Beneficial in the short term. After the bell an exclusive interview with senator tim kaine, the democratic Vice President ial nominee making an economics speech in detroit this afternoon. Goldman sachs, one of the leading dow components today on the heels of its Earnings Report that came out this morning. The Financial Firm getting a big boost from trading revenue. We have more on that move coming up. And from olympian to entrepreneur, Michael Phelps will join us here to discuss his latest Business Ventures as more and more athletes turn themselves into enterprises. Swimming with the sharks in the world of business at some point. The nasdaq really the big leader in todays market rally. Seema mody has more for us. Netflix being the driving force contributing about eight points to the nasdaq 100 gains. The headline numbers were positive. Subscriber growth here in the u. S. And internationally came in ahead of consensus. Speaking to analysts netflixs programming pivot seems to be a key part of the earnings story. The stocks participating in the nasdaq rally. Semi conducters outperforming posting best day this month ahead of earnings due after the bell the stock is higher today and also up by 9 year to date. Another sector feeling the nasdaq is bio tech which has been under immense pressure because of political rhetoric around drug pricing. Despite Hillary Clinton leading in the polls we are looking at shares of bio tech higher across the board. Adam parker is advising clients to buy bio tech reasoning is valueuation looks compelling. He mentioned m a being a big part of the bio tech story Going Forward. Going back to netflix the Company Announced content spending will rise to 6 billion next year which is a billion dollar increase. For more on the move and whether the company is spending too much money on content that has long been the question asked about netflix, Larry Haverty is cautious on the stock. We have Cfra Research who is bullish on this stock. Does this report change your mind at all . Get your attention . What do you think . Certainly the price increase yesterday got my attention. Just to put it in perspective the stock went up 8 billion and the bottom line incremented by 20 million. The delta on earnings was capitalized at 400 times. I have been around quite a bit through the years on the street. I never seen a 400 multiple put on earnings growth. What netflix is doing is getting into the content business. They are producing some content them selves and buying it for their exclusive use. Other companies do this and they basically hired somebody from another company to help them with it. That company being nbc. Those businesses are capitalized in the market at 10 to 15 times. So you are paying an awful lot of money for netflix. There is no Free Cash Flow. They are increasing estimates of the degenerating level of Free Cash Flow at 1. 5 billion. It is a very mediocre profitability on return on assets. It is a high valuation. We just showed that netflix outspends nbc in content. That 5 billion number returns 6 billion next year. Are they spending too much on content . We do acknowledge some trepidation in terms of the growth in content spending for netflix. Thats not just netflix but across the industry even on television. I think it has become a lot more difficult to break through the clutter so on the other side you have the demand that seems insatiable. We do think that over the long term certainly near to medium te term we kept buy recommendation. We think content should be viewed as a quasifixed cost. As they expand they can leverage that and it can be certainly sustainable in the near term and the price increase should provide some cushion in terms of the nearterm Free Cash Flow deficit. Let me just you sort of brushed aside larrys point on valuations. That is a pretty high valuation for any company not just netflix. I think netflix is defined conventional valuation metrics. We dont think the international upside is anywhere close to being fully recognized by the street. I think that is where the disconnect is coming from. When you take a broader look at the upside they just kind of launched across the globe, they reaffirmed their outlook. We think second half next year will be an inflection point. A lot of analysts are missing that in terms of how soon the spending turns around. By any number of measures we think the payoff on that content spending is justifiable. And also viewer engagement. All of these things bode well for continued spending. Whats your point of view on their spending on content here . The question is are they buying the right content . That is a very tricky act. There are 400 sericereals in production. Everybody wants to get into the content production business. How do you know what is good and what is not . In the case of netflix when they buy stuff that isnt good are they putting it through the income statement. You take marco polo which was an expensive series, has that gone through the income statement . We dont know. There is an awful lot of content sitting on the left side of the blangs sheet right now. The history of media there were companies that hit the wall with content problems not having been written off. When you get into the world of parallel metrics for stocks as opposed to good Old Fashioned cash flow profitability, Balance Sheet integrity you are in treacherous water. The analysis on the international for netflix is a lot like aol in 2000. We know how that ended up. We got to go at this point. I wish i had more time to get you to respond to that but we have to move on. Thank you both for your thoughts on netflix. Lets get to our closing bell exchange. Charlie smith is with us. Steven with a big smile on his face. He would be too embarrassed to mention but he went home long netflix last night and Rick Santelli is in chicago for us. Good call on that one and clearly this rally today has a lot to do with the earnings that have been coming out here. Certainly. We have seen really consistent beats. It is early. We are just barely into earnings season. We are not going to claim victory. The revenue side year over year revenue we see numbers like 8 , 10 and 12 . The numbers are better so far. You can see that in the s p 500. They even with stood a bit of a comeback by the dollar today. Really i guess they mimicked oil because oil did rally a little bit even though it is not a perfect lay over. Earnings are a little bit better. And you guys like technology, it says here the semi conducters, cloud software, intel should be interesting this afternoon, then. Absolutely. We are looking for real strong numbers out of their server business. I think they are going to sort of continue the beat the street sort of tone we have seen so far this earnings season. You like commercial aero spa space. Why is it because of the valuation or do you feel confident about the prospect snz. We have seen really no change in trends in terms of air traffic around the world. Number of people getting on airplanes continues to grow. There has been concern about the 777 order book for boeing but they just got a couple of orders for that aircraft here in the last week or so. There were comments from honeywell but really didnt focus on aero space side but said it continues to be outside the Business Jet Market pretty strong. We are liking that area. It seems fixed income is overshadowed by Earnings Reports. What are you watching that is affecting your markets here . I think it is. And i find it fascinating that as stocks get back their legs to some extend normally Interest Rates if they are pressured to the upside when they see stocks do better that makes them go higher. Not the case. Its still a steep curve but our rates moved down. If you look at tens and 30s these are lows only since thursday a couple of sessions. The best highest close since the 22nd of september. And the big story today that i was a little late to read about but it is fascinating, Norwegian Fund when you look at the southern wealth fund hinting about going into stocks and cant make it in oil and they absolutely have to get a better return so everybody is going to the only place left. Im not saying it is a bad idea but once again we are packing a lot of people in equities at a time where i am not sure we have the under pinnings. Not every stock will have a day like netflix. You add the shift to active to passive investing which takes people into pure long positions. Are you concerned about the market being overvalued or do you find plenty of areas to invest . I think the move from active to passive is a constant. I think if we do see the ten year push through 180 level aggressively i think ricks comments could be a harbinger of pain. I think people keep bringing up the 1987 analogy. We had a huge move in the long bond. If we see the ten year spike up from here i would be concerned about stocks. Before we go, what levels are you watching right here . I will ask the question that all traders ask you. We stopped about three times today. That is your first line of resistance. It is kind of crowded. We have lines of 2153. 2139 is where you want to see support which we are only about two points away right now. Indeed. See you later. What do we have here . We have 48 minutes left in the trading session. Dow up 85 points. An earnings fuelled rally today. Weighing a little bit. You can see it is up half a percent relative for the s p and the nasdaq up 1 . Democratic Vice President ial nominee making a big speech on the economy. We will ask him about the economic and tax plan in an exclusive interview. Goldman sachs giving a big lift to the dow after reporting much better than expected earnings. We will break down what is driving those results and whether or not the Financial Sector can come back at last. And the earnings parade marches on. Intel and yahoo report after the close. We will have instant analysis later on closing bell. Is it because so many go after it the same way . Chasing after short term returns. Instead if getting caught up with the crowd, the Investment Managers at pgim take a long term view, teaming specialized active investing with riskmanagement rigor, to seek out global opportunities. We manage over a trillion dollars this way, attracting many of the worlds leading investors. Partner with pgim. 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That was thanks to a 13 increase in samestore sales as rivals in the Restaurant Industry struggle with slowing foot traffic. Ceo Patrick Doyle will break down results with jim cramer tonight 6 00 p. M. Eastern here on cnbc. Harley davidson shares revving up after beating estimates. Maintain its outlook for the Fourth Quarter driven by enthusiasm for recently released 2017 model lineup. Goldman sachs one of the best performers after reporting much better than expected earnings. Shares up 2 . So big beat on the eps line. Double digit returns of 11 very impressive. The beat largely down to trading. Fixed income currencies trading was strong up almost 50 from q 3 last year. Harvey shorts on the performance. Year over year we were up 49 . I think in some respects that speaks to a weaker Third Quarter environment last year but i have to agree with you. I wouldnt say it was particularly strong quarter. Year over year i talk about some of the drivers. I would say maybe the best way to describe it, it wasnt so much about tail wind as it was about not having so many head winds. Later he said not too overemphasize Third Quarter trading performance but momentum was good. On expenses they did post a 3 quarter on quarter. It all seemed sequential increase in costs. Back log is encouraging particularly the u. S. And advisory was better towards the end of the quarter. We got comments on new online lending platform where scharts said the approach would be slow focussed on prime customers and aimed at delivering flexibility and simplicity. Shares up holding on to gains which some banks havent done after the other banks grew their total dollar amount of earnings year over year and by a substantial amount and the revenue figure was much higher. Id say probably most impressive thing is the returns. Double digit again. They made 15 about six quarters ago. That was in a better overall environment. The environment this quarter hasnt been stellar. We havent seen the rate hike yet. To get back to double digit returns there are about 6 or 7 above the average. Wells is higher already but a different company. And the trading revenue is impressive when you consider what a lack of volatility it was. I think that very much again focussed more into the fixed income area, not even the currencies and commodities. Rates and fixed income. They grew that up 50 . Their equities performance was positive only 2 growth. The others seem to decline. We tend to lump all these banks together as the financials or the big banks but they really are very different in the way they do their business. Of course. They are an investment bank. That came through in these results. The thing i would say for the sector as a whole clearly this wasnt an outstanding environment to do banking. U. S. Banks have all proven they can earn in this environment. Its a completely different picture. Interesting comments on that. Particularly Goldman Sachs in terms of market share gains. This is an environment where they can grab a bit of share. Cfo said it is potentially something to drive share. New york is a Financial Center relative to the rest of the world. It will be a tough act for Morgan Stanley to follow. We will see the last of the majors to report. Well see what they have to say. From a low evaluation base getting them to equal but value. Pleasure as always. Tomorrow dont miss david favors exclusive with Lloyd Blankfein tomorrow on cnbc. 40 minutes to go until the close here. Pretty strong gains. The dow up 80. S p up 14. Nasdaq up 51. Olympic swimmer Michael Phelps talks about how he is making the transition from athlete to entrepreneur. Dont miss exclusive interview with democratic Vice President ial nominee tim kaine on why he says his running mate Hillary Clinton is the best choice to jump start the economy. Before taking his team to state for the first time. Gilman go get it, marcus. Go get it. 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The nasdaq just coming off its highs, as well. 1 gain a little while ago. Still up 50 points. A volatile trading day for tesla. Shares dipping and then recovering after the company quietly changed the delivery estimate for its new model 3 orders to mid 182018 or later. Tesla predicted deliveries would start late next year. There you go. Shares up nearly 2 right now. He is the most decorated olympic athlete of all time. After this years Olympic Games his medal count is 28. And now Michael Phelps is turning his attention to other ventures out of the water such as his foundation and swim wear brand. We welcome mr. Michael phelps. Welcome sbrmpt dh how are you guys . Good. I was waiting to see what cap you wore. Ashton kutcher was on with an l. A. Dodgers cap. I heard you were raring a Boston Red Sox cap. No. 60s orioles hat. I was very surprised when i read. Apparently i was misinformed. What did you tell the attendees there at the under 30 Conference Today . What was your message . We kind of talked about how i was able to get to