maybe it's a funk oction of age >> i do, too >> you have kids they insist on eating early. >> but why didn't it used to be so late? who are these heroes of previous generations who are lighting it up at 9:00 p.m they had bigger families than we do >> i have to go to bed earlier thanks for watching "power lunch". >> i'm going to dinner "closing bell" starts now. >> welcome to "closing bell. the countdown to two of the most anticipated earnings reports of the season netflix and tesla both hit in overtime and we'll get you set before the numbers hit with alex cantor and dan ives and first with 60 minutes to go now in regulation and more gains for stocks today there it is, green across the board. the s&p 500 sitting just above 5% away from new all-time highs. the dow working on its eighth consecutive day of gains getting help today from verizon and

goldman, salesforce and cisco. it's been up and down for the nasdaq ahead of those earnings and we're waiting for apple and it is mostly higher on a.i.-related headlines and not quite as strong as it was when they hit and nonetheless, it is green and it takes us to "the talk of the tape." first, though, big technologies. alex cantorwits is with me at post 9 and also a cnbc contributor. good to have you i love when these earnings start coming down especially the marquee names. what do you look for here? >> the good news is netflix will have subscriber growth, it's a completely sea change from what happened last year from when it was contracting sub screeners. the story for netflix when it comes above or a little below is it's making the right moves as a business to exist and thrive in this economy lost a million subs in the year-ago quarter

you had two straight quarters of sub losses, why have they been able to reverse that >> the password sharing, the crackdown on password sharing has been crucial for them. they had four of the highest single-day signup according to third-party data right after this happened. it just shows that the product is working people want netflix and got used to it over the years and they've always had the ability to say enough with the free ride. they said it they're growing again. that's been huge for them. >> speaking of free rides. the ads here, right? they just said they scrapped their cheapest one with ten bucks a month. how is this contributing, do you think? 20% of new sign-ups are coming in via the ads here and they're getting some growth from it and we'll see them monetize that growth we have madison avenue about growing advertising dollars and there was a long time when the economy was uncertain. they weren't spending and they're starting to spend again and that's another incremental revenue source for netflix.

>> i'm sure you know about the strikes going on in hollywood and this company has had to think about it less than others in the media space it just has rpt been as impacted who knows what happens if it drags on for many, many, many month, but nonetheless, they've been able to avoid the biggest impact that others have felt. >> oh, yeah. they're in a much better position than their competitors for two reasons. one, they have a nice stock of foreign shows and movies korean, i'm in the middle of one right now. and the reality television of these. people have been slagging netflix saying it's junk and filled with crap actually, americans and people worldwide love watching these shows. lots of great dating shows on netflix and they can thrive on those while the rest of the competitors look at their sights on tv. >> you see the one at the top is netflix and it is up 62% year to date it's outpaced everything and it's done incredibly well relative to some of its big-tech

brethren, as well. maybe that's one of the biggest obstacles going into the print the stock is already up a lot. what do you think aboutthat? >> it's up a lot, but still down from the highs when it was around $700. when netflix had its beg drop this was a question of can it settle into the right valuation? can it settle into the right place for a company like it is which is really not a technology company. it's more of a media company and it's been valued and it still is being valued as a tech company and it can live to sustain those highs and it is in a much better spot right now and it's down from the all-time highs and it's growing this year and maybe that's the right place for it. >> we've been talking about these mega-cap stocks and this isn't necessarily a mega-cap when we talk about those, we always cite the execution of the tim cooks and the ceos that are front and center do we talk about the execution of the netflix management team enough and what they've been able to do making the transition the way they have?

>> i think that we do talk about it enough and we don't talk about it too much because the reason we're not spending as much time on it is isn't just a different business it's a different world to build an apple than it is to build a netflix. it is inside apple still building the iphone. i give netflix management a lot of credit and they're growing subscribers and building the ag product and they're insulated in some ways against the strike and they're not on the same plain as the tech leaders we have today. >> no, but they've had to figure out complicated issues when you're losing subs, like we said when you're losing a million subs and you have two consecutive quarters of declining subs and you have to deal with the password issue which they were pretty forceful in, we're doing it, like it or not. it's worked and the ag tier which they initially shunned they decided to do don't they deserve any credit for that >> oh, definitely. i'm not taking away from them as a business and they executed the playbook perfectly in terms of

where they needed to go, and where they needed to get to and this is it for netflix it's a great company it has great shows and movies. people love it, but it has a ceiling. >> do you feel like -- i've seen some, i won't necessarily call them bears, but michael nathanson, for example, who has not been the biggest bull declared of this one, this is the one to own in the space, and it's not lost on me neither, if you look at the comparison of netflix and a stock price trajectory versus disney, it's pretty stark >> it tells you part of the story, too >> absolutely. i was just on the form with a form you are hulu executive yesterday and i said break down what's going on in streaming right now. his perspective was very simple. all of the other companies focused on profitability and they had to spend and they're pulling back to get profitable and netflix has been in that place where it has free cash flow and in some ways it will benefit based off of the cap

itch lagsz of some of its competitors, so it does seem like it will consolidate a lot of ground in this space. maybe we change financial conditions and the others have the ability to spend again and until they do, netflix will -- >> netflix investors is confident going in jason snipe is one good to see you. are you optimistic and how do stocks gain already leading up this day factor into your thinking >> yeah, so i think alex made a couple elf really great points of where the stock has been. it is up 62% year to date, but to your point that we're looking at ads this quarter. you know, 2 million subs which i think is really solid, and i think as we talk about the management team and what the market has rewarded netflix for this year has cracked down on the existing base, right so password sharing and expect to add 9 billion in revenue by

2025 the ad supported $770 million in revenue by the end of this year. the company has reward these two line anymore anymores and that's yet stock has moved so much this year do you sell on the news when the stock has run and even though it's great and people get sketish about extending valuations and the like? >> definitely. one of the things that as i'm looking at the stock it is up a lot already this year. option are implying a move of 8.5% you know, either way, right? so i think that obviously can be concerning going forward, but i do think their story -- there are still some legs to this story, and i think they're in the early innings of the ad support here and password sharing and there's more market share to gain here and that's

why we can still see some movement going forward >> alex, we've been citing all of the positives that are on the story, the reason yet stock has had 60+ percent here today what are the risks what are we not thinking enough about that we should >> the risk is that the economy turns. maybe when the economy turns and we have to get back and the fed has to raise more and there's scrutiny on all these businesses we know they're not immune to shocks and the fact that netflix went down from 700 and it is only up from the mid-400s is an example of that. it looks like we may be out of the woods, but we're not clearly out yet and there could be surprises for every tech company if that happens. >> how about that, jason we look at the gains and think that everything is great or are we ignoring the broad risks that are out and around that could have an impact on i coa companye this >> there's no doubt about it we see it everywhere and our

main focus has been on the consumer and the consumer has been hanging in there, and of course, the headwind with the strikes in hollywood obviously it's been well written what netflix has done internationally in the studios that they built through the pandemic and shows like loop and from what's going on from a consumer perspective and also what the strike, what the issues might lay down further from there, but i do think that they're still well positioned and better positioned than some of the other players like we talked about disney and some of the others that are out there. so that's why i continue to like the stock here >> what about big tech more broadly? how are you thinking in general? as we say this is the curtain raiser, the most closely followed reports of the season >> yeah. so with big tech we've seen actual economic activity around a.i., at the very foundational

layer. that means people are paying open a.i. for chatgpt and other api access and they're paying nvidia for those gpus. what is built on top of it because remember, a lot of this rally has been driven by artificial intelligence belief it's been a belief that they'll turn these -- hype and hope. i want to hear aws to, how this ai has mped its advertising business and all across the board there will be big questions for these questions about whether they have turned that hype and hope into there ares and that's what they'll be riding on this quarter >> you see the stocks that we were flashing through as you were speaking are down today, except for apple s speaking of a.i. and hype and hope, maybe that's been the lone holdout in terms of marquee names in terms of what their

plans may be as it relates to a.i. we have wwdc and it's still in positive territory how are you thinking about that one? >> it was bananas that the stock would spike over 2% on this bloomberg report i think the bloomberg report is right. every company, it's tablestakes and they're all working on ways to implement a.i. and they have no idea how they'll bring it to to consumers and it is still positive as everyone with investors right now. can apple implement something? >>, are they going to license this so that it's puzzling to me e, and here's a.i., throw the

money. why are we doing that? >> what's the answer to that jason, you are one of those continuing to throw the money at these names. do you see an overexuberance around a.i. and if there is around a.i. how can there not be around the a.i. stocks >> of course i mean, at the early stages of any of these, like, very unique technologies, i think stocks really move and clearly that we've seen that in the first half of this year. for me as it relates to apple, i just look at their enormous consumer base, right so they have a lot of data you know, a.i., generative a.i. will be productive in some shape or fashion a lot turns on the way out and apple take a backseat and watch the other magnificent seven companies participate and not get involved, i think you're missing the boat, but ultimately they'll do some beta testingin

te internally and see how it plays out and we'll see how that works out. >> the other stock yesterday that popped, alex, was microsoft. some 5% to a new high and you generally don't see a stock like microsoft move 5%. it makes me think of what role alphabet plays in your mind, and once you expect when reported? if they have something to prove. >> yeah. i think investors were wrong on the microsoft deal yesterday it's about a.i. and office i'm right now in a test group that's using google docs and gmail that has a help me write button in there. it's available for free within google and google is keeping pace so for anyone who has given up on google and said microsoft has won this that strikes me as a totally incomplete picture o what's going on in the market. >> so do you think that alphabet was unfairly punished from a

stock standpoint it's caught up in some respects. the stock has done well as everything in that area has, but the early narrative was that they got caught sitting down when microsoft and others were running. >> investors were right to be skeptical of what alphabet was doing. they sat back and they had this technology internally and they sat back as open ai and not only did that, but created unbelievable hype and shine around their brands. now it's time to catch up. i don't think it's hopeless for alphabet, these tools inside docs and e-mail this is a 20-year battle, and 2023 doesn't end and all of a sudden 2023 it's already live in conner beta, so it's not over for alphabet by any means. >> it's the perfect place for

you to have the last word because you own so many of the stocks in this group. >> for me as it relates to generative a.i., obviously these new technologies will definitely be productive, new assets to a lot of these companies, and i think we just have to -- we're very much in the early stages and we have to kind really watch the technologies evolve and see how companies are able to put them to use, and i think all of us are obviously evaluating that at this time of course, there's been over-exuberance really on, but we'll see the players for more ward let's get to our twitter question of the day. will we see record highs for stocks where the three majors down now 157 we'll tell you mraert on some we

have tough stocks to watch upon. kristina partsinevelos is standing by. >> joby aviation is downgraded to underweight analysts are concerned that the path to commercial operations could be slower than investors were expecting that's why you're seeing shares down, what 16%, almost 17%. the stock has more than doubled just in the past three months amid excitement over the faa's per mission to test joby's prototype. toast is removing its 99-cent online order processing fee just days after it was first introduced nationwide. there's been widespread backlash from restaurants that forced toast's ceo today to admit they made the wrong decision. the market didn't like that reaction, though shares are down over 15% right now, scott >> yeah. paging josh brown. paging josh brown. >> i know. i know a lot of our viewers noticed how bullish he was on toast everything >> they seem to noters

everything. >> good! >> yes, it is. kristina partsinevelos up next, tesla's moment of truth and the company coming together to report earnings after the bell and just the last three months >> dan ivess is here, and later putting public service over profits and we'll bring you the details of a new bipartisan bill that could ban lawmakers from owning individual stocks is it dead on arrival or not we'll fiend out. we are live from the new york stock exchange, and closing bell on cnbc. ♪ ♪ ♪ opportunity is using data to create a competitive advantage. ♪ it's raising capital to help companies change the world. ♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward

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tesla shares off session lows ahead of its results in overtime the ev maker hit a record high for deliveries last quarter following multiple price cuts this year. the stock is only up 138% for the year let's bring in web bush's dan ives to break down what to expect welcome back >> good to be here options are pricing in a bigger move up or down than we normally see. why do you think that is >> i think it's about margins. they'll be able to show margins are troughing later this year. that happens combined with deliveries especially in china that's the one-two punch that ultimately gets this on the path to 1.5 trillion. >> gross margins could be the lowest in perhaps six years. what makes you believe they're troughing at a time when musk is obviously putting growth over profitability which he's made it clear himself. >> and in our opinionthat was the smart, strategic poker move that they needed to ultimately

do to go after volumes, cut costs, cut prices, but i think the price cuts, 95% of it is in the rear-view mirror now you're starting to see stablization there i think battery costs, ultimately that's coming down and it gives them the scale and scope. ultimately, as we go into later this year there will be a trough there was a moment of truth and ultimately, he continues to play chess, others checkers. >> why do you think the price cuts are done? >> just from a demand perspective. we're seeing it specifically in china where there's really been a price war going on we are now starting to see demand continue to uptick, and i think that's important this will be a record china quarter. that will be a big focus the call in terms of how musk talks about from a demand perspective and also margins in china are incrementally higher than the u.s. >> you don't think we'll get a potential price war here in the u.s. i mean, you look at what ford did with the f-150 lightning you drop it by $10,000 no surprise that they'd do that

after musk has repeatedly done it you know, they're coming out, tesla is, with the cyber truck i mean, how do we think of that in the context of of a potential price war here >> for tesla, they're in a massive position of strength because of the margins that are so far above -- >> musk wants to remain in the position of strength that's my point. >> they heard the footstep of musk they hear the footsteps of rivian and i do think it was a smart move for them and if you are a tesla they continue to be more and more in a position of strength because they can do this, and i don't see a price war in the u.s. because today from a demand perspective we are in the ev tidal wave playing out. >> they already reported amazing deliveries in the quarter, right? up 80-something percent. will we get anything that you're paying attention to on the delivery angle today >> they'll probably tip the angle better in the second half of the year.

do i believe they'll be near the 2 million vehicle overall for the year the street's called 1.8 million and that's important because now we start to get over the 2 million mark into next year and also expecting an update to reiterate productions on par the bears would focus and there will be certain things to focus on margins and some others, but i believe if they call it trough, a line in the sand, this is a stock that ultimately heads back toward 350. >> i mean, you point out the bears are going to point to negatives. i mean, the stock's up a lot grossmargins are coming in so why do you necessarily have to be a bear on the stock to point out some of the concerns that exist on those really, i think, key metrics. >> sure. >> why can't you be a realist on where things are relative to where they were both in terms of price and in terms of margin >> it's a great point. i think, clearly, you've seen gross margins come down

significantly. i think that was the right move. it's really looking forward because the major change in the story is that the aws moment in terms of the super charger, ford, gm, 313 area code now using tesla and the next step it's battery and the big drum roll, what i view as the super bowl for them is ai because i can argue from an ai perspective, that's not even priced in here which i think they're really right now ultimately just starting to turn the corner on that strategy. >> what about cyber truck? what are your expectation there? >> i think if you look at it come out of the gaettite i thinu will see deliveries next year as the 300k units get to some sort of scale and you look at what happened with the f-150. this is something for advertise la that's just going to add to the overall growth as well as going forward and it will give them more scale in austin which ultimately is going to be a big part of their success especially on the battery side.

>> you haven't mentioned the name twitter once during this conversation yet is that overhang over in your mind you cited it before as near-term risk he reveals the other day, elon musk does about financial issues that twitter is still having you don't think there's any potential overhang that still exists between his multiple jobs if you want to put it that way >> look, i ultimately think the interview heard around the world and the faber interview, that's where investors better understood musk's strategy even when he talked about twitter pi think the biggest risk, does he sell more stock, there's always potential and i do think post of that, scott, is in the rear view. >> why is it most in the rer view they have a massive load. >> valuations have been written down i think you are starting to see in a stabilization to some extent on the advertisinged it, clearly linda has a lot more

work to do in terms of the platform, but i continue to view threads. i don't really view that competitively and that's what i call a twitter killer. >> so let me ask you about apple before i let you go because you're one of the most notable analysts around that stock you have the announcement or at least a report, no announcement and a report today sends the stock up 2%. what are their a.i. aspirations. do you have any grip on what they're really working on and what ultimately it might mean in terms of added earnings per share? >> in our sense from covering it for many years is that this will be a buildout and it's a matter of when, not if that could cupertino come out with the a.i. app store and i believe it adds $30 to $40 per share to the overall apple story and they'll continue to keep it close to the vest in typical cupertino fashion and it's a golden install base where a.i. will be the other piece and in my opinion it's a $4 trillion and

2025 thesis for cupertino. >> we'll talk to you soon. thank you. >> thank you >> the latest push to stop lawmakers from owning individual stock as public outrage and support now builds for an end to d.c. trading we'll break down the new bipartisan proposal and possible penalties that could be put in place, as well and if it has any chance of going anywhere down on capitol hill we are back on "closing bell" next

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>> welcome back to "closing bell." two senators set to introduce a new bill that would ban stock trading by lawmakers emily wilkins is following that story. emily? >> republican senator josh hawley and kyrsten jill jill brand do not agree on a lot. while there are laws on the books that currently ban members

from using insider information to buying stocks, gillibrand and hawley say they don't go far enough and it is reason enough for a ban. gillibrand said in a statement that it was, quote, critical that the american people know that their elected leaders are putting the public first, not looking for ways to line their own pockets. now this isn't the first bill that would ban trades by lawmakers and you can see some of the others here the biggest debates right now are over who the ban would apply to and whether officials can use a blind trust. scott, the top leaders in both the house and the senate have been open to the idea of a ban, but whether it will become enough of a priority to get it done remains to be seen. >> do you have any feeling from those you've been talking to as to whether there's finally critical mass. i saw what you cited earlier in a report that was public on both sides of the aisle is so overwhelmingly in favor of this

issue which frankly, seems like such a no-brainer. >> oh, yeah. democrats and republicans both almost at 90% saying that congress needs to do this. i think one of the big issues in congress right now is just that there are so many other things to get done. you have the defense authorization bill in the senate and then you have to figure out how to fund the government even though there is growing momentum for this there are still lawmakers who have concerns about it and there's just so many other things to get done that is as hard for congressional leaders to give this the priority. >> emily, appreciate it very much emily wilkins in d.c. for us we'll continue to follow the story. the dow heading up for its eighth day in a row and the longest winning streak since 2019 our next guest says the market rally is just beginning if the fed pulse off a soft landing and joining me is alicia levine head of strategy and equity management solutions that's a big title. >> big title what are your thoughts on the

market some on the street are taking on the targets? >> we've taken up our targets also primarily because the recession is nowhere in sight, and while we do have a 40% chance of recession over the next 12 months, that's getting almost close enough to the average year of 20% if you add two years in a row, so the data are telling us in the next three to six months the recession is not happening and if that's the case, earnings will go higher than expected and then the multiples will move higher and the targets go higher, as well so far, credit to the fed because they pushed on this. they pushed on this and there was a lot of skepticism that they could actually pull it off. i'm not 100% certain, but i am more certain than i was. >> because people say it's too soon to sound the all clear. >> i think it probably is too soon to some extent, but if you look at -- look, there's no recession. you are then forced to say it's

different this time. so if you say it's different this time you have to say what's different? the antecedents are different. you didn't have credit stress going into this. you have a mortgagemarket that is essentially at 30-year fixed at under 3% so that normal transition of a higher fed interest rate is not damaging the housing market to the same extent there are pockets so i would call out regional banks as an area of potential concern, clearly the real estate issue $1.5 billion coming to the end of 2025, those are areas of concern, and then not least is yield. so if the yields say below 4% we are in a happier place and you saw yields back above 4% the market didn't like it. >> we came down pretty quickly off of that. your overall point is that things were different at the beginning so they could, in fact, be different at the end. we could open our minds to that and this is not automatic. the normal way that you get

credit contraction and the normal way you filter tighter fed policy is just very different and let's talk about fiscal policy. fiscal policy also apparently works with long and variable ads and the biden administration has $2 trillion worth of spending that is now going to be poured into the economy mostly in the industrial sector. so if that's where earnings are coming from, you stabilized earnings as well it's just a different -- it's just a different cycle than it was in 2006 and 2007 which i think most people are concerned about. >> new highs this year what do you think? >> it's the poll we asked our viewers today. >> i will say this, i think it's entirely reasonable with no recession to end the year with the 24-month retracement to the old high of 800. that seems reasonable based on history if there's no recession. >> what about where valuations are right now, what some would say are too rich to the historical average of the s&p relative to where we are and where earnings are now and that

expectations for '24 are still too inflated. >> let's take out the top seven that are trading at 12 months -- >> i knew that's where you were going. >> that's the comeback that people have for you. take those out >> look what's working, financials, health care. you know, even energy has gotten a bid. so the areas that were left for dead are actually starting to work small cap are starting to work as well which is telling you that if we have some sort of a cyclical recovery and the earnings have to go higher and it means the multiples won't be as high as well. >> other areas beyond tech are starting to look pretty decent >> right >> look, we're paid to worry that's what we do. we worry >> i just think that the down side is not as dire as when we came into the year, and so therefore you have to start looking to what can go right and this is what can go right. >> a raging or at least an advancing bull market makes people more bullish. that's just human nature, i

suppose. alicia levine, thank you >> we're tracking movers and pippa stevens is standing by with that. >> one stock is staging a comeback after hitting a three-decade low we have the details coming up next (man) what if my type 2 diabetes takes over? (woman) what if all i do isn't enough? or what if i can do diabetes differently? (avo) now you can with once-weekly mounjaro. mounjaro helps your body regulate blood sugar, and mounjaro can help decrease how much food you eat. 3 out of 4 people reached an a1c of less than 7%.

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we're approaching 15 minutes left in the session today. let's get back to pippa stevens

for a look at stocks these watching >> evance health, it followed united health last week and the optimism is easing concerns over a slowdown in medical procedures which unitedhealth triggered with a warning last month. shares of at&t rebounding after yesterday trading at a three-decade low following "the wall street journal" investigation on lead cables lead cables represent less than a 10% of the copper footprint of more than 2 million sheet miles while also saying it strongly d d disagrees with the conclusion, with verizon, lumen and frontier also jumping. >> pippa stevens, thanks last chance to weigh in on the twitter question we asked will we see record highs for stocks this quarter? the results are coming right after this break sh we had

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>> let's get the results now of the twitter question will we see record highs for stocks this quarter? the majority of you said yes almost 69, as a matter of fact up next, we're less than 15 minute away from netflix and tesla earnings both of those stocks have been on a tear over the last few months we'll break down the numbers we all need to watch when the results hit the tape in o.t. that story and more when we take you inside "the market zone. e basically sitting on a e goldmine? i don't think they

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♪ ♪ all right. we are now in the closing bell market zone. cnbc mike santoli here to break down the crucial moments of the trading day. plus phil lebeau on carvana's latest surge, also what to expect on tesla earnings coming up in o.t., as well. it's not the only major report we're watching julia boorstin on netflix numbers out, as well mike santoli, begin with you front and center, tesla, your thoughts >> the market is out on a perch when we're getting these numbers and it's the kind of stocks that have been mostly the recipients of the enthusiasm. so interesting test on how they'll be received and very interesting in a sense netfl

netflix perceived to be a clean, fundamental story. the sell side only now migrating and how much do margins maybe go down and does it matter, frankly, because that stock sort of moves on its own fumes. >> their importance right now especially is what >> it's significant, i would say, to that class of stocks to be honest, i'm also looking at things like banks all of a sudden getting overbought even after they've had this nice rebound. so there's a lot of things that have been working together to keep this market calm and in this uptrend and extending this rally, and so we'll see if any of them fall away right here as i watch the volatility and it's again higher as the s&p goes up. so people are starting to wonder if we're in for a culmination of this rally at least in the short term. >> you made me look at goldman sachs which is in the green and most of the bank stocks lately on the back of earnings have been green it's been tough to get on the market's bad side even with bad

news in the very short term. so i do think we'll see if that continues if basically we'll forgive a lot during this earnings season and frankly, if it's just people sort of emptying the tank of buying power because they haven't participated enough on the upside >> phil lebeau, one of the heavily shorted names in the market for some period of time has been carvana, up 39% today that's got to be part of the story covered a little bit there. >> sure, and scott, this is what happens when you de-leverage with a debt exchange and let's be clear here. a lot of retail investors and i know they're not all of the shorts, but a lot of the shorts are retail investors and i don't think they understand the story with carvana is how much leverage they had and they eliminated that with a debt exchange essentially getting rid of -- or not rid of, but converting about a billion dollars and exchanging some bonds for new notes and delays in some of the interest rate payments over the next two years and the you in notes will be secured by company assets and oh

by the way, they'll be issuing $350 million worth of new shares that will go toward the debt exchange by the way, ernie garcia and his father will be required to purchase about $126 million of that offering and again, this speaks to the question of know what you're investing in so many people would say to me, carvana, that's a play on the consumer and used car sales. no it was the story of a company that has been dealing with massive leverage >> yeah. let's get a thought from mike santoli, phil. what do you think here >> obviously, a very impaired balance sheet that's now being fixed and it's a lot of stocks that were once left for dead and there was a significant chance of equity going to zero and now that's off the table and there's your two-year chart so you see what a complete boom time story that was at the opening. >> 300+. >> it was never, to phil's point, about the ebb and flow of the secondary car market

it was all about how they got too aggressive on the balance sheet and that's being fixed, but again, let's forget about where it traded in 2021. for now, it's more just a survival story >> all right, phil, set the table for us on tesla r the biggie that you're looking for in o.t. today. >> gross auto margins excluding zero-emission vehicle credits. 16.9% is what the street is expecting. i've talked to dan ives about this and other analysts and the feeling is if it comes in around there we might not see much of a reaction with tesla shares if it comes in well below say in the 15% range, yeah, maybe you'll start to see some sell-off with tesla shares >> you know what, mike you could come up with a bunch of -- or you can try to come up with a bun ch of question marks and the bulls come back at you, gross margins maybe dropped the most in six years, but they say yeah, look at the demand that they're spurring by cutting prices the aggressive way they

have choosing growth over profitability is the winning strategy here. it's the kryptonite that helps them to fly. earnings for '23 and '24 are down 30% since the start of the year for tesla the stock, of course, is up -- what 130% so it shows you that it's moving on something else which is the long game of, guess what there aren't real easy alternatives in the ev space from the rest of the manufacturers and it seems that they for a while will be permitted to play the market share game in the long term. it is fascinating about what they might say about competition with the price cuts on the f-150 and that's where they're not the incumbent and electric pickup trucks and they're getting into it and it's fascinating and it's a complete eye of the beholder stock and we'll see what the setup means for the reaction >> phil will deliver it to us in overtime, thank you very much. >> now to julia boorstin who is waiting on netflix in overtime and they're looking to show us

all that they figured this out, julia, right >> there were really three key issues that i see as being in focus in netflix's earnings. first is the strike. netflix is better positioned than the rest of the entertainment industry when it comes to the strike because of its international exposure as well as its backlog of projects. second, there's netflix's password sharing crackdown and third, the success of its relatively new ad-supported business we'll have to see how these actors impact its subscriber numbers which are projected to grow by about 2 million in the quarter. just today, netflix announced it is no longer offering a basic plan for new or rejoining members of the u.s. and the uk as it pushes its standard here with ads which it says generates higher revenue overall revenue is expected to grow 4% while earnings per share are expected to decline by 11% netflix shares are up about 62% year to date and analysts are

still bullish. half have a buy rating and 43% have a hold rating on the stock. scott? >> julia, we'll look forward to it in o.t. quick word from you? >> given how well the stock has performed in the last year or so or the last eight months there are analysts that have yet to be persuaded if there is a buy here there's another way to flip that i think it's a net positive that they're getting rid of it that they feel like they have the ability to do that i think it is about how they say the password crackdown has legs to it as opposed to it just being a one-time rush of new members. >> so you could get eight in a row for the dow and new 52-week highs for all three. 35k above that on the dow. >> yeah. a lot of the -- a lot of the hurdles are being cleared at least in terms of round numbers. the s&p 500, again, we're getting into the friday monthly

exploration. the futures and a lot of this stuff is getting toward where you might say maybe enough for now and the pullbacks are modest that it's hard to get too disturbed. there's been this outbreak of calm among investors that it seems like it wants to last a little longer. i mentioned the volatility index and i don't get too caught up in the day to day of it and it's up today when the s&p is also gaining. it just shows you people are at least tensing up for the fact that once we get the meat of earnings season and the big market caps reporting we might have to brace for more two-way action >> at some point you'll have to go from hurdle to maybe a high jump or to a pole vault as expectations get ratcheted up as the market continues to go up. >> unless we just get a little more of a pure momentum move and have everything kicking in at once and then you get much more extended and to me the biggest risk is the sort of upward spiral of top money feeding on itself and that's going to eventually make it unstable, but

it really hasn't so far. i wouldn't get caught up on the year to date return of the nasdaq 100 it's a round trip and a few percent from the all-time high >> triple digits for the dow and it will be eight in a row and now we gear up for those big earnings in overtime cannot wait for that >> morgan and jon will take the ball right now [ closing bell ringing ] do you have your scorecard winners stay late for the numbers. welcome to "closing bell overtime." i'm jon fortt with morgan brennan as the dow extends its winning streak into an eighth day. >> now investors are set for a massive hour of earnings we will break down results from netflix, tesla, ibm, las vegas sands as soon as they hit the wires. >> plus unity software allowing developers t