Despite posting a beat on the top and bottom line. Tesla is on pace for a sixth straight day of losses, now issuing some recalls for the cybertruck over faulty accelerator pedals lets begin with Market Reaction to israels retaliatory strike on iran, jim. So far, not a lot of signals that this is going to cause a conflagration. No. I talked last night about what we need on mad money, a crescendo of selling at 10 15, we thought we had that last night the fact that we now have decided that it wasnt important not we decided that it is less relevant, so weve come back up is, again, something i dont want to see. We have to have people decide that negatives are negatives, not that an avoidance of a negative is a positive so, i want to hear more from Richard Engel about israel, but the fact is that we were down so much, and then we come in, and then were up . What are we up for why are we up . How about flat how about down a little . We dont get that. So, it makes me suspicious of this opening again, because people, by the end of the day, will say, well, maybe israel wasnt done. And i think its unfortunate its very hard to game whats going there. But i will say that the exuberance that we feel every morning based on, you know, flimsy evidence, it has well, the bulls would hope for something that blinken talked about this morning, and that is this journal piece that the white house is still actively working toward getting a deal with israel where they talk about some Palestinian Statehood in return for diplomatic recognition from riyadh i think you have netanyahu, whos more of a wild card than ever, and again, i dont want to im not a political expert i follow this one pretty intensely, but i come back and i say, when it comes to stocks, you dont you have proposals throughout this period, and netanyahu has not gone with them so, i mean, netanyahus been trying to prove his independence i think he needs history i think he needs back in his days when he was in philadelphia 1973, hes got to go over those five days where kissinger convinced nixon to resupply, and then he will understand where the hell we are, and i think its very unfortunate that he doesnt seem to know history as well as i thought, where israel needed everything, nixon was against it, kissinger said, you have to do it, its a democracy, and the United States saved israel and anyone who disagrees with that just doesnt understand the golan heights. So, im not saying that hes ahistorical. I am saying that he seems to be ignorant of what happened in 1973, and its going to cost israel, historically to you, is it mostly about energy goldman today, again, we see brent in a range between 75 and 90. Brainard saying, were going to make sure gas prices dont get out of control this summer i love the idea that we can control it, but i think that goldman put out a good note for alumni which is that markets may be worrying too much about overheating. This is david marigold this is the first piece ive read which says, enough with the hysteria about inflation the fact is, there is what he calls catchup inflation, which is about Car Insurance and owners equivalent rent im going to see a car dealer, going to carvana theyre intraquarter, but you said, yesterday, something really good. You said carmax is disappointing. Disappointing because prices are coming down. Ive met with them theyre probably the best operator, and theyre the only one that actually uses a. I. , so they actually had a sense of what could happen. And look, insurance is something that we all feel its funny we have Jonathan Kanter at justice really pressuring apple, and the issue with apple, again, is that the phones are so good that people dont switch well, how about the fact that if you switched insurance, all it would do is make it worse . But you know, theyre not theyre not savvy like that, because theyre antimega tech, and the Justice Department is emerging as the one im now focused on the other agency, we know their stance they seem to be fine theyre consistent the ftc which one do you mean . Theyre consistent. But kanter has taken on google, and hes taken on apple. Hes got Merrick Garland on his side, the attorney general, but when i look at what happened with apple, what happens with apple is it has to cut numbers well get that number cut. Then, two to three days later, well say its bottomed. Then, the focus will be on the other mega countries besides china. Youre going to start hearing a narrative which says, we got to start thinking about brazil, philippines, indonesia, turkey, and then we have to extrapolate india. But they havent been able to tell that story yet. You mean as a supply chain . No. Customer base three years from now. Oh, interesting and if they were to focus on longterm value of those new customers, particularly in india, younger customers, not unlike what i talk about when we talk about American Express, what people realize is, for the first time and i will even go as far as to say that procter is doing the same thing for the first time, were not as levered to china as we think, and i think wall street is way, way behind the demographic changes that were seeing. Where did tim you know, tim puts tim cook he puts factories where he wants customers. This man spent more time in jakarta than weve seen. Now, you could say, wait a second, he capitulated on whatsapp i would say that he makes deals. Hes always been pragmatic, but the pragmatic nature of indonesia, a country of more than 200 Million People, growing like crazy, to me shows you know, vietnam, 100 Million People youre talking about not just diversifying chinas locus as a supply chain hub but as a customer hub on the demand side our country is addicted to thinking that china is a winner in everything. Our inferiority complex to china is only second to the inferiority complex that chinese feel about china, particularly after covid, where they were given the opportunity to have a vaccine, and they chose not to have it. Pfizers had the worst quarters ever, but man, they make a dynamite vaccine well, procter today, john mueller on squawk had relatively positive things to say about china quarter on quarter. Yes and you know what . I got to tell you. I see procter down three you could say im talking for the home team because my travel trust has owned this stock forever. You can send this stock down its not a problem you can focus on beauty. You can focus on children. But what i think you really should focus on is one key thing. When you look at the Third Quarter last year and the Fourth Quarter last year, you had the dollar overwhelming the cost savings. That has been the dynamic that weve suffered, and what happened this time the cost savings exceeded how much is lost on the dollar people dont want to look at that what do they want to look at they look at the headline generated by a. I. , which says the revenues werent that good its really unbelievable that you can get out of argentina, genius, get out of countries where youre selling things for much less than you make it, and then you get punished, down four ill take the other side of that trade. When its down four, you got sellers that come in and sell it down to 153, and then you got to buy it hand over fist organic, up three was a slight miss. Heres what mueller said about china earlier this morning take a listen. China is down a bit, as the market continues to struggle, but even there, were seeing sequential improvement, quarter to quarter well, this is a sequential improvement story. Its not an absolute story its a relative story. You know what . You got to do a you got to parse the q3 and q4 to recognize the improvement, but the lack of history of how procter did on q3 and q4 is sending the stock down people must go over the line by line i went over q3 and q4 coming into today, and i was pleasantly surprised. Its sk2 that is this problem. Yes, yes. Theyre not going to this im calling it the were going to get the gen z and millennials when we talk about American Express, but the gen a. I. On procter sends it down. Gen a. I. , theyre not looking q3 and q4, the machines, and so you have this stock getting clobbered, and i understand. You want to sell at the opening. Look, the Hedge Fund Guys who are super novas, theyll take that youll buy it at 153, theyll sell it down to 152 thats what theyll do and then, theyll cover. And the individual at home is saying, something must really be wrong at proker, and im telling you somethings really right at procter, which is that their costs are down, and they didnt have to cut prices go listen to the conagra call, the kellogg call you can listen to General Mills. If you didnt have to cut price, and your prices fell h hormel your stock went up procter is no different. Im not going to disagree with the opening, because im never going to disagree with the guys who are just banging it down i want to own that thing at 10 of 10. Well watch it after the open nice 7 div hike 11 of 10, no. Meantime, lets do get more on the israeliran conflict. Nbcs chief foreign correspondent, Richard Engel, is on the ground in jerusalem this morning. Richard, the reports here sound like this was carefully calibrated do you agree it was a very limited strike, and if you look around, the streets of israel, you would hardly know that anything happened there have been no instructions given to the public for people to take shelter. Traffic is flowing as normal people are out people are shopping. The airport is open. Air space, uninterrupted and thats a pretty strong indication that israel doesnt expect an immediate counterstrike and tried to calibrate its response and whats interesting is iran is also downplaying this weve been talking over the last couple days how iran has been making threats, was threatening fire and brimstone, that if Israel Attacked, it would immediately respond with a ferocious attack of its own, but instead, what is what iran is saying is that since this attack on an air base was so small, that its a sign that israel was intimidated, that israel was too afraid to do more, and therefore, painting it as a success for iran so, if both sides can walk away feeling that this was a victory, that is a best case scenario, because that is how you deescalate all conflicts around the world. You give each side an offramp this is not over but things are looking like we are heading potentially toward a deescalation of this part of the conflict, of the direct iran versus israel, headtohead, we attack your country, and well respond by attacking the other directly okay, richard, first, jim cramer i want to salute you for unbelievably neutral reporting and unbelievably situation, once again, where your life is in jeopardy its unbelievable how good you are. I want to talk about targets thank you no problem. You dont get it enough. Why not just tell you . Targets. Why that target in iran . Whos there . Whats there and is that not in itself a sign that theyre not going after obviously, really Populated Areas that could have caused a terrible, terrible tragedy of life so, this was a military base. Isfahan is in central iran, a his historic city, one of the most beautiful cities in the world, really, certainly the most beautiful in iran. Theres an expression in the country that means, isfahan is half the world and contains half the worlds beauty. Its a wonderful place but it also has a military industrial component the uranium enrichment site is there. That was not attacked. It was not touched in fact, iranian tv put out pictures today showing the main circle in isfahan with traffic flowing as normal. Iranian state Television Anchors were telling people that things were that they should live their life as normal, one saying that the israeli strike was no big deal they showed life continuing in that country so, it seems that israel chose that because theres also a missile Production Facility there that produces mediumrange missiles when iran attacked this country, it used Ballistic Missiles that fired they were almost all shot down, but that they were fired here it seems like Israel Attacked a missile production area in order to send a message to iran, a, that it can get through its air defenses, and b, you target us, well target your military facilities by the way, irans main target in israel was also a military base richard, streets listening closely to you this morning. Thanks for that. Hopefully later this morning or today and the days to come, we can talk about longer term diplomatic pushes. Thats Richard Engel in jerusalem. Dont you love journalism what journalism was. Still to come, details on netflix. Bunch of calls today well get to axp and schlumberger new projects means new project managers. You need to hire. I need indeed. Indeed you do. When you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. Visit indeed. Com hire and get started today. I dont want you to move. Whose resumes on indeed match your job criteria. Im gonna miss you so much. You realize well have internet waiting for us at the new place, right . Oh, we know. We just like making a scene. Transferring your services has never been easier. Get connected on the day of your move with the xfinity app. Can i sleep over at your new place . Can katie sleep over tonight . Sure, honey this generation is so dramatic move with xfinity. After military service, you bring a lot back to civilian life. Leadership skills. Technical ability. And a drive to serve in new ways. Syracuse universitys Daniello Institute for veterans and military families has empowered more than 200,000 veterans to serve their communities and their careers. From professional certifications, to job training, to help navigating programs and services, we give veterans access to support from anywhere in the world. Netflix is the biggest premarket laggard after issuing softer revenue guidance than the street expected. That news, overshadowing a quarterly beat, including 9. 3 million additional subs. The Company Announced plans to stop providing sub numbers beginning next year. This is coceo greg peters on the call each incremental member has a different business impact, and all that means that that historical simple math we did, number of members times the monthly price, is increasincreasingly less accurate in capturing the state of the business. This change is motivated by wanting to focus on what we think are the key metrics that matter most to the business. Best start to a year in terms of subs since 2020 it gets tiresome. My travel trust does not own netflix. Amazing quarter. And again, i keep using this word, parse, because we seem to be ahistorical this was a great quarter i dont care im going to give them the benefit of the doubt about their decision about the way theyre going to give information. The essence of this story this time was a verb that they used that ive never really used it myself you can google it. Eventized. Theyre eventizing their business there was a jason was asked pointblank about the tyson fight, and whether it would be good, and he said, yes i think that these people are creative i think that they keep growing everywhere i think that when you have people, just read the darn release. Society of the snow. This is a movie, 98. 5 million views. What does this mean . Throughout the quarter, throughout the discussion, its about how films breed viewers. Who else talks about that . So, you may think that their projections, their forecast is down beat, and they did. Some people said, listen, i want to be a bad guy. Im not going to just dismiss the body of work that these guys have done and how many more people they can still take and Everyone Wants to find fault Everyone Wants to find fault with a stock thats down 45 thats like the people who said that were going to have six cuts hey, theres the sixcut crowd right down there down 42 means down 46. This is another 10 of 10 story nobody gives these guys the benefit of the doubt this has been one of the greatest stories in history. I think i mean, the downgrade today says the stock is up 90 in 12 months good. The good stocks go up. Let it come in im in no hurry. The stock was up huge, people were asking about what to do with it yesterday. What have they done . Theyve accomplished the almost impossible they have an ad tier, and they dont even have all the money thats going to be made. Ad membership, up 65. Still gunning. The 10 penetration is all they have versus what they could have the number of countries that are involved look, its an International Success story, and all anyone wants to do is call a top. That has been the prevailing call top, call top, call top why dont they actually read beyond the second paragraph of the of that bizarre youtube stuff . Let me tell you why you know how to get that stock up they wont do it go do what jack hartung, the finest cfo in the land, did. He said, we got to split the stock. We got people who want to be in the stock. If they were to announce a split, you know what would happen they would be up 43. Thats how pathetic these opening quotes are the other media piece to fold in here is from time. Does sony have the money . It would alleviate some financing concerns i want the Champions League you can have the rest sold to you. Can we just go i mean, honestly, netflix the sellers are using chatgpt. Right . I mean, thats what it has to be you put it through chatgpt, he talks about weakness if you actually read it, it talks about strength you think selling is a hallucination today . Yeah, i think in the end, there are survivors in uruguay uruguay. There it is. Okay you got a uruguayan movie. Uruguay. I didnt know they made movies i thought uruguay was, like, you have a good bank down there. What the heck . And amortize that all around the world. Thats my point you know what . I like prell and i like society of snow. Pretty busy friday shaping up in the futures, as you know, have recovered a lot of lost grnd ckn mont business. Its not a ninetofive proposition. Its all day and into the night. Its all the things that keep this world tu