emily: i am emily chang in san francisco and is is "bloomberg technology." over 5 millionst subscribers. well over expectations. does it mark the end of an era. amazon crashes on prime day. andthe 36 hour extravaganza $3.4 billion in possible earnings. we speak to the man who heads up

the prime business at amazon. and elon musk raises eyebrows again on twitter. this time has the outspoken ceo gone too far? numberss second-quarter are in and the numbers came in well short of expected numbers. subscribers,ew about a million fewer than expected and the trend may continue as netflix announces it plans to add 5 million subscribers in the next quarter again. the numbers are plunging. why the subscriber slow down? nieves and indan studio we have bloomberg tech editor tom giles. were expecting 6 million subscriber ads.

i know you are bullish. what went wrong? >> a negative punch. expecting a bead on the subscriber number. predicting so it, much international growth will add some quarter to quarter. we have seen some blowout results. this is what i view as more of a speed bump, not the start of a negative trend. you will see a negative knee-jerk reaction. the international growth story. the growth season is intact and things will go much higher. nevertheless, they will have a lot to do to explain in terms of why they missed and looking forward, is there anything they are seeing internationally, why they saw this weakness. emily: he thinks it is just a speed bump but why? you gotis the last time excited about a show on netflix? has been a while.

i will be honest. "stranger things", we were on the end of -- the edge of our seats. emily: and they don't have a seasonal schedule which gives them more flexibility but it also leaves people frustrated. >> it is not like when we were growing up. in the fall you knew you would get the new shoes. you got the upfront advertising. that is all gone away. and in many ways, that has been the strength of the streaming services. amazon is the same way. at the same time, it leaves the rest of us guessing -- when will that happen again? they are few and far between for netflix. one of the bright spots has been a comedy show. people talking about that and getting excited but it is a one-off. it is not a series. talked about

international growth. netflix has talked about getting original program in countries like india. that can make a really big difference. once you start creating shows that people in other countries can get excited about. emily: netflix is feeling the punch. we have been talking over the how it haseks over surpassed. is this because of the lack of new content or the unpredictability of the schedule of new content? other suggested is due to the world cup. you take a step back and look at disney, 21st century fox, and streaming services. more competitive headwinds. time warner. that is why they need to drive content. tom has a good point. it speaks to why netflix had to spend at this rate. any dip in content, you could

see speed bumps in the quarter. and the international buildout. content will be so key for netflix. you put it all together and you have disney on the horizon. in 6-12l be a key months of for netflix to navigate some of these linear headwinds. like what we saw this quarter. the comfort that it is a speed bump and not a negative trend. netflix is burning through cash. even as the stock price climbed. netflix's fastest-growing expense is not content. the wordou do not have of mouth that everyone is talking about and getting excited about, you need to get the message out. you need to keep it top of mind because there is so much competition in streaming. and the world cup has also been, or could have been a factor for

some people who were tivo -ing that. if you want to get the message out, you have to get it out somewhere and it will come from marketing. stocksand other tech have gotten rattled. is there a longer-term trend at stake? >> you will see a risk off trade. think what you will see in the next week or two, you could see some of them getting hit. not necessarily a correlation but the worry is given some of the valuations, you will see the stocks get hit. a worry is that we navigate through the rest of the earnings seasons. n. is netflix a canary in the coal shaft? that is why they have to do a very good job in the conference call giving investors

confidence. continue toll discuss this later in the show. hastingsr coming from to shareholders saying youtube is their major competitor. hbo and disney. thank you to you both. questioning sinclair media's win to win approval. hearing -- a step that may kill the deal. sale isnds that the structured in such a way for sinclair to control the assets regardless. the deal would give sinclair a reach into almost 59% of u.s. households. the deal is being reviewed by the department of justice and the sec. in february, the sec revealed it was conducting its own investigation. it is one of the

amazon calendar and it already has some big snafus. we will talk to the executive in charge of prime time next. this is bloomberg. ♪

>> the whole china -- the whole situation with china and the u.s. is very critical. i believe the situation is getting worse. president trump is not giving in. emily: a major hiccup on one of the most critical shopping days of the year at amazon. sales promotion ran into some major technical glitches on the website and the app about one hour after the

sale kicked off spiking around lunchtime. according to website down detector.com. we are bringing in our guest. a former executive at amazon. analysts are quite frankly shocked that amazon would not be prepared for this kind of traffic. amazon says they are working on it. what do you make of it? >> prime day is like the super bowl of e-commerce. amazon is putting its best offers in front of everyone on its website and now the ecosystem including companies like walmart and the consumer package groups behind that. aboute thing we know amazon is that they are extremely good at operations. if the website is going down, it means one thing which is that they have a lot more traffic than they expected. i am an amazon shareholder i

am signing up and routing for this. -- and rooting for this. emily: you don't want to mess up the first quarter. lose this traffic cannot convert on it will be a major problem. if you look at the positive side, there are a lot more shoppers and it has become a big phenomena. and another thing to remember is that prime day is almost a preparation day. preparation they are doing for the holiday season. essentially using this to stress test their system. they did not stand up to the stress test this time. but, in preparation for the 2018 q4 season, they are getting the right signals so they will be ready for that prime time. emily: it has been going on for a couple of hours. do you still think this can be a

record-breaking pot -- prime day with this more than a hiccup? >> it is going in one direction, uprecord-breaking pot and up. last year it was 60%. the year before a group 40%. all of the numbers are double digits and nearing 60% growth. this is expected to be the same especially given they are getting a lot of support from manufacturers like a procter & who are alsollogg putting up their own prime day websites on amazon in support of the prime date deals. it is a lot more mainstream this season as opposed to a couple of years ago when they got a lot of chris it -- a lot of criticism. dayy: it is the first prime plus whole foods. one place you will not run into technical glitches is at the whole food store. can people get that excited

about grocery shopping? >> grocery shopping is hitting critical mass online. largeago, if you were a company like kellogg, you were not focusing on amazon or e-commerce. shoppingds puts online , online grocery shopping front and center. this year there has been a big push with amazon pulling $10 off if someone purchases something from whole foods. segment inocery e-commerce, we are starting to see a lot more mainstream companies making the series. emily: amazon does have some major weaknesses in apparel and furnishing. iey are trying to combat that making more amazon branded products. can they make up for lost ground

there without losing their relationships with third-party sellers? 70they have more than branded products now. they have launched mama bear and and not to mention the whole foods private brand of 365. although that is starting to gain a lot of margin traction for amazon. sense, amazononal used to push for topline growth and very little bottom line margins. these private brands are helping amazon get margin advantage back from all of this. emily: hang on. we caught up with the amazon in seattle before news of the glitch broke and we asked how they get the right deals in front of the right customers on a day like today. >> you would be surprised. ae launch of the whole foods benefit for prime members has been one of the greatest

benefit. i said at the time that this would be our most important benefit launch. the adoption of prime members to hold food benefits with the savings and the deals -- and in the lead up period, it has been phenomenal and humbling. never severed a saved over millions and millions of dollars through the purchase of whole foods. look liket does a win at whole foods in particular? >> prime day is a celebration of that. we launched prime day four years ago in 2015. we are celebrating 20 years of amazon and 10 years of the prime program. what is important for us is to try and engage as many members as possible. make sure they have a great day and find the deals they are looking for. and they walk away remembering why prime makes their life great. this is around a celebratory event, engaging with our members come and exposing new members to

what is still the best shopping deal in history. a unique combination of shopping and entertainment benefits. we keep getting positive feedback from customers. we try to make it better every year. emily: amazon recently raised the price of prime since 2014. have you seen a reduction in renewal rates as a result of that? continue,rs particularly most of them continue to engage with us through shipping benefits. we see increasingly higher renewal rates as they engage in our entertainment benefits. off withers will start shopping but then they will stick around for the entertainment. we continue to be very humbled by the response. last year on prime day, we added more prime members than on any given day in history to that point. we expect another big year. emily: you are raising the stakes today. you have cash prizes.

cars. deep discounts for alexa. is it working and in what categories. ? >> it is across all categories. it continues to be a great act as shopping period also. last year, we sold more back-to-school supplies on -- then on any other day in the year. we are really expecting strong engagement at -- across all of our categories. to me about what trends you're seeing in terms of how people are using echo to actually shop as opposed to just play a song or ask questions. seeing customers engage with prime day in a variety of ways. i purchase using my echo devices. especially for reordering. and also for great orders. echomers can go to the

device and ask alexa for the great deals. we are trying to make it as easy as possible for people to find the phenomenal deals we have on offer today. emily: what are you doing behind the scenes to make sure there are no hiccups? historically, there have been some glitches. some people unable to fill up their cards or people not excited about the deals on offer. how do you make sure it is not like a rummage sale and really is a cause for celebration? >> we start planning for prime day the day after the previous prime day ends. we are focused on making sure it is a great event. most of the incidents you are referring to were minor glitches and they were resolved very quickly. customers can quickly find a deal for want. emily: that was some of my interview with the amazon vice president of prime. that was just a few hours before the glitches started happening.

he said the glitches were minor. these glitches are not. amazon just tweeted -- confirming the glitch. some customers are having difficulty shopping. we are looking to resolve the issue quickly. many are shopping successfully. there are hundreds of thousands of deals to come. and more than 34 hours to shop on prime day. can they make up for the lost ground? disappointing that they are still having issues. typically what we see is the site goes down where there are ordering issues. relativelying it up quickly because they have multiple layers of redundancy in their system. in this case, it aims like things are more deeper and just falling back to a redundant layer. but it looks like given that, some customers are able to order. it will be critical for amazon to get the server is back up and

see how they can handle the load they are getting. emily: you have been behind the scenes at amazon. of what isidea happening right now on the engineering floor. breaking loose right now. you have engineers trying to debug what is going on. everyone is on a call. principal engineers are on the phone trying to fix this. there is no blame game at this point. it is purely trying to figure this out and fix the issue. emily: what is jeff bezos doing? >> he is on the call. you as always for stopping by. we will be watching in the next few hours. coming up, local is facing another showdown.

with the eu. this time over control over the android platform. that is up next, this is bloomberg. ♪

emily: google is facing another showdown with the eu. this time over the companies controlled over the android mobile operating system. the european commission is expected to announce an anti-trump suit. google was fined last year. more significantly, it could be any order from the eu freeing up manufacturers to choose non-google apps to install on android phones. -- fromyou buy a small samsung or sony, you're also getting the android operating system. google gives the android platform to the manufacturers for free. they come preloaded with google services.

in grade runs on 77% of the world's smart phones. the european union says google is stifling competition and hurting the development of android applications. the idea is to use a stick with the default often. and may be less likely to seek out other products like -- from companies like microsoft or --. it is the second of three european growth. last year, google was fined for reaching -- for breaching antitrust laws. the size of the penalty for the latest ruling will grab headlines, the bigger impact will be decisions on how google should address the eu's concerns. it could be ordered to remove or renegotiate contracts with smartphone manufacturing. which will put a dent in mobile advertising. it is beings anti-competitive and argues that the real loser will become -- will be consumers who currently

get cheaper. android is free. in a blog post in 2016, google says its actions to prevent multiple versions of android is to make sure apps work across all phones. the company is expected to fight any you finding. -- any eu finding. airbnb.e are watching it was warned to expect a regulatory clampdown on musick complies with eu standards by the end of august. the eu says the company's terms and pricing are not in line and they must make it more transparent. airbnb says we take this seriously and are committed to being as transparent as possible for our community. netflix plunges after slowing growth threatens its high fire status. what has caused its second-quarter slowdown? you can check us out on technology and follow us on

tictoc on twitter. this is bloomberg. ♪

♪ this is "bloomberg technology." i'm emily chang. back to our story, netflix's second-quarter results to reflect -- to recap, it slowed in the second quarter. missing its estimated forecast. adding 5.1 million sets of i's. one million fuses -- fewer subscribers than suspected. some fingers are pointing to a thin slate of new original content while others are wondering if he was more distracted by the world cup. let's dig into the reasons behind the slowdown to we have our bloomberg intelligence analyst dean descent. dell, -- bill.

what do you make of this? what i'm not surprised by we saw. i think you hit it on the money. content is king. there have not been a lot of new shows. we see a view of over 100 million users worldwide. the growth rates were up on shop in 7%. they were up 34% internationally. the growth will be internationally. on the world cup, our peak load in q2 was three times higher than it was in q1. driven by the world cup. the world cup was a major factor. emily: david, let's talk about the fact that netflix missed its own estimates. , we strive for accuracy but were in some quarters we will behind and other quarters we will be low. relative to our guidance. it is a pretty big overestimation for netflix itself, isn't it? >> it certainly is.

it is interesting because in the newsletter to investors, they have a chart where they compare them number of forecasts with the actual subscribers every year. you see every four-five quarters that they come up with a mess. they are suggesting this is really a one-off situation. what management suggested is that it is hard for them to forecast in markets across the globe. kind of suggesting that it is a one quarter blip. not the beginning of a longer trend the kind 8 -- to cleaning. emily: is it a blip or trend? bill: i think there will be some trend involved because the world cup went through july 15. we saw triple vera consumption versus q1. you can only grow so large. as much as they are driving and content, they will have to drive more content than the united states and internationally. enteringney's

streaming in 2000 19. we have hulu, hulu tv, slang, and others. if you are a content provider, you have more options than you had in the past. pe forwardy have 140 ratio. i think things will slow down. emily: it is interesting that this is on the back of great news for netflix getting more eminem and nation than anyone else including hbo for the first makingnce it started original content. they have completely shattered the way we expect to see new shows. these new seasons are often delayed, we don't know when they are coming out. what is the consequence does have on viewership and subscribers? bill: without the level of predictability, it becomes hard to know when the shows will come out and there is normally -- more viewing options than ever. emily: i don't they put it on a schedule? bill: those of us in product development think slip. they have more flexibility than

linear tv has. i think these things happen. it becomes costly. have noticedx we is spending more on marketing than it has. the bulk of the spending still goes to original content. then i have the marketing of those shows on the marketing of netflix in general. are we expecting those costs to continue to rise? geetha: i definitely think so. they made a conscious effort to increase their marketing, doubling it. it is up $1 billion at the end of the june quarter which is a double from last year. this is a conscious effort on their part. they know that disney will be coming into the market. they know competition is ramping up in get ahead there. concern.ll be a marketing expenses will be rising. even with these elevated marketing expenses, they will miss subscriber estimates project to be a cause for concern. the party for netflix over or is the playing field going to become more -- more level? bill: it is deftly not over.

it will be more level. we don't know how hulu is doing but we expect they are doing well. both with regular service and tv. emily: apple? bill: apple is coming up. we don't know yet. emily: amazon? bill: amazon's hot too. imagine being a content provider. there are many options. i think the deals will be more expensive. emily: i wonder if we will see changes to the netflix playbook over the next few quarters. i think really what is going to happen as netflix management has to come out and really comfort investors that this is just a speed bump. this is not the beginning of a longer downtrend. the next 6-12 months is going to be key for the company. right, geetha ranganathan thank you. as well as bill. great to have you in the studio. speaking from helsinki, president trump sided with

putinn president vladimir over the u.s. intelligence committee on the issue of russian election interference. dan coats, the director of u.s. national intelligence, pushed back on the president's claim saying "we have been clear in our assessments of russian meddling in the 2016 election and their ongoing pervasive efforts to undermine our democracy and we will continue to provide unvarnished and objective intelligence in support of our national security." i want to get straight to washington where our reporter is standing by. president trump said he did not see any reason why russians would interfere. what? [laughter] >> that's right. the president casted doubt on his own intelligence committees assessment. all standing next to the russian president has denied repeatedly that the -- of that russia has anything to do with the election meddling during 2016. the indictments i came out of the justice department on friday gave additional evidence that

the president could have used during this meeting to tell president putin that russia didn't medal and this is the evidence we had. instead, he seemed to equivocate and said that putin is denying it strongly. i've heard from my intelligence community and i believe so both sides. in both.nfidence he tried to clean that up a little bit. with a tweet from air force one saying that of course i have confidence in my great intelligence community. he left out the part about saying he believes putin as well and that has led to recriminations from across the political spectrum. republicans are criticizing president trump for not taking a tougher stance with putin and not standing up for the intelligence community's assessment that russia and britain interfere to me 2016 election. emily: i believe every word of this tweet is worth repeating from president trump. said, many times before, i have great confidence in my intelligence people. however, i recognize that in order to build a brighter future, we cannot exclusively

focus on the past. as the world's two largest nuclear pallor -- powers, we must get along. are we had a point where a vladimir putin says something, so it is? president trump seems willing to accept of the word of vladimir putin. a former kb g -- kgb agent who has been an adversary to the united states on a number of issues. ,ncluding the ukraine and syria when it comes to cyber intrusions. present entrance administration has said as much that russia, the strategic adversary against the united states working in opposition to the u.s. and a number of different fronts. president trump seemed to want to but that behind them and talk about having a brighter future and a better relationship with russia and trying to work nuclear on things like proliferation. it is clear president trump wanted to show that he could start a new with russians and have a reset of his own. he did it in this fumbling way basically criticism

from his own party because it seemed like he was taking putin's word over the word of his own intelligence agency. accepting the word of the russian president rather than listening to his own administration. emily: exactly. there is an open investigation. an open special investigation, 12 russians have been indicted by name and president clinton -- putin has invited bob mueller's team to russia. could they take him up on that? toluse: it is doubtful that robert mueller would come to russia under the various recommendations that president put laid outin -- president putin laid out. i don't think that is a deal anyone in the justice department would be willing to take. it is sort of a gimmick by president putin to say we are

willing to be transparent that we have things we want to look into. president trump did call it an incredible offer. he seemed to be willing to look into that offer. even though members of his own administration seem to think of it as more of a gimmick and classic russian kremlin style politicking. it's a my president trump is somewhat new to this atmosphere and it seemed -- he seemed to be intrigued by putin's." offer. --putin's offer. that is another reason why republicans were so aghast at what president trump said and why they are willing to speak out against him on this issue. emily: and yet, the probe continues. toblerone bar, in washington for bloomberg news. thank you. silicon valley has given us the tech we cherish. but a new look is giving us plenty of gas upon its early days. our conversation on at -- with adam fisher with his new book. this is bloomberg. ♪

emily: uber ceo's is the company does not need -- need to be profitable. speaking earlier today at the brainstorm conference in loretto, he said he was more focused on generating positive cash flow then making the company profitable. uber has burned more than $10.7 billion since being founded in 2009. bloomberg is also reporting that uber is facing a gender discrimination probe by the u.s. equal employment opportunity commission. this coming as new questions arise about the corporate culture at one of the world's biggest startups. the inquiry reportedly focuses on allegations of pay disparities and other discriminatory conduct towards women. it is one of at least half a

dozen federal investigations into the ride-hailing company that have emerged in the last year. habit of american technology. that is why we are here. it is a place the chinese are trying to copy. it is given as google, facebook, twitter, and more. that is silicon valley. but, it has a dark and sordid history that is coming into focus. a new book is shedding light on the early days of google making muffins -- making most of its money off of pornography and others. it is not all sorted. the early days of facebook being a lord of the flies like office or steve was the blowing off steve jobs. all of that in a new book, my uest is here.g adam fisher is here with me on set. thank you for joining us. adam: so happy to be here. emily: it is an oral history.

the story intell their own words and then you use orers to share opposing different views, if you will. why did you choose that approach? adam: the mainstream media, the new york media -- emily: who are you calling mainstream media? adam: not you. i read your book. and i love it. people think there is a king of silicon valley and if they find the king of silicon valley, they will understand silicon valley. now with steve jobs, now it is elon musk, but really silicon valley has a different structure them at manhattan hub. it has a network structure. there are many kings of silicon valley. and queens, occasionally. -- you haves about to tell the story as a chorister do have to understand, all the players to really understand the

full arc. otherwise, you're missing the point. emily: it is interesting you call the book "valley of genius ." i had to chuckle a little bit there. i wonder if there is any bit of sarcasm there. sometimes these big visions in this great genius doesn't quite work out the way it is promised. " was avalley of genius temporary title. i had to -- to write this, i had to get the cooperation of 200 billionaire types. emily: you do do interviews with larry page. adam: those are archival interviews. steve jobs is also archival. he died before i started. i have interviews with literal billionaires who are there helping page and brin code. i can drop names that i want. needed a cooperation. everybody had to tell the story in their own words.

that is the conceit of the book. when you call up and say, i'm writing a book called "valley of genius" would you like to cooperate? a" thatas called "brotopi would not have worked. after four years of doing this, it stuck. -- they probably have genius iqs, but -- emily: they don't necessarily have the best personal judgment. we have to talk about the wild ski parties, you talked about how larry and sergei had a harem of women. brandon was not the best behaved. what did you uncover there? adam: it was really the chef at google. he is an interesting guy. this is a minor position, but he was the vice president of food or something. he was in all of the meetings. emily: and through some pretty awesome parties.

he got special invitation to throw these parties where drugs were freely distributed. those drugs are now legal in california so i don't know if it is a huge scandal. but it was wild. human got the first resources person at google, her name is heather karen's, to tell me as much as she could. she said yes. people were getting caught in the massage room, having sex with underlings. she did not name any names, but you know, if you read between the lines, it is all pretty clear. emily: has google or larry or sergei given you any comment on this? adam: their comment is no comment. emily: let's talk about facebook. front like atmosphere in the early days, no surprise. you had some fascinating insights from mark zuckerberg himself. adam: zuckerberg is also --

those quotes were taken and credited to the harvard crimson. i had a bunch of people who were there in the early days , katie german or who was the project manager of facebook, talk about what it was like. it really was sophomoric. the company was founded by a sophomore. it was a one huge beer bash. really ise anecdote them creating a cake that -- a keg that would tell the office who was drinking and invite them to drink. the way the story seems to be, it seems like they were drunk half of the time when they were coding it up. emily: quickly, tell me about steve wozniak skipping out on steve jobs' funeral? adam: this was a shocker.

i sat down with them and we hit -- we whether the history. i said, tell me about the memorial service. that was pretty intense. he was like, oh, i didn't go. and i said, you weren't invited? he said no, i was invited, i was busy. i was like, what? what are you talking about? he was like i was on a plane to europe. i just thought, oh, now i understand the depth of this rift between not just jobs and laws, but the engineer, the creative type who is really making these technologies and the entrepreneurial conduit to that is really -- i don't know, probably too much money and silicon valley. i'm not so happy with that side of the valley. isly: adam fisher, there

much more in the valley of genius. theheir own words, uncensored words of silicon valley. thank you for stopping by. adam: thank you. emily: tesla ceo elon musk serves -- stirs up the twitter sphere. both of the ceo and tesla stock prices are going down. this is bloomberg. ♪ ♪

a former apple engineer pleaded not guilty in court on monday after being charged with stealing driverless car secrets for a chinese startup. he was arrested before boarding a flight to china for downloading proprietary files after leaving his position at apple. while he admitted to downloading axis, they claim he never shared confidential information from apple. as elon musk grows stronger, so do the controversies. is --ook on twitter that

he's an still it is comments. he's getting criticized for campaign contributions after the self-proclaimed socialist gave $38,900 to a pact that supports. house republicans -- that supports house republicans. the one thing we left out is that tod to -- used the word pedo describe someone who were -- who was involved in the efforts paid this time, as elon musk aegon too far? >> i think this is a bad one. -- elon been known for musk has been known for picking fights. often he is not choosy about the fight. in this case, he picked a fight i think hady who been considered a hero. these divers who saved the boys on that soccer team had risked life and limb. there's something distasteful

about making unfounded accusations but particularly at somebody at that moment. pattern and with musk come you have to take the good with the bad. this is somebody who is extremely hands-on, technical, unconventional in a lot of different ways. and that has led to a lot of amazing marketing. but we have another situation where it is kind of a cell phone where tesla is in the middle of this crisis trying to get as many cars out the door, and meanwhile, you have this distraction. emily: let's take a listen to some of his most recent greatest hits, i will call them. next. bonehead questions are not cool, sorry. these questions are so dry. they are killing me. i am here to convince you to buy our stock. do not buy it if it is scary. there you go.

emily: that is from the tesla earnings call on top of the remarks today that don't bear worth repeating. even rest -- musk deleted those comments. are investors going to question whether he has it together? max: they are in a bind. the stock fell today. it seemed like there was some punishment for this. but part of the problem is tesla is probably worth more with elon musk running it than without him. situation where you have a ceo who is perceived by some to be a little bit out of control, a little unfocused. on the other hand, is also the secret sauce. extent that tesla has a future, i think most investors, even tesla skeptics would prefer to have elon musk involved. it is a bit of -- they are in a bind. it is hard to figure out where they go from here. emily: max chafkin, as always, thank you so much for breaking it down.

that does it for this edition of "bloomberg technology." we are going to keep our coverage of amazons glitched prime day front and center with over 300 -- $3 billion estimated at stake. i'm emily chang. this is bloomberg. ♪ this is bloomberg. ♪

♪ >> take shares drive markets lower. netflix plunges after the earnings. cell growth this is expectations. >> the s&p 500 drifted as energy losses offset gains and financials, bank of america and blackrock both beat earnings forecasts. black rocks larry fink's says tariffs may hurt the u.s. economy. the imf says another warning about the dangers of the trade war. >> president