Transcripts For CNBC Closing Bell 20240712

White house and pelosi ibm reported after the close yesterday. Another hopeful update on the vaccine front. Modernas ceo telling the wheat journal his companys account to get emergency use authorization next month. 59 minutes left of trading up just shy of 1 on the s p 500. Coming up todays show, a nearby chopra weighs in on todays google antitrust suit from the department of trust we will ask him whether the government has a strong case against the company. Plus earnings. Netflix, texas instrument, Interactive Brokers and snap all gearing up the report results this afternoon we will bring you all the numbers as soon as they hitting with analysis. We will talk with Interactive Brokers chairman thomas petersfy. Mike santoli is tracking the market action. Ylan moi with the justice diplomats antitrust lawsuit against dealing. And we will constitutes the stimulus negotiations before the deadline to get it done before the election. Mike, start us off on the market a partialal recovery from the losses we saw yesterday. Where did the market hit the trap door yesterday . 3,460. We have kind of come back up to that level in general the margaret didnt do anything to undercut the upturning we have had since the end of september look, too, at bonds. It is a big story today. We are seeing the lift in treasury yields. That is continuing looking at a price basis of the long term treasury etf it is a lintd of a tired looking not encouraging looking chart. Seems like maybe under continuing pressure. A little bit topee, which would mean there would be an upside buy as to yields at least within limits i think there are limits because people seem well positioned against bonds at the moment. We will see if that restrains thing. Since the market low in march big cap growth, qqq high data. Jumpier stocks it is cyclical, though high beta has nosed ahead. That is showing that the market is gearing up to be a more cyclical tone to it. Thats the trend right now. Stocks have swung on the on begun off begun stimulus talks if we do get a deal before the election, say as soon as today. Yeah stereo what kind of net effect would it have on the market we think it has swinging around a lot and it has been jumpy but it has been within a range. I would argue you wouldnt get a rally attempt. You would get a rotation into cyclicals, maybe yields would get a lift i think there are other things positioning and other things keeping the margaret from necessarily being Spring Loaded for that immediate type of brs higher. Obviously we have to see. I think the market is tacking a little bit this way and that way in response to the headlines and not really assuming, et cetera going to go one way or the other i think because there have been so many fits and starts to the process. The dow is up 260 at the moment, it was up 380. The Just Department officially suie ining google inn antitrust case alleging search dominance. Reporter it zeros on going else a revenue sharing the d. O. J. Concludes that google deprives rivals of the quality, reach, and financial position necessary to mount any meaningful competition to googles long standing monopolies google harms consumers and advertisers. The department does not specify any particular remedies but does raise the prospect of structural relief the company excepts it take at least 12 to 18 months before this case even gets to trial. In the meantime we could see even more action against google. Today, seven states attorney general general said they expect the wrap up pats of their own investigation into the company within the come weeks. On capitol hill gop senator tom cotton warned when it comes to big tech this is just the beginning. Winter is coming guys, i think it is fair to say that google would respond you know nothing, jon snow back to you. I love the reference there. I am not up on my game of thrones so i cant think of a comeback to say to you seems like a long time ago when that show finished in terms of the timing, do the cases get dropped and we start afresh the d. O. J. Said the case is not going away it has been a priority for the current attorney general it will be a priority for inn replacement if there is a new administration these cases can take a loong time the wind their way to get into the courtroom because of the action we are seeing on the states side as well i think it is safe to assume at that google will be facing a lot of challenges for a long time. Not impacting the stock in a negative way it is up 2. 4 right now. Thank you. To the other big story out of washington today. We are rapidly approaching House Speaker Nancy Pelosis deadline to get a stimulus deal done before the election. Kayla, where do the negotiations stand . Sara, House Speaker nancy pelosi and treasury secretary Steven Mnuchin are set to have a phone call at 3 00 p. M. Eastern after a 53minute conversation yesterday at exactly this time pelosi said today he expects the two sides to exchange revised terms for a dewhich would need to be reached by the end of this week if it were to pass by the election as for republicans, they have been loathe to pass a multitrill dollar package and are set in the senate to take up another vote on a smaller series of packages earlier today we got the clearest sign yet from Senate Majority leader Mitch Mcconnell that if the white house does broker a deal he would put it up for a vote. If such a deal were to clear the house, obviously with the president ial signature promised, we would put it on the floor of the senate and let the senate consider it. That is the farthest that mcconnell has gone yet President Trump for his hit and run part has said he would personally pick up the phone and call pawn senators to get the senators to pass it. He says it needs to got through nancy pelosi first sara and wilf. Kayla, do you have a sense of what is in the latest version of what they are negotiating and what is not in it in terms of the stipulations around who gets relief well, we know that there have been several iterations of this package. Last week it was 1. 8 trillion, it was expected that secretary mnuchin would raise the provides tag, if ever so slightly but the Speakers Office has taken specific issue with language and some of the qualitative aspects of this deal notably on testing and some of the language that was in the agreement before pelosi said over the weekend that the administration in its response to that testing agreement had ripped up what she said was 55 of the language that was in a previous democratic version of that bill. So we will see exactly what is in it. They have been going back and forth nearly every single day for weeks. And where there is room for an agreement we dont exactly know right now. Sara i will pick it up there thanks kayla tausche. Still ahead, institutionate investor out with thissiers list of top rated analysts and later in the hour we will speak with number one Airlines Analyst hunter kay as well you dont want to miss either of those toprated analysts coming up here on closing bell. Before we talk about taxsmart investing, whats new . Well, audreys expecting. Twins grandparents we want to put money aside for them, so. Change in plans. Alright, lets see what we can adjust. Wed be closer to the twins. Change in plans. Okay. Mom, are you painting again . You could sell these. Lemme guess, change in plans . At fidelity, a change in plans is always part of the plan. Facebook discuss the banks, before we do a quick look at the intraday chart of the dow a leg lower in the last five minutes during the break. Only up about 100 points the high this session was 379. We were up 250 before the break. A leg lower as you can see, green across the screen for all the major afternoons financials among the best performing sectors today despite that pullback. The index up 1. 7 . Fifth third bank among the biggest winners. Despite todays rally, financials have outperformed the Broader Market underperformed theed brotzer market lets bring in mike mayo he was just ranked the number one banks analyst in this years Analysts Research team. Congratulations. Thank you appreciate it. Lets start for the broad picture for banks and the tee klein i mentioned year to date not just the year to date performance but the last week performance after we had earnings we got numbers from them numbers were pretty good did they deserve to trade lower off the back of that i think the word of the day when it comes to banks is unhinged perception is unhinged from reality. In fact if you look out over the last 12 months the performance of bank stocks has been the worst in history the last 12 month Bank Stock Performance is worst than the Global Financial crisis, the failure of long term capital the perception is that bank will crumble under the weight of covid and low Interest Rates but the reality, as you pointed out, the results last week were fine the future guidance is actually a little bit better. We wound up increasing many of our large estimates for the large banks. Credit estimates went down quarter the to quarter and this showed it is an income statement recession. Yes, earnings are down but it is not a Balance Sheet recession. The one figure i would point out is that despite banks absorbing four 100year floods at the same time when it comes to nim Net Interest Income and revenues and reserve builds, despite that they absorbed it and book value still grew 7 year over year so perception is not linked with reality. So, mike, whats the catalyst for the share prices to turn around the point that you made, it is an income recession not a Balance Sheet recession for the banks. What sit trigger that means the share prices also respond not just some of the earnings numbers . Thats a fair question. We did lower our estimates and our targets at the start of the pandemic we have been saying that this is a one to twoyear process. We are probably in the third inning right now there are a lack of catalysts. Thats why the bank stocks have underperformed having said, that it with not take much for banks stocks to start outperforming. It could be a higher tenyear treasury yield it could be an additional stimulus package as you were talking about. It could be the resumption of buybacks and dividend increases sometimes next year. That certainly seems likely. Or it could be some, you know, advance men wi advancement with the stage of covid. Bank stocks have the highest covid beta meaning bank stocks are the most sensitive to developments with covid on the way down and if and when we go back up with the covid situation, bank stocks should follow, too. Mike, we have seen treasury yields start to rise in recent days we have seen stimulus hopes start to build it affected the rest of the market what do you say to those who have given up and say it is a value trap you know, when i was in Business School it was like there is a 100 bill on the ground the professor says thats not a 100 bill because the market is efficient. And the astute investor picks up the 100 bill because it is an opportunity. What i would say is this is an opportunity. You are seeing a steepening of the yield curve depending on this stimulus package. You are talking about record government spending, 2, 3 trillion of additional spending the knock against banks is well the credit losses are going to go higher. Banks reserved for those credit losses more than in the history of banking the stimulus helps out the Bank Borrower i am not sure why the stock market is going so much higher and leaving the banks behind because they are connected two of the banks that arent too tied to the provisions for bad loans, Goldman Sachs and Morgan Stanley because of their business mix yet they still trade on a lower multiple than some of the commercial banks despite good returns over the quarters n. The months time is it possible that those banks could have multiples as high as jp morgan or not into we are lo we are looking at Goldman Sachs, morgue ab stanley didnt go down as much. Therefore we dont know as much upside when things recover when you have normalization of the credit costs also Service Charges were waved. Talk about being good corporate citizens the Banking Industry waved all sorts of fees, spent a lot of expenses, paid extra bonuses to all sorts of employees. We see more upside for the big diversified financials like a bank of america, like a jp morgan having said that, you know, kudos to both Goldman Sachs, which we favor over Morgan Stanley, but Morgan Stanley they both executed very well banks are living the stress test right now. Whether it is those two tests or the seven largest traditional banks reporting, they are living the stress test and so farther passing the real life stress test. The two which you didnt mention which have gone down farther than the rest, citi group and wells fargo this year. I dont see them on your list. I work at wells fargo and i have to say i am happy working at wells fargo and the platform has helped me reach this new level with the announcement today of the poll so i am a happy employee of the 260,000 employees. Now citi group, you say buy or sell due say buy for the next three months not this is a longer term holding. Its disappointment. I am very disappointed i have been on your show recommending citi group. We took it off our favorite list but we still recommend it. If there is something to look forward to over the next one to two years it is that an activist owns over a billion dollars of shares the ceo of value act presented a few weeks ago and put forward a compelling case to own citi group they have had over 200 meetings with management they are committed to holding this investment for a few years. It was remarkable the conviction and their alignment with our view which i stated at many annual meetings at citi group i go to these meetings that the commercial business has value and the Consumer Group is a laggard. We think they should break up part of citi group where i disagree with value act they were singing the praises of the outgoing ceo i think the outgoing ceo should step down now and give the new ceo a chance that would show a sense of urgency, thats what citi group needs to give it some sort of catalyst. Up 1. 5 today banks are doing well mike, thank you, i forgot you worked at wells fargo. Such a big name, such a strong profile on your own. Thank you for joining us thank you. Weve got just under 40 minutes to go before the closing bell look at the markets. Dow up 99 points we took a sharp turn near the top of the hour lower. We were up near 400 when we started. Nasdaq is strong, up. 4 if we close higher we are on track to break losing streak for the nasdaq. After the break shares of gm lagged behind the ev stocks like tesla and nikola this year could a new eceltric hummer be the key to gms future we will discuss that next. Welcome back 35 minutes left of trade shares of General Motors have sharply underperformed ev rivals this year like tesla and nikola. But the company is announcing new steps to boost its electric vehicle offerings. Phil lebeau has the details. Big day for gm and its ev portfolio. Later tonight we will get our first look at the hummer electric pickup truck. Ahead of that General Motors announced a big investment when it comes the manufacturing of electric vehicles. They are gag to be ra going t be ramping up over the next few years including retooling part the tennessee plant to build the cadillac lyric doesnt there this factory is in the detroit area they have been converting it to build electric vehicles. Do you know whats going to be built there . The hummer ev, electric pickup truck. This is the teaser image a drone following a vehicle in the forest we will get a shot of it tonight. And we will get all of the speaks picks in terms of what it can do, its range, et cetera, that will be coming up tonight look at shares of General Motors keep in mind they are planning to release 20 ev models by 2023. This hummer is a key vehicle, but not the only one coming out over the next several years. Tomorrow morning you dont want to miss our first on cnbc interview with mark reuss. It is an important interview he is spearheading gms direction going more electric. They are going to be expanding electric vehicles rapidly over the years. Cannot wait see what the hummer looks like tonight. That drone to theage looked like florida terrain over which the hummer was propelling itself or not. Thats what it look like. I looked at it a million times it is a teaser video. Please tell me it was propelling itself . I am sure it was propelling itself it was not going down a mountain in utah if thats what you are something. Thats what i was asking, i was hoping that was the exception to the rule not the new form. Thats the exception to the rule. You can even see the new car. East thats why it is a teaser. I love hummers. When i think hummer i think gas guzzler not electric vehicle. Look, you pedally recognize it thats what you want to do, cut through the clutter when you introduce a new vehicle. They introduced the bolt i have had not a Single Person say to me i am interested in the chevy bolt what can you the me about it electric vehicles, i have had people ask me about the hummer you cut through the clutter, immediate brand recognition. The yellow one sean connery drives in the rock is my favorite one i dont think he would have driven an electric hummer certainly not in that movie in that scene coming up here on closing bell, we will speak with white house chief of staff mark meadows about the latest updates in the stimulus negotiations and the odds that the deal actually gets done before the election. Important question, because we have lost steam in the market today. We are now only up by about half of one percent on a day where stimulus optimism has helped the market bond yields moved higher and staying hider today. Nearly. 8 on the tenyear. Before we talk about taxsmart investing, whats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. And sweetie can coloryou just be. Gentle with the pens. Okey. Okey. I know. Gentle. Gentle new projects means new project managers. You need to hire. I need indeed. Indeed you do. The moment you sponsor a job on indeed you get a short list of quality candidates from our resume database so you can start hiring right away. Claim your seventy five dollar credit, when you post your first job at indeed. Com home. Were committed to making college more affordable. , thats why were keeping our tuition the same through the year 2021. [student] i knew snhu was the place for me when i saw how affordable it was. [narrator] find your degree at snhu. Edu. He time for our daily coronavirus tracker. Over the last month all but three dates states and the district increased covid19 cases by more than 10 montana, wyoming and south dakota increased by the most rising cases in the u. S. Have not necessarily translated to more deaths yet. Mortality has declined since early september. Modernas ceo told the wall street journal he expects the federal government may authorize emergency use of the companys experimental covid19 vaks enby december if all depose well with the phase three trial. The readout is expected at some time later next month. The stock is up. It has given up some of the earlier gains they had earlier in the day. A cnbc news update with sue herera. In kentucky a judge cleared the way for grand jurors on the Breonna Taylor case to speak publicly about the evidence they were presented the judge says there is a rare case where there is no reason to maintain grand jury secrecy. In houston one of the two officers shot this morning has died the other remain in the hospital and is expected to survive his injuries a teenager was also shot and is recovering in california, investigators say the lack of a required watchman could have saved lives in one of that states worst maritime disasters 34 people died in a scuba boat fire last september. The cause of the fire was not determined. In outer space, nasas oseus rex spacecraft is ready to touch down on an asteroid, grab a piece of the asteroid and return to earth if successful, the ship will return home in 2023. Japan has already done something similar to that. Well see. You are up to date thats the news update sfa cool simulation, sue, thank you. The Justice Department filing an antitrust lawsuit against google today up next we will ask the former u. S. Chief Technology Officer whether he thinks the tech giant broke any laws. And up next, where the stimulusegiaon nottis stand at this very moment mark meadows, white house chief of staff will be our guest do i hear 7 . 7 in the front 7 going once. Going twice. Sold to the onion lover in the front row next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowedout loaf of sourdough bread. Dont get mad get e trade and get more than just trading investing. Banking. Guidance. But before we sign i gotta ask. Sure, anything. We searched you online and maybe you can explain this . I cant believe that garbage is still coming in. That is so false frustrated with your Online Search results . Call reputation defender today to join tens of thousands whove improved their online reputation. Get your free reputation report card at reputationdefender. Com or call 18778668555. The department of justice filing its antitrust lawsuit against google todays alleging the company broke the law by using anticompetitive behavior to hold on to its monopoly and search advertising. Google dominates search, 88 of the u. S. Market share is what it holds. The Company Called the lawsuit quote deeply flawed. Investigators are slugging off the news shares of the company up they were up more than 2 . They are now up 1. 7 joining us now, taneesh chopra. How strong of a case do you believe the government has accusing google of using monopoly over search and search ads. There are two things to consider one is the filing on a narrower set of harms around the search sort of promotion, if you will and for there, there are a lot of allegations that are serious. But my eyes and attention are on the broader set of accusations that are in the house antitrust hearing report and likely the basis of the state a. G. S whose work is still under way. While todays actions are important i think it is only one of a larger message to evaluate in terms of the seriousness of the charges. What does it all add up to, aneesh we have rules on the books to make sure we have fair competent tig. We have expert agencies on the task to make sure the rules are followed we saw today that the Justice Department is taking some action but that a Bipartisan Group is going to take other action the bottom line is this. If you believe in fair and open markets, you want these proceedings to move forward and you want all the facts to be adjudicated under the rules we have in place. That process is working. I have confidence that the outcome will be better for the American People. Do you have confidence this is going to lead to some form of reprimand for google what normally happens in a scenario like this is that the attorneys general for example, if they take a broader set of harms to consider beyond the narrow scope from the Justice Department, there may be a discussion about settlement or remedies he so, obviously, the sort of Nuclear Option would be some form of break up but a more pragmatic one may be agreed upon behaviors that would result in more competent tig he is that the likeliest outcome here, some form of negotiation around remedies that will make sure there is more competition in the Search Market aneesh, do you regret during the Obama Administration that you guys werent tougher on these teens of companies especially google and facebook and allowed them to become so powerful that it makes it more difficult now to regulate them we had a commission exploring all of these aspects of harm their justification at the time was that the evidence did not merit action i have faith in the ftcs research at the time and faith in the process thats under way today. Facts change, markets emerge search through mobile devices has vastly exceeded what you would normal low think of as desktop search the definition of the market itself is also evolving. I believe we had the ride judgment then, and i believe the similar processes will render the right judgment now, even if the actions will be ditch. What do you make of the timing of all of this so close to an election look i think you have to discount the actions because the team thats filed these accusations today from the Justice Department may not be around in a few months i can imagine that the market is reacting in the manner that this may not be the team who carries the suit forward anyone who thinks these are not serious charges keep an eye out on the diplomat sevenstate coalition. That group is going to take serious charge and they are going to be here long after the election thats why i think there is a viable sort of active program that we should be mindful of that will have Market Impact i just want to play for you a piece of sound that we are just getting in coming from an interview that deirdre bosa just wrapped with googles director of Economic Policy adam cohen about this lawsuit listen. Sure. We have been scrutinized before our approach to this remains the same it is important for us to explain you how we operate, how we compete, the benefits of that competition for American Consumers and the american economy. Are they going to have trouble explaining the benefits of competition when they have 80 to 90 share in search you could you saw the ceo struggle i think the idea there was you explain people are accessing search through alexa and other devices where they are not the dominant they will make the arguments they are going the make. I think what you are hearing from the Tech Industry generally is these are broad rules of the road with not a lot of clear lines of sight when you have got broad rules of the road you are going to push the envelope here and there and deskcally hope you policed yourself to stay on the fair and narrow where you have court cases and circumstances like the a. G. Suit you are going the clarify these rules of the road. It is actually healthier for the marketplace to have stronger and clearer lines about what is or is not seen as improper conduct. Thats a good thing for the industry, not a negative the challenge right now is they are operating more in a gray area of what the official rules of the road are. They may be in good faith saying this is the path we have taken to think we are in the line. And the process will reveal itself whether they have crossed that line or not and will have appropriate remedy i actually think this is actually the right process for making the markets more competitive. Thank you for joining us. Thanks for having me. Still to come, netflix gives up earnings and the number one ranked Airline Analyst breaks down the state of that sector for us we will take you inside the market zone next of we are up. 8 on the s p. Have been a game changer for me. The process with lively. Is insanely easy, you take a hearing test on your computer the doctor programs it, it shows up at your house a few days later. You can stream calls or music through it, its got multiple settings, audio adjustments, so you can raise and lower the levels. But its a fraction of the cost of the other devices. Its instilled some confidence i didnt have before. Try lively risk free for 100 days. Visit listenlively. Com its time you make the rules. For 100 days. 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You got to move the phone in front of you like. Like its a mirror, dad. You know . Alright, okay. Hows that . Is that how you hold a mirror . [ding] power e trade gives you an awardwinning mobile app with powerful, easytouse tools and interactive charts to give you an edge, 24 7 support when you need it the most plus 0 commissions for online u. S. Listed stocks. Dont get mad. Get e trade and start trading today. Late and that lower for longer attitude speculating here, but a lot of that stuff, it seems to be kinds of preprogrammed on a day to day when the market all day today has been traiting within the range we captured yesterday. So it has been pretty indecisive all along. Courtney, how are you positioned right now have you been adding or subtracting to position as we ebb and flow on the stimulus news good to see you guys today. Thanks for having me on. It has been really interesting in my personal portfolio i have been increditably balanced, right . We talked about this versus value, should people be rotated. I think people should be balanced pick stoksz, pick stocks if sectors that you actually believe have long term growth trajectory that you can believe in right . For me permanently i am picking up on names where i do believe long term they are names i want to be in i am buying the dips i am waiting on a dip on starbucks if i am honest with you right now because it has been raring and it is a name that i want to get in again for the long term. Our client at luke Capital Markets are doing the same thing ultimately for our long term fundamental managers, whether they are specifically looking at just buying small cap names, just buying large cap, they are picking names they have conconviction in and sticking with those names some are keeping a little bit in dry powder in case we dont get a stimulus grooemtd agreement today or based on jitters going into the election style but i dont see on the institutional side of our business folks selling and i am personally not selling at this juncture. Shares of p and g higher after reporting a quarterly beat and raising full year sales and earnings forecast. The Consumer Products giant seeing a sales increase of 9 organic Revenue Growth, thats the best growth it has seen since 2005, prefinancial crisis. Consumers are spending more on clean asking laundry products in particular though all atgoers were higher during the pandemic. All p and g Business Units did see the organic sales growth it is the fabric and home care unit which includes comet and tide that saw the highest growth 14 for the quarter. The ceo david hay taylor telling me this morning the home is the center that is where the spending is happening right now. As far as his confidence behind rising guidance during such an uncertain period around the paramedic he said the question is the future and he doesnt except once the pandemic fades and we hopefully get a vaccine for this all to change he said the habits have changed for consumers, especially around hygiene. He says the u. S. In particular looks very strong and he expects accelerated spending in the u. S. Whether we get a stimulus package or not mike, it was a pretty pullish view i would say it is backed up by the fact that p and g had seen outside Growth Numbers prepandemic because they had changed a lot of operations and started to grow share. They are continuing obviously to do that with the stock up. But they are saying this is how it is going to be from now on, it is going to be a different growth rate than we saw prepandemic. The question is, are you willing to pay up though for the stock it has already had such a good rinne. There are tail winds. The top line seems like it is going to be above what we got used to in prior years and the valuation is above 25 times forward earnings. In the late 90s when these are true Growth Stocks and you were introducing these brands to emerging markets and things like that they traded more expensive. I wonder about the shaving business, has it been in a slump during this period also, does he see any signs of a covid baby boom to reverse the declining birth rate i dont know if you asked him those things. I didnt ask him about that but i should ask him that. The grooming business has come back it was weak during the pandemic. He told us last quarter that people werent shaving but apparently now they are. They are taking care of themselves using deodorant they are spending machine on toothpaste and premium toothbru toothbrushes they have a new oral b product they also own crest. People are paying up for good brands to take care of themselves because they are not spending on things like travel and sporting events and concerts and things like that they are a beneficiary of that we will talk about the pampers things we will talk to kimberlyclark when they report on thursday they huggies, we will talk about a pandemic baby boom. T interesting to see if the hygenic things are there to stay for the long term. Anyway decent performance today. Airline stocks rallying today following optimistic comments on a potential stimulus deal although off their earlier highs. Off by 1 to 2 on the session today. Hunter keay joins us, just ranked number one Airlines Analyst on this years Institutional Investor all american analyst team. Congratulations. Thank you, appreciate you having me on. To what extent to the think the industries that sort of morgue anned off some key assets whether thats their points rewards groupings or any other areas such this even when the market recovers some of the upside is capped it is a good question enormous amount of debt. The Federal Reserve has been accommodative in leif ranning assets that werent as accessible precovid. Airlines still have a lot more they can mortgage in the even the fed wants to continue the keep the easy money policies in place. It is going to take the airlines the entirety of the next cycle the pay down the debt. The leverage is going to be up probably 50 during the cries i. I dont think margins are going to get close to where they were the next cycle the next four or five years really it is going to be about slowly paying down this pile of debt that they have raised just to survive but they still have more assets they can mortgage if the fed wants to continue to accommodate like this. Hunter, my question is on demand, especially given what i was just reporting about david taylor the ceo of p and g saying they see Consumer Habits having changed. Is it assumed air travel will return to prepandemic growth rates after we get a vaccine or is there going to be a change here especially in Business Travel we changed it up and in many places it is working. True. The longer people go without doing something the more you get used to not doing it we did a survey of our clients a couple weeks ago and asked what percentage of your business trips do you enjoy or look forward to doing, client golf or just to break the money otdny of the routine. It was about 52 thats a lot of trips that unfortunately dont have to happen the real issue there is the types of business trips that arent going to come back, those are the ones where airlines have made a lot of money. The long multiday grind it out journey across multiple time zones where you by the seat on the wide body aircraft thats going to be most replaceable with Video Conference technology. I dont think thats going to come back next cycle at all. I think Leisure Travel will come back quickly but not the end seg mend of business trabl, the really hard trips. In the shortterm what would a stimulus bill be worth i dont think it is worth anything trading of the stocks with our clients is maddening, you cant do fundamental work on them. There is no dispersion in the group. The intercorrelation is. 92 well above normal historically averages they pop as a group, sell off as a group. There is no fundamental work being done if the stimulus comes people will refocus on the fundamentals and realize they have got debt and working capital head winds and deferred operating costs and Capital Expenditures and there is going to be some analysis on the tempo of cash recovery which is going to be slow and painful. Estimates are too high so maybe it is worth 5, 6, 7, 8 immediately in the pop then i think the fundamental starts and thats when the second wave of concern will start to come into the stocks. It is going to take more time. It is going to take more pain. Today is one of those days where they are all up and trading on the back of stimulus hopes. Hunter keay, thank you for joining us. All right thank. We have got a news alert here new dividelines for reopening theme parks in california. Julia boorstin with the details. Sara, california officials saying that large theme parks sum of as disneyland cant reopen until a cons risk level drops to the lowest tier of minimal spread now, this follows disneyland unions asking the state to allow the resort the reopen when the county reached moderate spread heres an interview from closing bell last week. The guidelines set up by the state of california are more stringent than any state across the country. If you look at the history of disney and what we have been able to do during reopening rather than arbitrary standards set up without regard to what actual fact is and what we have done as a company i think you might look differently at reopening disneyland disneyland blamed the state as the reason they have had to layoff 28,000 from disney parks. Can you tell us about netflix . We are watching for the numbers to come out after the bell always High Expectations whats your preview into always High Expectations. Sara, the number one thing to watch on netflixs earnings are its subscriber numbers they forecast an additional of 2. 5 Million Subscribers. Analysts expected more than that, 3. 3 million. Key related topics are potential price hikes after netflix australia and canada raised prices as well as competition. Analysts expect 22 Revenue Growth and 46 growth in earnings per share guys, back over to you. Netflix down today. Still up almost 100 over the last year or so. Julia thank you. Two minutes to go in the trading day. Mike, what are you seeing in the market internals right now firm. More stocks up than down all day. Lopsided it is not three to one advancing volume to declining volume in the Stock Exchange we did have the wobble lower in the indexes didnt do too much to make the breadth worse. Wanted to look week to date of emerging market shares not getting a lot of attention but they are outperforming right now. Some folks seeing make a breakout a down leg in the dollar largely a china trade. The eem. The volatility index still stubborn up here not giving much way. The intraday volatility is keeping it supported 29 i would expect to see choppy innocence leading up to the election it handy stood in the way of the market still doing okay. We are up. 6 on the s p. The dow up a similar amount, 150 points the high, the session was up 380. We have pulled back from that level you can see. Just picked up again in the last half an hour after a bit of a pull Brett Kavanaugh at 310, 315 earlier this trading hour. Also got the nasdaq up. 4 all three up similar amounts but this is a slight cyclical tilt energy is the best performing sector financials and banks second. Communication Services Third one sector is in the red just about, consumer staples. Oil is up 1 the dollar is softer by a third of one . Gold covering the flat line. The yelled up. Close to. 8 on the ten year. The dow slipping ten basis into as we went into the close there. Still positive finishes for all the averages welcome in to closing bell. If you are just joining us im sara eisen with wilfred frost and mike santoli dow closed up 112 points certainly off the highs of the day. Still higher the big winners in the dow today, travelers, walgreens, apple, and cocacola a. Mix there. Ibm, intel, merck and sisco were the losers on the dow. S p 500 up half a percent. You did get groups higher like the financials today on the back of perhaps higher yields energy, communication services, consumer stap elts only sector to close red the nasdaq had its first up day in the last six sessions breaking that losing streak led higher by names like apple and microsoft. The russell 2000 of small caps had a strong day with strength in groups that are cyclical in value. Cyclicals up only a quarter of one percent. We have a big hour of earnings to bring you netflix is a headliner also going to get snap, Texas Instruments, interactive brockers we will bring you those results as soon as they are released we will speak with Interactive Brokers chairman about the trend of Retail Investing and much more and find out whether the white house and lawmakers are actually nearing a stimulus deal wohl be joined by white house chief of staff mark meadows. Wont want to miss that. Courtney gibson is with us andy lee joins us. First to you, mike netflix wilfred, you have got that first. A couple of headlines that just crossed the revenue line is basic chi in line, 6. 4 billion, 6. 44 the expect the eps is a slight miss, 174 per spare, the expectation was 2. 14 if we get to the subscriber numbers, overall paid memberships, 195 million thats a fraction below the forecast of 195. 829. So the net adds in the quarter coming in at 2. 2 million the forecast was for 3. 26 n. Terms of the guidance Going Forward to the next quarter, the paid membership, 201 million the forecast was 202 and in terms of paid net ads for q 4, people had 6. 6 there as the consensus. They are guiding for six just a slight, slight miss there on the guide for paid net ads and a slight miss for the quarter on paid net ads. The eps also a little light. We will keep digging into these numbers. Down 6 a fall in the afterhours market julia is ready with more of the details on these numbers as well julia . Wilf, i think the reason why we are seeing the stock sell off is he much on the miss on the miss of subscriber growth in the conclude and addition forecast for q 4 is that netflix is a company that underpromises and overdelivers last quarter they added 10 million new subscribers. This quarter not only was it a dramatic slowing, but it was lower than the 2. 5 Million Subscriber growth that they said they would they expected. And also the 6 million forecast is down from 8. 8 million that they added in theier ago quarter. It is lower than the 6. 6 million that they forecast so they acknowledged this in the letter they say retention remains healthy and engagement per member household thats key that point to retension. Engagement per member household was up solidly year over year in the third quarter. That means subscribers are using it more. The state of the pandemic and its impact continues to make projections very uncertain but as the world hopefully recovers in 2021 we expect our growth would revert back to levels similar to precovid. They also say their paired net ads are likely to be down in the first half of 201 as compared to the spike they experienced in the first half of 2020 the stock down 5 . Reflecting to the just guidance of q 4 but the warning of the tough comparisons to come in the first half of 2021 yeah, they always give us a lot of information and a lot to read along with it julia, thank you we will come back to you with anything new. Joining us now for some analysis, kevin landis from firsthand capital management, bernie mcturnan. Down about 5 , 6 after hours. Disappointment around the subgrowth . Exactly it. The q results came in below expectations u. S. And can dads are roughly fwlat. We were expecting them to be down as well as the street also on the positive side, the free capital story and the capital margin guide capital margin guide is raised for year and free capital is down to break even better than what we were expecting. The sto. I want to come to ed lee on a point. They are talking about competition saying disneys recent restructuring means they are entering the field they are thrilled to be kpeting with disney. Spinning that as a positive, suggesting that all of this general shift to over the top to streaming is a sort of net positive kind of hard to get your head around that. Surely more competition isnt necessarily a positive. They are always thrilled to be competing, around they . I mean, they tend to signal that in previous quarters i think what they are trying to talk about really is yes all of these new entrants are coming into the mark place, peacock launching, disney plus earlier this year, viacom is revamping their service to be more streaming forward. There is key difference. Unlike these others, netflix spends every penny on production and then some. They are going to be cash flow negative again this year despite the cash flow positive we had this quarter last quarter and most this year thats going to go back to negative thats a positive for investors. Tis me for all of the machine they spend on sports rights, content and movie studio stuff a lot of it doesnt end up on streaming. A lot of it may not end up on streaming services thats a bridge they havent crossed. Once that happens thats when netflix should be getting worried because for all the money they are spending these other byes are spending more on content overall. Kevin, your perspective as a share holer. The 2. 2 million net additions for subscribers, does that fall in line with what you are expecting as far as a moderating growth rate after the height of the pandemic last quarter or are you disappointed i think it is within the boundary i mean looking back at the last year, certain stocks, peloton, zoom, kind of came out of nowhere and got this huge updraft. You have to remember that netflix was already kind of a monster success before all this happened so the fact that people stayed home, yeah, it helped them, but, you know, this is already a story that was rolling it is kind of large numbers. Netflix is big already they cant no matter how many things go their way they cant accelerate beyond a certain level. Bernie is the content slate Strong Enough going into the new year of course it comes as they lose some of their legacy shows as well like the office. In the shareholder letter they mentioned the content weight kevin mentioned poll ton here. Netflixs eva stales module had gone from six times to eight and a half times and revenue estimates only moved up a contrast this to peloton where revenue estimates moved up 10 sfo we always get a big move in shares of flet knicks either up or down after hours because it is a big expectation we are down 5 are you a buyer on the weakness . I will be honest with you, i was trying to pick up my phone to see how far down we were. Abuse at luke Capital Markets we have a 600 price target on netflix and a buy. We know going into earnings it can be volatile in netflix it is what it is it has been that way for a very, very long time candidly a lot of the estimates are really off the data trackers tend to be off. You dont note get guide one way or the other i think one thing we all do know if you take off the analyst hat and put aside the investment thesis netflix is here to stay it does have the ability now as we have seen due to covid to be profitable they are reinvesting every dollar they get. And yes they may not be cash positive in the subsequent quarters because they are continuing to reinvest a lot of Box Office Hits that were expected to go to the box office, Chicago Seven and other movies that were going to theaters are not, her going straight to netflix. I think netflix is going to be a huge ben factor of this. Weather we continue this stay at home trend or not, stay at home is going to continue to be here regardless of how we look at it. It is getting cold i think netflix is going to do well and we should see the 600 price target we have on the number and blow through it moving out 12 to 18 months. Jewel yao, what stands out through the rest of the release . This is netflixs biggest earnings miss since the public went public, missed 19 this quarter. 12 miss last quarter. Equally important to note here is that the company is stressing it is making progress on shooting they have completed principal photographry on 50 products saying covid and they expect to complete shooting on [ no audio ] times here, they are saying that they except to be free cash to be feg any. 1 million to break even for 2021 so they are trying to increase profitability as they transition to the production of netflix originals. As you mentioned moving away from reliance on the licensed shows more towards original production which is have more up front costs. Guys. Got it. Julia thank you. Netflix down a little less than 5 afterhours more on that in just a moment. Want to get you texas instrument numbers. Josh lipton with thousands. Reporting q 3 eps of 1. 45 expectations were 1. 28 revenue, 3. 82 billion 3. 45 billion q 4 forecast stronger relative to expectations, between 120 and 140 between 3. 41 and 3. 69 billion. Interesting comments were the ceo saying revenue increased 18 squengly he calls out notable strength from the rebound in automotive demand and growing demand he says, too, from personal electronic thats why chip investors Pay Attention to ti because they have chips in person electronics, automotive and industrial heading into this print this stock was already up 60 from the march low, now on track for its seventh straight month of gains. Josh thanks mike santoli, a nice sort of cyclical indicator to some extent there it is a better economic read across multiple sectors than most of the semis are. I think it has also been a strong stock recent high was around 154 and change obviously in a leadership group. I think it kind of confirms the markets enthusiasm with semiconductors both on the cyclical basis and longer term pretty much in line with roughly what i think the stroet was positioned for but on the net positive another one crossing the tape snap julia . Reporting better than expected results across the bort revenue increasing 52 pores to 4 9 million in the quarter surpassing analysts expectations of 25 Revenue Growth. And the Company Reported a profit of 1 per share they expected to lose 5 per share. This quarter is snaps second profitable quarter user base is growing faster than expected added 9 million daily active users in the qur the company itself forecast the addition of between 4 and 6 millions new users analysts were looking for new user growth at the high end of that range, this is above that ending with 249 million daily active users that faster than expected top line growth as well as user growth resulted in stronger than expected average revenue per user in the prepared remarks which snap shared ahead of the earning call coming up the company goss difficult some guidance saying they believe q 4 Revenue Growth of between 47 to 50 growth is potentially attainable and they also expect Expense Growth in the Fourth Quarter to be higher than what they have observed this year they say that they believe that user growth will continue in the same 18 year over year range of what what they are reporting this quarter far better than expected across the board there guys. Julia thanks for that up 17 in afterhours trade. We will discuss snap more later in the hour. First of you will a, pivoting back to netflix, kevin landis, we were discussing earlier, you said there is only when it gets to a certain size a limit to how much they can grow the top line what about the bottom line do you think they can hike prices again i think they certainly could i cant think of a worse time to abandon netflix than heading into the cold months while we are still stuck at home. And so i guess the only reason not to is that even if the numbers are alittle bit disappointing right now they are on a roll, things are trending in the right direction this is the time not to take any extra chances not to mess things up with a price increase if you think thats going to hurt your share your subscriber base. But they have room they can bump it if they want to and at some point, they will thats the historical pattern. It is just a question of timing. Ed lee, i was wondering about the cutis backlash and whether that would show up anywhere. During the company is going the address it and whether that had a material exact on churn because they had so much controversy there . You mean are you talking about the programming with the cutis and the other aspects of what they have had yeah, with cutis in particular, because that was during the quarter, wasnt it. It is a good point. Its a good question i think they are going to point to just looking through the investor letter they are pointing to sort of record engagement as julia pointed out earlier. As they do every quarter they talk about highlights in terms of most watched things cobra kai was big, old guard was a big viewer despite the controversy despite concerns about production after a pandemic they seem to be doing fine both in terms of viewership and also what the slate is going the look like. I think they are anticipating bumping that up especially as lockdowns start to lift and they ramp up production elsewhere so i think that is going to be an important part. The other thing i want to address is that despite the slowdown i mean they are still looking at 90 Million Subscribers in the u. S. Total. Thats their total Addressable Market i dont think they have veered off of that target i think it is just a question of how much longer it take them to get there, especially with new competitors coming into the fray netflix is the biggest streamer around the world, for years to come it is going to be a question back to pricing power, how much more they can increase prices and how quickly they can get into other mark or expand in the market they are in now if you are an investor thats what you want to be more concerned about, more so than margin, more so than bottom line i think it is a top line, a subscriber growth story for them. Well, we will leave it there. Ed lee thank you very much netflix down 5. 4 afterhours. Snap is surging double digits. Thank you all for being with us. Up next on the show we will break down Interactive Brokers numbers which just crashed the tape the outlook on the market and we will be joined by their ceo. Plus mark meadows, white house chief of staff will join us to discuss where stimulus stand right now. Back in just 90 seconds. keeping your oysters growing while keeping your business growing has you swamped. you need to hire i need indeed indeed you do. The moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base so you can start hiring right away. Claim your seventyfivedollar credit when you post your first job at indeed. Com promo when it comes to the quality of our cars the highest. Its why only 1 in 10 cars we look at qualify to sell on our site. If its been in a reported accident, we wont sell it. And at our stateoftheart facilities our ase certified mechanics roll up their sleeves and get to it. Inspecting, dialingin, and fine tuning every single car inside and out, bringing all of it up to our high standards. By the time were done, our cars are beyond certified. Theyre carvana certified. So whether you have it delivered or pick it up, we do it all so you can rest easy. Coming up, people find out where stimulus talks stand when we are joined by white house chief of staff mark meadows. A reminder, you can always watch to listen to us live on the go on the cnbc app. We will be back in just a couple of minutes expecto patronum and action. 16 people died did he catch our bad guy . Were know as the charmed ones. You got one day to show me what you got. I want to fight. You need us harry. What a goal bockey ball, hockey ball, you name it ball. Im gonna be ready. Just say show me peacock into your xfinity voice remote or download the app today. Welcome back Interactive Brokers out with its request 3 earnings revenuing topping estimates with adjusted eps at 53 cents per share. Shares down slightly in aftermarket trade. Joining us on the phone, Interactive Brokers founder and chairman, thomas peterffy. Thank you for joining us before your broader analysts call i wanted to start on the pace of account openings and accounts growth which was on a tear earlier in the year. What is it looking like for this quarter . Growth continues to be terrific we have new account applications from all over the world. And its really going swimmingly. Has engagement of those new accounts tailed off at all have you seen the level with which new traders are engaged in how much they are investing has that changed at all during the course of the pandemic well, lately, the new accounts are somewhat not significantly, but somewhat smaller than they were in the spring and early summer. But the enthusiasm just keeps up how long do you expect that to last . Can it last post pandemic or is it just a phenomenon of being here it cannot last forever. I expect the numbers will moderate as we go into the third quarter. I mean into the Fourth Quarter. And especially now before the elections people are squaring away their positions and they are going to go into a wait mode and then after the election, well see what happens also, as more and more people get the virus without serious repercussions and it becomes apparent that this is for healthy people, this hysteria, hysterical reaction that has blown out of proportions i think people are return to work and trading will moderate. What is your view in terms of the level of bullishness or bearishness of your clients . What levels of cash are People Holding at the moment . Sorry, could you repeat. What are cash levels like at the moment in customer accounts . Cash levels look at it this way we have 240 billion of customer deposits which 71 billion are in cash. It is roughly a quarter of customer accounts are in cash. Is that high or low relative to norm . Its slightly higher than normal. Thomas thank you for joining us i know we have got to let you go for your analyst call. We appreciate you calling us ahead of that. Thats right. Thank you very much, bye. Still ahead, white house chief of staff mark meadows joins us for an upda oten whether lawmakers are closer to reaching a new stimulus deal today. Well be right back. Like where to find the cheapest gas in town and which supermarket gives you the most bang for your buck. Something else thats good to know. If you have medicare you may be able to get more benefits without paying more through a Medicare Advantage plan. Call now to request this free guide. Learn about plans that could give you more benefits from humana. A company with nearly 60 years of experience in the healthcare industry. 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Time for a cnbc news update with sue herera. Heres what is happening at this hour n. New york, new jersey, and connecticut they now have 40 states and territories on their qupt list pennsylvania, new jersey, and connecticut have enough cases to qualify for the list but have been excluded. You can go to cnbc. Com to see why. The cdc is recommending americans wear face coverings while traveling including in terminals. The guidance falls short of recommendations of some travel industry groups. The cdc after a covid shorten ed season the world series begins topd the National Leagues Los Angeles Dodgers will an enormous player payroll take on the budget mined Tampa Bay Rays of the american league. Despite the different Financial Strategy each team had the best record in its league it should be excited to watch. Thats the news update this hour sara, i will sends it back to you. Amazing they even got to this point after some of the Hillary Clinton ups early in the season. It was really rough touch and go. Speaking of touch and go, nancy pelosi and Steven Mnuchin speaking on the phone. Earlier today speaker plessy mentioned she believed a deal could be done by the end of the day. And Mitch Mcconnell said the senate would consider a larger package if a deal could be reached between the white house and the house. Where do negotiations stand right now . We will get you the answer here hopefully. White house chief of staff mark meadows joins us now it is good to have you where do the negotiations stand . Great to be with you. I just got off the phone with second mnuchin as you know, he had about a 45minute phone call with Speaker Pelosi and as they were working together, you know, weve made good progress. And even further progress today. We are still have a number of open items that still remain as of today what we have decided to do is actually work with some of the committees on both the senate house committees, the corresponding committees, whether it be on tax or appropriations or health and Human Services so as we get those committees together they are going to look at some of the language. But i want to stress, we are not just down to a difference of language and a few dollars we still have a ways to go but i would say that the conversations today were productive enough to continue to have discussions tomorrow, which the speaker and the secretary plan to do exactly that tomorrow afternoon. Where are we on the total size of the package at this point . Which has also been a big Sticking Point and moving target it has been a Sticking Point, as you know, the secretary and i have actually increased the offer from the 1 trillion mark that we started with it went to 1. 3, then 1. 5 it currently sits at about 1. 88 trillion Speaker Pelosi continues to stay at her 2. 2 trillion mark or 2. 4, depending on what she puts in the package so there is still several hundred billion dollars apart between the two parties. State and local spending is still an issue that remains largely unchanged and still with a long ways to go. But that being said what we are trying to do is take some of the policy differences that would be poison pills for Senate Republicans working with your Senate Colleagues working with Mitch Mcconnell and his team and his corresponding chairmen of committees to at least get the language in place that even if we can work on the numbers i spoke to the president a couple of times on this today. He has been very, very bullish on trying to make sure that if its just a dollar amount that we are disagreeing on, that we perhaps increase the amount of money that we have for support for Small Businesses and ppp that we provide some additional tax incentives for onshoring for manufacturing coming from abroad to the United States. Or that we increase the direct payments to both adults and children that have really suffered under this pandemic slowdown so right now, its twofold it is not just the money but we are still several hundred billion dollars apart in terms of reaching a deal i would think that those discussions hopefully we will make progress depend tomorrow, and perhaps the following day. And everybody is working real hard to try to make sure that we can get some kind of an agreement before the weekend at least so that we can help set the agenda for the following couple of weeks elect latively for both senate and house. Mark you mentioned Senate Republicans and you mentioned prior to that the progress between Speaker Pelosi and stekt mnuchin. Are Senate Republicans now the biggest hurdle to getting a deal over the line before the election no. Thats a great question. Actually i think the biggest hurdle of getting a deal still remains Speaker Pelosi if i were to characterize it in one way. We continued to offer a number of different options, a number of different compromises, whether it is a small bill that we would add to as leader mcconnell and the Senate Republicans are working on or whether it is actually increasing the offer from the republican side coming from the white house, we have done that but i can say that the speaker largely has remained unchanged even though the number came down from her original heroes act i dont know there were compromises made as much as she changed timelines to the total amount of money. The biggest stumbling block remains Speaker Pelosi and her unwillingness to take yes as an answer. One person when has changed, the president. He tweeted i have instructed my representatives to stop negotiating until after the election what triggered his uturn on this it was twofold. One is as they were sharing with the president the lack of ability for the speaker to actually compromise on any particular item, he says, why are we wasting our time . Why are we putting forth really hope for the American People when there is not much of a hope of getting a deal done in doing that, you know, he looked at really so many people that are hurting across the country, a number of Small Businesses, whether it is in airlines or in hotels, restaurants, or a vast majority of Small Businesses more broadly. And he says, you know he cooperate just stand by even though he felt like the speaker was not negotiating in good faith in and just sit back so he asked secretary mnuchin and myself to reengage thats what weve done hopefully, she will start to feel bipartisan pressure to take a deal i can tell you i have had a number of discussions with some of my democrat colleagues when i had my time in congress. Those conversations have gone extremely well and i think she were to put even the offer that we have on the table right now to a floor vote that it would pass overwhelmingly you know, in a diplombipartisan manner yet it has been pretty much her way or the highway, or a full deal, comprehensive deal under her terms or nothing at all. I think the American People expect both sides to compromise. Hopefully they have seen the president has done exactly that. We do but we also hear from Senate Republicans they are not comfortable with spending more money, let alone almost 2 trillion right now how are you addressing those concerns within your own party about the size of the deb and whether we need that kind of spending right now that could divide the republican conference two weeks before the election . Well, i can tell you that it probably will divide the republican conference. You have some senators who really believe that we have done enough for the economy and wants zero you have some that believe that at the 1. 88 number that we are at that, certainly we have been more than generous on a variety of issues, and they support that number and then you have a number of others that are in between so leader mcconnell has actually been fully engaged i speak to the leader or the lead leaders staff on a daily basis, sometimes multiple times a day trying to keep them updated on everything but at the end of the day this is going to have to be a bipartisan deal. And i think there is a lot of Senate Republicans who believe that even 1 trillion was more than enough to actually meet the actual needs i can tell you, based on the numbers that we are looking at, the offer that is on the table from the white house actually has gone well above what the numbers would justify or actually the losses or needs in each one of those categories so, you know, its like with anything else. You have these deadlines todays deadline was an artificial deadline. You know, in four terms in congress i never heard of an october 20th deadline. But we will continue to stay involved with leader mcconnell he has promised to fully consider, if it is a bipartisan deal make sure it has considering on the senate floor. Mark, very quickly, if fiscally conterve servetive republicans in the senate made an ultimatum, either Amy Coney Barrett or stimulus, which is the priority listen, thats a false choice because we can actually do both. We will do both. At the end of the day, i am hopeful that a well qualified judge gets confirmed next monday and hopefully we can move from there and do a very generous offer that the president has made and get that approved and passed before people go to the polls on november 3rd. Mark meadows, thank you for joining us thanks. Great to be with you. Netflix shares under pressure after disappointing subscriber growth. More analysis when we come back. Before we talk about taxsmart investing, whats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. If youre concerned about the environment and climate change, how do you find companies that are driving the right outcomes . If you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities . For nearly 40 years, calvert has delivered competitive returns by investing in Companies Making a difference because we see value in doing good. Talk to your Financial Advisor about investing responsibly with calvert. Welcome back lets get a check on netflix after hours. Shares are lower, down about 5. 5 right now missing on revenue estimates, earnings and key net sub viber adds those came in lower than expected the Company Giving disney a shout out in its letter saying in part we are thrilled to be competing with disney and a growing number of other players. Consumers will benefit from your mutual desire the bring streaming services all over the world. Joining us now, ben my question to you is as a content creator. Netflix is saying they couldnt keep up the kind of momentum they saw in the banner first half do you think the competition is going to weigh on netflix, with disney plus and peacock entering the market. Netflix was clearly the first mover into this space and created an unbelievable platform and obviously outinvested in the direct to consumer streaming market everyone they dealt with and competed with. Obviously the arrival of disney and others is real, and serious. It feels to me netflix is almost computing more with youtube on a certain level in that we are Super Premium content but they want to be content for everyone around the world like youtube is whereas disney still feels very branded, and i think within its brand. But obviously, the most powerful brand in the history of content, potentially, is disney so thats very real for them on a competition level. I still look at, even with the renewed competition, the headstart netflix has not only in the United States but around the world. Its pretty impressive and extraordinary. And so i think obviously competition is arriving but the fact they already have 195 Million People or whatever the exact number is subscribing is a giant number. Interesting you compare them there ben to youtube i get the reason for it, that global reach and the subscriber number size. But the big difference is cost we have got a wall here of some of the prices available at the moment ranging from free for peacock to over 10, close to 15 and hbo max. Does the quality of their new originals particularly when they are losing shows like the Office Warrant that premium price at the moment well, when i see the volume of originals that they have, its pretty impressive and in this moment where we are all starved for new content because the production slowdown not only affected netflix, it affected every single carrier of programming in the world, they still are offering more today in terms of the content than anyone else to access i think the value of the libraries are real, though and what i am seeing and curious about, you know, just depending on the level of wealth that particular households have people arent accelerating the cord setting and the net spend down as much as i thought they would. And obviously, the pandemic has accelerated all those trends more than any even could have predicated but the fact that there is so much investment to make in the content still, and capital express, i mean, it just feels like they have a real shot to continue their momentum and leadership and other people are just keep adding costs like i added disney, i didnt cut anything you know, i have an amazon prime membership so i am keeping that prime membership for multiple reasons. I am getting apple still for free because i bought a phone. So i have yet to really have the pay for it i am accessing peacock for free. There is not a lot of choices i am being forced to make. I already was an hbo subscriber. So i havent quite noticed a difference in my monthly budget. Ben, always a pleasure, thank you for joining us. Thank you. Up next much more on this afternoons biggest earnings movers plus the one retailer hoping to boost its business with a play on active wear back in a couple of minutes. New. You need to hire. I need indeed. Indeed you do. The moment you sponsor a job on indeed you get a short list of quality candidates from our resume database so you can start hiring right away. Claim your seventy five dollar credit, when you post your first job at indeed. Com home. Kohls the Department Store announcing the launch of private label as a part of a broader plan to expand they said with an emphasis on quality and high leisure, this will be a great answer to the growing trends kohls has been quietly betting big on athleisure. No vowels we pronounce it how . Flex . It has an e, e is a brand. I see it at the bottom, flx maybe its a typo. Maybe it doesnt. We will clarify during this short break. Coird. Snt have a e. Nfme so my question wasnt quite as stupid as you made it sound. We will be back. Expecto patronum and action. 16 people died did he catch our bad guy . Were know as the charmed ones. You got one day to show me what you got. I want to fight. You need us harry. What a goal bockey ball, hockey ball, you name it ball. Im gonna be ready. Just say show me peacock into your xfinity voice remote or download the app today. Another huge day for earnings tomorrow. Top names investors need to be watching hey, dad hey, son no dad, its a video call. You got to move the phone in front of you like. Like its a mirror, dad. You know . Alright, okay. Hows that . Is that how you hold a mirror . [ding] power e trade gives you an awardwinning mobile app with powerful, easytouse tools and interactive charts to give you an edge, 24 7 support when you need it the most plus 0 commissions for online u. S. Listed stocks. Dont get mad. Get e trade and start trading today. A quick check on this afternoons biggest after hours movers netflix sinking on weaker than expected earnings. Across the board surprise growth for snap Texas Instruments up as the reports top estimates. And tomorrow verizon, chipotle and others we were talking about whether companies would get rewarded for better numbers today they did we saw that with proctor gamble, snap especially what else will you be looking for tomorrow pg and e is a modest move the coat tail moves after hours for snap the other part, netflix and amazon where customers affirmatively decide to buy the product. Amazon is down a bit and netflix is backing off as well considering we are down 1. 2 so far this week, is the tone for mark meadows in terms of the likelihood of a stimulus pretty optimistic relative to the gut check yesterday when stimulus hopes seemed to have faded i dont know if we could take that as optimistic as far as how the process will carry along the white house is willing to make a deal. Talking about it being more than wording changes that divide these two sides. Seems to me the market will be wait and see twitchy with response to headlines, but not assuming that anyones handicapping of this process we need both sides to show flexibility in negotiations. No vowels, you are right. There was a vowel in my script thanks for watching im melissa lee and this is fast money tonight snap pops, the stock rocketing higher in after hours session. We will break down the quarter straight ahead, plus the big morning on uber. And what the retailer Just Announced from snap that got t