i'm driving. >> i don't know how you do it, the concentration while on live television. >> a lot more to come during the course of the day. in the meantime, getting breaking news on crude oil. let's get to nymex and jackie deangeles. >> that's right. this is a highly anticipated eia report. we have a drawdown in gasoline of 2.6 million barrels. what does this mean? it's less on each side than what we saw from the api last night. less extreme, that is. it is taking prices down at this

point. $45.49 is where crude oil stands right now. $49.69 is where we were before the report. it is making sense we're seeing disparity between oil and gasoline. refineries are in turnaround season using less crude, that is, to make products. he does think it will take under 50, but the chance of getting that two handle probably less than 50%. back to you. >> thank you very much, jackie deangeles. >> it is 8:00 a.m. it's 11:00 a.m. on wall street. squawk alley is live.

>> welcome to squawk alley. breaking news. any moment now the president is expected to deliver a statement on afghanistan from the white house. we're going to go there live as soon as he begins speaking. a lot of reporting suggests that american troops in afternoon stan are going to stay longer than expected and by a higher number than expected. john fort and kayla. whether it's macrodata, the ipo earnings. let's talk, first, about the biggest ipo of the year. that is shares of first data. hanging on to 16 as they go public here at the nyse.

our bob pasani has been all over post day today. bob. as i have been saying all day, all anybody wants right now is to keep this thing at 16 and above. it seemed to have found support at it 1,570. price at $16.17. the competition is other global payment providers. advances among them. global payments as well. albertson's did not price last night. we are expecting them to try again tonight. not clear how that's going to happen.

63 million shares. 23 to 26. obviously, obviously, there's pricing pressures there. pressure on them to lower prices. meantime, want to point out another big ipo sdejed for next week. ferrari. big implications because burberry, big luxury apparel maker, reported revenues were flat, and talked about slower sales in the luxury market over in asia particularly china. >> bob, thank you for that. let's get to the president. >> last december more than 13 years after our nation was attacked by al qaeda on 9/11 america's combat mission in afghanistan came to a responsible end. that milestone was achieved thanks to the courage and skill

of our military and our intelligence and civilian personnel. they served with extraordinary skill and valor and it's worth remembering especially the more than 2,200 american patriots who made the ultimate sacrifice in afghanistan. visited our troops in afghanistan last year to thank them on behalf of a grateful nation. i told them they could take great pride in the process that they helped achieve. they struck devastating blows against the al qaeda leadership in the tribal regions, delivered justice against osama bin laden and saved american lives and prevented attacks. they pushed the taliban back so the afghan people could reclaim their communities, send their daughters to school, and improve their lives. our troops trained afghan forces so they could take the lead for their own security and protect afghans as they voted in historic elections leading to

the first democratic transfer of power in their country's history. today american forces no longer patrol afghan villages or valleys. our troops are not engaged in combat against the taliban. those missions now belong to afghans who are fully responsible for securing their country. but as i have said before, while america's combat mission in afghanistan may be over, our commitment to afghanistan and its people endures. as commander in chief i will not allow afghanistan to be used as a safe haven for terrorists to attack our nation again. our forces, therefore, remain engaged in two narrow but critical missions. training afghan forces and supporting a counterterrorism operation against the remnants of al qaeda. of course, compared to the

100,000 troops we once had in afghanistan today fewer than 10,000 remain in support of these very focused missions. i meet regularly with my national security team, including xhanlders in afghanistan, to assess hon honestly the situation on the ground to determine where our strategy is working and where we may need greater flexibility wrush i have insisted consistently that our focus remain on a sustainable afghan capacity and self-sufficiency and when we've needed additional forces to advance to that goal or we've needed to make adjustments in terms of our timetable that is we've made those adjustments. today i want to update the american people on our efforts. since taking the lead for security earlier this year afghan forces have continued to step up. this is the first fighting season where afghans have

largely been on their own, and they are fighting for their country bravely and tenaciously. afghan forces continue to hold most urban areas, and when the taliban has made gains, as in kunduz, afghan forces backed by coalition support have been able to push them back. it has come at a very heavy price. this year alone thousands of afghan troops and police have lost their lives, as have many afghan civilians. still, afghan forces are not as strong as they need to be. they are producing critical capability, intelligence, logistics, aviation, command and control. meanwhile, the taliban has made gains, particularly in rural areas. and can still launch deadly attacks in cities, including kabul. much of this was predictable. we understood that as we transitioned that the taliban would try to exploit some of our

movements out of particular areas and that it would take time for afghan security forces to strengthen. pressure from pakistan has resulted in more al qaeda coming into afghanistan and we've seen the emergence of an isil presence. the bottom line is in key areas of the country the security situation is still very fragile and in some places there's risk of deterioration. fortunately, with the president and chief executive abdul, there's a national unity government that supports a strong partnership with the united states. during their visit earlier this year the president and i agreed to continue our counterterrorism cooperation, and he has asked for continued support as afghan forces grow stronger. following consultation with my entire national security team, as well as our international partners and members of

congress, president gony and chief executive abdullah i am, therefore, announcing the following steps which i am convinced offer the best possibility for lasting progress in afghanistan. first, i've decided to maintain our current posture of 9,800 troops in afghanistan through most of next year. 2016. their mission will not change. our troops will continue to pursue those two narrow tasks that i outlined earlier. training afghan forces and going after al qaeda. but maintaining our current posture through most of next year, rather than a more rapid drawdown will allow us to sustain our efforts to train and assist afghan forces as they grow stronger. not only during this fighting season, but into the next one. second, i have decided that instead of going down to a normal embassy presence in kabul

by the end of 2016 we will maintain 5,500 troops at a small number of bases including at bagram, jalalabad in the south. our troops will focus on training afghans and counterterrorism operations, but these bases will give us the presence and the reach our forces require to achieve their mission. in this sense afghanistan is a key piece of the network of counterterrorism partnerships that we need from south asia to africa to deal more broadly with terror threats quickly and prevent tabbss against our homeland. third, we will work with allies and partners to align the steps i'm announcing today with their own presence in afghanistan after 2016. in afghanistan we are part of a 42 nation coalition, and our

nato allies and partners can continue to play an indispensable role in helping afghanistan strengthen its security forces, including respect for human rights. finally, because governance and development remain the foundation for stability and progress in afghanistan, we will continue to support president ghani and the national unity government as they pursue critical reforms. new pro i shall governments are forming, and they are upholding the rule of law. as i told the president and chief executive yesterday, efforts that deliver progress and justice for the afghan people will continue to have the strong support of the united states. we cannot separate the importance of governance with the issues of security. the more effective these reforms happen, the better off the security situation is going to

be. we also discussed american support of an afghan led reconciliation process. by now it should be clear to the taliban and all who oppose afghanistan's progress, the only real way to achieve the full drawdown of u.s. and foreign troops from afghanistan is through a lasting political settlement with the afghan government. likewise, sanctuaries for the taliban and other terrorists must end. in the next week i'll host prime minister sharif of pakistan, and i will continue to urge all parties in the region to press the taliban to return to peace talks and to do their part in pursuit of the peace that afghans deserve. in closing i want to speak directly to those whose lives are most directly affected by the decisions i'm announcing today. to the afghan people that have

suffered so much. americans' commitment to you and to a secure stable and unified afghanistan have remained firm. our two nations have formed a strategic partnership for the long-term, and as you defend and build your country today say remight noter that the united states keeps our commitments. and to our men and women in uniform, i know this means that some of you will rotate back into afghanistan. with the end of our combat mission, this is not like 2010 when nearly 500 americans were killed and many more were injured, but still, afghan remains dangerous. 25 brave americans have given their lives there this year. i do not send you into harm's way lightly. it's the most solemn decision that i make. the know the wages of war and the wounded warriors that i

visit in the hospital and in the grief gold star families. as your commander in chief, i believe this mission is vital to our national security interests in preventing terrorist attacks against our sit sfwlenz and our nation. and to the american people. i know that many of you have grown weary of this conflict. as you are well aware, i do not support the idea of endless war. i have repeatedly ar used against marching into open-ended military conflicts that do not serve our core security interests. yet, given what's at stake in afghanistan and the opportunity for a stable and committed ally that can partner with us in preventing the emergence of future threats and the fact that we have an international coalition we have a serious

partner that want our help, and the majority of the afghan people share our goals. we have a bilateral security agreement to guide our cooperation. every single day afghan forces are out there fighting and dying to protect our country. they're not looking for us to do it for them. i'm speaking of the afghan army cadet who grew up seeing bombings and attacks on innocent civilians who said because of this i took the decision to join the army to try and save innocent people's lives. or the police officer trained to defuse explosives. i know it's dangerous work, he says, but i've always had a dream of wearing the uniform of afghanistan serving my people and defending my country. or the afghan commando, a hardened veteran of many missions that said if i start telling you the stories of my life, i might start crying. he serves, he said, because the

faster we bring peace, the faster we can bring education, and the stronger our unity will grow. only if these things happen can afghanistan stand up for itself. my fellow americans, after so many years of war, afghanistan will not be a perfect place. it's a poor country that will have to work hard on its development. afghans like these are continuing to support their country. if they fail, it would endanger the security of us all, and we've made enormous investment in a stable afghanistan. afghans are making difficult but genuine progress that's modest but meaningful extension of our presence while sticking to our

current narrow missions can make a real difference. it's the right thing to do. may god bless our troops and all who keep us safe and may god continue to bless the united states of america. [ inaudible ] >> this decision is not disappointing. continually my goal has been to make sure that we give every opportunity for afghanistan to succeed while we're still making sure that we're meeting our core missions, and as i have continually said, my approach is to assess the situation on the ground, figure out what's working, figure out what's not working, to make adjustments where necessary. this isn't the first time those adjustment have been made. this one probably won't be the last. what i'm encouraged by is the fact that we have a government

that is serious about trying to deliver security and the prospects of a better life for the afghan people. we have a clear majority of the afghans we have a bilateral security arrangement that protects them while still achieving their mission. we have always known that we have to maintain a counterterrorism operation in that region and reemergence of active al qaeda networks or other networks that might do us harm. this is consistent with the overall vision that we've had, and, frankly, we anticipated as we were drawing down troops that there would be times where we might need to slow things down

or fill gaps in afghanistan capacity. this is a reflection of that, and it's a dangerous area. part of what we're constantly trying to balance is making sure that afghans are out there and doing what they're supposed to do, and we are giving them a chance to succeed, and that we're making sure that our posture in the area for conducting those narrow mission that is we need to conduct we can do so relatively safely. force protection, the ability of our embassies to operate safely, and those things factor in. we have to constantly review these approaches. the important thing i want to extra x emphasize is the mission and the importance of our combat role has not changed. now, the 25 military and civilians who were killed last

year, that always weighs on my mind and 25 deaths are 25 too many. particularly for the families of the fallen. understand what was involved when we were engaged in a come bat role in afghanistan was very -- here you have a situation where we have clarity about whaur on mission is. we have a partner who wants to work with us. we're going to continually make adjustments to insure that we give the best possibilities for success, and i suspect that we will continue to evaluate this going forward as will the next president, and as conditions improve, we'll number a position to make further adjustments. i'm absolutely confident this is the right thing to do, and i'm not disappointed because my view has always been how do we

achieve our goals while minimizing the strain and exposure on our men and women in uniform and maker that we are constantly encouraging and sending a message to the afghan people this is their country, and they have to defend it. we're going to be a steady partner for them. okay? thank you, everybody. >> that is the president with an announcement that even he suggested is difficult for him and for the nation, saying he has decided keep 9,800 troops in afghanistan through most of next year. their mission to train and help support forces fighting the remnants in al qaeda. he will keep another 5,500 troops at a small number of bases. john harwood joins us from washington with some reaction. john, how much of a roll-back is this of some of his prior promises? >> well, it is an adjustment, as he said. it's clearly something he is not inclined to do. this cuts against the grain of what he has wanted to do. he didn't want to hand over an ongoing conflict in afghanistan.

of course, as you know, he ran on ending the war in iraq and ending the war in afghanistan in what he thought was a more appropriate way, but also winding that down. he concluded the inaenlt of the afghan forces themselves to deal with threats from the taliban required this change, and he went through all the affected parties, including the troops whose stays are going to be extended, and he let them know that this weighed on him and wasn't a decision he took easily, and it cuts against the grain of his desire for managing this conflict. >> john harwood, thank you for that in washington. president said there's been adjustments before, and there probably will be more in the future. with all of that, oil has come in a bit as we got those inventory numbers. the dow closed the session highs up 72. a lot more "squawk alley" back after the break. mornings. wonderful, crazy mornings.

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>> shares of netflix. consumers switching to chip-based credit cards as part of a problem fwlsh a call moderated by rbc mark hastings, he said this to say about moving forward. >> the more that we have incredible value, the more that we have amazing originals. over time we're going to be able to ask consumers for more, to be able to invest more, and that's

been the rhythm we've been on as we did the tiering to introduce that. if you look at how much broader, bigger our content is now than two years ago, i think we've really delivered on that promise. >> the moderator, mark mahaney joins us. good morning. >> good morning, carl. we got the domestic, higher churn. obviously, the cost and the risk of programming. do you still like this name? >> yeah, we do. this was a bad quarter flat-out. it seems like every fourth quarter there's a miss. it this happened in the september quarter last year. it happened this quarter. even they came in a little light. the good news here was that u.s. margins continue to rise so they're showing the path of profitability, and then the outlook for international subs in the fourth quarter was much stropger than expected, and there may be an explanatory issue here recently explanatory issue here in terms of this shift credit card, chip-based credit cards. this is a huge subscriber base that gets monthly pinged. if you have issues with the

higher declines that could have been -- that could have been a reasonable explanation for why the subs came in light. >>. >> i is had credit cards get hit by fraud with wr. that athat might be more of an issue than the chip card thing. it's a way to get out of subsubscriptions. all the things i want, i sign back up for. for q4, they did not bump up their net subscriber adds number above where the street was looking for things. it seemed like it was truly involuntary. they expect a bigger spike in q4, wouldn't they? we should see it spike back up, and the other thing we do is we do a lot of the our own proprietary survey work here, and we try to track voluntarily churn. we've tracked this for four years every quarter, the voluntary churn, the educations of churn are at record lows at netflix.

at least in the u.s. our survey data didn't pick thaup, and for now we're taking the company at face value when they had an invoo churn in the u.s. at third quarter. that better correct in the next two quarters, and we think it will. >> do you think we should look to "new york times" to see if they site these issues. those are also high subscription based models. do expect we'll hear this from other people, and if not, will that tell us that maybe netflix is voluntary? >> there are few subscription issues that do monthly pings. this is an annual -- this is not an annual subscription business. this is monthly. 45 million subscriber base. there's very few that have that kind of size. i alsoment to step back. the long pieces are still well intact. we'll end that 17 million subs and have 75 million subscribers

worldwide. we think that's still impact. if there's a major correction in the stock, we're major buyers. >> you even gale hulu a shout-out during the call. i just wonder why is this not more about losing subscribers to rival services that are in some cases offer content faster than netflix does? >> there's hulu, amazon. there's always youtube. there's always been lots of competition. what we can do is try to track that independently. dwoe that every quarter. we don't find that voluntary churn or churn overall is rising. that competitive risk is there. it's always going to be there. what netflix has to do, and maybe netflix is raising the bar in terms of that competitive risk by raising prices. we'll see that. that's a big risk going into next year. our belief is that this is still the best value proposition in the market. by the way, nobody is under pricing netflix. hbo goes out there at 50% higher

prices. >> we had at least five quarters, mark, of negative free cash flow. $252 million in negative cash flow. when do we question the strength of this balance sheet? >> we should be -- we have been questioning it every year, but have you to look at the sources of that weakness, so the u.s. business has doubled its profitability. in other words, contribution margens have gone from 15% to 30% in the last three years. it's going to expansion and international markets and going for roll-out, and that's extremely expensive. this is a very difficult business to replicate. you have to spend -- they're

warding off competitors. it's hard for new entrants tom in. we think we'll start seeing a real gap-up in profitability in 2017. that's the risk here. so far the credit and the equity markets have been supportive of netflix, and we think they still will be. somebody said they tend to disappoint in q3 and q4, and that trend, at least a few years old, is intact. >> yeah, it is. big miss in the stock corrected 30% for the september quarter lastst last last year. last night we corrected as much as 18%. we're high single digit correction right now. i think in a way, though, look at that what the market is really telling you. i know the stock is off disappointing numbers. this stock has doubled in the year. it's at an all-time high in terms of multiple. i know that sounds odd and ironic, but this management team has deserve the and won a lot of credibility we believe and the subnumbers and the u.s.

profitability, that story is very much intact. if you have a long-term view on this, can look through the next two or three years. you know, there's a lot of earnings power in this model and the stock should be -- there should be a double in here over a three to five-year time frame. that's why we're still buyers. >> that's s&p of the year by a long shot. amazon. number two, which is interesting as well. mark, thanks a lot. mark. >> thank you, carl. >> well, despite some progress, there is still a major gender gap in the world of technology, and julia borstein is live at the world's largest women in tech conference with a look at just how big the problem is. julia, out to you. >> kayla, that's right. more than 800 companies are here at the grace hopper celebration. including all the internet and tech giants. they have employees that are looking to address a major imbalance -- gender imbalance at tech companies. women make up just 26% of the tech work force.

all the biggest tech companies have talked about how they're working to diversify their employee base. they're making little progress. the survey of nine tech giants that have released this job this year, finds on average women comprise one-third of the work force. ebay is among the best. 42% female. facebook and google, both have just less than 30% women. microsoft and intel are the bottom with 24%. >> this is a huge problem for our country. we have over half a million jobs open right now in the united states in tech. they're all over the country and are in different industries and manufacturing in retail, in health care, et cetera. we need more people to train. >> the gender gap grows in senior management. google and microsoft all have women in fewer than 20% of the top slots. ceo megan smith says tech jobs

on average pay 50% more than the average american salary. that makes it more important than ever to boost the supply of women to meet the demand for people to fill those jobs. guys, back to you. >> it's a great point, julia, and an interesting conference line-up. we appreciate your time this morning. speaking of which, a top female executive in tech and the youngest female self-made billionaire ever will be joining "mad money" tonight. that's elizabeth holmes, ceo of seranos, the blood testing company. >> markets closed in the u.k. and continental europe. stock snapping a three-day losing streak, partly on expectations that the fed is not going to raise interest ratesfully time soon. unilever among the big winners. the consumer project giant posted a sales beep, and then there's burberry slumping on a first half revenue miss hurt by weaker demand obviously in china and hong kong. got more fall-out from volkswagen's emission scandal. vw to recall about 8.5 million diesel vehicles in the e.u.

when we come back, the largest ipo of the year is now open for trading. shares of first data hanging on to 16 by just a nickel. we're going to get a closer look at the ipo marketed with a lead-in for first data. albertson's and ferrari. in a moment. [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ [ birds squawking ] my mom makes airplane engines that can talk. [ birds squawking ] ♪ my mom makes hospitals you can hold in your hand. ♪ my mom can print amazing things right from her computer. [ whirring ] [ train whistle blows ] my mom makes trains that are friends with trees. [ train whistle blows ]

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from the militants. >> volkswagen will recall 3.5 million cars with diesel engines. at least 12 people were arrested at a baltimore city hall overnight. this as some 30 people staged a sit-in to protest the security council's decision to permanently appoint interim baltimore police commissioner kevin davis. hyatt is the latest major hotel operator to pull porn from its guest rooms. it's following the lead of marriott and hilton which have already started to eliminate porn from their in room entertainment systems. hospitality experts say the reason has been partly due to a drop in revenue from the entertainment. and that's our cnbc news update thr this hour. back to "squawk alley." >> thank you, sharon.

fist data briefly dipped below the ipo price of $16 a share. covering just about 4 cents above that. this comes after supermarket chain albertson's delayed its planned ipo. it could price after the bell, depending on how the market holds up. we're asking what is the outlook for the ipo market, and joining us here at post nine, swrchlt d.d j.d. moriarty. we're expecting next week. j.d., welcome. as always. >> appreciate it. >> we heard pure storage last week. first data it week. albertson's. we're going to be -- did the market pass? >> yeah. it's an interesting question.

>> mark, market has been tough since august. we've had a spike in volatility. they're largely primary transactions. the sponsors are not selling in some of the transactions. they're moving forward. it is a step and it shows the move forward. albertson's is unique, obviously, given the wal-mart news, and that's something that nobody can prepare for. that certainly shook the market, but i think it's more about that than the broader market. >> we've seen exactly how that august volatility and september volatility played out with the banks reporting earnings. equity capital markets, revenues down. this morning the cfo of goldman said the investment banking backlog is biggest for ecm, and that it's more billion client confidence than the state of the market. why aren't clients more confident right now? >> i think you have to be conscious of the swing that those -- we all tend to track

the vix, and it spiked in august. the move the inteks have had since that july 20th peak to really the end of september which we all acknowledge is somewhat of the trough. it's been meaningful. keep in mind, they've had a difficult six-week period as they roll into earning. that's just challenging. the base of our buyers is just not as deep, and that's the issue. we've heard this the companies that can go public are having to do so at a deep discount. some are not even making up what they were valued at on the private market because the private market has been so good to them. square will get a lot of focus for that reason. square, the composition of their revenue will get a ton of focus because there are a few

different business model there's. the principle focus will be can it match up to that private value. we did see a couple of companies go public. >> there are limitations. this is a postpone not. not a withdrawal. so it's a high quality company.

>> woor giving that wal-mart's news had an impact on albertson's. if it can't hold 16, will that say something about square? >> while they're in the same payment ecosystem, recognize they're very different investors in terms of growth profile. >> sure. >> wal-mart and albertson's seem different too. >> yes. yeah. i think the -- that's more of a one day phenomenon than anything else. i guess what i would say about first data is it's more about the class of ipo's. those companies that have come public post-labor day and how they perform as a group. first data is obviously the largest of them. we'll have to see how they perform. that's more contribute other for square or any company hoping to get public this year. >> fer arby -- >> a little different. >> yeah. do domestic names do better, and where does ferrari fit with that? >> would i say that that is generally true for the run of the mill issuer for sure.

we're already wondering how we can fit a ferrari on the floor. >> can you do penguins, you can certainly fit a car. >> thanks for putting this in perspective. it was great having you here, and hopefully we'll talk again soon. j.d. just a quick summary of what david faber is reporting, albertson's postponing its ipo. had expected to attempt to price today after the bell. he is told that it is postponed indefinitely. that's an update for you on the other big ipo that we were expecting this week. john. >> all right. up next, make sure you keep it here. our exclusive interview with the co-head of investment banking at goldman sachs. david solomon will join us when we come back. [announcer] sunday's your last chance to save big

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or choose to save $300 on beautyrest and posturepedic mattress sets. you can even choose $300 in free gifts with sleep train's most popular stearns & foster mattresses. the triple choice sale ends sunday at sleep train. ♪ sleep train ♪ your ticket to a better night's sleep ♪ coming up, a miss for netflix. poubding those shares today. rich greenfield with us live, and josh brown will tell us what he is doing with his position. plus, the top expert on what the move in first data stocks tells us about the state of the ipo market, and the number one retail analyst for 14 years running breaks down what's ahead for wal-mart, the stock, the space, consumers, everything. carl, we'll see you in just a bit. >> sounds good, scott. see you. >> goldman sachs is hosting its fourth annual builders and ino

vators summit in santa barbara. it brings together emerging and seasoned entrepreneurs where hosting the event is the co-head of the investment banking at goldman, and that's david solomon. he joins us this morning. david, good morning. it's good to see you again. sfroo provide insight, exchange views. the tone here is quite opt migsic. there are a lot of businesses that are really moving forward, creating disruption, changing.

all of that is leading to a positive attitude at this conference. >> wee got the goldman numbers this morning. i want to ask you about the broad business. in your universe, we're left with ab ipo market that has been relatively light this summer. some torrid m&a activity. can you just draw the broad narrative on where you see both of those things going? there's no question that activity continues to accelerate. we're in an environment that's global growth. we continue to see increased dialogue with ceos and barring any sort of a significant market dislocation, my expectation is

that we continue. the market volatility that we saw in -- >> no. continue, david. >> yeah. the market volatility that we saw in august definitely has slowed a little bit of ipo activity over the course of the last few weeks. ten out of 11 we're in a competitive landscape. i wonder how that discussion gets to yes in the market that

we're in. when you have -- when you have a good company and are you moving forward and are you growing, and you are going to need capital and currency, it's important to plan that process. it's a long dated process. companies are very important, and it's important to always put yourself in a position where you are prepared to access the market when the market is appropriate. so, you know, as you see companies filing, it's simply means that they're getting prepared. it doesn't mean that they're going next week or the following week. companies do have an ability to manage that process to some degrees. >> what's your take on the

impact of this enormous dell emc deal both on companies in the space that might be looking to go public and others who might be looking to do deals. >> well, look, it's obviously a very, very significant deal, but one of the reasons why we continue to be constructive on additional ipo activity -- additional m&a activity and as large mergers like that occur, it starts to reset the landscape in different spaces. while certainly over the course of the last year we've seen a lot of activity in certain industries. we will start to see more activity in tech. we haven't seen a lot of activity, for example, in the energy space. as transactions occur, it forces other ceos in that industry space to evaluate their competitive positions and think about what they need to do to remain competitive.

>> it's deep to support those transactions. i know recently in the press and the media there's been a comparison of m&a activity to date to m&a activity back in 2005, fz 2006, and 2007. i highlight that was driven by ldo activity and it was financing that was available to complete those transactions. here you have corporate consolidation and industry, and i think the credit capital markets are relatively deep for that kind of activity. >> david, i know you have been very focused on goldman's culture and making sure that it remains a favorable place for young bankers to come work. i am wonder whenning you interact with companies out west, high growth, ino vative companies, how you think about what you can then bring back to the east coast and to wall street and what changes you actually think you can

implement. there are a bunch of california and then spread out across the country, and they're growing interesting entrepreneurial businesses. they are spread out across the country. it's no different the things that we think about every day. we're in a human capital business. we work hard to serve our clients and try to find ways that we can help our clients meet their goals. to do that we have to have really terrific people and we work hard to make sure that we have a team that really suits our needs to accomplish that. >> finally, david, we would be remiss if we didn't ask you about lloyd, how he is doing, how he is interacting with the business as all of our thoughts are obviously with him. >> well, he was -- he seemed pretty good on the earnings call. very early this morning. i just was on the phone with him

just a few minutes before i sat down here in the chair. so i would say, you know, he is in good spirits, and he is extremely engaged in the business, and i'm sure i'm going to talk to him later again today. >> we look forward to the next team time we get to talk to you. thank you so much. >> appreciate it. thank you for having me, guys. when we come back, netflix continuing its leg down after reporting subscriber growth that did miss expectations. dow is well off the highs up 25. back in a minute.

>> take a look at netflix. you saw the after hours action last night, and looked for a while like it might rebound and work its way back lowers to the flat line, but it's currently down almost 8% yet again. evercore with a sell and a target of 69 as they talk more about the domestic miss. this is more than just credit cards. >> twitter is saying why doesn't net flick move to an annual billing cycle? wouldn't that make this easier? >> there are a lot of different companies that work month to month. think about cable companies. i would expect to hear from more than just netflix.

>> by the way, year ago today, you recall this, $18.71 was the low of the height of the ebola scare, if you can believe that. one year ago today. the s&p hit its 52-week low. >> yeah. back to 199. we'll see what the afternoon brings. let's get back to headquarters, scott whopner and the half. >> hi, carl. thanks. welcome to the halftime show. let's meet our starting line-up for today. steve weiss along with jim liven that will and josh brown. our game plan looks like this. the day after following wal-mart's stock shocker. we're joibd by the street's number one are a rated retail analyst where companies and analyst goes from here. ipo pulse. what the biggest offering of the year says about the health of going public. expert cathleen smith on whether the party is over.