Travelers. Biogen, set to seek Regulatory Approval for a treatment for alzheimers for early next year. U. P. S. Shares sinking ahead of the open, despite a pretty nice ecommerce boost to profit. The ceo will join us later this hour. The ceo of verizon as well will be here at post nine in a few minutes. An interesting announcement, another guest as well, but i guess it is a mystery. Well wait to solve it in a few minutes. Lets start with earnings, dive right in. Tale two of dow components, p g up, quarterly beat helped by Strong Demand by premium Beauty Brands and mcdonalds falling on an earnings miss as growth on us comps came in below forecast u. S. Mcdonalds 4. 8, looking for 5. 2. Jpmorgan told us the quarter would run light. Im glad you messengered that a lot of people are saying this is a big surprise, a negative surprise if you listen to what jpmorgan said, you would have been ready for exactly this number, which basically to me says not as bad as feared. 5. 9 , thats a number that is just extraordinary ive seen this stock down 8, now down 6 what can i say if you read the release, you think there is nothing wrong and i dont think the release is far off the mark we have come to expect things from mcdonalds just not possible hes not hercules. This is a very good number and if people think that it is a big downside surprise, just go read what jpmorgan said. Didnt they change the bar they lowered the bar these guys hit the lower bar and we think that easterbrook didnt do a good job . I like wendys they announced breakfast, the big Analyst Meeting last friday, very good. Easterbrook didnt screw up. This is fine fine number. Im okay with it three cents off eps by the way, the stock, year on year, is three times the s p it is 20 some odd percent gain over 12 months. The charters tell me it is rolling over you know what, every company has been apple was the biggest rollover in the world at 210 i like, in light of what i got, in light of what i heard, from jpmorgan, this is a good number. And i think that if you ever im trying to figure out when you ever got 5. 9 globally. The two stars this morning are procter and mcdonalds one is dimming Procter Procter is amazing. Organic revenue 7, looking for 4. 5. You got organic volume grooming and gillette was the only hard part healthcare up 6. Fabric and home up 6 i look at it is almost as if david taylor stumbled on some sort of fountain of youth. You see organic Sales Numbers for a beauty, plus 10 , i mean, were people did people want to be ugly, david, and suddenly, like, hey, im sick of being ugly lets go buy procter stuff thats 10 this isnt practice, this is a game 10 . Very impressive. I dont hear a single ghost at procter do you hear any ghosts no. Not one. They raised their guide of organic sales 3. 4 to 3. 5 which kmb does as well people dont like kmb thats crazy i saw that kmb was bad . What wasnt bad kimberlyclark. Yes. Kleenex. Anytisometimes you mumble a little you want mumble ill give you mumble. Hasbro wasnt good. It was bad biogen is Pretty Amazing this is a drug, by the way, not only was it in nobodys numbers, that was because they the fda is pvery proactive. This is a story of the morning. Youre right. I wasted time. Were talking about a potential drug here that could treat tens of millions of people, we talk all the time about aging populations, the world over if in fact you actually were really making progress on treating alzheimers, lets tell people what actually happened this morning yes, biogen did report earnings. But what was most important and why the stock is going to be up 82 bucks at least is this phase three emerge study they remember back in march, the stock dropped like a stone from the 320s because of the they failed to reach a primary end point. They met the primary end point showing a clinical reduction support the findings from emerge they experienced significant benefits on measures of cognition and function, such as memory, orientation, and language they say this decision, which they are not going to file, on new drug application for with the fda is based on a larger data set from the phase three clinical studies discontinued in march of this year, following a futility analysis, the new larger data set includes Additional Data that became available after the prespecified futility analysis showed the drug is acted as determined by dose dependent effects in reducing the am lloyd in brains and clinical decline this is a hugepotential advance. You know who will take this drug everybody you can make arguments i read that, i want to pay. To prevent the progression of alzheimers, you tell me how big this company could be. The biggest drug ever it would be the biggest drug ever. It would. Biogen by the way, longterm care. You think about all the different impacts, longterm care, think about that, the cost for insurance, because of this think about our lives how about that lets be really selfish. This was incredible. This drug we all gave up on. We didnt think it worked. We know how hard this is to crack. Youre not supposed to be able to. I remember major ceo of major drug ceo told me never never. Will never crack. Bespoke looks at bespoke says their earnings tracker of stocks above 200, no stock above 200 has ever gapped u 30 plus. Thats incredible the story of the morning. Yeah, it is no doubt about that. Wework is not the story. I think wework might be the story. No, this is the story listen, in terms of come on, if approved, it will become the first therapy to reduce clinical decline in alzheimers no one is no offense to wework, it is a great story. Im glad i broke it yesterday. Moving on. Who is going to make more money, biogen or neuman . Biogen. A lot more, yeah. Fine. Biogen will make a lot more money. All right lets move on we have some really interesting guests okay. Who have snuck on while im looking for my notes we have a busy morning at post nine hans vestberg, and kevin mayor joins us as well how did you get these guys . You pick up the phone and good things happen. I said i think i know those guys can we get them . Theyre right here thanks for being here today you got some news, were going to break it right now in terms of disney plus, which kevin you oversee at disney. November 12th the rollout date a lot of people may have already seen the advertisements. And hans, as well, you were partnering with them to provide your wireless customers, your unlimited, your fios customers as well with disney plus tell us about the deal. We are, of course, extremely excited to partner with disney we offer to our customers basically exclusive with disney plus, well bring that one year for free and, of course, this is part of our strategy and were extremely happy to partner with disney with the super content they have and extremely exciting disney plus theyre coming out with. Why is disney doing this deal and we should make it clear, it is going to be free for a year to unlimited wireless customers of verizon correct. Thats amazing. Why are you doing that . We like to partner with some of the with the top brands in industry verizon is at the top of the game with wireless we think we like to offer their customers the opportunity to look at disney plus and experience it. And we think it is a great channel. We have other direct to consumer channels, we have partnerships with microsoft or xbox, google for chrome cast and Android Devices and roku and others. We think this is a great wholesale partnership. It would seem, so much focus on the rollout of disney plus, how many subskrcribers youmetri big potential subscriber number. It will boost our numbers somewhat we also think it is great for consumers. It is a brand that were happy to be in partnership with. We want to give our consumer choices. This is one of the best choices we can give them on top of our network, we have a Great Network were building our fios network, on top of that, giving our customers this opportunity is a great sort of consumer experience. I want it sign up for disney plus starting the 12th, ill spend 84 bucks a year. I can pay less if 69. 99 a year. For the whole year . Yes you there is some expense going to disney as a result of this discount youre giving your Customer Base. I think we have a really good commercial agreement with this we both are happy with it. We think it will boost the customer for disney and verizon. And i think thats the most important for us i think, again, it is part of our strategy basically we have the best network, we have the best brand, and we have the distribution we work with the best brands and disney is there. Are you going to spenars as supporting this . Yes were going to jointly market this to our customers. It is a good winwin deal and very great process to work with why verizon as opposed to another wireless provider or others out there hans . Easy question. Just you. Just you. We think it is it is the world class network, great brand, the kind of brand were proud to be associated with. Thats why we did it with verizon. Everyone is talking about the twitter threat right . The disney plus made, all day long, all the content. It makes it feel like the tone is going to be about legacy content as posed to new original content. What where should our heads be on that. We have both. Large library. Very proud of the content we have that we already produced and has been exposed to consumers over decades a lot of original content. We have more than 25 original series that were come out in the first year, more than ten movies and specials and as we go forward in time, a lot of originals that we produced well produce over a billion dollars in the first year and over 2. 5 million five years out. Were spending a lot of money and creating great content. Is this go to be it are we going to see more deals, tmobile, at t or exclusive and why was it there are very few things kept as secret, i didnt know. I kept thinking you got a problem with that no. I just want to mention that it is seminole. Disney was going to break down i didnt think they had i would think right out of the box, a potential audience and subscriber numbers that are going to be very strong. You dont know how many investors are focused on early subscriber numbers, what you share with the investment in the kimoon ty in te community in terms of expectations. Subscriber numbers for sure we got a third domestic, twothirds international and we feel confident well hit that and over time we will be releasing numbers. What have the early can you give us a sense in terms of i heard there was some in the netherlands you have been offering im not sure exactly what im hearing, 450,000 people have signed up were not announcing how many people signed up in the netherlands. A trial launch to test the technology and the product and see how consumers like to interact with that it is doing very well. We have a lot of free trialists. Over the couple of not even six weeks or so, any takeaways . Big takeaways, consumers like it good feedback. Good press about it. A technical test we wanted to see if there were technical issues with the app. The netherlands a lot of broadband, we have a lot of our content is not unemcoupu unencumbered in the netherlands. It is much to your existing base of customers who are it is also new customers. My point is, how do you view it from a it is a plus for those of us who are already Verizon Wireless unlimited customers. But at the same time, you believe it is going to allow you to attract new customers definitely. I think we learned a lot we have an exclusive agreement on music, and we learned a lot about how it is resonating with our consumers. I think this is now we can offer it also to the home people consumers and the fios. We have hundreds of millions of subscribers on Wireless Network that want to get this offer. And for us, using our strength, we also are doing other things from our partnership dense populated areas, like theme park, we talk about 5g were having drone discussions as well. How we want to use our Drone Technology what does that mean drone discussions . We have a company doing drones, we are discussing how that can be moved on movie sets. Different. Different areas of business in general we think disney is a great family to partner with were very different assets. I got to tell you, i pay a lot of money for this espn plus. Am i going to wake up and find that if i subscribe with at t, i get espn plus for free it is one of the bills i get thats not in our plan. Why dont we break some news . We can talk about it. I dont know. You can give this to me free, right, right here, cant you approve that you have to talk to iger first i have to talk to iger first, exactly. Well said. Kevin, again, a great deal of focus on this from your Investor Base given the importance of it for overall for disney there is also concern about how much money youre going to be spending opportunities for more partnerships, similar to this, where youre going to get marketing dollars spent not by disney itself . There is a possibility. There is nothing in the works right now. We feel pretty good about our own Marketing Efforts. Throughout the company, we have many, many millions of touch points with consumers. We utilize all of them we spend marketing dollars of our own too. We feel good, the awareness is high we do benefit from the brands, disney, marvel, pixar. Star wars, national geographic, all the brands are in net service and benefit from that too we think our Marketing Efforts and direct to consumer touch points will work really well. Netflix premarket took a spill. I wonder whether or not you think some of the costs of ten pole series is getting excessive or the cost of show runner, is it getting stretched clearly getting more expensive. But i think talent like that has value. It is a scarce commodity the price, the cost has gone up, we think we can stay in the game, make great product, do it a reasonable price and monetize it through the direct to consumer relationship. The business we are getting into has good economics. It is going to be diluted for some period of time. Yes, fy 24 break even. This is still in keeping with bob said that 24 is the this doesnt send it back to 25. Not at all. 24 is when we break even it is all good. How is espn plus now . What numbers do you have our install, so thats when we announce the numbers. It is doing well doing fine. On netflix, as carl mentioned, down a bit on this announcement, when is all of your content going to be off of netflix . I know some deals have certain expiration times we do 2016 to 2018 movie slates on netflix. Thats pay one and pay two deal. Goes on for 18 months after in theatrical and home video. And then has a hiatus where comes to our service and some titles go back in several years for us, short period of tim. And, hans, what are your expectations for your Customer Base how many people do you think will take this offer i think we have good experience from when we did our exclusive on music how we are materializing that together with our partner. Were oidoing this with the best partner. It is transformative for us. It is part of our strategy at the beginning of the year. Im happy with it. I think im satisfied with what were doing now. Well be watching closely thank you for joining us, for breaking the news here. Were breaking the news here. Thats worthwhile. Do it again were ready. Anytime. Kevin mayor, hans vestberg. Still to come, u. P. S. This morning, the earnings announcing some new drone delivery agreements well talk to david abney on a first on cnbc interview. Premarket, got to get to hogg and polti and under armour and a bunch of others. Dont go away. Or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. At fidelity youll pay no commission i get it all the time. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Futures improved a bit a bunch of names out today from industrials to transports. Well get to all of that cramers mad dash and the opening bell in seven minutes. 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Procter doing much better. We heard an amazing deal with verizon and disney lets talk about United Technologies here we go again greg hayes greg hayes is doing he bought this collins aerospace, that market sale is up. Amazing synergies. He marks zknocks it out of the there. In production, still, the max. That will hurt them if the max goes offline here is an odd one china inconsiderabredibly strong you have a story everyone is giving up with china you have stronger numbers in china climbing too i think raytheon will have good numbers later. I think this defense juggernaut that is United Technologies, defense and aerospace, Pratt Whitney and raytheon amazing you buy the stock. You buy it. It is important to remind people, emerge with raytheon, this company gets split apart. Carrier and oates go their separate ways and as you say the main part of it. Lets plan out, im into esg these days, some people think that your eyes glaze over. Im not going to let them. 38,000 people put through college. Through Higher Education we think that business isnt the greatest source of a platform of change isnt that amazing 38,000 people go through school, because of greg hayes. Lets not forget business isnt just for capitalism