Freshmen congresswoman. Bernie sanders is about to outline his medicare for all proposal. He is doing so at George Washington university. If he has any suggestions at all how to pay for it. A heat wave expected to hit 2 3 of the country. What you need to know about that. If the citys power grid following massive black out here in new york city. Melissa fox Business Team coverage. Gerri willis on floor of new york stock exchange. Blake burman live at the white house. Deirdre bolton at the newsroom with netflix earnings. I see some numbers crosses here on dow jones. I think well get to those as soon as possible. Sorry . Lets go to Deirdre Bolton right now with those numbers. Deirdre. Taking a look at netflix. 60 cents a share. Thats a clear beat what analysts were expecting at 60 cents a share. If you look at revenue, want to be kind with netflix, say exactly in line. If you want to be critical, a slight miss. Wall street looking for 4. 93 billion. 4. 92what netflix posted. To put it in context, a gain of 26 comparing this quarter to this time last year. Looking at earnings again, to keep it in context that represents a bit of a drop from this quarter last time. Well watch for more details. , how will netflix respond to more and more competitors. Franchise titles it purchased. Licenses it lost. Friends, is comes to mind and the office is another. I will look at subscriber counts. It beat on earnings. Ever so slight miss on revenue, as we see it sending the stock down. Melissa we want to tell our audience. Revenue guidance, Third Quarter revenue 5. 25 billion. Earnings per share for the forecast for the Third Quarter, 1. 04. That is the numbers, Third Quarter, 1. 04. 5. 25 billion. Connell Market Reaction is not positive. Jonathan hoenig, and jonathan myers, curt knudson the cyber guy. We all real quick for melissa. Melissa total International Streaming memberships 156. 1 million. Go ahead. Connell guys, reaction is quick and to the downside. John meyer, i will start with you, revenue in the Current Quarter may be a little bit light but not much. Possibly the outlook is something that investors are looking at more. What do you take away from numbers we have so far . I think it all has to do with the outlook here. I do remain bullish on netflix in the long term. However i have hesitation around the stock in the short to medium term. That is due to competition rolling out this year. I think one of the players that is extremely underrated with this is apple. Their heavy focus on a small mum number, compelling chosen movies, opposite what netflix is doing, throwing a bunch of paint on the wall, figure out what works. A cost of extreme amount of money, a prolonged worry. Connell an issue for the company, jonathan, how much money it spend. You have a totally different landscape. Whether at t, disney, comcast all the other competitors, not just on content by price. As a technician, we watch the stock closely, were not able to hold the february lows. We have new lows, dramatic selloff off the close. This could be a beat, buy the rumor, sell the fact news. The fact so many techs is doing well, this is underperforming now, i think that bodes poorly for things moving into the second half of the year. Melissa they say they are looking to grow by seven million paid subscribers. That just went down off the screen in the next quarter. What is your reaction to that, seven million, jonathan . Seven million is ambitious. 350,000 were expected here in the u. S. Were digging into some of the numbers. It is all about attracting those eyeballs. Net flex changed the game. Not too long ago they were selling, sending dvds through the mail. They had to reinvent themselves again and again. The difference, costs go up, even as competition intensifies. That is why the stock is down. Connell curt, one of the Bigger Picture how we all use the streaming service as year from now, five years from now. Is it netflix plus disney plus and you know, nbc service and all the rest . Or is it some of those instead of netflix . How do you see this playing out . Connell, im not sure how we get that information will change how we get that content will change dramatically who still leads. I think what we want to watch for the barometer is the k, content being king. What is the weakness for netflix out here in hollywood they lost the two major rerun comedies that really have been staples at netflix. That is the office and also friends friend. Thats gone. They friends. Seeing major competition with disney plus, universal comcast coming to battle them. Disney plus with marvel. They have star wars under their belt. Those are some big swingers. Melissa i think we are supposed to go to deirdre real quick with more headlines. Third quarter global streaming paid in net additions they see seven million. That is the number i was trying to get before. Give us more color. That is a reason why you will hear the bulls talk about netflix going forward, being a strong play, best in class in the streaming category. I want to explain a little bit some pressure were seeing on the stock in afterhours. This is about Additional International subscribers ads. Were pretty saturated. Analysts were expecting 4. 7 million additions internationally. Netflix posted for the Second Quarter 2. 8 million. That is making the stock sink like a stone right now. I also want to highlight as far as domestic, the company lost 126,000 streaming. So you know, this quarter as far as net adds is clearly less than what netflix at one time guided for and what wall street analysts were looking for and by a lot. Connell lets go to john meyer about that and the stock reaction is quite severe down 12 . If you look at percentage basis, john, netflix was supposed to added basically five million streaming subscribers. Almost all of them were supposed to have been overseas, to deirdres point, 4. 7 million. Only 300 some odd thousand in the United States. All their growth was supposed to be overseas. Not only miss that number, but miss it by a mile. When youre supposed to have 4. 7 million and post 2. 8 million, that is a huge miss. What is your takeaway on that kind of a miss on that kind of a number . Its a huge miss. What could be happening internally, what seems to be the case, there seems to be in the last quarter or two a serious and significant internal reshuffling and restrategizing of towards. You saw this reported in the last two months in the information where they reported that, netflix, had to make a serious change in the original content game. Shift focus throwing a bunch of paint across the wall see what works, slimming down costs, restructuring strategy, spending a lot more time looking at data, figuring out what bets will work before they go and invest in these, you know, soon to be hits but what i think could have happened that reshuffling could have taken away some of the focus from the International Growth that clearly netflix has missed out very, very significantly on. The other thing that will be interesting to watch, see what other International Competitors have been gaining steam in the last few quarters, that could be taking some of the steam away from netflix. Connell those are good points. They could come up on the call. Maybe john is right again, so focused on disney coming on, hbo max, all the rest, the business youre supposed to be growing to keep your stock price up is overseas and somebody took their eye off the ball . I dont know. Maybe well find out like i said on the call but this is a big miss. Exactly. Connell go ahead, curt. Seeing domestics fall, rather than expected to see something close to 300,000 adds. To have those fall out is bad news for netflix. Theyre way up at the top of the game. Will echo what john says is true. The word on the street, structure internally at netflix, i dont know if it bears a correlation with results today, but they are definitely getting more focused how to create content not only engages the viewer but retains subscribers. Theyre looking for things they can air, not just one off Stranger Things that has done so well but how do you create content that hangs on to the subscriber. Connell jonathan, one final point . Not just numbers, but stock reaction to the numbers. Netflix was overvalued. Overvalued quite some time. That gives them valuable currency to make acquisitions and good content. The valuation beginning to contract. The stock is only up, was up 37 percent yeartodate before this number. Only up 10 yeartodate. Given back a lot of those gains. Connell 11 drop afterhours. Thanks to all three of you. More on netflix through out the hour. Thatthat is a big mix. President trump is set to depart for North Carolina, any minute he leaves for the white house, to head up a rally. The fallout from the feud with these Progressive Democratic congresswoman. What we can expect from greenville. That is up next. Melissa plus a generation in need. What age millenials say they expect to still need financial help, oh, no, from their parents. I dont think we need to know about this. Connell you thought it was 12 . Melissa yeah. Connell a grieving father lost his entire family in one of the deadly boeing crashes making an emotional plea on capitol hill. His message to lawmakers. How he expects congress to take action. That is ahead. Boeing should not be allowed to act like a mere investor company, to supercharge wealth for investor concerns instead of safe. They should change the engineering focus. 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He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Connell more breaking earnings news. This time ibm reporting its Second Quarter results. Lets get to gerri willis. What do we have . Reporter beat on earnings. Ibm with a beat,. Revenue right in line with estimates. 19. 16 billion for revenue. That represents and actual decline yearoveryear. Revenue has been the achilles heel of ibm. Ginny romedy. The company having 22 straight quarters of negative care sons on revenue. They have not been able to repeat on that. Shares are higher up 3 , result of this earnings release. Theyre doing better on a beat on eps. Cloud Software Revenue up 5. 65 billion. Gross margin 47 . Funny the stock was trading lower today. It was unchanged afterhours. The numbers come up, they are moving higher, up 5. 7 . Sos going on with at t. Well continue to follow nothing yet on red hat. Were waiting for news if they have anything to say about the 34 billion acquisition, the biggest in ibms 108 year history. Havent seen anything on that yet. Well let you know if we do. Back to you. Connell fair enough. Ibm up better than 4 . Better than netflix. Thanks, gerri. Melissa President Trump getting ready to leave for North Carolina on Campaign Style rally. For more on all of this, blake. Reporter president will leave later this hour for the Campaign Rally in North Carolina. The pool over here at the white house, the group of cameras responsible for covering any sort of comment here was called in a little while ago. We expect to get some sort of remarks from the president before he heads to North Carolina. Whether be here or at the Campaign Rally tonight. You can expect back and forth continue between the president and those four democratic congresswoman, the issue suddenly erupted over the last few days. The president earlier today on twitter said tonight in North Carolina he want to talk about the economy, wants to talk about the stock market but also said the following, tweeting quote. I will also talk about people who love and hate our country. Mostly love. Now republicans are sticking up for the president today by trying to shift debate on policies and past comment made by some of the four democratic congresswoman. Coming to the defense of the president today, the head of the Republican National committee, the hud secretary, dr. Ben carson. Some of the things that have come out of the mouths of these four freshmen congresswoman is offensive, it is antiamerican and the president is saying listen i love our country. He is not a race ive and his comments are not racist but he loves the country very much. Reporter every single House Democrat voted to condemn the president s tweets and subsequent remarks. House Speaker Nancy Pelosi ride to draw a distinction that it was president s words they feel he was racist. We were not saying he was racist. We were saying that the words he used was racist. That was as gentle it could be considering inappropriateness and disgusting nature of what the president said. Reporter speaking of House Speaker pelosi, im told, connell, melissa, House Speaker, along with Chuck Schumer on the phone with treasury secretary Steve Mnuchin who is overseas in france right now to talk about the deb ceiling. That conversation conversation lasted a half hour im told. Nancy pelosi would like some sort of a resolution by the end of this week so they could move forward potentially to raise the debt ceiling, potentially next week. Back to you. Melissa blake, thank you. Connell lets go to tim murtagh, director of communications for the 2020 trump campaign. He is waiting for the president at the North Carolina rally. Talk to you about what blake was reporting on, comment and in the context of the campaign. This is a Campaign Rally tonight. Some suggested president s use of racist language on twitter is on purpose from a political pure speculative. He sees some sort of an advantage in 2020 by bringing race into the conversation. What do you say to that . Well i would say that donald trump is who he is. Donald trump loves this country. He makes no apologies for that. He works hard every day to try to improve lives of all americans through his policies, the great economy and so on. When he sees people who do nothing really every day except run down this country, denigrate this country it bothers him. He went public with it. It is not first time he is critical of statements like that other people made. The effect of this is that the squad as they call themselves, has now, they are the face of the democrat party. You can see, even in the president ial campaign, the squad, aoc, talib, omar, pressley, they are the ones who have been calling the policy shot all the while while other 23 democrats are running for president. It has been clear to us a long time the freshmen members of the house who are the leaders of the democrat party. The president brought that to the fore. Connell the face as you call it, tim, of the party, using race as a way to do that, that was on purpose politically. The president never mentioned race. In fact never mentioned any of these members by name. These are members of Congress Elected Officials in the United States, who ratherly have a good word to say about this country. They think it was founded on evil. They think it persists in evil today. That is what the president was calling out. It is media that is running around going down all these rabbit holes. The president was calling out folks who larry have a positive thing to say about the United States of america while serving in the United States congress. That is what he was talking about. Connell let me ask you about tonight. As blake said the president told us on twitter earlier he will talk about jobs, he will talk about the economy. Many certainly of his supporters think he has a terrific story to tell there. He also said at the end of that tweet, he will speak or implied he will speak about this feud with the democratic congresswoman. So seems like he wants to keep it in the news . Well, nancy pelosi has ceded control of the house of representatives to these four freshmen members. That puts it in the news right there. That was clear yesterday with yesterdays floor action. The president again doesnt like it. When elected officials, members of United States congress have terrible things to say about this country. He loves this country. He talks about it all the time. He will draw attention to it. It is a good contrast between the president who views america as leading country in the world. America is not perfect. It is only best country on earth, however. He will take issue with those who are elected officials who rarely have anything positive to say. We sure expect he will talk about tonight. Connell big crowd will be on hand already gathering behind you before the president even left washington. Thanks for coming on. We