Transcripts For CNBC Squawk Alley 20170417

Good monday morning. Welcome to squawk alley. Jon fortt has the morning off. Earning season will be a big narrative kicking into second gear after the close tonight. Netflix topping the list of stocks to watch as the Company Looks to build on last quarters subgrowth. Julia boorstin is watching details on that. Netflix blew away last quarter. They projected adding 2. 5 million streaming subscribers. Netflix jumped from 50 territories to 200 territories last year and this quarter was quieter and didnt have as many new show launches. Investors are also watching for Second Quarter guidance. Expecting netflix will project about 2. 5 million new subscribers for q2 and hopes are high for returning hits such as orange is the new black there are concerns about the u. S. Market becomie ining saturated growing competition from amazon and hbo Live Streaming services and bundled from dish, directv and a report says its all about International Subs from here that theres a lot of white space to fill in. Jpmorgan says netflix could have more net addition this is year than last year as content ramps throughout the year. As the cost of content continues to be bit up, we expect netflix to burn cash to Fund Acquisition of content. Well watch for commentary on all of these issues in a letter to shareholders at 4 00 p. M. Eastern and on the video call that netflix hosts with investors at 6 00 p. M. Eastern. Carl . Busy night for you. Well check with you later. Nasdaq looks to rebound today after three Straight Days of losses. Good morning, guys. Good to see you both. Good morning. Andy, lets touch on netflix just to get going because julia made a good point. You never know what youre going to get on subs. You make the added point even though q s1 will be solid there guidance for q2. Weve been big bulls on netflix for quite a while and love the company. When you look at the mag knnit when you look at the mag knniud of beat that we saw and stock below average, sub beats may not be enough to move it here. If we get a tremendous quarter, which is possible, i think volatility would be subdued relative to what weve seen the last several years. I want to hit on the competition angle. We always think amazon as the direct competitor here. There are so many more offerings. Youtube is coming out with one. Hulo is coming out. Directv continuing to push into this. When does it impact, if at all, the Netflix Subscriber growth in the u. S. . I think we still have quite a ways to go before you would see competition impacting them in the u. S. And the nice thing is these services arent mutually exclusive and a lot of what we see is because of the success of netflix and reflective of really the tremendous job theyve done here. We fully expect their growth to slow here because youre getting to the saturation point, but i dont see any signs competition is having a meaningful impact on them. As a pm, how does one approach netflix earnings given the amount of volatility that we normally see either way after the print . Well, i think with the stock like netflix, youre not necessarily basing your investment view on what the subscriber number looks like this quarter or even next quarter. Youre grounding yourself in what you think the business looks like out in 2020, 2021, both from a domestic and international standpoint and i think moreover as andy mentioned, you know, there are a number of competitors out there. Its a quickly evolving space and we actually think another way to view net flicflix is not shear distribution footprint but the data they collect on their s subviscriber space and artifici intelligence over time as well. How often does it set tone for other Technology Stocks which tech is now the best performing sector for s p so far this year up more than 10 . Yeah. It really is. And i dont think netflix by any means actually sets the tone because its its own unique beast. Over the last five or six months is instructive about what happened and posttrump election, you actually saw tech underperform meaningfully toward the end of the year just on the prospect of policy and what that could mean for other sectors. As we got into late january and we started going through reporting season for the calendar year end, fundamentals really started to shine through in the tech sector. You saw out performance. Were strong believers that stock prices will follow economic fundamentals over time and whether were in a low growth environment, whether were in a more moderate growth or higher growth environment, we think tech is pretty well positioned in aggregate given a number of trends. I wonder what you make of that. I look at stocks today. We went a long time without violating the 50 day still below it we had high profile downgrades of superstars in the space. Do chips worry you as part of that larger tech narrative. Fortunately i dont have to deal in chip space very often. I find that to be a tremendously difficult space to be an analyst in. In the areas i cover, internet, media, consumer electronics, smartphones, trends still reasonably good. I think internet in particular especially at the high end of these businesses are performing well right now. When you look around the universe of stocks outside of tech, they seem quite attractive from my perspective on a valuation basis for what youre getting. And a lot was baked into the story following the election. A big part of it in tech was repatriation which like a lot of other things in policy maybe looks distant today than it did a couple months ago. Is that worrisome . No. I dont think so. I dont think you saw much of a boost in tech stocks simply from repatriati repatriation. There are two sides to that story. Other is tax reform. If you look at larger cap tech in particular, they have low blended average tax rates so theyre not natural beneficiaries there more small to mid cap side. I think repatriation maybe in a few Companies Like apple where you have roughly 250 billion in cash where theres clearly some benefit there. I think onnin aggregate it had impact on stocks. Thank you, guys. Well talk to you soon. Thank you. And some details there. Dont forget to stay with cnbc, complete coverage of netflix earnings when they hit the tape just after the close on closing bell today and earnings from united continental. When we come back, waarts latest plan to win back millennials gain a unique foothold and uber out with numbers from 2016. Still not profitable. Well check in on that and later, Chaim Katzman. Dow is up 101. Walmart in advance talks to buy bonobos. No word on price but if confirmed it would be walmarts latest push to slide folidify i as the number two. Its always good to check in with you. Good morning to you. Good morning. This will be a big step. Its a high profile name. It would be a high profile buyer. Yeah. Theyve been buying a lot of stuff under mark lore. They there was a whole bunch of purchases they made. Smaller than this one. This is going to be factor of three or four times more expensive if the acquisition is completed. Its high profile acquisition. A hip brand thats not quite in the walmart wheelhouse, but theyre trying to get digital experience and Digital Natives working there given how badly theyve been falling behind amazon and how important it is to compete with amazon. Kara, we talked to the ceo andy dunn last november and it was just after the Dollar Shave Club acquisition and i asked mr. Dunn if he was going to be the next sort of online hot growth takeout by a bigger company. Heres what he said about that. Its an exciting time in ecommerce. Were optimistic were building a real business and not flash in the pan sales story and Venture Capital story. You are profitable, correct . We are profitable which is one of the goals of a business. Were excited with all of the attention ecommerce has gotten few Companies Said they could get out and make money. He did mention his friend, mark lore, giving us a sneak peek. Was this inevitable . Something special or are Big Companies looking for small upstarts online . Well, these companies cant find funding also. Thats an issue. I think they cant find nobody is really funding ecommerce. Mark talked about it on stage recently. They cant raise the money. They are very promising businesses and maybe attached to a larger business they can do better. I think its all about amazon and how do you compete with amazon if youre walmart and theyve been trying all kinds of different ways and now its headed by mark who is a very prominent and aggressive executive, and well see if he with cobble together all of these different parts to create a whole. I dont know. I think youll see a lot more of these on a lot of these either get acquired or they dont stay in business because retail is hard and its hard being small in retail. For a while there walmart had this image of putting a shop in Silicon Valley to grow some of this on their own. Now we have this bolt on framework. Too simplicistic to say theyllo this by buying other smaller pieces . They can open the office they want. It doesnt make you digitalicaldigitally native. It doesnt make you everything is happening at walmart is going on in arkansas and elsewhere and so i think they really do, its a very different thing to move into digital as powerful of a retailer is walmart is, it is not in their area of expertise so they have to bring in as many executives as possible to do that and even then its incredibly hard to do if youre not a digital native. Amazon is and cleaning everybodys clock in this area. Even a big retailer like walmart has to be worried about it. Interested in what you said about fundraising drying up and how companies are having trouble getting out and raising money given what you also said about valuations which could look rich. Whats going on there . Well, theyre not that high, right. I think they were at 300 million at the last raise. Im not sure. Modcloth went out for a relative modest sum compared to how much they raised. Obviously jet did very well. It raised a lot of money at the same time. You know, weve had a lot of people come on and talk about that issue about how hard it is to raise money and how they find ecommerce tough going. Thats one of the issues is it takes a lot of money to build these things out and well see where it goes. Youre going to see a lot of acquisiti acquisitions. Not unsimilar to what happened in the boutique and analog space. Smaller retailers bought up by big ones. Now theyre owned by you never know who owns what boutique. Its not an unusual thing to happen. And i think youre going to see a lot of good ones get snapped up. Right on that number. 300 million is correct. Speaking of numbers, uber is out with their 2016 operating figures. The company says it generated 6. 5 billion in revenue last year. Gross bookings. Total fares charged before drivers get their cuts doubles to 20 billion. Adjusted net losses 2. 8 million excludeing china. As the Company Continues to grapple with pr headaches and corporate strife. Some of this was weighed in this morning on squawk. Take a listen. I think culture is terrible at that company. Its really amazing that people want to work there. People are voting with their feet. And thats what happens with a company like that if you have a bad culture. And overall a good company in Silicon Valley depends upon having great talent. Wont be those numbers or other antics. Inability to attract great talent. You have that. You have kkr investing in lyft. Apple getting a permit to test driverless in california. Where does uber stand right now . Its a tough market for uber now. I think most of this stuff having an uber is selfinflicted. Lets be honest. Around sexism and Sexual Harassment and lawsuit. Obviously not spending this money on hr or technology infringement compliance. I mean, really. Its a lot of money to lose. A lot of money. I think they released these numbers to show how much theyre growing and how strong they are and thats absolutely true, but they are certainly a money burning machine. And i think theyre trying to make comparison to amazon, which did that for many years, and of course its turned out to be the best thing, and you could make an argument that uber is doing that and theyre growing revenue and growing their businesses. Theyre in 75 countries. But theyre worth 68 billion at this point and raised, i forget how much, a lot of money. Many, many, many billions of dollars. The question is can they move it into a profitable business especially with all of these pressures around selfdriving cars, lyft has new life into it given the controversy at uber. Theres all kinds of challenges all over the place and spending money is one of them and figuring out how to make a great business out of this will be an important focus if you werent focused on the other 20 bad things that were happening there. You mentioned valuation and clearly the numbers of still impressive in terms of bookings at 20 billion. Do you think cultural issues and the bad press and nightmare after nightmare have had any impact on the valuation . No. I dont think so. I dont think so at this point. Everybody in Silicon Valley who is powerful owns a piece of this company. Theyre not going to let it go down easily. Its not too big to fail but kind of is. Theyll do anything it takes to get a good coo thats not just a cosmetic position. Dont see travis job under risk but you never know with this investigation which will come out in mid may sometime. I think its definitely a work in progress. The money theyre spending, i think they have 7 billion left of cash and theyre spending 3 a year. You know, that will give you an idea of what they need to do to get to where they need to go. Finally, one more story on sunday 37yearold Steve Stevens posted a video of him kimmi iki another man on facebook. He did go live earlier but only speaking to the camera. Facebook has taken down the video. You have talked to Mark Zuckerberg this year. Viewers wonder whether this would have created more outrage had it been on twitter. How are you thinking about this story . Mark has been very concerned about these issues. He was affected by the suicide that happened that they didnt catch as it was happening and she was talking about it, i think it was a woman. I think, you know, if youre the biggest platform for broadcast, people are going to and you let anyone broadcast anything, youre going to have these things happen. I think the difficulty is trying to figure out how to stop them. In this case it wasnt from what i understand, it was uploaded later. I think its where people want to show their stuff off and thats because its a successful platform. You know, i think facebook is beginning to understand that it has a responsibility as a platform in ways never thought before. Its not a benign platform. Its platform of humanity now and theres billions of people on it. Theyre going to put up stuff like this. The question is how does facebook deal with that and what is facebooks responsibility . These are issues mark is grappling with and facebook is grappling with and they should. Not just in this but in fake news and all kinds of things and so its time to grow up and really understand their impact. Some are wondering if there should be regulatory restrictions just in the way that traditional broadcasters have on content and what that would look like and how that would work. Yeah. Thats an interesting question. I doubt that they will want to advocate for that. You know, its a really push pull for them is they created a platform where anybody can accomplish anything a can publish anything and even the most vile of people and this reaches a very low level of humanity. I dont know. Its a really difficult question. What i dont want to hear from facebook is its real hard. They are making billions of dollars. They are all billionaires over there. So they should be able to figure out how to handle this in an adult i sound like a mom right now i guess. Its just oh, you better clean it up. Its important. These are important issues. You are quoted this morning as saying that zuckerberg upped his emotional eq and making pr progress. Considered less the soulless face of the company. The what face . Less and less seen as this emotionless soulless face of the company. I dont think so. I dont think he ever was. I never did. That was an interview i did with buzzfeed. I think mark is a learning organism. I think he really does care about these issues. I never compliment billionaires but in this case i think he really does. His essay if you feel like reading 6,000 words, you should read it. Hes really thinking hard about these issues. The question is, hes got to move just as quickly. Not just resuwrite essays on th. Interesting to hear what he says tomorrow. Well talk about vr but interesting if he addresses some of these issues because he thinks about what community is and what community hes built and i do give him credit for being thoughtful about these things and thinking theyre important and progressing. Compared to a lot of young ceos in Silicon Valley, he certainly is learning organism and i do applaud him for that. Kara covered a lot of ground today. Appreciate it as always. See you soon. Kocomplimented a billionaire. Look at shares of arconic. Shareholder pressure pushing klei kleinfeld to step aside. Squawk alley will be right back. Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. Hedge funds off to a strong start for 2017 and one of their best in nearly four years. Lets send it over to leslie tracking it back at hq. This is a bit of a change. Thats right. Things are looking up for hedge funds. The industry posted its best start to the year since 2013. Thats according to the hedge fund benchmark. The gauge showed hedge funds gained during the First Quarter and 11. 6 for the year. The performance comes at a pivotal time for the industry as hedge funds managers face redemptions and pressure on fees so does First Quarter performance signal new life in the Hedge Fund Industry . Potentially. Despite gains, hedge funds trail s p 500 during both the quarter and the year even the best performing strategies event driven and equity trailed s p during the quarter. Their solid First Quarter may not be enough to bring hoards of investors back in and its clear from the First Quarter investor letters that weve seen that Hedge Fund Managers are anxious about the markets in the future. Lee cooperman said that u. S. Equity markets will take a rest. Value act decided to return 1. 25 billion to investors due to what they saw to be a lack of investable opportunities. Now, we should see more investor letters this week, which could unveil a similar pattern. Back over to you, carl. All right. Thank you for that. Still to come this morning, Real Estate Investor Chaim Katzman on walmarts latest ecommerce bet. Session highs here up 112. Here is your cnbc news update this hour. Vice president mike pence visiting the Demilitarized Zone separating north and south korea arriving by helicopter at a u. S. Military base next to the dnz. He repeated the administrations stance toward north korea. North korea conducted two tests in an unprecedented number of missile tests conductsing co failed Missile Launch as i traveled here for this visit. The era of patience is over. A ship with more than 1,000 migrants arriving at port today. 29,000 rescued migrants arrived in italy this year alone. Severe weather across parts of eastern nebraska sunday evening. A tornado caught on camera an hour south of omaha. Fortunately no reports of significant damage. Dramatic video though. Thats the news update this hour. Back down to squawk alley. Retail sales falling for the second straight month as a dozen major retailed chains filed for bankruptcy this year. The retail pain continues as the sector continues its transition from brick and mortar stars to online. Chaim katzman just completed the merger and now operates the biggest shopping mall. Why go all in when Retail Stores are closing left and right . We are in daily necessity item providing business. Supermarkets are not dead. Necessity driven retail is not dead. Services are not dead. 15 of our Shopping Centers are up to date anchored with medical and with food, restaurants and so on. More than 50 of our income is totally ecommerce resistant. So when you talk about ecommerce and whats happening to high end retail, it is one thing. What happened to necessity is entirely different story. You dont see Grocery Sales moving online in the Way Department sales have . No, i dont. Because it never happened before and people still like to go in and look at prepared foods. Amazon fresh phenomenon is hyperurban phenomenon . Absolutely. Been tried before. Been tried during the dotcom bubble. Was not that successful. I dont think its facing it this time around. What are you seeing across the u. S. Because youre exposed here in manhattan and some of the urban centers but also across the country. Is it better or worse in some parts . I think its a tale of two types of real estate. I think high end is suffering today because rents went way too high. I dont subscribe to the notion that ecommerce is stealing the lunch. What is stealing the lunch is high rents. So if rents will become more reasonable, then im sure that everybody would like to be on fifth avenue or madison avenue or like anything else in life, this business is to make money. Were in a period where stores will close and never open again. You see it as more of a cycle that were rolling over that cycle at a certain price it comes back . It is exactly a cycle. Things got a bit ahead of themselves. Too many people believe rents would go up without limit. By the way, ecommerce as well. Ecommerce is financed through the capital markets. Few of them make money. On your last piece you showed what uber performed. It will not last forever. Businesses will all need to make money in the end. What about people say, all right, retail could come back. It has to be a different experience. Has to be more experience aal a environmental. Is that fair . Retail never stops reinventing itself. When i started out, there was no gym in a Shopping Center. Today i dont know of a Shopping Center that does not have a gym. I can give you a host of retailers that came and gone and it keeps coming and it keeps evolving. We never had that many restaurants in our Shopping Centers. We never had that many medical facilities. There are now a regular retailer in our shop aping center. They need to get better with technology as consumers use their cell phones while they shop and even in stores. Whats it going to mean for jobs . Were coming off the worst twomonth stretch for retail jobs since the financial crisis and big concern is this is the top employer in this country and theres a lot more to go. So this is really the biggest problem of them all. In the month of march, retail jobs lost 60,000 jobs. Just to put it in percespectiven this country and were talking about the agenda, coal miners are 83,000. Total. Total. 60,000 jobs were lost in retail in the month of march. Its a bigger problem. Its a much bigger problem. And those jobs were not created on amazon. These jobs are lost forever. Clearly retail is becoming more efficient and becoming multichanneling some would call it so clearly retail are using more and more technology but technology would not the way i see it, would not replace ordinary retail. You mention medical. I went to a suburb outside of philly the other day. I couldnt believe how many medical clinics and inand out nursing and all of this stuff that as you said is ecommerce resistant. Is that here to stay . Absolutely. Its been around forever. There was no Shopping Center we didnt have a dentist in the last 25 years. Later on, our pediatrician and now really the urgency care and m. D. Now of the world really are mushrooming all over it. I wanted to get your thoughts on the state of restaurants. Still pretty soft sales numbers. Who is doing well . What types of restaurants, Fast Food Companies in terms of getting traffic and attracting customers . If you look at a company like first watch, if you look thats a Cincinnati Company. Thats a Cincinnati Company but its all over florida now. If you look at Companies Like panera bread they are still doing well. So this keeps coming. Chicken kitchen is another concept out of florida that i can mention. It is becoming a very important element of retail. We all say that food is the new anchor. I think indeed it is. Just replacing traditional retail and department stores. Who closes on the flip side . Look at the italy concept. Its all over the place. One last question on financing. Are standards getting tighter . Staying the same . Is that why were seeing year on year growth in real estate loans soften . We will see financing is getting tighter on many levels. You see whats happening in the market. It has to do with retail. People concluded retail is over and doomed so they are reacting accordingly. And but you also see tightening on the lower end of the spectrum. You see private investors having a harder time getting loans from the local and community banks. These banks are definitely tightened their standards on lending and it has its effect. This is where the new and better globe in its new Business Venture in the u. S. Will look exactly for that niche. Right between the Institutional Investors and private sector. Something that will be too big for private sector but too small for the institutions. A lot of changes happening out there. Thank you for joining us. The only constant is change. Chaim katzman fresh off the big merger Shopping Center dominan dominance. Still to come, policy shift to more passenger trouble over at united. Well get the latest on that in a moment. Dow up 121. Best day for the s p since late march. Rick santelli, what are you watching . Im watching a good day in the dow. Nasdaq s p but what about rates . Are rates going to change . Are the high yields behind us . Thats what well talk about after the break. Eak. Coming up, your wall street watch list. A lot of noise out there. Well debate the issues weighing on investors minds and zero in on what you need to focus in right now. Kevin oleary joins us today. And top fund manager will join us live from chicago talking about his portfolio moves and give you investable names. Im Brian Sullivan. Scott is off today. Well see you at the top of the hour. Carl . All right. Cant wait. Thanks for that. Lets get to the cme group and check in with rick santelli. Good morning, carl. You know, as i look up on the board, we have triple digit gains up over 110 points on the dow. I look over at treasuries, i see 223 down one basis point. We settle wednesday at 224. Thursday pretty much the same. Closed friday. So what does this mean . We know that theres technically significant areas investors have been paying attention to. I specifically had a pretty fine point on the pencil. The sentiment for 2015, 2. 27 takes us 11 months of 2016 to overtake that level. I think thats significant. But what does it mean now . As i look at some of the data, especially some of the daya ta released on friday when traders were not on trading floors and markets were closed, i saw cpi negative headline number. Everything was pretty soft regarding cpi even though some of the year over year levels still held onto their 2 handle. 2 being the feds arbitrary but inflation target. Retail sales looked soft. Other than control number, which is used as the input in other data patches, that was up. 5. Might have been best news regarding retail sales and empire today really soft especially when you consider the five handle and it wasnt that many months ago february close to 19. That was the best level since september of 2014. So even that losing its glitter a bit. So what does it mean . Some very easy ways that we can approach what comes next. Look at the following chart. This is a chart weve all looked at hundreds of times. November 1st. Pay close attention to that whoosh. Friday, november 4th, we were at 1. 77. Six sessions later were at 2. 26. Thats almost 50 basis points of move. What have we talked about in the past . When you have thinly traded zones and that behavior in the early part of november certainly fits a thin description, that many times you go back and you fill in that thin zone. So heres what we know. Most likely 2. 63 is more secure. That was march 13th of this year high yield close, is probably almost locked in considering the recent activity. Its always hard to say could we return around if were up 2. 50 by the end of the day in stocks, maybe it will back push rates up. Lets say well continue to drift. Look for small range to continue and just consolidate in that thin area because at the end of the day, we could slip down toward 1. 87 worst Case Scenario where lots of the current trade began in november. Squawk alley gang, back to you. All right, rick. Thank you. United unveiling a new policy in reaction to last weeks passenger removal. We have details on that when squawk alley returns with the dow up 112. I just need to knowf the customer app will be live monday. Can we at least analyze customer traffic . Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. Hey youve gotta see this. Cno. N. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. More passenger trouble at united as the Company Updates the boarding policies. Good morning. The latest passenger case from this weekend involved an engaged couple on their way to their wedding when they reboarded their united flight in houston after a stop over. They say they saw a man sleeping spread across their row so they decided to sit three rows up from their ticketed seats which was a higher class. They were asked to pay for an upgrade and the couple declined and they were escorted after the flight. United disputes this saying the couple tried to sit in upgraded seating which they did not pay for and they would not return to their assigned seats. They were not escorted off by an air marshal, but were asked to leave the plane. United having to defend itself again after the dr. Doa incident. United has made changes to the passenger policy. The carrier will no longer use officers to remove passengers and the airline said crew members will no longer be able to bump a passenger who is seated in one of the planes. As for cash compensation, united says its reviewing his compensation policies and delta this weekend has upped its Compensation Scheme to as much as 10,000 per ticket. Back to you. We get united earnings tonight. Delta had good revenue numbers last week. They went positive for the first time in a year or two and then transport up for the best day of the month. Youre looking at united shares up 1. 5 in the sessions because there are expectations that earnings are going come in pretty good. Theyre expecting an acceleration in the quarter. It would be the fifth in a row. Never easy to tell what the material Financial Impact of these pr disasters and social media disasters is going to be. Exactly right. Its hard to gauge at this point, but the stock is trading higher from what it was last week and i think people have gotten their head around maybe this is just a one passenger incident and we can move on from this and look at earnings fundamentals. Thats going to be the theme of the week as we get airlines, but banks tomorrow morning. Thanks again. More squawk alley when we return. Return. Shares of netflix rallying 3 ahead of earnings tonight. Investors watching growth. 5. 3 million new subs expected. Netflix continuing to make Big Investments in content amid increasing streaming competition from amazon, hulu. We had a couple of analysts on today who seemed to suggest that maybe there was no breakout quarter. Thats the key. Thats where theyre expecting the growth what analysts are calling a saturated market. They had the crown last time. Very good show. Theyre spending 6 billion on content and thats another thing that so far investors have given them the benefit of the doubt as long as that subscriber number rise. If that starts to get into the 7 billion range and the growth slows down that could be cause for concern. As everyone gets in the game that raises the cost of content. Theres the promo beginning at 4 00 p. M. Coverage of netflix and united. The fate of the furious on track to leave record block busters like star wars. It brings in 532. 5 million worldwide. In china it grossed 191 million. Last couple of weeks its been all about boss baby in north america. A nice run for comcast. The studio running on all cylinders. Star wars has the best ever opening title. Did you see the new movie . No. Apple continues to make news obviously over the weekend. News from the california state dmv they secured an Autonomous Vehicle permit. A lot of discussion how this points to apples intentions if they plan on making a car one day or developing the software that will be used by other auto manufacturers, but mobility, you cannot escape it in the headlines. Its interesting it comes after that scoop we broke that theyre working on the diabetes treatment and devices. That was a mystery trying to figure out what apple is up to. The stock is up more than 20 with the best performing dow performers so far this year. Overseas earnings in play if the tax reform happens. Heading into the new iphone release in september. The 10year anniversary. Buckle up for tomorrow. Bank of america, goldman sachs, unh, those are some of the big ones and we get into tomorrow night with ibm and yahoo. Were going to get Housing Starts tomorrow. Were now at the point where were watching the French Election polls for the first round of voting on sunday. Lets get over to Brian Sullivan and the half. Welcome to the halftime repor report. Scotts off. Your top trade this hour, buy or bewa beware. Stocks coming off two weeks of decline. The declines may not be over. With us for the hour today joe, steven, josh brown, and of course kevin oleary