Trade impact on the economy. Lets look whats driving the action britain and the eu coming to a brexit deal although Boris Johnson still needs to win a vote back at home. U. S. And turkey agreed to a ceasefire in syria and despite ibm the overall earnings picture remains strong with beat from netflix and Morgan Stanley leading the market hire. Were happy to have stephanie link here. I know youre pretty upbeat. So far so good. There have been good reports from csx, from honeywell, from United Airlines jpmorgan, Morgan Stanley. Those have been rewarded also other earnings that have just been good enough. United rentals we talk about positioning, people are not positioned in industrials or health care those two sectors are leading the market today is that why we are where we are. People have your view earnings are good enough . Some are good enough but some are good the best earnings picture was johnson johnson. We also had a lot of health care you entitle e United Health expectations if they are just okay they are going higher feels like earnings have been fine not on fire. I mean, i think when you have earnings expectations have come down so much. Then you have some that are reporting where earnings are going up some are reporting where expectations were solo United Rentals is up 5 . Union pacific that number it opened down 3 i bought some on the open and its rallied especially on the industrial side people are thinking were seeing a trough on industrials the worst it will be on health care, politics was running the show for such a long time and now its not as bad you get these good earnings and cheap stocks good combination united rental was up as much as 8 . Short covering actually lets focus in on the other big stories. Mike sana usche has the latest turkeys ceasefire agreement with the u. S. In syria lets start with Morgan Stanley. Shares are higher after beating earnings expectations. Earlier the banks cfo discussed what the drove Profit Growth in the quarter. Our Investment Banking business did very well the back of Debt Capital Markets as well as m and a and our fixed income business continues to gain share lets get more with mike santoli on his first dashboard of the day that would be the first dashboard calling it soft bigotry. Well take a look at that. Nothing for tomorrow Consumer Discretionary stocks. A fight in the dog some of the very cheap stocks arguably starting to fight back or at least have the makings of a move like that whats right in america. Some big macro numbers weve gotten still make thing pretty well secured in term of the expansion. Lets look at the set up for banks, earnings wise this earnings season. Look at the top five big banks including Morgan Stanley this is where the earnings estimates were on june 30th at the beginning of the Third Quarter. This is where the estimate went to right before the report from Morgan Stanley from 1. 25 down to 1. 11 Morgan Stanley reports 1. 27. The 1. 27 was helped by an unusually low tax rate guess what the stocks were under pressure thats why you have a positive reaction similar dynamic. Goldman. To a lesser degree jpmorgan and citigroup held up okay and actually did beat the june 30 number and then bank of america had a big drop those are also made for some write downs. This is all according to facts we take a look at the operating metrics and valuations of these banks. Youll see a pattern i ordered them from return on equity from the Third Quarter that was earned. Jpmorgan, obviously. Market earning gets it rewarded 1. 6 times price to book value. But Morgan Stanley, Goldman Sachs and citi are trading below book value the market is saying fine the this might being your peak returns on equity. If you look at the whole set up citigroup continues to stay up perhaps looking as most cheap relative to how its been performing, guys interesting on halftime today they think its a golden age for banking stocks the issue is, okay, the numbers were good. We could say that. The stocks have moved a lot in a short period of time over the long period, no but lately, yes. So how do you deal with that its about positioning. Nobody is in these stocks. If you believe in the value to trade these are classic value stocks were also returning cash. They have dividends. They are buying back stock thats very important. So, i like them. I dont know if its the golden age at this point but they are cheap enough still and they are returning shareholder shareholder returns, i think you pick your spots. All right well netflix is one of the best performing stocks in the s p 500 today after beating earnings expectation. Julie boorstin has the details reporter netflix shrugging off lower than expected guidance and fewer subscriber focusing on their investment in new, original content. Movies especially here in the u. S. And overseas Foreign Language series. They are confident about their growth over the long run even as he acknowledged that new rivals could have a near term impact on the companys results. I was being a little playful with whole new world in the sense of drama of it coming but fundamentally its more of the same and disney is going to be a great competitor apple is just beginning but, you know, they probably will have some great shows too reporter one big question, though is pricing. Netflix doesnt have room to raise prices further when apple and Disney Services cost less. Back over to you thank you for following that. A big talker for us both after the bell yesterday and today Vice President mike pence announcing turkey has agreed to a ceasefire in syria. Kayla tausche has the details. Reporter turkey will pause military operations in northeast syria for five days to let the u. S. Withdraw its u. S. Forces to move its kurdish allies. Violence erupted in the last week as turkey quickly moved into a conflict zone where President Trump vacated American Forces helping to defend the kurds. Turkey believes the kurdish allies that helped the u. S. Are linked to terrorists militias in its own country. President trump earlier today praised turkey for the suspension and said the alternative would have been much worse. Not only sanctions and tariffs, the war itself would have been very nasty so they did things they wouldnt have done. I just put out, everybody agreed to things that three days ago they would have never agreed to. This was such a smart thing to get it done so fast. Reporter earlier this week the white house announced sanctions and trariff increases. Thank you, kayla were following all of that. Coming up next Goldman Sachs chairman and ceo, David Solomon joins us for an exclusive interview to discuss earnings and push into consumer bank, china trade concerns and much, much more. Later Mark Zuckerberg making a defense for facebook and freedom of speech on the platform well dive in after the bell see thats funny, i thought you traded options. Im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade when i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. Gold mapp, jpmorgan, bank of america all higher so far as Bank Executives report upbeat outlooks about the economy including the consumer wilfred frost is at the sacks axe builders and innovators conference he joins us now along with david so plon for an exclusive interview. Reporter as you said im here with the chairman and ceo of Goldman SachsDavid Solomon david, good afternoon. Great to be with you great to be with you. Were here your builders and innovators conference, eighth year, i believe. Eighth year tell bus the conference and how its evolved sure. This is since 2012 an event we have each year out here in Santa Barbara when we bring together entrepreneurs. O founders oren r some are newer businesses but interesting ideas. Give you and example go back to 2012 that first year two of the companies that were here as Young Companies were dropbox and uber gives you a sense of a lifecycle a little bit these are interesting businesses they are changing the world. Changing the way we do things. They are hiring people adding jobs. And i really come away from this event every year energized and really feeling good about the fact that wfrg going ith everytg on in the world, the entrepreneurial is really good for the United States. We spend some time to get to know these companies and let the entrepreneur connect well dive into some of those teams youre alluding to there first of all, we were here together a year ago. This is essentially a area since you took over as ceo do you feel the first year a year of transition for Goldman Sachs . Well, it was certainly a new job for me and i would say just thinking about fact that we sat here a year ago, certainly went quickly. Because it feels like i was sitting here with you just ten minutes ago. But i think back to october of last year, one of the thursday fixing i did, when i started as ceo last october was to take a grouch people inside firm and get them focused on how we face clients as an organization we started talking about this concept of 1 gs and weve always been a Client Organization but theres been an opportunity over the course of the last year to think about how we can improve, how we can do better and think about making sure that our clients are getting the best of Goldman Sachs so i feel weve accomplisheded a lot on that in the context of the first year i also feel good about the fact that the investments that were making that evolved the organization and move the organization forward, are really progressing nicely we got a Great Management Team its really come together on a medium and longer term plan and so i feel like for our first year that feels pretty good. The investments you talked a lot about, the Earnings Call which came out a couple of days ago, those earnings did miss expectations, revenue was down 6 and you spoke on the call about the impact on the short term earnings that some of the investments in new areas, transaction, banking are having you said 450 million worth of those investments made this year how long are you asking investors to stick with you to give you faith before those investments pay off . What were really trying to do and we have to do, i dont think we have a choice, were focused on our existing businesses and focused on making investments to evolve the organization and move it forward. We think about they investments as medium and long Term Investments and try to be transparent and clear as we build these new platforms were making progress. But these are things that will take a number of years to materialize the potential. I talked on the call a little bit about how he built an Asset Management business going back to the 1980s if you think about the Asset Management business we have across the world, i look back at our investing platforms which we started to build in 1980s. Goldman sachs is celebrating their 150th anniversary and were building businesses for the long term value of our shalds in the firm this will take some time were trying to be as clear and transparent as we can. There are milestones were excited about that we cross this year and feel well dont make progress will some of these changes in investment kos have been made sooner by your predecessor i think that he some of these started with my predecessor if you look what were doing from a Digital Banking perspective. That started with my predecessor. These things a long time to progress and come to fruition. What were focused on now is looking at our client, the different clients we have around the world, corporations and governments, institutions and individuals and saying how can we do more as Goldman Sachs for those clients and really make the investments to broaden it out. I feel good about the course were on and the progress were make a meeting that was reported by bloomberg, your deputy supposedly said that the old management was slow to make changes. Do you disagree with that . I think the new management is very focused on making changes to move us from here to be honest with everything thats going on i dont have a lot of time and debate what should of, could of. Goldman sachs has performed very well for a long time you were at an event in june and you said were getting no credit from anybody in the investing community. If we are out in silicone valley made 20 progress people would be throwing money at us. Are you angry that you havent gotten more reward for what youve done . Im not annoyed i expect and one in the context of a Large Public Company like this its going to be a proven on this. I said this on the the Earnings Call but i feel very good about it and the teams executed the incredibly over the last three years we built a digital bank with 5 billion of loans 4 to 5 million customers brandnew credit card platform launched a card with apple i feel thats pretty Good Progress over a short period of time and weve invested over a billion dollars to get that. But if you looked at all that would you invest a billion to get that absolutely you invest more. Again, were building for the long term. I feel gooded about the progress were making would i be pleased that the worldrecognized it sooner sure i know we have to deliver and the onus is on us. You said on the call the launch of the Goldman Sachs apple credit card was the most successful credit card launch ever can you qualify that for us with some numbers i said that we believe its the most successful credit card launch cobranded credit card launch ever. The first is we can look and see all the past credit card launches over the first month, six months, year what were number of carl edwards that came in and then we can look at the number of carl edwards we have and were ahead of the pace of all of those. How many . I wont give you that piece of information but i appreciate you asking. Second we can look at the credit formation and how people are using the card and what i would say all the early data indicates people really liked the card you and i were sitting here having a conversation and you were telling me how much you like the card and how it was changing your behavior but i like it. I like the card. And the next thing is we look at the credit quality thats coming in the credit quality is an aspirational card. Over time we will, obviously, give more data were only less than two months into it. All the data we see is actually doing quite well compared to the data we have available is this the tip of the iceberg in terms of your disruption of Consumer Banking or halfway through i think were in the early stages of building a digital platform for consumers that gives them more information, more tools at their disposal we were talking a little bit about the data set, you know, inside that apple cart when you look at your phone how much information you have this is version 1. 0 and regardless of Goldman Sachs or whoever is doing it, the quality of the information, the data, the ability to manipulate it, that financial consumers are have Going Forward lets talk about some macro has corporate optimism been damaged severely by the trade war . I think that i think theres no question that a combination of macro factors has had an impact on sentiment whether its trade, whether its brexit, whether its a little bit more uncertain geopolitical environment, i think theres no question that its having an impact on sentiment. On the other hand, the overall nature of Global Growth, while e had a brexit deal that could swing sentiment back quite quickly. No question when i talk to ceos they are a little bit more concerned or agitated about the noise but are trying to stay focused on the substance in terms of the fed, we saw the spike in the repo rates recently was that due to postcrisis liquidity capital rules that restricted you as banks ail built to stabilize the market . Theres no question that the regulatory construct had an impact on the available liquidity at that point in time. It was definitely a contributing factor i know the regulators are focused on that. Like a lot of things that regulators are taking a look at, this is something that deserves focus. In terms of whether or