volume. Remember, cbs shares were down by 4. 5 with that media stock hangover, if you will. Well watch cbs corp. Shares right now and bring you more as we get more on this side, guys. Back over to you, kelly. Mike . Seems to me, you dont have the questions answered until you hear the estimation of what the cable subs will look like. And now we have to hear from fox, i think, more than cbs. Were you surprised the content providers and not necessarily the Cable Companies who took it on the chin today . Not in the least. Theres an idea that specifically disney and fox were somewhat insulated. Theyve seen the damage. I really wasnt. If you have to wipe clean your estimates for subscribership everybody comes down. Speaking of fox, these numbers, dominic, what have you got . A stock here thats up about. 25 in the afterhours. Traded 21st century fox reports earnings of 39 cents a share. That beats the average estimate of 37 cents. Revenues come in slightly worse. 6. 2 billion. Analysts looking for 6. 4 billion. Fox shares right now, just about flat up to about. 25 . 90,000 shares have traded. Remember, those shares were down 7 in the regular session, as well, kelly, back over to you. Guy adami, fox, cbs. What are you doing with these names . Look at both these names. Both of them, fox and cbs bottomed out late september, early october. In the case of fox, its probably around 30 or so. And cbs right around a buck or so away. I think what this is illustrating and i think doc would agree is disney last night, these two numbers now. It all shows you why despite its valuation, netflix is taking over. Its a netflix world. Thats the model that works. Look at what that stocks done over the last two days. People have tried to shoot it against it on valuation now for literally hundreds of dollars. Obviously, the stock is split. I still think everything points towards netflix. I think if you want to play any of these names, you do it with nfl x. Julia boorstin, first, with more on cbs, i think. What can you tell us . Yeah, looking at cbs here. One of the key points here is that affiliate and subscription fees grew 28 and that was driven by showtimes distribution of that pay per view boxing. Now, advertising revenue decreased 3 . And revenues down about 10 . They say thats reflecting lower Domestic Television licensing revenues which were offset by Higher International Television Licensing revenues. Cbs probably has the least International Exposure of any of the media companies. Cbs should be providing guidance in the Earnings Call which starts at 4 30 p. M. Eastern so well be listening in there. Back over to you. Well come back in a second. Lets get to fitbit results, though, first. Numbers look good on first impressions. Stock up 5 on 400,000 shares, thats after being up 4 in the regular session. Fitbit reports its inaugural first ever earnings per share, 21 cents. That blows away the average analyst estimate for 8 cents a share. Revenues coming in at 400 million, again, handily beating the average estimate for 319 million. They also offered strong Current Quarter and fullyear 2015 guidance for profits and sales. So, again, a stock that since its ipo price is up 150 was up about 4 in todays trade is up another 4 on 1 2 million shares now. The strength continues at least for right now. Well see what happens now. Back over to you. Goes to show, the shares are up 3 on this news. Still a healthy beat in this quarter. Dont miss a first interview with james park tomorrow morning 9 30 a. M. On squawk on the street. Where do we begin here . Dr. Jay . Fitbit numbers are great. And not surprising, but the stock as dom said accurately, up 150 since the ipo. Theres got about a 20 Short Interest. I dont even know how these guys are borrowing it to get short, but thats what we show the Short Interest at. Those are the folks that are chasing it up here at this now 11 billion valuation after the afterhours move. So 11 billion. A little rich for me. And i should said gentlemen and lady. How does this stack up in terms of the First Quarter as a Public Company . We were looking for 13 cents a share. Street at 8 cents, we were 5 cents higher and they blew that out as well as the revenue numbers. They own about 50 of the market. I think the big concern was the april release of the apple watch. Is that going to steal some market share. Who is going to transition to the apple watch . Weve seen that hasnt really happened. There are two completely different consumers. You can get a fitbit tracker for under 100 versus the 500. If you talked to any of our interns, they all have fitbit. And thats how i learned about this is a popular product, especially amongst people that are not going to be apple watch consumers a the this point. I wonder if this will be another one in the column against the apple watch. Everybody thought fitbit would be kmcommoditized. It is a huge valuation, 65 times forward earnings. 22 Short Interest. On our show, weve been saying its going to print 55. I think as i was sitting here, it printed 55. I think you take profits in this name big time. Especially if you see a reversal lower tomorrow. Looks like were seeing that already, guy, as they come off the high water mark. And well get a lot, lot more on all the calls with these companies. Do we have results from Green Mountain . I think we have some color on these numbers. What are you seeing . Well, dont let the bottom line fool you, kelly, theres a lot of bad news in this report. Including the miss on sales. If you dig beneath that, pods, which is 80 of their business, the kcups you buy actually declined. That was a surprise. They were not expecting to see a negative number. The brewer sales, which is the other 14 of the business also declined 26 since last year. Keurig is having a lot of trouble with the launch of the keurig 2. 0 last year. All sorts of execution problems. We know about that from last quarter, continuing to hurt this company this quarter so much so that they are embarking on a productivity or cost savings plan where they are going to start layoffs. Eliminating 5 of their workforce as indicated in this press release. A company that is hurting right now that is losing market share and seeing the margins decline as a result of promotional activities trying to cut prices on the kcups to compete. So keurig having a tricky time stumbling out of the gate, continuing to hurt results. About whether theyll have to lower their Earnings Guidance and Sales Guidance again. They did that last quarter, well see if theyll do that again. A quote from brian kelly and the ceo in the press release. We are not pleased with our Revenue Growth. We delivered earnings at the high end and theyre trying to buy back stocks, alleviate some of the pain. But a lot of weakness for keurig Green Mountain. And were going to come back to these numbers and the others weve received here in a busy after hours session. Thank you very much for now. Everybody be sure to stick around and catch guy adami. Much more coming up with him at 5 00. Theyll be talking with bti analyst rich greenefield with a dire warning for the media companies, especially in light of the trading action today. Now tesla earnings, were still waiting on those and theyre due out any minute now. Well get you reaction from a top tesla bull. Is it time to get fit . Two top analysts will weigh in later on the closing bell. Youre watching cnbc first in business worldwide. 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 . Welcome back. Were revisiting fitbit here. It looks now like its down 7 after reporting earnings. And remember, the revenue was well higher than expected. Well come back to this in just a moment. Lets turn to Green Mountain, though, which has halted and its going to start trading at 430. This after reporting Third Quarter results. The shares today, thats a session today, they were down about 2 . Lets bring back sarah eisen, herb greenberg, as well, to talk a little bit more about this quarter. And herb, whats your initial reaction here as to what were learning about this company. Well, were learning that the Business Model for this company is really broken. About a month and a half, two months ago, my partner and i at Pacific Square research did a really deep, deep, deep dive into this company and into the industry. And what we came away with at that point was that the company lost the pricing leverage, that it thought it had with the keurig 2. 0. It was going to lock out the other competitors. They were making private label kcups. Its been an absolute disaster for them. Now theyre sort of between a rock and a hard place. Either these people that came to them paying a higher price for them to manufacture the kcups for them will go to a private label guy for less or theyll stay at Green Mountain and have them do the work for them for less. Either way, their margins, as we can see, have come under pressure. This is just the beginning, we believe. Yeah, and you mentioned layoffs, as well. Yep. 5 of the workforce. They are embarrassing on a whole new round of Productivity Program. And theyre also trying to buy back stock to alleviate some of the bad news that is in this report. I would just add a few things to what herb said. Number one, the pod sales declined. That was a big deal and a big disappointment. Obviously going negative 1 from last year. This is a company thats trying to do two very ambitious product launches at the same time. The 2. 0 launch, which they rushed into the market last year because they needed to hasnt gone as the company predicted. There have been reasturns, taki this concept model showing investors, that was a little underwelming, as well. Its supposed to launch this fall. A lot of analysts going to be asking about this on the call. Two big problems so far have been the high price point at 300 and the fact that its not going to be fully launched into retail until next year. So theres the hot problems and the cold problems. And theyre sort of converging right now and starting to weigh on these results big time. Can i Say Something about the cold . Which i think is important and lost on a lot of people. And that is when sarah interviewed i think you interviewed the ceo. The cfo. The cfo. Cfo. And when she said to you they were looking and they had a lot of resources focused on cold and they thought over the longterm it had potential. I thought that by using the word longterm that was very significant. It was a very significant nuance you need to pick up on. And thats telling you theyre being very cautious with it in my estimation. Look what happened. They bought a 17 stake, coke, that is. So far the stock has gone from first in the s p to worst. Its lost almost half of its value. And you should also point out, a very important point here is that the stock, coke is in there at about 75. People thought it would never go below because thats cokes floor. Is either cokes going to step up and buy the rest of the company or not. And as the stock goes lower, were about to figure that out. Tough to get a word in edge wise over here. Herbs got a lot to say. The stocks been cut in half in nine months, but still like a 20 times estimates probably going down. Its hard to know when someone sees value in there unless youre speculating on what the intentions are. Were going to get out to julia boorstin, more on 20th century foxs results. Hi, julia. Hi, kelly, thats right. Announcing a new 5 billion authorization to the Buyback Program which is intended to be completed over the next 12 months. Also announcing a dividend of 15 cents a share. Thats in line with the last dividend. And just looking at 21st century foxs biggest division, which is Cable Network programming, the company says that the 5 growth it saw in earnings there was driven by the 12 increase in revenue, and that was really led by two factors. Strong affiliate Revenue Growth as well as higher advertising rates. The company saying domestic affiliate revenue increased 17 . And that was led by the Sports Networks and domestic advertising grew 4 , that was also led by double digit growth at the sports channels. So strength there in Cable Network programming, even though it did fall just a slight bit smaller, lower than expectations. Kelly . Okay, julia, appreciate it, thank you very much. We are still waiting on teslas results, meantime, and we will get you around to the other big after Hours Earnings action. And later, just how susceptible is your car to a hack attack . Well hear from the hackers who took control of that jeep last month. Thats later on the closing bell. Investing strategies. My technology can help you choose the right portfolio. Monitor it. And automatically rebalance it. All without charging advisory fees, account service fees or commissions. That may be hard to compute. But im a computer. So trust me. It computes. Say hello at intelligent. Schwab. Com ive got a nice long life ahead. Big plans. 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And which aarp Medicare Supplement plan might be best for you. Theres a wide range to choose from. We love to travel and theres so much more to see. So we found a plan that can travel with us. Anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. Remember, all Medicare Supplement insurance plans help cover what medicare doesnt pay. And could save you in outofpocket medical costs. Call now to request your free decision guide. And learn more about the kinds of plans that will be here for you now and down the road. I have a lifetime of experience. So i know how important that is. Earnings are due out any minute now. Lets get out to with a quick preview. The most important thing from tesla this afternoon will be the guidance in terms of deliveries for the Third Quarter and the full year. We know that for the Second Quarter, tesla will report a loss, the estimate is for a loss of 60 cents per share. Really, when you talk with analysts, theyre all over the board. We could see anything from 50 cents all the way up to 1. 10. Probably wouldnt have a whole lot of impact. But its the estimates in, or guidance in terms of deliveries. Look for 13,100 to be the magic mark in terms of q3 deliveries. And whether or not theres any change to the fullyear delivery guidance of 53,000 vehicles. Were still waiting and as soon as we get it. Dr. Jay, whats your view going into these numbers . I put on some shorts throughputs in this one because i saw a fair amount of accumulation at the strike. So if somebodys buying 30 out of the money puts, that might just be protection, kelly, but i figured id take a shot, and i bought a put spread. Next weeks puts against this weeks puts but a cautious view . A cautious view because maybe this, especially with china, i mean, china cant just be bad for apple. If chinas bad, its bad for multiple industries, including this one, which has already had very dull sales in china. Weve seen that ripple through the market as youve mentioned. Lets get to another wild afterHours Earnings session. Recap. All right. So lets get through some of the big moves right now. The Company Reported 42 cents, that beats the estimate of 40 cents per share. Revenues a little bit light. The average estimate about 312 million. They did, however, raise the fullyear Guidance Range in terms of earnings. Of 40 to 70 cents. That beats the average analyst of 56 cents a share. That might be one of the reasons you see the Weight Watchers shares moving in the afterhours. We will point out, however, the volume is 148,000 shares so far. Thats one. Zoolily with earnings, earnings that appear to have beat, as well. 6 cents a share, analysts were looking for 4 cents. Revenues at 298 million. There for 294 million. Zulily up on volume. And well finish off with whats happening on herbal life. Also moving right now, it appears to the upside here by about 5 . Relatively light trading. Herbal life also reporting earnings of 1. 24 per share. Analysts looking for 1. 11. Coming in at 1. 16 billion, in line with the estimate for 1. 14 billion. Theyve boosted their 2015 full year earnings per share guidance, perhaps some of the moves there. But those are just some of the ones who are still trying to, again, parse out what happened with fitbit. Questions as to whether or not theres a comparable estimate that matches the gaap or nongaap analyst numbers. Back over to you. Thanks very much, dom. Appreciate the work on that. Time for a cnbc news update. Whats happening . Whats happening this hour is more on that shooting. There was a shooting incident at another Movie Theater. This time in antioch, tennessee, right outside of nashville. Police confirming that the suspect opened fire on a Police Officer who then returned fire killing the suspect before he was shot dead. Before he was shot dead, i should say by police. He did attack one man with a hatchet and doused two women with pepper spray. The suspect also had two backpacks which the bomb squad will detonate. Actress Gwyneth Paltrow and her mother blithe danner addressing the importance of labeling for genetically modified organisms. Pushing for food labels that will notify consumers on whether or not a product contains gmos. George bush reporting for jury duty in dallas. And even though he sat through the jury Selection Process for a couple of hours, he wasnt picked to serve. He did snap a couple of photos with people, including this intern. Cvs has dropped pfizers little blue pill. The drugstore chain will no longer include viagra in the list of drug Insurance Benefits beginning january 1st but will carry the pill for customers willing to pay for it in full or whose insurance covers it. Thats the cnbc news update. Back to you. Thank you very much, sue, appreciate it. Fitbit shares, keeping a close eye on these ones. What a story this has been afterhours. Down 11 after the first result. How you should be trading what has been a red hot stock. And netflix offering employees a year of paid maternity or paternity leave. Will that help them win the streaming wars . Kevin oleary joins us, and you wont believe what he has to say about it. It took Joel Silverman years to become a master dog trainer. But only a few commands to master depositing checks at chase atms. Technology designed for you. So you can easily master the way you bank. So im always looking kito get more fore. My money. Thats why i switched from uverse to xfinity. They have the most free on demand tv shows and movies on all my devices. Its perfect for me because my kids are costing me a fortune. Im going to cabo [ music plays ] dont settle for uverse. Xfinity is perfect for people who want more entertainment for their money. Teslas results are out. Lets get to phil lebeau with the results. We just got the numbers and shares are trading lower, basically because of the guidance. Lets first go over the numbers for q2 coming in with revenue of 1. 2 billion. Slightly better than expected. The loss a little bit less than expected coming in at a loss of 48 cents a share. The street was expecting a loss of 60 cents a share. But as i said earlier, its all about the guidance for q3 and for the second half of this year. In q3, tesla expects to deliver 12,000 vehicles. That is less than many were expecting. Most on the street were saying, look, theyve got to give us guidance of at least 13,000 deliveries in the Third Quarter to set up fullyear deliveries hitting the previous target of 55,000. And this is the big warning within this report. Tesla saying that it now expects to deliver between 50 and 55,000 vehicles this year, that is a slight reduction from the previous guidance, which was for deliveries of at least 55,000 vehicles this year. So a slight reduction there. Couple other notes, kelly. First of all, model s orders up 30 in q2 versus q2 of this year versus last year. And model 3 unveilings, coming in the First Quarter of next year and finally, in terms of production for next year, theyre expecting weekly production between 1600 and 1800 vehicles between the model s and the model x. Comes out to production of at least 83,000 vehicles for next year. Thats the latest, were going to have more a little bit later on as we hop on the Conference Call. Kelly, back to you. Phil, thank you very much. Tesla shares fluctuating down afterhours, though, between about 6 and 7 right now. Lets get more from ben callow with an outperform rating on the stock and a 300 price target. What do you think about these delivery numbers . Obviously the guidance is a disappointment. The demand number, though, is a good number. Its good to see the on track and well get deliveries of those numbers. Well see an unveil that month. But a key point is the q3 guide below of what we were looking for. And that brings down the total number for 50,000 to 55,000. Sure, and we can see the reaction you maintain, though, this is going to be a 335 stock . I do think that we want to own it into the product cycle. Obviously were going to be buying on the weakness tomorrow. And, you know, we have a much longer term view, which acts as part of that longterm view there. But this is hiccup here, obviously. One, dr. Jay, you were saying you were positioning for. Yeah. But, again, im just reading the tea leaves. And the evidence. There was a lot of buying at the 240 strike in the puts. And thats why i got short through a put spread. Because somebody made a pretty big bet into the final minute of trade that the stock would trade down. Yeah. Seems to be pretty well informed. Mike, what do you make of the prospects for this company now . Well, thats the question. I would have this question for ben. The bull case has been focused on 500,000 vehicles in 2020. Were talking about a small number of deliveries, even if they hit the target for 2015. What does this mean for the longer term trajectory of when the company can get to that kind of scale that people who own the stock are counting on . Sure. Its definitely a very steep ramp to get to 500,000 cars. And from 30,000 cars to 55,000 cars was a steep ramp. To put it in perspective, though, were talking about 10 on the 55,000 at the lower end of their guidance. It is a hiccup. It doesnt change the reason why investors own this for the longterm. And ben, we were focusing on the car business. What about stationary storage. What do these results tell us about the prospects there . So i think stationary storage. Well hear more about this on the call. Theres a lot of opportunity there. Theyre not going to start shipping until q4. Really they start ramping up capacity for the stationary storage. Orders will be good there from both utilities and commercial customers. So thats another reason we value it on the longer term. As it comes on next year. Mike, to back this out for a second, too. Yesterday, afterhours, we saw disney down a little bit and get whacked and take down some of the peers with it. When investors tomorrow are digesting what weve heard from tesla, from fitbit, from Green Mountain and the price action were seeing, are there going to be broader concerns about some of these momentum plays . I dont think its broader concerns. I think the places to be concerned is where investors thought they were safely hiding. And i think disney and the other media stocks qualify there. Look, weve been 2100 for the s p, but many opportunities to get caught in the traps. I dont know tesla qualifies as one of those. Fitbit, if its down as much as it was afterhours, it was at that price four days ago. Not as if its giving back a lot of the gain. Does this reflect anything fundamental for you . Honestly, we want to hear musk on the call. He could tell you a story thatll have you believing in the morning. And he always seems to have the comments that carry the day. These calls are always he does, but this is a really tough one for him. Of not that he hasnt had tough situations in the past, but when you have solar city and tesla and you have a pretty significant miss and a downgrade of your sales that phil lebeau correctly called is nearly 10 , thats something that will hurt the stock and itll usually hurt the stock to the tune of somewhere close to that 10 number. Ben, what would you like to hear from musk on the call . Well, wed like to hear how like you asked the question about how theyre going to get to the 500,000 cars. What gives us comfort if we cant, you know, ramp up production now . What gives us more comfort around that. Comments around demand and the Energy Storage business and the demand theyre seeing would give us more comfort there, as well. Appreciate you joining us, ben. Teslas shares down about 10 on this. Lets get out to an eye o on the Green Mountain shares. They reopened about eight minutes ago. A stock you can see there down 27 on 569,000, now 572,000 shares worth of afterhours volume. Earnings that narrowly beat sales that missed. A Share Repurchase program, but then a slew of other news items, like sara was talking about, workforce reductions, costcutting initiatives, operating efficiencies, you name it, they were talking about it. As a result, the reaction here in the first eight minutes of trading in the afterhours session is a stock, again, thats down 25 , 26 on relatively heavy volume, 625,000 shares have traded so far. So keurig, Green Mountain investors certainly not liking the story, at least at first blush. Remember, this is also a stock thats been on a steady down trend. Yeartodate down, again, 44 . One year over the last 12 months, down about 36 . Back over to you guys. Thank you. And were going to stay with this for a second. More reaction, sarah. Wow, a quarter of their market cap gone. Yeah, this is a negative reaction from what was a negative report. That was, perhaps, masked at first by a bottom line beat and promised to buy back stock and increase the Productivity Program over three years cutting its workforce. But whats really under the hood here, the core product, the pods, the kcups are actually declining. The brewers and other accessories, which is another key important product for them and it allows them to keep people in their eco system also declining 26 . The guidance is what was also particularly disappointing for a second time in a row. Keurig Green Mountain is lowering its guidance for the year, sharply below what the street was expecting on this 2. 0 launch, that was the new brewer last year, that has not done very well in the marketplace. Youre seeing declining margins on the fact theyre trying to fight for market share on the kcups while at the same time trying to get ready to launch the brand new cold machine, which is also not living up to expectations. Expect a lot of questions on this call about both the hot and the cold missteps that this company is apparently doing. Yes, brian kelly, the ceo has been there. Hes seen the stock double over his tenure. But what theyre experiencing right now is a very sharp decline. And for those going into the report today, wondering if it was cheap enough to buy and get in certainly the bad news is not over. Theyre going to have to turn this around. Thats a point, sara. Thank you very much. The latest on keurig. Fitbit out with its first report since the wearables ipo back in june. Falling afterhours about 10 . Lets get more. Gentlemen, thanks for joining us. Bob, what a wild session it was for fitbit. First, they popped on these numbers, beat the street. Now theyre down, what do you think is going on here . Couple of things, looking at the numbers. They beat on units, revenues, ebitda, the guidance for 3q and the full year are better than anticipated. If you had to nitpick, couple of things. One in the guidance, Revenue Growth rate does slow. The margins for next quarter are also lower than what we saw in 2q. And a little bit of inventory build, as well. And you could maybe nitpick on the Gross Margins down a little bit. This is a stock going back to where it was five days ago and still up 140 or so. And mark, what do you think about these results . And where does this leave us as bob mentioned, as we heard before, that the share price is one thing it was there four days ago, what about this pressure were seeing . I think one of the things that we saw was that the company could not make the products fast enough. I think there was a little supply constraint, which impacted the Gross Margins. When you look aside that, the asps moved higher, which actually is boding well for margins in the subsequent quarters. So we think right now, its just an early part of a growth story. The company grew 253 . Thats a staggering number, i think the nearest competitor last quarter grew revenues in that category 5 . Fitbit not only gaining market share, demolishing the competition. We like the story here. Bob, quick question to you since youve been so accurate on many of these tech plays. Twitter, facebook, whatever, fitbit. At this level, at about the 47 level, would you be looking to add the positions here . Or how much do you see the stock giving back given that the run was so furious in this since it became ipo . Well, we have a 50 target and look at whole basket of comps. Gopro trades around 20 times or so high teens, ebitda. And thats where fitbit will probably be trading when you adjust the numbers upward. But importantly, the growth ratio there. And when you look at the ebitda to growth, its a much cheaper stock. We like our target right now. Let the numbers flow through. But we remain bullish. And mark, do you also think fitbit has as much potential in this environment . I think the term is very large. I think theyre starting to move into the international market. This whole Health Category is in the early stages and theyre gaining rapid market share. And in a Technology Market where the winner takes all, theres a premium to be paid. And we think the runway is very long and i think we will be buying the stock here. All right. Well see if investors follow suit as they dig through these numbers. Thank you guys both very much. Well keep following these earnings for you, plus, netflix announcing a new employee perk. Up to a year of paid parental leave for either parent. Will this give the streaming service a new edge . Thats next. Im here at the Td Ameritrade trader offices. Ahh. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. 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 . Welcome back. Netflix has a new hit on its hands. But dont look for it on the streaming Service Video menu. The stock popped today. And this was as the company unveiled a new employee perk, unlimited maternity and paternity leave within the first year of a childs birth. Netflix chief officer saying we want employees to have the flexibility and confidence to balance the needs of the growing families without worrying about work or finances. Within hours of that announcement, microsoft beefed up its family leave policies, as well. And for more on this, lets bring in shark tank investor kevin oleary with our panel. Welcome, first of all. You support what these companies are doing . I do, and ill tell you what, kelly, its the market being the market. Theres no Government Agency telling what to do. Theyre deciding on their own. This is how they want to be competitive in improving talent and attracting it. As long as we leave this to the market, you cant go wrong. Why not just double peoples pay . Look, thats different. When i hear about this idea of minimum 15 mandated by a municipal or provincial or State Government all around north america, i hate this. I dont think netflix employees are the 15 minimum wage workers, the ones why not pay them even more . But the point is, this is something they on their own decide will be the whole element. Thats how the world works, makes america great. Theres no government guy thinking this through. You dont want that. Now, look, if this makes them uncompetitive longterm i think if microsoft jumps on the bandwagon, watch other companies in tech do the same thing. You cant find another country, australia, finland, canada, you cant get this good of a deal. Theyll cut you back after 17 to 35 weeks. You do go to some countries and youre mandated to be generous. Here its the companies doing it first because its a competitive advantage. Will this start an arms race on the benefits front, mike . Well, its a response, obviously, to the scarcity of talent. And also, i think it shows you the haves versus have nots. These companies with great momentum, great business, people want to work there and portray themselves as being generous to their employees. They can afford to do it. I think it does create a gap between those companies, either that are stuck in the old way or they just cant afford it. Dr. Jay . I agree and agree with kevin that this is a great thing theyve elected to do. Keep in mind, folks, this is about 2,100 to 2,200 employees at netflix, no the the several hundred thousand employees you have at a u. P. S. , at a microsoft, at a number of companies, general motors, companies that absolutely could not afford this. If it was mandated, and to your point, when you said, couldnt they double these peoples pay . I dont think they could. And its not necessarily what workers want. They want this flexibility, they see this as an attractive way to keep their job and raise their families. Kevin, since youre here, wed asked you back on the show in may about investing with former lehman ceo. First, lets remind people what you said. Would you put give money to the guy now . Yes, i would. He was a genius at what he did. Youve got to remember the peak and the growth and the power lehman had in the fixed income market. That caught peoples attention. Okay, so you had lunch with dick fuld. Yeah, his Office Reached out to me. Ive been interested in this guy because ive been a fixed Income Investor for a long time. First time i met him today. Hes a fascinating guy. Because everybody thinks hes gone into the shadows. Hes got a whole bunch of deals in play right now based on his talents at what he knows including in the securities area. And i think ill let him bring it up when he wants to. But he is very active right now. And i think some of these deals are going to come forward in the light and youre going to be intrigued at what hes brought forward. Im not doubting anybodys intrigued. I just think you have to consider the low points of his career as well as the high points, dont you . Whats interesting about dick is for a long time lehman was the hammer for fixed income globally. Not here in new york. Not in boston. Everywhere. Do you think he knows a few things . Are we going to see an olearyfuld partnership here . Look, i like him. Im on the record. I met him for the first time. I like him a lot. Hes a very interesting dude. You have to announce it here, kevin. Thats the only im encouraging him to come here. He should be here. He just made his first Public Comments in quite some time. Well get him one day, i think. Maybe he can be on shark tank. It was also interesting, kelly, that people always want to tie ceos to the stock and the performance of the company. Lehman was exactly that. And so for all the folks that say, well, but they dont have enough skin in the game, these guys had a ton of skin in the game. So the fact that he didnt want to take some of the horrible offers that he had, which ended up being of course offers that were looking much better when all the rest of them were pulled away from him, i dont think you can fault him for holding out for more money when he thought he was not getting fair value for what he was selling. From the very beginning when lehman became independent under dick fuld they told him you guys arent big enough you dont have enough capital you cant compete. The idea was beat through aggression proving them wrong. He thought he could prove them wrong one too many times probably. Well leave it right there. Kevin, good to see you. Appreciate it. Well have more on all the afterHours Earnings action. Plus Fiat Chrysler recalling more than a million vehicles after hackers were able to take control of a jeep cherokee. Remote carjacking isnt just chryslers problem. Well tell you what other automakers are at risk, next. Try the superior hold. Of fixodent plus adhesives. They help your denture hold strong more like natural teeth. And you can eat even tough food. Fixodent. Strong more like natural teeth. Fixodent and forget it. Welcome back. Its pretty clear now that computers arent the only thing at risk of a hack attack. As we move into the internet of things, hackers recently carjacked a jeep and drove it into a ditch. Joshua lipton joins us from that black hat Cyber Security conference in vegas. The biggest Cyber Security conference of the year. You spoke to those hackers, josh. What did you find . Well, kelly, yeah, i did speak exclusively to those two researchers who hacked their way into that jeep and they did that from laptops ten miles from the actual car, wirelessly took control of that suv as it barreled down the highway. They say the point of the hack was to force carmakers to make their cars more secure. Wed like all the technology. We like how they work. We like where theyre going. But when you add more code you add chances for vulnerability. And we wanted to prove definitively that you could compromise a vehicle for physical control over a broad range. Reporter now, this was a controlled experiment done with a reporter from wired magazine. The researchers used a car connected to a cellular network. They hacked their way into the cars infotainment system made by harmon. From there they were able to reprogram the chip that interacted with the cars internal controls. So they were able to cut the transmission, hijack everything from the airconditioning to the windshield wipers. The researchers tell me this isnt just about jeep. Many automakers, they say, could be potential targets. They also say, though, kelly, consumers shouldnt be too worried. Remember, these are two pros and it even took them a year to pull off this hack. Still, its having broad ramifications. Chrysler recalling 1. 4 million vehicles. And now were learning the carmaker and harmon have been hit by a class action lawsuit. This story far from over. Kelly, back to you. It feels more like the van guard of this whole era, josh, than the end of it. Joshua lipton from that conference for us. The black hat Cyber Security conference in vegas. Thank you very much, sir. The countdown tule the big earnings Conference Calls is up next. Stay with us. 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. Introducing the Samsung Galaxy s6 active only from at t. Tested to withstand pretty much anything life throws your way. Switch to at t and get a 300 credit with eligible purchase and tradein. Another wild afterhours session here. My thanks to the panel today. John santo lichlt mike santoli. Thats what happens when you run out of time. And jon imaginarian. Thanks, guys. Melissa lee and the fast money crew. What are you watching . Tesla. Volatile afterhours session for tesla. The Conference Call gets under way in just about half an hours time. Everything could change based on whatevers said on that call. Already coming back a little bit. Over to you guys. Thanks, kelly. Fast money starts right now. Live from the nasdaq marketsite overlooking new york citys times square, im melissa lee. A night of afterhours carnage. Fitbit falling hard, Green Mountain tanking and tesla sliding as much as 6 on earnings, now reversing some of those losses. We will have live Team Coverage with all the latest headlines and all these movers throughout the hour and what it means for your money. And weve got to kick it off with tesla here. The stock very volatile right now. The call gets under way in just a half hours time and when that begins well get a lot of answers. Phil lebeau will be on that call. What went wrong. What can we expect to hear, phil . Melissa, weve said it all day long. This is all about the guidance for the Third Quarter and for fullyear production and the numberth