he has a couple of teeth. i worry that there are too many pandas. this could be a threat to humanity. >> they eat all the bamboo. >> you don't have to pay them to eat bamboo. >> thanks for watching "power lunch." "closing bell" starts right now. >> welcome to "closing bell" i'm kelly evans. >> we'll see the panda and raise you three bears. three big money managers. all voicing their concern about the market's path going forward. we will bring you the comments and talk about what it means for your investments coming up in a little bit. >> earnings could change the market trajectory. all set to release their

numbers. netflix is down about 1%. we will tell you what to expect and give you an exclusive interview. >> get this, he is invested in uber, air bnb, spotify and pinterest. we are talking about ashton kutcher. he will talk about his next big investment. >> that is coming right up. the report saying trump's tax plan will create more jobs than clinton's in the short term. we have the man behind this report to explain. >> let's start with breaking news. >> we had over the weekend -- showing hillary clinton with an 11 point lead. now come out with polls in four important battle ground states that continue the daunting task of donald trump and portray how difficult it is going to be. first of all, state of colorado, this is one that barack obama carried. republicans were hoping to bring

back. hillary clinton is ahead by eight percentage points. florida a critical swing state ahead by four. in pennsylvania which has been an anchor of donald trump's rust belt strategy to get those workers who had been negatively affected by trade down by six percentage points driven by huge support by hillary clinton. one piece of good news for donald trump is ohio. that's tied at 45 between the two candidates. problem for donald trump is ohio is just the beginning of the battle ground states he needs to carry to turn this around. >> thanks. the latest on swing state polls there for us. halftime report celebrating its 50-year anniversary. some of the biggest names on wall street helped blow out the candles and deliver cautious views on the market. welcome, scott. >> no cake but plenty of market

talk. david temper, all three coming on the halftime report today to help mark the fifth anniversary. all three sounding cautious on the markets given the political environment and uncertainty over what the federal reserve may do before the end of the year. >> levels being fairly value market, margins that may be under pressure because of wages and now the dollar seems to be getting stronger again. so it's a difficult environment. it's an environment that is probably okay, not great returns but okay and then you have to deal with the election. pretty cautious on the market, not outright bearish. >> i have been concerned for a few years. more and more concerned. i think it is very difficult when there are so many people in the middle class that really don't have the income. the pension funds are way under

funded and -- >> i think investors should be in a defensive position and frankly defensive position has been working since july. now we are looking carefully at the level we are at right now which is around 2130. there seems to be a battle going on with the market kind of dipping below 2130 but unable to close below that level. i would turn particularly negative if s&p closed twice berow 2130. >> all three also opined on the election with mr. temper offering up his view of choices before voters. make of it what you will. >> you have a fairly bad choice at the top affecting things. you have one person with questionable judgment. you can make your own decision

on that m. >> though, he has seen the polls which suggest that mr. trump may face uphill battle. bill kelly we saw john harwood with another group of polls which would suggest that. that said, you never know. it's interesting. we talk so much about delivering alpha and how most of the big name and big money investors who were there were cautious -- >> these guys and many in their business have had trying to make money in this market as the market just kind of saunters along here. i think that colors their outlook, don't you think? >> it has been a rough environment for active management because the play book

is not your typical play book. it has been so hard to game what the fed is going to do. there is fed speak all the time. just when you thought they may be on the cusp of raising rates there is either a data point or another fed speaker which takes them towards the dovish stance. that has played a role. you just have people sitting in a lot of cash. i get the feeling as though people are waiting for some kind of clarity to put real money to work. the only question is when that clarity comes. i don't know that it comes anytime soon given everything that is ahead of us. >> we have seen a pretty interesting move in some debt level. you look at the bond yields that has shot up as their currency is collapsed and worries about inflation or whatever. when jeff gun lock was kind of moving to a short position when we had the negative rates for some of these countries did he sound like he was as short about

the bond market? >> he said he didn't like stocks and didn't like bonds. david tepor made it sound like he was short bonds. sort of you make the decision on where he is there. it is clear that he is not long bonds either. it's a tough place to be. you have people saying we are sitting on the biggest bond bubble in history. so you have seen rates back up. you think maybe the best move is to sell treasuries. rates continue to go up because you think the fed is going to move. what happens in a political environment where you get a democratic sweep that doesn't sound so wonderful to the markets? then it is not great for stocks and you get a bid back to bonds hence the difficult environment that investors find themselves in. >> at least until november 8. >> maybe beyond. >> happy anniversary. >> thanks. >> good stuff. >> let's get to "closing bell"

exchange. >> i'm going to start with you. three money managers very cautious in the market. you are actually very high on this market. why? >> they are richer than i am. i shouldn't argue with them. i don't know that they are not saying what most investors think right now and that is a very worrisome environment. if you step back the way i do i don't think the fed will tighten. if anything they have a very high standard of proof the economy will be better before they do. i think earnings have shown some signs of beginning to pick up. people are not enthusiastic. i don't think that is a bad environment to do business. it shows earnings are starting to rise again. what is wrong with that? >> rates are starting to rise. what do you make of what

happened in the uk and the u.s.? the ten year was at 1.8 or so at last check? >> first of all, i think it is repudiation of policy in large part. i offer today as an interesting critique. if you look at a chart of twos, tens, they all look the same at a time where everybody was saying how he sounded. if they did they didn't pay attention. i think the three compadres are brilliant men. they didn't give clear and concise strategies which probably is as good an argument as many why nobody is excited about hedge funds. you need an opinion one way or the other. i'm not saying they should have one. i'm saying it does not make a good case to get involved with hedgefunds. i heard somebody say like these guys really are bias because they are in the money game. they are not bias. they are the best we have. they are in the trenches. they have a uniform on and

holding the musket. all the policy is about controlling the money. how much latitude they want to give. these gentlemen deal with that and they are smart and don't have a clue. i think our country and so much of the globe is the way it is. i think rates are rising throughout the globe because central banks want them lower. currencies are going down because they like that. one out of two isn't bad. >> 50/50. the stock market, volatility picked up. we are still in this trading range that we have been in for quite a while now. >> you and i spoke about when we hit the 2120 level in the s&p cash and you said half. i said we will call it half but we are right around there hovering a little above it. 2135 is the old highs. it was pointed out that 2130 close and you get caught in the weeds let's look at the bigger

picture. retail sales friday good number. retail complex sold off. banks probably reported better than expected earnings but the financial sector can't rally significantly. why? because global growth is insurmountable to all the staoc market. industrials are doing poorly. the consumer probably is doing poorly. market probably going lower. having said all of that let me wrap it up one more thing. when he sounds frustrated about the market not cracking or mr. icahn, janet yellen said it might be warranted to buy equities she won't comment about. we all joked around. >> i want -- >> that was me groaning. what a wonderful idea. if i want to manipulate stocks and need to raise rates i need to buy stocks. >> i'm not saying it is a good

idea. we joke around about the plunge protection team we hear where their minds are. >> steroids are illegal and should be illegal in central banking, too. >> do you bet on a safety net in your investment snz. >> i hope it doesn't come to that. i don't think it will. >> thanks, gentlemen. we have about 45 minutes to go here. dow is down 50. s&p down about five and the nasdaq down 11. >> as we all know he played steve jobs on the silver screen. ashton kutcher is a big-time tech investor in real life. he will join us to explain why he passed on investing in snap chat. with his latest investment coming up. hillary clinton and donald trump say their tax plans are better for the economy. we have some surprising results of a brand new analysis of those plans and that is coming up. and we will be action packed

after hours earnings session. we love this time of the quarter. instant analysis and results coming up on netflix, ibm and united airlines coming up on "closing bell." important than your health. or the freedom to choose what doctor you want to see. so if you have medicare parts a and b, consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, these let you choose any doctor who accepts medicare patients. you're not stuck in a network, because there aren't any. plus, these plans help cover some of the part b medical expenses medicare doesn't pay. so why wait?

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. 45 minutes left. let's get other big movers in today's market action. hasbro shares surging after the toy maker reported better than expected profit and revenue thanks to strong demand for disney princess dolls. toys for rogue did not hit store shelves until after the third quarter ended so presumably they will do better in the fourth quarter. group on shares rallied after the stock upgraded from neutral and increased trading at $5.

implied more than 25% increase from current levels thanks to improving traffic and deal inventory. >> uber, air bnb, spotify a few names on the roster of investments. today the firm is adding a new name to the list. joining us now are ashton kutcher and guy oseary. welcome to you both. >> thanks for having us. >> especially upon hearing news about this tell us about the company and what they do. >> well, actually, there were two companies that we thought valued investment in the collection. basically what they do is take co 2 emissions and they apply technology to the co 2 emissions to do a new fuel that is usable and we really like the company because it is taking a highly

prevalent waste product and making it highly usable and creating fuel efficiencies across the board for some of the largest in the world. >> this was a competition where 1,000 entrepreneurs submitted their applications with their business models and their business to you guys and to forbes magazine and other investors and it was up to you to choose the for profit winner. sustainability is very hot right now and i bet that went into -- >> my traditional space which is i travel the world with musicians and we leave a lot of garbage around and trying to deal with that. i always had an eye towards that space and the presentation was

great. >>. >> all those wasteful rock stars. >> the other company is a company called pillar. using intelligence censors to understand where the waste is and creating efficiencies. if you figure there is 50% inefficiency after two buildings you can build a whole other building. both fit into our thesis. >> ashton can i ask you about one company and it is twitter. you were the first guy to reach a million followers on the platform. why was it never a place to invest? how do you think about how it is doing today? >> i was in early days i definitely wanted to invest but didn't have an opportunity to do so. i think what happened over time

is the platform went from being a one to one, one to many, one to few communication platform and turned into more of a media platform like a headline dictator or a place people pushing whatever product they are trying to sell. i think there was a lot of corporate turnover. i think it has only been about a year. when you have a company that large to roll out a product that hits where the consumer market, i think it is up against it a little bit. >> nobody seems to want to buy it. disney walked away, facebook, sales force. >> do i think there is a price where the companies would be interested probably most definitely. i think they need to release

numbers and get ground stability and i think the companies would be a lot more interested. >> so we want to pick your brains. i'm sure this happens you have been so successful with your investments, would you invest in your own business? i'm talking about the music industry. you manage some of the biggest names in the music business. with all of these music streaming businesses it seems like the artists are getting paid that much. is that a great business model? would you invest in those firms right now? >> we invested in spotify i think six or seven years ago. we invested in sound cloud and shizam. we are early adapters. we believe in streaming. this year close to 100 million people will be streaming music. coming back into the business. pretty big deal. if that doubles in the next years 20 billion coming in just

via streaming where we don't have to put cds on trucks and ship them and all the stuff that costs money and now it is streamed. the big issue is transparency for the artist. and i think in the next few years that will have to happen. artists are asking for it. it is bubbling. enough money isn't trickling down but they are demanding to know more about where the money is going. >> just to put in context what you have achieved i was reading in the past because i know this current venture is newer. over six years you turn $30 million into $250 million for 8.5 times the return. a bunch of people across the valley. it is interesting in this climate to know whether you

still see good opportunities as you look around. it almost seems like it must have been so easy to see uber come through. i'm sure it didn't feel like that at the time. are you still excited about the new investments that are in front of you? >> yeah. i think we're very excited. not to discount the fortune that we had that we started investing in consumer technology companies as the smart phone and the app ecosystem was exploding. we are starting to see a slow down of smart phone adoption and some of the markets are reaching like some version of maturity. but i think that if a company is building into space where there is green grass all of that landscape chiss. you don't have to wait for the mobile phone culture to be built. i think new technologies are coming out. amazon is releasing the echo.

i think that will create an entirely new os that engineers will be able to build extraordinary applications for. but is it going to be the same market that it was three years ago or four years ago? probably not but at the same time i think that if you look hard enough around the edges there are a ton of people that aren't being enabled by strong intelligent database technology. as those start to create efficiencies i think there will be huge opportunity. you have to look a little bit harder and be better at what we do. >> not surprisingly we are getting a lot of twitter comment about the dodger hat. for a kid from iowa and a bears fan you are not rooting for the cubbies. that must be going over real big in boston where you are right now. >> i had to make a deal with my wife. she became a bears fan i

converted to be a dodgers fan. we create equilibrium in the home. >> are you on snap chat at all? >> i think it was a comment i made relative to security on snap chat. the comment was relative to an early look at the company in the series a where i was worried. i had security concerns around privacy and the perceived privacy of platform relative to the truth. i think they have resolved a lot of issue. i haven't looked at the price of the company and based on the current growth whether or not there is value there. the company is far more sound than when i was looking at it. >> guys, great to talk to you. thanks very much for joining us today.

>> thank you. >> we have 35 minutes left in the trading session with the dow down about 54 points. >> drug makers getting hit after senator bernie sanders blasted the industry for enormous price hikes. we will tell you about the ballot initiative he is pushing in california and discuss whether investors should be worried. saudi arabia is trying to get americans to buy into the first international bond offering. the world's most exciting technology... ...doesn't go on your wrist. ♪ the highly advanced audi a4, with class-leading horsepower. i am benedict arnold, the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the...

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goldman sachs saying apple should launch a subscription model. the model would be similar to amazon's prime service and would include the iphone plus apple tv, apple music and increased access to itunes and could bring nearly $19 billion in revenue by 2021 according to goldman sachs. >> it is kind of a cool idea. >> figured them all out. he may not be running for president but that is not stopping bernie sanders. >> we have been hearing a lot from bernie sanders about drug pricing recently. he drove the stock down about 15% on friday when he tweeted

about their price increases and then on friday evening joining bill mahr to discuss a ballot initiative in california. >> on the west coast to see and help the people of california pass proposition 61 so that we can take on the pharmaceutical industry who are ripping off the american people. >> you can hear the reaction from the audience very positive about the proposition 61. that is how polls are showing, as well, looking like as many as 70% of voters in california according to two recent polls support the california drug price relief act which would bar state agencies from paying more for prescription drugs. they can negotiate drug prices whereas medicare specifically can't. money favors the opposition. there has been almost $100 million pledged for or against proposition 61.

you can see $87 million for the opposition. much of that coming from big pharma. other people including veterans saying there could be unintended consequences that it wouldn't bring down prices for everybody but make drug companies react by taking away the price rebates they give to the va. bio says it remains committed to sitting down to reform health care system in ways that promote patient access. it says proposals do more harm than good and should be rejected. a very controversial issue that voters will see. >> my home state has a controversial ballot proposition. they love their props out there. >> and it looks like from the 70% in the polls people really support this. a lot of people not just pharmaceutical companies are warning this could have unforeseen consequences splmpt dw i can't imagine what this would cost if you say the

pricing would have to be different it would change pricing for the rest of the country. >> that is one of the biggest fears. rbc capital markets said the actual financial result of this might not be huge for drug companies if even every other state took the same discounts you would see california take they saw a 2% hit to eps in the next two years. people are really worried that if this happens in california every state will start demanding this and some people are very worried about that. >> we will be watching california. >> time for a cnbc news update with sue herrera. >> russian and syrian forces agreed to a cease fire. since the previous cease fire ended last month. also said it was not enough time to get much needed aid trucks

into that area. a suicide bomber hit a check point just 12 miles south of baghdad. at least 12 people were killed. more than two dozen injured. earlier in the day major offensive. a new study shows women can wait until age 30 before screening for cervical cancer. guidelines recommend women 21 and older be screened for cervical cancer every three years. and it was a whale of a rescue off the coast of australia over the weekend. a whale calf caught in netting. really desperately trying to keep the calf above the water so it can breathe. patrol teams from sea world went

out in rubber dinghies and set the calf free. both mother and baby swam away. you're up to date. >> what a happy ending. >> it did have a happy ending. back to you guys. >> thanks, sue. >> next hour kelly will tell you about the festival she went to over the weekend. >> i didn't see the angora bunny. 25 minutes to go. i'm taking bill next year. >> i will go. >> dow down 59 points. >> whose tax plan is better for the economy? hillary clinton's or donald trumps? our next guest says it depends on the timeframe. he is a. >> reporter:ed professor of economics. they have done the analysis. tesla was supposed to unveil a new product today but the

company is pushing it until wednesday. we will discuss whether that designs a problem for the car maker.

we are into that half hour. joining me on the floor of the new york stock exchange. here come the earnings. do you set yourself up for those? >> united has the biggest run so they have the most to beat. netflix always has volatility. i will watch what netflix does. >> what have you made of the market response so far to the retail numbers and then the banks that they were decent but the stock sold off anyway? >> i think the expectations of the banks were starting to get built up.

while they meet and exceeded i don't think they were enough to move the needle. unfortunately, that is the case. the market is looking for a leadership group. we have not much more going on. we are staying among the trend here. we don't -- >> oil? >> oil is starting to be a boring story. we are expecting no agreement to happen. oil is due for a bit of a pullback. that might be an opportunity. here at 50 there is too much down side risk to that. >> thanks. >> thanks, guys. morton school of business is out with a new report that compares economic impact of hillary clinton and donald trump's tax plans. it finds trump's plan could provide boost in the short term to the economy but clinton's plan better for the long term. for jobs trump can create and

could lead to fewer jobs than what the economy has. clinton would create fewer jobs initially but add many more than trump over the long term. joining us now is professor at wharton school. what distinguishes your model from other approaches that we have seen in terms of analyzing their plans? >> good to be here. thanks for having me. the core difference between our model and a lot of academic models are often used in washington is that our model takes the additional deficits created by the plans into account, in particular if the economy is open economy pr similar to united states today and we had capital flows that we had seen historically as the government produces new debt that debt competes with private

capital for savings and flows. the crucial link is being missed by a lot of models that are being used to analyze tax plans. >> i assume something that is implied in all of your analysis is all things being equal. this is the analysis we have. things are not equal. i will introduce one big unknown. you have to get any plan through congress. we don't know what the makeup is going to be after the election. >> that's exactly right. tremendous amount of uncertainty there. the way you interpret these numbers is simply that this is what we project will happen if the plan is passed. but whether that plan is passed is a political decision. here we are all about the numbers rather than making clinical predictions. >> and when it talks about the

predictions, one of the issues that has come up a lot is the idea of dynamic scoring. this whole idea of once you take the first effects into account how does that improve growth trajectory in the longer term. is that involved here when looking at longer term effects? >> absolutely. that is a critical component to our analysis. traditional projections have been called static analysis and they don't account for the impact that a tax plan may have on the economy, on jobs, on inflation and other macro level issues. and that has always been a criticism of traditional static scoring. so our changes that we're projecting in the growth or decline in gdp associated with

these plans is very much a dynamic score because by definition a static score would say there is no change in gdp. >> interesting stuff. thank you. appreciate your time. >> thanks so much for having me. >> professor at wharton school at university of pennsylvania. we have 17 minutes left in the trading session here. is that board dynamic? the dow is still down about 54 points. >> when you invest in saudi arabiaen bonds? the country is pitching first international bond offering to investors in the u.s. today. we have details on how big a deal this could be. 1954 mercedz grand prix race car made history when it sold for a record price of just under $30 million. and now, another mercedes-benz makes history selling at just over $30,000. and to think this one actually has a surround-sound stereo.

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for a free quote today. liberty stands with you™. liberty mutual insurance. welcome back. saudi arabia is best known for selling oil but saudi officials are in the u.s. trying to sell americans on its bonds. >> good afternoon. it is great to be here. they were in boston today. new york city tomorrow. the saudis are marketing a roughly $10 billion bond offering to u.s. investors. this is significant. it is a step for the kingdom, first international bond issuance.

lower for longer has been a theme. those oil prices hurt the saudis. they quietly raised money and secured international bank loans to help float their budget. perhaps it hasn't been enough. the proceeds will be used partially to build reserves to fill gaps. in 2015 gdp declined around 14%. that number expected to be cloithly less this year. that gives you a sense of how much they are struggling. the deal is suspected to be oversubstri oversubscribed. it is the idea that keep it scarce and then they will want more. perhaps the most fascinating is the timing. right before the u.s. election and also before possible fed rate hike. when just a few weeks ago opec influenced by the saudis say they will lay out a deal at the end of november which has been supporting the prices around $50. today we got fresh numbers,

september output 33.6 million barrels a day. record levels. is this a cartel that to you seems like it will step back and freeze or cut? >> it just points out how different the saudi government is now there was the piece we were looking at. he is running it very differently than the more traditional way. >> and they are take ag big bet with his vision. it seems lofty and noble from what he set out. will it work and can the kingdom relied on oil revenues for so long really diversify. they will use a lot of proceeds to fund some projects. they could end up being a fantastic success or a big flop. >> big gamble. good to see you. thanks for stopping by. >> about 12 minutes to go.

when yields move lower throughout the session stocks have, too. this is heard from vice chair stan fisher and others. the dow down about 52 points. >> let's stand by for fireworks. netflix and ibm minutes away from reporting earnings. the number one thing to watch for. >> and then don't miss an sclus ussive interview with ibm's chief financial officer.

hey listen, when you tell our friends about your job, maybe let's play up the digital part. but it's a manufacturing job. yeah, well ge is doing a lot of cool things digitally to help machines communicate, might want to at least mention that. i'm building world-changing machines. with my two hands. does that threaten you? no! don't be silly. i'm just, uh, going to go to chop some wood. with that? yeah we don't have an ax. or a fireplace. good to be prepared. could you cut the bread?

hold on tayour horses. what should investors be watching for? julia boorstin has an eye on netflix results while josh lipton is following ibm. what are key metrics here? >> the number one thing to watch is netflix is subscriber growth which fell short last quarter as higher prices kicked in. this quarter netflix forecast it will add 2.3 million new members. that's up from growth last quarter but down from growth in the year ago period. netflix shares swung an average of 13% in one direction or the

other after earnings. we'll see which way the stock moves this afternoon. >> thank you. from new technology to old technology josh lipton on ibm. what are we looking for from big blue? >> so investor expectations for big blue are muted. ibm is expected to report q 3 eps of 3.23. revenue of $19 billion down 1%. where does the street see growth? it will be in the strategic imperatives or emerging growth areas like cloud analytics and security. rbc estimates growth of about 7%. ibm has forecast that 40% of the business will be in growth areas by 2018. there will be a focus on whether ceo will maintain her 2016 eps guide of at least 1350. we will find out. >> thank you. we'll be checking with you guys. we got the numbers from yupted

continental coming up next hour. joining us on the floor of the new york stock exchange, david wright. not the third baseman for the mets. you here to make the case for the emerging markets. i'm curious. i know you see it as a growth opportunity. i wonder if you see it as a defensive mechanism to avoid what you see a maybe an overheated market here. >> very badly beaten up emotionally. we follow the emotional trends in the market closely. we certainly see a recovery happening in terms of investor willingness to take on that risk. >> betting on a weaker dollar as part of that? >> not particularly. many markets are dollar neutral so that really isn't a big factor. >> it is a big basket of are there specifics that you like here? >> india, south africa, those

that are are the ones that seem to be recovering well with the recovery in crude oil and other global commodities. >> other country snz it's a big wide world in emerging markets. >> europe as a whole is a giant trading block internally. emerging europe will benefit from the stability we are seeing the last few months. >> and avoiding things on the side cautious by the -- >> u.s. market seems to be complacent. we are off to a boring start this week. investors are hanging in there but it does seem quite overvalued. >> good to see you. thank you for joining us today. we'll take a quick break with the dow down 53 points. zee the closing count down after this. is the stuff that matters?

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with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars. the stuff you miss during commercial breaks. the dow a little under two minutes here. bob pisani joining me now for the closing half hour. i am dying to see this dow chart because since kelly and i have come on the air i don't think it has moved at all. that is amazing. we are holding a decline of

about 51 points. we had a little more volatility in the bond market. yield on the ten year back to 180. it has since come back. now down to 176. we had that bit of a move. we have three companies reporting earnings very shortly with netflix, ibm and united continental. we only refer to it as united airlines now. >> ibm hasn't had any revenue, losing revenue since 2012. four years banks are down again. goldman is reporting tomorrow. these had a big run up going into earnings season. there is concern that earnings

estimates are a little high that is probably what is going on. >> dow down about 62 points as we head out. stay tuned for the earnings reports from the companies and the impact it can have on tomorrow's market action. stay tuned for second hour of "closing bell" with kelly evans and company. >> thank you. welcome to "closing bell." i'm kelly evans. we are going out with declines for the major three averages. dow dropping about 53 points today to close above 18,100. same for the s&p 500 giving up 6.5 to 2,126. interesting closing level in light of comments earlier that if it closes below 2,130 twice he might be worried. nasdaq dropping.

the declines across the three were pretty consistent. coming up, we have big earnings to get to and reporters are standing by to bring us results. julia boorstin on netflix. phil lebeau on united. thank you and we will see you in just a bit. on the panel today -- brian kelly joins us, too. what was notable about the market? >> continued sluggishness. over the last couple of trading days the markets led a few excuses for rallying. the better than expected bank to draw many conclusions and there is a gap to bridge in terms of what the market has done and what earnings are expected to do. it is a little bit of loss of momentum. >> you raise an interesting

point. of the upward movement and 2inflation expectations. >> everybody thinks that we are going to see inflation in the future. central banks say we want tosee the yield curve. you don't have the economic upturn so that companies can earn more money to pay higher rates or people can earn more money to pay higher rates on mortgage. it's not even. that's the wrong reason for bond yields to rise and that concerns me. >> paul, does it concern you or are you happy to watch it company by company. >> i think we have gotten off easy in october. a little bit of side ways isn't something to be worried about. earnings season just started. we have only seen a handful of companies. investors aren't just taking a wait and see attitude. you have an election in november.

there are a lot of things that people are waiting for. i don't think there is too much to be overly concerned about at this point. >> it feels a little like complacency like we are skating along here and not really moving up or down. there are still extraordinary things that are happening. we still depending on how you look at it have crazy low bond yields or start to make a move. we have a fed that may start to raise rates or maybe is not. >> it feels like a zombie market. i don't think it is complacency to be the right word. we are trading side ways and people don't seem to care much about it. i think the attitude is they don't want to be left holding the bag. there is no fear of missing out on the rally. in 2000 they did and 2008. >> which is the mindset we have seen since 2008. >> i think it is more confusion. nobody really is out there with high conviction about up or

down. you have outflows from stock funds pick up. i think the election has people in a bad mood, a little bit paralyzed. i think one of the traps is looking at last year's experience and worrying that we are in for something else as fed raises rates in december and that is going to open flood gates. i feel as if because people have that in their mind it is an unlikely scenario. >> what about to go back to your point on bank earnings we kind of got what those people were asking for. >> they did deliver it. think about the environment for the banks. you have the interest rate environment. you is the regulatory environment. the only people less popular than congress are bankers. anytime congress wants headlines you can bring a banker in front of congress. it is a tough atmosphere for the banks. it is not a sector that has --

fundamentally they are in very good shape. just the growth outlook is very subdued. >> do you think bond yields will keep rising? >> i think for a little bit. and then we will have to pause and see what happens. on the bank earnings what everybody is not asking is what is the second question? what happens? let's say the economy is great and in december the fed raises rates. is the economy good enough for the fed to go on rate hiking cycle? we thought it last year but it wasn't. even if they raise rates probably one of the last rate hikes we will see in a while. that is why the banks are so weak. >> probably the phrase of the moment right now is run it hot. it goes back to what janet yellen said about letting the economy run hot just so inflation would get up there. fisher said he was reluctant to raise the goal but you know it

is on the minds of people who are selling bonds right now. >> it definitely is. i feel as if it is one of the problems to be in good shape to have. if we had the option to run it hot do we think that has been the problem. we could have run it hot but we didn't decide to. i think to your point it really is not going to look like an aggressive rate hike campaign even if we get one in december. >> we are learning it will be one a year. >> last week described as gentle. i never heard of that description for a rate hiking cycle. they are stressing the fact that they are not going to be overly aggressive. it will be data dependent. if we start to see inflation numbers tick higher we might see. they can run it hot for a little while because inflation has been so far below average glmpt is this is a company that has moved the last couple of earnings seasons 13%. it's a big mover all the time.

it appears to be popping as its earnings results start to cross the wire here. one of the big threes we were waiting on. julia boorstin has more for us. >> netflix spiking after hours. the stock about 18% on better than expected results across the board. the company reporting $2.47 billion in revenue versus 2.28 billion expected. with all eyes on the subscriber number the company adding more subscribers in the u.s. and internationally than expected adding 370,000 new subscribers. internationally added 3.2 million new subscribers versus expectations of 2 million. so 1.2 million more subscribers than expected in that quarter just overseas. total net adds of 3.75 million.

earnings per share at 12 cents versus expectations of six cents and up from seven cents per share. the company attributes it to the success of the content including "stranger things." they say they will release 1,000 hours total of originals next year up from 600 hours this year and news about china which is always a hot topic for netflix saying they plan to license content to existing service providers rather than distribute their own content in the near term. we will be looking for more context on that on the call coming up. they say they plan to raise more cash due to the free cash flow intensity of originals. you have to pay more up front when creating your own original content. across the board you see the

shares up more than 20%. >> so they are up about 19. >> i have more on the outlook for q 4. >> please. >> kelly, i'm so sorry. to go more into q 4 the forecast for q 4 is up across the board better than expected. they project the net addition of 5.2 million new net adds. that's much higher than expected. forecasting 1.45 million in u.s. also expecting 3.75 million internationally versus expectations of 3.32 million. really a beat across the board and looking at forecast for q 4 forecasting earnings per share of 13 cents per share this quarter it is 12 cents per share. >> netflix roaring and soaring after hours.

>> this was the catch up quarter in terms of concern and if international will follow the path. this is now the answer. i think this stock was kind of winding itself very tightly around the $100 mark. a lot of people skeptical about whether or not the story had changed. they will raise more cash. as long as the subscriber growth is what it is i think the goals will be able to have something to work with. >> i think sentiment had gotten so weak and traded down. so sentiment was skewed. competition has been cited. in our survey work amazon prime subscribers use netflix more often than the average subscriber. it is not cannibalization of subscribers. it's the best of both worlds. streaming when you ask how if they don't just turn on the tv

anymore. more and more we see they go straight to streaming. streaming is where it is at. u.s. business is seeing strong growth. >> what do you do here? >> i certainly don't buy any stock up 20%. as much as you might like it. they needed this exactly what mike said. they are running up a down escalator. they have to keep the growth. as long as they are going faster than the down escalator then they are okay. they either have to earn money at some point and make money or they have to continue to grow the stock. one way or the other they will -- this is a good quarter for them. i'm skeptical about the long term prospects. >> i'm looking through what they are saying about cash flow. we just -- it was netflix paying 40 million for chris rock like two shows. a lot of money they are putting

up and increasing the hours on originals to 1,000 from 600. >> and they don't necessarily have a great -- they say they have an advantage in terms of picking originals and having the data to know what people watch and how they watch it. i think that ultimately netflix looks like the other media companies but with a tremendous head start on what the future looks like. i think the model does work on a tremendous subscriber base but it is a long way between now and then. >> they say over the long run we believe self producing is less expensive. >> they will own the content. people say it is an easy model. 90 million subscribers is not easy to ramp up. they have a big head start. >> what do you think about the china issue? they are saying the regulatory environment has become challenging. we now plan to license content

to existing service providers. >> kind of a fall back position. i don't know it was in anybody's model that china had to be huge anytime soon. >> we have breaking news. some unanticipated news this hour. more on what is happening with visa. >> just getting news that visa ceo will be resigning on december 1 of this year. it's just little more than four years after he took the role on november 1 of 2012. this was a surprise move. the stock has multiplied in its value and he was largely someone revered by investors. in the press release it says he informed the board of directors he decided to resign because he could no longer spend the time in san francisco necessary to do the job effectively. he had been splitting the time between here in new york and the company's new york city office as well as the center in san

francisco and headquarters in foster city, california. taking his place will be al kelly who is the president and ceo. he is a visa board member and former president of american express. certainly someone who knows the industry but it is safe to say this has come as a shock to investors. the stock is down nearly 2% after hours and we are just about to hit the earnings season for payments companies. before we get there the company has anticipated that there will be questions from investors hosting a conference call at 5:00 p.m. eastern time. we will get you anymore details as we have them. >> thank you. it's interesting you can often look at the way the stock price reacts and glean what investors thought. >> if you are the ceo you leave and your stock price goes up. so he has to feel fairly good that the stock is down, i guess.

what is challenging here is the payment space in general is very challenged. there is a lot of disruption going on. you look at pay pal. peer to peer type payment platforms are really taking off. you also have technology coming in that can reduce the cost. it is a challenging environment. and if investors don't have the confidence in the leader you see what happens with the stock. >> thoughts on this one? >> this might be the rare example when a ceo needs to spend more time with his family. maybe there is more to the story. he is a young guy. not somebody who is retirement age. i think the market reaction makes sense. >> and he was very well respected but he ran the super bowl organization two years ago. i think there is -- this would probably be a buying opportunity here. >> visa shares down after hours

on the news. that call will be next hour. ibm earnings are out. let's get to josh lipton for those details. >> ibm reporting 329, first expectations of 3.23. revenue 19.2 billion versus expectations of 19 billion. ibm reiterating guidance of at least 1350. strategic imperatives emerging growth areas, cloud analytics, security, revenue up 16% to 8 billion. cloud revenue, ibm competing. cloud revenue 12.6 billion over the last 12u7g9 34bs. cognitive solutions, revenue 4.2 billion. global business services revenue 4.2 billion. technology services and cloud platforms 8.7 billion all basically in line what analysts forecast. on the call you will get more

questions about the strategic imperatives and acquisitions. one of the most inquisitive and about guidance. the call starting at 5:00 p.m. eastern. that $19.2 billion a slight beat on the estimate. good enough to say the revenue was flat compared with earlier. a break from 17 quarters of declines. >> it is certainly a victory of sorts. if you look at bigger picture the company is expected to earn about what it did this year. at least this quarter looked like it is roughly. >> it's a turn around story which is kind of crazy to say about a company like ibm. you will not get growth in this company today. investors aren't going to pay up because there is no growth. it's all about watson. if they can turn that into a profit center then that is the turn around story. that is what you have to believe in if you are buying the stock.

>> got some magic in him. parting thought? >> talk about streaks of revenue growth. the stock has finished down on the day after earnings. so it is something of a moral win. i think the company, they have a relatively good dividend yield. despite the short term issues with the company i think if you hold it long term you believe that watson will be solution for the company it will pay off over time. >> shares roughly unchanged on the news for ibm. thanks for joining us. >> thank you for having me. >> much more coming up on fast money. the dogs of the dow are crushing the market. there is one top technician rich ross thinks he can lead the market next year. netflix shares are soaring. they are up 19% after the company just reported better than expected earnings thanks to

a big jump in subscriber growth. we will discuss whether you should be buying the stock after the news and break down ibm earnings with martin scloeder right ahead.

shares of netflix up nearly 20%. the company just reported better than expected earnings and subscriber growth. let's get reaction to the numbers. ross gerber joins us. kevin landis from first-hand capital management. ross, so what is your deal with netflix? what do you think of the quarter? >> i love it. it is so good right now. everybody gets on and bangs on netflix. it is like people don't understand if you spend money on making a tv show or a movie it is not like you spent the money. you invested in it so it will stay on netflix forever. the programming is amazing and proved it this quarter. narcos being a good tv show and nothing stopped that. if you are not in this company you are missing out on one of the greatest stories in the next decade when it comes to the

entertainment industry. >> where does that leave you with the stock getting up to $120 a share. we got there about 14 months ago when it had the great run in 2015. do you think we are at this point pricing it a little bit too much or is this where it belongs? >> well, if you take a look at netflix's market cap it's not that pricey of a company. on other metrics you can say it is pricey. the market cap is not so huge. this is a pleasant surprise. you shouldn't be that shocked. this is a quality company on the right side of a very powerful trend. you really can't take that for granted. you get these kinds of pops when you positioned yourself this well. >> for people who might go wow they have shown going back to this 370 versus 300 guided for. 3.2 million internationally versus two million guided for.

is there room to buy the company now that it is up at 119? >> there probably is. i outsmart myself when i try to trade the stock so i am better off owning it and holding it. there will be haters that come out and talk about the cash flows and how much money they have to spend and how this is going to collapse any day now. when the arguments carry the day that is when you are supposed to buy netflix. >> are you going to upgrade the stock? >> i'm not going to say anything on tv about ratings change. the thing that is clear with netflix is that subscriber growth is slow. they are adding fewer this year than last year. so i think you have to be careful with the stock. it is a great business. they have had a great trajectory. it is slowing. a great stock like this not making much money can be a dangerous company when it is starting to slow and transition from a growth story to something

more mature. so they did better against lower expectations this quarter and their guidance is better than people have for next quarter. it is still slowing. >> let me ask you about the plans to issue more debt. the company says it is under levered relative to peers. since it seems like they need capital, more debt issuance could be on the way. is that part of what you're cautious about? >> i think that it certainly appropriate in a market like this when they are forgiving and willing to lend money to companies like netflix. debt raises the ant iif growth slows and you have debt and you need to add debt it ups the stakes if you can't continue to grow the subs. last quarter they missed versus expectations.

this quarter they beat. kind of 50/50. >> this is paul hickey. regarding the subscriber growth at what levels do you think netflix can keep increasing rates for subscribers? is there a certain threshold you have looked at or that you consider to be a breaking point? >> i think in terms of pricing 10% to 15% effective price hikes right now which is great. i think this is very much a one off. the norm for subscriber businesses is something people don't really notice and they cross that threshold. as they get more penetrated i think the ability to raise rates is less because there are less alternatives. i think a good long term assumption is maybe mid single digit where people don't see it on bills but not something that gives you the uber growth story. you have to see the subgrowth to buy this stock here.

that is why i think it is slippery and volatile. >> a quick last word here. >> i think you are discounting the millions of potential subscribers. i think it is very narrow minded to be focussed like that on slowing growth. our estimate over 200 million people that can sign up for netflix right now and only 85 million have signed up. they have huge growth potential in the future. you have to think bigger, guys. analysts think big. it's a big world and nothing else on tv but netflix. >> if they were hitting that 200 million i don't know why their subgrowth is slowing right now. >> that's 20 million a year. >> this makes the market. >> i'm long. >> hopefully not wrong. let's get to earnings with phil lebeau. >> united beating the street on

the top and bottom line. let me give you the numbers here earning $3.11 per share, five cents better than expectations in the third quarter. a little bit in after hours trading up about 1%. passenger revenue. the key metric is passenger revenue per available seat mile. in other words, how much money are they making per every mile every seat flown. it was expected to drop between 5.5% and 7.5%. it fell 5.8%. that is better than what some people might have been expecting. united says it will be growing capacity by 1% to 2%. last week we had delta saying they were limiting capacity growth to 1%. that is encouraging to some investors who want to see the airlines pull back on that

capacity growth just a little bit because there have been so many cheap seats going after these passengers and flyers. that is what has been hurting passenger revenue. united beating the street on the top and bottom line on the third quarter sbrmpt dh thank you. for more on united's earnings be sure to watch squawk box tomorrow for exclusive interview. what do you guys -- >> seems on target. as a stock has been outperforming. i feel as if people thought it would be okay. the airlines is a group trading with oil prices. not the way you normally think about it. to me it is not so much about the quarter skbrmpt the it has peak earnings for the group. five times multiple on the stock that is usually the time not to. it is when valuations look excessive. >> roughly flat after hours. more in the morning. ibm reported better than expected earnings. martin schroeter joins us to

break down the quarter and the outlook before he speaks to analysts. get up to $5,000 customer cash on select 2016 models. see your lexus dealer.

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declines that you had lately. is watson a big distribucontrib that? >> i think it is a few things. revenue is roughly flat in total. the quarter played out really what we said it would. you had good growth in our strategic imperative so up 15% on a constant currency basis. that is what we are looking for for that business. it accelerated from the second to third quarter. the watson business is part of our solutions business. so it is growing. so good growth across the platforms and as you know watson is for us really the future of cognitive. it is not just the platform but showing up with how we deal with watson health business. so the technology sort of

purveyed how we see the future within ibm. >> what about some financials? investors look through the company and say we hope you get it right on growth but we are happy with the dividend and free cash flow which looked like it took a bit of a hit in the quarter? does it reflect a lot of investing for the future? >> i think we are certainly investing quite heavily and will continue to do that. we are getting good returns on investments we have made. we bought now 25 companies since the start of last year. and we still see technologies and things that have appeal to us. in fact, just a few weeks ago we announced the acquisition of financial which has expertise in regulatory for banks. so we will take that regulatory framework and as i mentioned if watson pervading cognitive play we will take that frame work and teach how to abide by and

comply. it is a reflection of our heavy investments but we will continue to invest. at the sime time we have been working on productivity and see margin expansion in our businesses. we see an opportunity to both continue to deliver productivity in our own business and continue to invest heavily sgrmpt had speaking of all of those acquisitions will twitter be your next one? >> we have been quite acquisitive. our pattern i don't think surprises anybody because we have been pretty clear about what we look for. we have certainly looked for some technologies. we bought an object storage last year because it is a big part of how storage works in the cloud. we bought and put together one of the world's leading video platform service for our cloud business. we have an interest in technology companies but at the same time we are moving into new spaces and so we put together

our watson health business with a series of acquisitions not only some of the process work but also the data because you need to bring data to this equation if you are going to be successful. >> twitter has a lot of data. >> well, again, we have a view on technology and how we see the cloud world and the cognitive world coming together. what under pins all of that and what i think is the reason our clients come to us is because we have an industry point of view. we have industry differentiation and we understand industries. what you saw us do a couple of weeks ago was announce in additional to watson health we announced the financial services to get into how to help banks. it is that industry services that allows us to differentiate in addition to cognitive capabilities. >> thank you for joining us. we know you have a call to get

to. >> that is ibm cfo sfwlmpt can time for cnbc update. >> three men including a father and son have been charged in connection with the murder of olympic sprint er's daughter. trinity gay was caughtn shootout between occupants of two cars. tyson gay won multiple olympic medals. trinity was reportedly a promising track star at her local high school. a new study finds about one-third of teenagers are driving while drowsy. liberty mutual insurance finds they sometimes struggle to stay awake. one in ten say they nodded off. experts say they need to help manage the schedule. havana city government suspended issuing licenses for

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tesla grabbing headlines yet again. the electric car maker has drawn wrath of german industry for so-called auto pilot. and veteran silicon valley investor has partnered with a chinese vc firm to create one of the largest venture funds in china. we will get his take on if he thinks the market is overheated or just heating up. will your business be ready when growth presents itself? american express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. find out how american express cards and services can help prepare you for growth at open.com.

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welcome back. netflix and united are trading higher after reporting better than expected earnings. netflix up nearly 20%. ibm and visa lower by about 3% and 2% respectively. visa after announcing the company's ceo is stepping down in december. we have more breaking news on that with jim cramer who has more details on this management change. >> thank you. a memo that employees just got from visa. charlie presided on a period, much beloved and want people to know he built the modern visa. i will read some of it here. he says this is a sad day for me as i have loved being a part of

this company. a couple of things are important. he is not stepping down on december 1. he is staying. this is really interesting because it is different language from what you hear. my decision is entirely personal. we do what we need to do to help the company thrive. and then he goes on to say for me this is included balancing the time needed to travel the globe to with the time necessary to be in california. charlie does not live in california. it says my wife and i have worked hard to continue to spend time with our daughters who settle in the east coast. there is a need to be on the east coast more than we are now able.

i don't feel i can spend the time necessary in san francisco to do the job properly. so moved out to san francisco. he wants to come home and be with his family. this is one where i can tell you that is exactly what the reason is. there is nothing more to it. >> that is what is so interesting about this. i can't imagine trying to do one of these ceo jobs that you are constantly on a plane and different time zones and have to be on call. that all goes without saying. often when we see these it emerges that there is more later on. maybe there is not but i think that is why investors get so jittery. >> this is a different kind of memo. typically when you see someone and there is more what you discover is there was a time when the person needed to spend more time with the daughters, parents and extended family.

i can tell you that charlie has to spend more time at home. this is something that something people face and they have to make very big decisions. i know charlie is so refluctant to leave and people love him. he needs to spend more time in reality at home in new york. i think that people have to respect that decision. i know i sure do. >> absolutely. absolutely. jim, thank you for joining us with more context there. there is more coming up tonight on mad money with jim cramer. a billion dollars is how much jim briar and igdb capital partners have to invest in growth stage companies in china as well as firms here looking to enter china. and should tesla investors be worried the company pushed back a new property unveiling? phil lebeau will have more coming up on "closing bell." these goofy glasses.

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shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured. welcome back. from a chinese venture fund to artificial intelligence our next guest is looking ahead. jim briar joins us live from the forbes under 30 summit. good to have you with us. we just talked last hour about some of the great ideas that are coming out of this gathering. you are here and you are just making a big push into china. can you tell us what you think the state of play is in china? has it peaked?

does it still have a lot of room to run? netflix said they have to go to licensing agreement. what is your read on things in that country? >> i will know a lot more after my next week where i will be in china. it is good to be back. i take a pass on the dracula castle. and on china artificial intelligence in beijing, shanghai and throughout china as well as palo alto is perhaps most interesting investment being over the next decade. that is why i'm here at 30 under 30. i was very lucky in 2005 to invest early in mark zuckerburg when he was not yet 21 at 5 cents a share. i don't believe i will ever find another facebook but i will keep trying. >> you say that ai is perhaps the biggest opportunity you can

foresee right now. who is going to be able to exploit that? not to refer to ibm's quarter specifically but a company like ibm seems to think it has a solution. is there going to be established startup? >> it's a combination, not surpriseingly. ibm's watson in health care in particular has really made a number of cancer breakthroughs. very optimistic around watson in areas such as health care. my gosh, startups, entrepreneurial activity in cambridge, massachusetts, palo alto, beijing, london. the startups are building outstanding analytical and human-assisted intelligence platforms. >> so jim, in your contact with chinese companies, as they transition from manufacturing more towards consumption, what are you seeing as far as the chinese consumer is concerned, and where they stand right now? >> it is growing dramatically

from the consumer side, whether it's the mobile phone companies in china. ten-cent is as intense a competitor as alphabet here in the united states. so the competitive intensity in silicon valley and in beijing is extraordinarily high. yet the opportunities for new investments, building companies taking and taking a seven to ten-year view i believe is outstanding right now. both in china and in parts of the united states. >> and in one part, in silicon valley, jim, talk a little bit about are you seeing -- we asked this last hour, too. but i'm just interested. if the mobile era is kind of plateauing, now are you seeing, as all these venture shops are proliferating, exciting new investments still walking through the door, or is that why you're looking to china now? >> oh, they're walking through the door, but more importantly, i'm walking to the campuses and meeting with the students and the professors and the post docs.

and it's extraordinarily exciting. the talent around data analysis, next generation analytics, whether it's palo alto, beijing, london, cambridge, massachusetts, is extraordinary. it's challenging. it's humbling. but an extraordinary time to be making long-term bets -- long-term investments around artificial intelligence and human-assisted intelligence. both in the u.s. as well as china. >> all right. jim, thank you, again, for joining us from the forbes under 30 gathering there. that is jim breyer, the founder and ceo of breyer capital. and germany is taking aim at tesla. the country telling the electric car maker to stop advertising its autopilot system. we have more details, coming up.

tesla's elon musk postponing today's mystery announcement. phil lebeau has more on why. phil? >> we don't know exactly why it's been postponed, kelly. keep in mind that when he first announced it, about two weeks ago, he said it was not expected by a lot of people. he picked this date. now it's going to be happening on wednesday. and we still don't know exactly what this product is that tesla will be announcing or elon musk will be announcing wednesday. he did say when he announced the delay it needs more refinement. there is a fair amount of speculation it may be some new feature or a new development with the autopilot function in the vehicle. by the way, germany out over the weekend telling tesla it would like the company to stop the autopilot ads. in other words, stop using the term "autopilot" in advertising tesla vehicles. germany considers it misleading. we should point out, tesla has said all along, we're not telling people they don't have to have their hands on the

wheel. they do still need to pay attention when driving. keep in mind, the autopilot system is still being investigated by the u.s. government, national highway traffic safety administration, tesla did update the system last month. and, again, wednesday is when we get the product announcement and it's pure speculation it has something to do with autopilot, but that is some of the speculation out there. >> we'll have to wait and see. thank you, phil. phil lebeau with the latest. the earnings calls from netflix and ibm are about to begin. we'll count them down for you when we come right back.

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welcome back. moments away from conference calls. netflix up 20%, ibm now nearly 3% and united flat, guys. what are you going to be watching for? >> i'm actually watching the reaction to netflix but also in other hyper-growth tech stocks. you already see after hours amazon being up a little bit. you wonder if people are going to get emboldened. i don't necessarily say it's going to happen but could. >> what about you, call? >> the verdict is still out on earnings season. this week i think we'll have a really good play, and the market overall returns to spike the length of the bull market. 2, 20 and 10 year returns below the historical average. >> is it enough to give the whole season its mojo? >> no, you need to see more

growth from the bigger tech companies that's led the market now. so we'll have to see what they report in the next few weeks. >> exactly. about to move into that piece of the season. for now, thank you so much for joining us. paul hickey, michael santoli. now time for total coverage of the calls. thanks for watching. "fast money" starts right now. live from the nasdaq market site overlooking new york's times square. i'm scott wapner in for melissa lee. our traders on the desk, tim seymour, david seeburg, dan nathan and brian kelly. two major earnings reports tonight. netflix soaring after crushing its report, and ibm sinking after hours. we've got full team coverage on both conference calls, just kicking off now. in fact, julia boorstin is covering netflix. josh lipton on the ibm call. and suntrust analyst, bob peck, standing by on the red phone, of course, monitoring that netflix call for instant reaction. want to start with julia boorstin tonight for the very