Earnings that could change the tone of trading tomorrow. First, netflix which disappointed investors when it said not as many people as expected subscribe to the streaming service in the most recent quarter. Price hikes put off customers and contributed to the sharp slowdown in user growth. On the surface, numbers looked pr scene the. Revenue was inline with expectations and up about 28 from a year ago, it was that subscriber number that sent shares lower initially in after hours trading. Julia bore step has more on netflix results. The big surprise in netflix earnings. Disappointing subscriber additions and projections. The company said the number of new subscribers was on target, the amount of turn or the number of people dropping the service as a result of a price incr kicking in was higher than expected and will continue to impact subscriber numbers in q3. The disappointing numbers are not the result of competition or market saturation, finishing the quarter with over 83 million members. They believe the opportunity is as big as ever. For nightly Business Report, im julia borsstyn in los angeles. The Company Earned 2. 95 a share, and that was six cents better than expectations. Revenues also topped estimates 37 when compared to last year, the results were 2 1 2 lower. Shares of big blue rose in after hours tradin the key thing investors should focus on in ibm support. A straight review what analysts were looking for were signs of improve in growth as ceo Ginny Remetty reports. Cloud watson and cognitive computing along with social and mobil computing are the businesses that ibm is focused on to build their future. They bundle this into the group called strategic imperative. Which ibm hopes will make up 40 of revenues by 2018. You look at the latest report card. The Strategic Imperatives already make up 20 of ibms revenues. Shares are up so far this year, way out performing the mar now to politics and to cleveland. Where the first day of the Republican National convention was not without drama. Opponents of the presumptive president ial nominee donald trump failed in their attempt to hold a roll call vote to oppose his candidacy. This is something the Party Leaders had hoped to avoid. John harwood joins us from the convention itself. A lot of frustration boiling over late in today donald trump is a candidate who aroused strong feelings on the positive and negative. He won the primary fair and square, he deserves to be the republican nominee. Antitrump forces wanted to register their opposition, they tried to force a roll call vote. They got signatures on petitions from a requisite number of states. The protrump forces pushed back hard and got delegates from three states to withdraw their petitions, the result of that was very loud booing and a chaotic scene on the floor when one side was shouting roll call vote, roll call vote. The other side was shouting, we want trump, not what you want to see at a convention where the goal is to present a united front to the rest of the country. Does it indicate that this is going to be the business as usual if you will for this particular convention . There are a lot of issues that are dividing all of those dele not clear. It dependses on how strongly the antitrump delegates feel. If they decide that theyve had their say, they made their point. If theyre influenced by those who say youre only helping Hillary Clinton. They may calm down and the rest of the Convention May look its not like a typical convention, at least more like a typical convention. There are some people predicting donald trump could get booed during his nomination acceptance speech. That would be an exceptional scene. Melania trump is going to be speaking tonight. What do we expect to hear from her, and what is her role. Even though shes speaking on law and order night at the republican convention, try to display some of Donald Trumps softer side. Shes going to talk about immigration, but the other thing to watch is that donald trump has indicated in interviews, he may come to the podium and speak alongside Melania Trump or before or after she speaks. Thats going to be quite interesting, donald trump we know, likes microphones and there was there were includes earlier about whether he was going to speak on all four nights. Dont know if thats going to , but he may speak ton. What about the latest poll numbers . Not good for donald trump. Even after the fbi investigation and james comeys Harsh Criticism of Hillary Clinton. He trails Hillary Clinton 46 to 57 . He trails with all education categories except those with only a High School Education or less. That is not a promising picture at this point. Hes lagging behind where mitt romney was in similar groups in 2012. Hes going to have to pick up his game and the conventions game, the thursday night Convention Acceptance Speech is going to be pivotal. Thanks as always for joining. We appreciate it. John harwood at the convention in cleveland. The drama in cleveland was not contained to inside the Convention Cen tesh, there was also a lot of activity outside, and a lot of money is being spent to make sure that the protests are peaceful and that everyone stays safe. For the party faithful, the Republican National convention in cleveland is the place where the party parties. And for others, its a place to protest, and make themsear but for law enforcement, its a Massive National security event that comes at a high cost. The federal government made a 50 million security grant of which 30 million pays for employees here in cleveland, 20 million pays for equipment. All that includes 5,500 total officers assigned to rnc security. 10,000 extra handcuffs purchased for this event. And 1,000 beds cleared in local jails in case of mass arrests. We want to make sure that the demonstrators are safe walking through the streets of the city of cleveland, and we want to make sure we have enough officers to respond if things turn otherwise. To make sure it doesnt turn otherwise, a massive maze of fencing stretching for miles. Portable barriers in places to stop vehicles. The shore line protected by a fleet of coast guard boats. And on land, newly purchased bikes and protective gear give Police Another option to stay ahead of the protesters. All of this focus on security comes in the wake of tragedies in dallas and in france. And over the weekend in baton rouge. The theme of tonights convention making america safe again. For nightly Business Report, im aman javers. Turkey is one of americas most important allies. But in the days following the coup attempt, that relationship has be just days after an attempted coup in turkey, members of the judiciary and Security Services have been detained, and the countrys president now calling for a reinstatement of the death penalty. Many in the west wonder how far this crackdown can go. A nato ally and a key partner to the eu. We stand squarely on the side of the elected leadership in turkey. We also firmly urge the government of turkey to maintain calm and stability throughou and we also urge the government of turkey to uphold the highest standards of respect for the nations Democratic Institutions and the rule of law. For the u. S. And europe, a strong relationship with turkey today is crucial. Turkey is supposed to be helping to send the flow of terrorists along the so called jihadi highway. While putting a stop to the flow of migrants and refugees across europe. A crackdown is quickly turning into a witch hunt is worrying world leaders. Turkeys stock market closed down 7 on monday. After dipping down 9 basis points earlier in the day. And while the lyra paired back last friday. The issue continues to be the influence of the central bank, especially during this time of intes. As details emerge about just how close the failed coup attempt came to success, many in the west won be reassured by just how close turkeys government came to collapse. For nightly Business Report, hadley gamble, in istanbul. Back home on wall street, a new record was set for stocks as the dows win streak was extended to seven straight days. This despite that Political Uncertainty in turkey. A big merger and some positive earnings momentums helped support stocks. While the gains werent big, they were gains noneth the dow rose 16 points to 18,533. The nasdaq added 26 and the s p 500 gained 5. It does seem as though theres been a drum beat of bad news. Globally and here at home. Stocks are near record levels. There are some things investors need to pay at. Good to see you again, jack. Welcome. Thanks, sue. It seems as though theres a litany of things. You can talk about the brexit vote, the turkey situation in which we just detailed and the violence that weve seen in the last few days here at home. Does it is this a confluence of events that should normally upset wall street . Or does it make our markets look better than other markets around the world . Well, i think when you take a step back and youre absolutely right. Theres a headline of some negative news, but i think more importantly, theres some positive developments going on. Its just you know, when you look at china is actually sort of doing some pro growth policies, the u. S. , were actually seeing a better Economic Growth so far. These negative headlines havent impacted consumer confidence. I dont think it will as long as housing and other areas of the u. S. Economy do better, and you can kind of extrapolate u. S. Equities, overall risk assets should be able to weather this sort of litany of some negative headlines. If youre a long term investors, do you take a step back and put all this negative news aside and revisit your plan and say, we have negative situations here, im looking 10, 20 years olds . You dont want to ignore it because a lot of this i had to brexit and some other things are symptoms of the broader disease and the broader disease being were in a growth challenged world, but were not going into global recession. You always want to have in your asset allocation, things that are a little more defensive that are going to hold up in a risk off environment. We dont think you want to put your entire exposure in those assets. U. S. Treasuries, i think theyre over valued, weve seen yields back up a little bit. Im focusing on fed policy, global monetary policy. A lot of these things globally are going to keep the fed sidelined. Thats going to be welcomed news by the financial markets. I think youve got to keep an eye on china. China, the second largest economy, but they have the largest sort of global footprint in terms of global growth. What comes out of china is more important than what happens in turkey. You mentioned the fed, theyve been pushed to the sideline wl the headline risk news thats out there. What camp do you fall into . Do you fall into the one and done camp in terms of raising Interest Rates . Or are you with those who say, were not going to see an increase in Interest Rates until the next year . Probably the latter camp. The fed is going to go slow. This is a rate tightening cycle, theyre going to stay sidelined for quite a while. The last fomc, or the minutes you know, they talked a lot about global development. As long as we have some of shes global issues. You look at brexit, its off the limelig but we know theres some uncertainty around that. I think its going to keep the fed sort of on hold until they see sustainable inflation pressures. Thanks for joining us. And still ahead, why Home Builders surprise pretty much everyone. Their latest read on the market. Japans soft bank is buying britains armed holdings. Armed holdings is one of apples suppliers. It refers to how home devices connect on line. The British Government has called the deal a vote of confidence in the country, following last months vote to leave the eu. Shares of armed holdings sored 40 . Take a look at shares of sprent which fell 5 . Investors are interpreting the acquisition of arm as a sign that soft bank is not planning to invest more money into sprint. An earnings miss for yahoo. Highlighting the struggles the Internet Company faces. Revenue beat expectations and was up about 5 from a year ago. These results come almost four years to the day that Marissa Meyer was named chief executive. With the goal of turning the company around. Shares were volatile in after hours trading. The bigger questio for investors about the future of the company. Yahoo is closing in on the final bids for its core businesses. Scott kessler follows yahoo and he joins us now. Good to see you, scott, welcome back. Let me start by asking you, whether Melissa Meyer has succeeded in her mission of helping to turn the company around . The answer in short is no. Shes been with the company for four years. And when she joined, i think she atracked a lot of interest and generated a lot of enthusiasm and excitement. But four years later, were looking at a no Growth Company with declining fundamentals on a trend basis. You look quarter to quarter, you can see some up ticks. The reality, i think, according to all accounts is that yahoo is challenged at best and problematic at worst. And i think that likely predicted for the beginning of this year, she will no longer be the ceo of yahoo by the end of this year. Hence the auction thats coming up, who do you think or what are your odds as to who will win this auction . Whats interesting in our opinion is that yahoo interestingly has said very little on this subject. Nonetheless, unconfirmed reports have indicated multiple suitors, time lines, and expectations for whats going to happen next. Our view is that the major u. S. Telecommunications company is likely going to be the prevailing suitor for yahoo. They are most obviously interested, theyre most obviously resourced. Meaning having Balance Sheet and company size and strength. Have the will to take on what obviously is a pretty substantial challenge. Once the bids are in, and the decision is made and awarded, where does that leave whats left of yahoo . Well, whats interesting is, a lot of people have been talking about, how much will the core operations of yahoo be valued at in the context of a transaction. The reality is, short handwise, think of it like this, for every dollar difference were talking about thats a bill dollars for the market cap. If someones going to bid 6 billion versus 5 billion. Thats only the difference of 1. Its a reason we dont think this amounts to much from a shareholder perspective, for employees of the company, we think this is huge, theyre going to have a new owner and new bosses and arguably a new strategy. A new strategy, all right. Thank you, appreciate it. Scott kessler with s p Global Market intelligence. Quarterly profit falls nearly 20 of bank of america. Thats where we begin tonights market focus. Lower Interest Rates weighed on earnings, those results came in ahead of estimates. The bank saw revenue decline, that too was better than expected as higher deposit balances and an up tick in bond trading. The brexit helped Quarterly Results at charles schwab. The bank said it took on more clients during late june. That helped revenue rise, and it topped expectations. Analysts also noted that a reduction in money market fees was a big factor in helping to lift results. Shares were up a tick to 27. 10. Hasbro increase d income du to frozen and star wars. Starting in 2018 it will no longer sell products tied to the Jurassic Park movies, after failing to reach a licensing renewal agreement with universal studios. Shares fell more than 6 to 79. 82. U. S. Authorities are investigating fee at chrysler, the sec and Justice Department are looking into whether the automaker reported fraudulent new car sales. Fiat chrysler said its the nations Home Builders lost a little faith in their market this month. Foot traffic thinned out, while construction constraints remain. As diana olick reports, the move lower was a big surprise. From as far away as london to its brexit vote, republicans are choosing their nominee, the u. S. Housing market is feeling all the effects. Uncertainty is no longer the exception, but the rule, and Home Builders are feeling each tremor. A monthly reading of builder confidence dropped in july. Home buyers are as skidder as everyone in the world right now. Its not just the political landscape, its the geo political landscape. Its the 24 hour news cycle of people aware of whats going on, that has to impact everybody. Builder confidence is still in positive territory, it hasnt moved much since january. Despite spring being the busy season for housing and builders especially. Besides consumer uncertainty. Builders are still stymied by land and labor issues. Tri point homes does much of its business. Youre dealing with those types of head winds. It causes it doesnt allow you to generate as much housing and develop as much land as quickly as you like. It just takes longer over time. It will get done. But it takes bower says tripoint is uniquely positioned with 17,000 loss ready to build in california. Builders nationally recorded a slight drop in current sales and buyer traffic. According to the monthly survey. Their sales expectations over the next six months. Dr home buying has a certain amount of confidence factor to it. What happened in britain and the Political Uncertainty of going into this election cycle. It was a warm late june, the number of the southweste sales kind of tailed off a little bit. Builders are benefiting from the lack of supply of exiting homes for sale. Newly built homes like this one are pricier than their exiting counterparts. Even low Mortgage Rates are not making up for that premium. In an economy where premiums are rising far faster than incomes. Coming up, how the Biggest Energy reducing state lowered oil prices and is now an economic success story. We recently reported that utah was ranked by cnbc as the top state for business. The annual survey is in its 10th year, and over the past decade, there is one state with the best cumulative score. Texas. And it wins by a reporter texas does everything big, big places, big spaces, big energy, nearly twice as much Energy Production as its nearest competitor. Yet, as Energy Prices have plunged, texas has barely misses a beat. Very prudently texas has one of the biggest budget reserves of any state. Its Rainy Day Fund is 9. 6 billion. Its a far cry from 30 years ago, when collapsing oil prices december mated the texas economy. One of every seven texans lost their jobs. Foreclosures soured, hundreds of banks failed. The most costly bank rescue ever. So big it will add a burden to the national deficit. Nothing like that to convince texans to diversify. Energy production including oil is still the largest industry in texas, but its no longer the only game in town. 25 years ago, texass with relying on oil for 25 of state revenue. Today its less than half that. The statest largest employer is not an oil company, but a supermarket chain. While the Energy Industry has grown in the last 30 years so have other industries the past ten years, texas never finished lower than second place. All that time, oil prices were high. No one knew for certain what might happen in the next oil shock. Now they o know. The states are revenues are down in the current fiscal year, following very strong growth coming out of the recession, the economic strength of those other parts of the states have mitigated how severe the drop might have been. The story may not be over, the oil slump is less severe than the 80s, and no one knows for certain how long it will last. That means, the state could still face fiscal pressures for some time to come. For now, texas is meeting the challenge in a big way. Scott cohn nightly Business Report, san antonio texas. That does it for nightly Business Report tonight. Im sue herera, have a great evening, eve. growls softly snarls chanting in latin