On a secondary Stock Offering by the company. Beyond is on track for its secondworst day ever. Its worst day was back on june 11th, when it went down more than 25 in volatile trade the secondary offer is for 3. 25 million shares 3 million will be sold by current shareholdered while 250,000 will be offered by the company. A regulatory filing chose that Ceo Ethan Brown plans to share more than 38,000 shares which could net him 38. 7 million. Theyll use the proceeds for expanding supply and marketing some believe that could lead to further Short Interest in the stock, because it could cut borrowing rates. But the bulls say the offering could be a positive for the company if the shares end up in sticky hands this as the companys actual results were fairly strong beyond raised its yearly revenue guidance from 210 million to 240 million it attributed its quarterly revenue beat to new partnerships and increased demand from existing customers despite the stock taking a hit, many analysts also seem bullish on the company jpmorgan saying, we continue to see beyond as a beat and raise story, one for which at least in the nearterm fundamental momentum may matter more than valuation. Both jpmorgan and bernstein analysts raised their price targets on the stock back to you guys aditi roy, thank you. Lets bring in tom lee and mike santoli both with us here at post nine. Is beyond meats runup to this report indicative of the Investor Sentiment were seeing in the market . Tom, is it i think the runup really shows how the market has started to put a big premium on execution stories, rather than valuation sensitivity. I think its even handling todays news quite well. You know, this massive increase in shares should have destroyed the stock. And 10 is kind of a mild pullback exactly its all relative, right were still talking about a name that three months ago when it ipod, its up 800 . Since then, i think it begs the question, mike santoli, especially when you do see the ceo also selling some of the shares and doing it earlier than the sixmonth lockup, could you look at this as a potential market top i wouldnt say it absolutely, clearly is a market top. First of all, there werent enough shares out there to absorb all of the big picture enthusiasm for this longterm story about plantbased meat, obviously. So getting more shares out there, in itself, isnt necessarily something thats going to upend the stock but its not the greatest signal when insiders cant wait another three months to hit the bid of the market so i think thats why theres some hesitation right here thats clearly, it happened before it had to kind of jump ahead of this lockup period so, look, i think that you have to step back and say, if the stock was only at 100 today, it would be a massive win if thats all it did is went from 25 to 100 so the more that this story this stock is about people who actually want to own it for a while, as opposed to just flip it everyday. Because yesterday, the entire float traded, yesterday. Tom, is it dangerous to try to read too much into beyond meat in a way it reminds me of go pero pro. It had this amazing run for a while. Who knows where beyond meat goes from here. We know go pro did this. But it didnt really necessarily mean that much there was some stock that ran up back then that didnt tank thats right. I think thats true. One, its not as widely retail held as we think its not even a top 20 stock in robin hood theres more cannabis there than noprotein things. And its not an institutional name if increase will help esg funds get exposure so i think its kind of a unique story, a moment in time. And if they can leverage their equity right and acquire ip, its actually a really bullish story. How much of this, though weve got a fed poised to ease how much of this speaks to the fact that investors are looking for that next big shiny area of growth it really does feed into the narrative. You know, i just had breakfast with one of our biggest clients and they were saying, if you had to look at this market this year, as people start to think the world is shifting towards mmt and zero rates, theyre rerating secular growth stories. Thats a lot of what weve seen in tech. I think beyond meat is another example. It might have the effect of overall lifting the markets. So, yeah, it kind of fits that narrative. But institutions arent really big in beyond meat its interesting, because on one side, the market is really being driven by these eternal brand Name Companies that have been around forever and theyre really trading just like bonds, in a sense very, very highly valued bonds with a growth kicker, like png and disney and coke and all the rest of it on the other end, you have a lot of these softer stocks, that are all about a call option on some longrunning trend and i think beyond meat would fit into that latter category. But neither one of them says, this market is in a froth and its a speculative fervor thats about to tip over. Okay. Well, meantime, were halfway through earrings season, no collapse in guidance, but no clarity on Global Growth, either bob pisani explains. Bob . And the good news here is flattish earnings are coming to fruition and thats not a big surprise for the markets heres what i mean by flattish french quart First Quarter, were up 1. 6. And the future quarters, down slightly, and this is a lot of hope in the First Quarter that things will improve. This is what you call flattish where youre seeing an impact right now is there is an impact for companies that have Big International operations from the global slowdown and the trade in tariffs wars. You can see this with companies that have more than 50 of their revenues outside the United States these tend to be internationally focused. Their earnings for the Second Quarter, down 13 , among those who have reported. Those that have less than 50 of their revenues, outside the United States, more domesticfocused companies their earnings are up 3 this is a very, very big difference theres your trade in tariff wars, theres your global slowdown, a little part of this, and its clearly impacting earnings overall, but its not causing them to collapse or crater so where are we right now in the earnings picture right now for the Second Quarter, 76 reporting or beating, thats about average, believe it or not. So nothing unusual going on there. We are not seeing, guidance has come down for the second half of the year a little bit, but its not collapsing and thats the good news there is a few exceptions, but thats the good news we do not have clarity on Global Growth we dont have clarity on whats going on in the economy in europe or china or the trade in tariff wars. Thats a problem for the markets. But the most important thing, why were holding up so well is the global, to the just the fed, but the Global Central Bank backstop and thats the most important thing. And the one thing i get real worries about from traders is, what happens if that central back backstop, the continual cutting of interest rates, doesnt serve to support the Global Economy anymore, that the Global Economy keeps slipping down further and further in other words, theyre out of bullets. It doesnt work anymore. Then youre going to see the earnings estimates come down rather dramatically. That is not happening yet, but it is probably the most important worry thats out there. We cant answer that for a little while back to you guys still going to try to dig into it, bob pisani. And tom, ill put you on the spot with that it almost seems like a foregone conclusion were getting some kind of cut from the fed tomorrow the bigger question maybe hanging behind that. What does easing look like continuing into the back haftlfo the year what do you think about that i know theres a lot of discussion right now about maybe halting the Balance SheetReduction Program right now. Is it warranted . Yeah, i think theres its important for the fed to take action now, as insurance, and financial conditions outside the u. S. Really warrant that but i think investors who think the fed cuts not going to make a difference are underestimating how much support there is for markets right now. Bob was talking about the earnings u. S. Corporates have gotten stronger because of the trade war. So its a comparative advantage. The white house is supportive of profit growth, and now were going to get policy support from the fed. Thats a huge trifecta it should be super bullish and yeartodate, 2019 is the best year since before 2008 so the market is on track to beat 2009. We saw that micron and intel both said that theyd figured out ways around kind of tariff headaches. And that seemed to, in a way, save their quarters in a way that people didnt expect. Irobot on the other hand did not figure out a way could we be kind of up against the tariff that broke the camels back we see what happens when people dont figure out ways around this, but enough of the big guys seem to figure out ways, too and i think that has been the rule if you kind of have been in these markets forever, you have a diverse supply chain and you can sort of have scale and essentially be the more important customer yes, you can probably figure out a way around it. I dont think right now were at that moment where the tariffs are have created a break point. If you escalate from here, if it becomes more kind of broadly applicable to more companies, yeah, sure i think the market has really set it aside, except in those instances where it has a true and identifiable impact. The markets right now on fed watch, essentially saying theres, you know, yields an co kored at these low levels. The fed will try to make this technical judgment to get shortterm yields down lower its not a rescue economy for the economy. And were riding out this flat issue earnings period. By the way, apple, best example of a very, very flat earnings trend absent buybacks and the market seems at least willing for a while to ride it out data trek today says its starting to look like 2014, 2016 where s p earnings were about 119 for three years and youre up 28 in stocks does that sound familiar to you . And i think thats really kind of a spoton observation that p\e matters a lot more tha e. I think at the start of this year, everybody knew that earnings revisions would be negative the people that are eps people got bearish. But p\e has been expanding and p\e matters more to markets, 21 out of the last 28 years, its all about p\e. So goldmans call today where they raised their target and cut their earnings estimate doesnt seem ludicrous to you . No, in fact, its probably a little bit backwards looking, because its in response to where were already at 3,000 but i think people are underestimating how much markets can advance into year end. You know, on the first fed cut, when the leis are positive, the average threemonth gain is 14 . That means 3,400ish for year end. How important are small caps for this equation . To go back to that chart that bob pisani showed, companies with revenues greater than 50 outside of the u. S. Versus those with less than and the divergence there yet, small caps continue to lag and continue to hover in correction territory i think small caps are suffering more from a liquidity issue. You know, i think that theres equity tina happening, so money flows are going into u. S. Large cap, u. S. Secular stories, and small caps arent benefiting from those flows i think large caps will still outperform small caps for now. Great gentlemen, thanks for joining us today. Thank you tom and mike. And after the break, big tobaccos response to the rise in vaping criticism. The ceo of Phillip MorrisInternational Joins us right here at post nine next here at post nine next dont go anywhere. Exactly. Sounds like a case of analysis paralysis. Is there a cure . Td ameritrades trade desk. They can help gut check your strategies and answer all your toughest questions. Soun see, your stress level was here and i got you down to here, ive done my job. Call for a strategy gut check with td ameritrade. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Phillip Morris International shares down today, but up about 30 so far this year, despite this industrywide decline in cigarette sales, as Electronic Cigarettes and heated Tobacco Products gain popularity and criticism. It was a subject of a cnbc documentary, vaporized and we spoke with the cofounder of juul, about the marketing of smoking alternatives and the impact on young consumers. When we launched juul, we had a campaign that was arguably to kind of lifestyle oriented, too flashy, it lasted less than six months it was in the early days of the Product Introduction we think it had no impact on sales. Sales of juul soared nearly a thousand percent in the year after that campaign. Joining us in a cnbc exclusive today is the ceo of Phillip Morris international youve been pretty direct about the existential dilemma that combustible tobacco is facing. Wheres your head right now on that well, our objective is to phase out cigarettes worldwide as soon as possible. Thats why weve developed a portfolio of alternatives that include the vapor products, hidden Tobacco Products that are existing in 48 markets worldwide, and just now, we are about to start commercialization finally in the u. S. Following the fda authorization that theyre appropriate for Public Health so i feel very good about the situation. But were also competing in the combustible business and last quarter and since the beginning of the year, actually, were pretty happy because we have a good performance in the combustible and much more importantly, obviously, very fast growth in our smokefree products, including our product, icos whats the strategy in the u. S. And is it your most important priority around the world . First of all, im very happy that we bring icos to 4 million americans that spoke today so we start with a test market, actually, altria, sour exparent company, and they have an exclusive license distribution agreement, we start in one city and well expand after that. But we feneed to learn first. For me, its very important for two reasons. First of all, because we offer an alternative to the evapor products, to the people who otherwise would continue to smoke. And then a product in the u. S. Helps the rest of the world. What is Phillip Morris commitment to Health Overall because i hear you saying that the idea is to reduce cigarette use. There are some people who say the research is not conclusive that icos and heated tobacco is actually better for you. I dont know either way, but is there a standard that youre using on the products you release and a commitment to the consumer thats health specific . Well, depends on, first of all, the research of preclinical and clinical, points to the fact that this products are better. Icos is a better product than cigarettes, for sure now, the fda has authorized the product, as i said previously, at this stage as appropriate for Public Health and theyre reviewingreview ing the modified tobacco population that you can tell consumers this is better than cigarette if and when that happens. In the rest of the world, based on the regulatory regimes, we communicate to consumers the fact that it is better alternative than cigarettes, because thats essentially what the consumers need to know how the standards are applied, as far as industry standards, as i said, with clinical, in icos in particular, we have a 90 to 95 reduction in exposure to chemicals compared to cigarettes and all the other evidence points to a better product and over time, as this product is adopted and, you know, by the way, we celebrated 11 million users of icos last quarter, of which 8 million are fully converted and use exclusively the icos so we have epidemiology to quantify exactly what is the reduction in disease and pl premature deaths and what is the absolutely clear impact on Public Health. But i think this product will have an impact on Public Health. Question, which is more profitable combustible cigarettes or icos in terms of unit margins . Yeah. For the consumable part, icos has better margins than the combustible products, for a very simple reason. Governments everywhere in the world recognize that this is not a cigarette, so they are classified in a separate category of noncombustible products or under other tobacco categories that have a bit more favorable treatment. Here in the u. S. , altria, which was split apart from Phillip Morris international over a decade ago is licensing the ability to sell iqos here stateside. They also have this majority investment in juul wh how do you feel about that . Well, they have a minority investment minority investment, 35 stake. Thats why weve developed a portfolio of products, including vapor and pure Nicotine Products i think consumers over time have the choice to either adopt one product, like only vapor or only heated tobacco, or use more than one. I mean, a little bit how you do with alcohol, you drink beer, you drink wine, you drink i dont know what. Youre not an exclusive user of one category i think today the category that has the ability to switch people more and more permanently, as i said, 70 is heated Tobacco Products, but i think theres space for every product. And altria follows the same logic of portfolio approach, including smokeless than we have, so i dont think we have difference in strategy are you worried at all . Obviously, teen use is