this is us"nightlyess report" with bill griffith and sue herera. "stranger things." netflix signed up millions of w subscribers last quarter but it wasn't enough. and the stock falls sharply. nki summit, a news conference and a handshake that grabbed wall street's attention. the global aviation industry appears ready to fly even higher. those stories and much more tonight on nightly business report for this monday july 16th. >> we bid you a good evening everybody. is off tonight. we begin with one of the best performing stocks of the year so far. that would be netflix. after the bell this afternoon

the streaming video company reported a disappointing number of new subscribers. revende disappointed the outlook for current quarter earnings and revenue was not as od as hoped. that all pressured the stock in late day trading today. julia boorstin has more on netflix numbers. >> netflix missing expectations, adding 5.1 million subscribers in the quarter. the ceo saying the company had a stro s but notllar quarter, ending with 1 million subscribers in q2. he attributed the number to the company's ost foreg. he addressed growing competition head on, saying in his lettero shareholders, we believe that consumer appetite for great content is broad.

hastings aprilse m competition from warner media, and fox and disney or comcast. he's saying his strategy is to simply keep improving. >> dan morgan joins us now to talk more about these numbers. thanks for joining us tonight. >> first on the all important subscriber growth, they are blamg a flaw in their internal forecasting, do you believe that? or is something else going on here? >> well, it's interesting, it's kind of the million dollar question, not only did they fall short for this qrter but they guided for the next quarter also below expectations. was content too flat for the second half of the year. it because of the wor cup? it's kind of like, they didn't really answer that question.he

they just said estimates are off. >> they were quick tooint out ey didn't think it was a result of all the competition out there. but yeah y have to pay attention to the competition. >> in terms of, you mentioned diey and amazon and hulu and some of these other companies. the other big issuhey're creating content. what about maintaining relationships with people who havet. cont that's going to be very challenging. >> what are you doing with the stock? i know you own some, are you tding positions? what are you goi do here? >> i think at this point if i was holng netflix and owned it, i would watch it a couple more quarters.

o this point you may have rethink the strategy a lite bit their multiple is going to have to ratchet back a little bit. >> acquisition costs have always been a problem f them as well. they spend a lot on newtoontent get those new subscribers they have to spend even more. is that a conce for you is that your biggest concern for no netflix right >> that is a concern. every time they acquire a subscriber in the international markets, it costs more than a local subscriber. that is an issue going-forward in terms of h they are balancing out these costs and issuing debtnd how that drives the top line in terms of revenue and profit growth. >> it isard to argue with some of that stock performance the

last few years. >> yes. >> t tonight.your thoughts >> thank you, bill. >> otherwise, a it was mixed day on wall street, the dow got a lift from the financial sector which saw better thaected earnings from bank of america. eir broader markets struggled for gains, weighedown largely energy shares. the dow rose 44 points, the nasdaq fell by wa. and the s&down two. the pricef crude oil fell sharply today. some oil buyers could get waivers to continue biuying iranian supplies despite the sanctions that were put in place. investors watched that joint news conferenc held in finland between trump and putin. the event itself was deemed politically controversial. it didn't shake wall street.

aman javers has the story nigh tonight. >> translator: yes, i did. yes, i did. >> with those words, russian president vladimir putin rnfirmed he wasting for donald trump to win the 2016 presidential election. a confirmation he gave while standinglongside trump. the spector of the 2016 presidential election. and what the russians did or didn't do hung over the first summit between the two men. president trump said he's note convincedas involved. >> all he said i can ask the question. my people came to me, said i think it's russia. i have president putin, he said daze not russia, i don't see any reason why it would be. >> sft and negative reaction from democratic lawmakers. >> putin only understands

strength. and i did not think this was a good moment for our country. >> john mccain said no prior president has ever abased himself more objectly before a tyrant. trump admitted the meeting with putin was politicallys peril for him. >> our relationship has never been worse than it is now. however, that changed as of about four hours ago.i ally believe that. nothing would be easier politically than to refuse to meet, to refus to engage. but that would not accomplish anything. >> putin said there was no eviden of russian collusion with the trump campaign and extended an unusual offer. ee would allow u.s. law enforcement to c to russia and participate in an interview with the 12 russian agents

indicted by the united states last week. if in turn russian agents were allowed to go the u.s. andte ogate the investigators. >> i heard the rumors that we allegedly collected information on trump when heas in moscow. when he was in moscow back then, i didn't know he was in moscow. a whiteouse official e-mailed me to say the president has been consistent on this issue. when he lands in washington, he'll face tough criticism from members of congress who feel this was a missed opportunity. >> clearly while the reaction was swift in washington. there was muted reaction on wall stet today. joining us to talk about that

echiomic relatio we have with russia is zachary wit land. >> thank you very much. >> first of all, why do you think wall street largely ignored all that was going on in russia day? >> wall street should ignore the main results of the summit today. the largest part of the actual results here were agreeing to keep on talking. the main linkage between what happens is the sanctns situation. we already knew going in, that because of congressional legislation last ye congress has a veto over those sanctions. how likely is it do keep research etting up the pressure? n i want tohe quest ask you, the president doesn't have the ability to remove those sanctions while president putin is desperate for them to be remo removed. are they going to be at se point do you think?

>> i think it's highly unlikely. the. >> peace process remains stalled. ing, but i'm n too optimistic about that. several other factors have entered the relationship, making it hard to untangle the main reason there are sanctions right now. it includes accusations of cyber attacks, and nothing that happened today is changing the outlook for those. >> president trump wasng advocaor russia to become tradeer of the world organization and return to the g-8. again, is that likely to happen, you think? >> probably not. nor trump himself to push for that the other members would have to agree to it, nor one thing, and trump's views remain at odds with the rest of the national security communy. nd even to an extent with members of the republican party, which still holds congress. >> and even ashis happens, i

know several business people who go to russia, they seeor tremendous onity for business with russia, how do you characterize the opportunities that exist for people in the united states. >> russ's mac economic team has done the textbook orthodoxed, possibly even best possible response to dealing with the oil price shock. devaluing the rubel in 2014, the central bank has done a decent enoughob of managing the rubel as well. and because of trend notice oil prices, and the linkage in the oil that's weakened over the past year, that remains an attractive feature, reserves are still decent. repayment risk l is fairly compared to emerging markets.

and so the existinar opportunitie still there. a lot of multinationals were not in a hurry to get up and quit. but the political environment still weighs onit, it remains a risky place, there are deficiencies in the business. you don't want to go into the court system i russia, those things are unlikely to change wther. >> zacha land, thank you for joining us tonight. >> thank you very much. >>s new report s that china's economy expanded by 6.7%n the seco quarter, while that sounds like solid growth, it is down slightly in the first three months of this year. government is also putting in new policies to supportec the omy in an effort to fend off the effects of the escalating trade fight with the united states. >> and speaking of which, beijing hasiled a challenge with the world trade organization against the white

house's latest tar officer threat. they're responding to the proposed 10% tariff on chinese goods that w announced late last week. the trump administration has criticized the wto for being unable to deal with china, implying this challenge may havt little imp in washington as well. >> as for then tariffs steel products in place, they're starting to take a toll. that's especially true f o one busineer who talked to kale la toshi.te >> the rods arriving here in wilmington, delaware are from italy. th price of this delivery went up by an extra million and d halars because of the new tariffs. the ceo has had to make astmen adjustments. >> i didn't know if i was going to be paying the tariff on it or not. no i unfortunately, do have to pay the tariff on it. >> the costs are addg up for metal partners.

the company plans to pass the increased cost to customers. for now it's paying the price. the problem, it has to go outside the u.s. to get enough raw steel to meet the customer demand. >> i would buy allmy steel f there if possible. >> they have made 30 some requests to the commerce department. >> the process is quite tedious to get through. >> wilbur ross suggested that most requests would be denied. . so far only 220 have been approved, and they expire in a year. jackie has pushed to extreme line that process. higher prices had a silver >> a few weeks ago, we were in a meeting, secretary ross was the and he announced that there was good news, and t good news was, the treasury has

received almost $1 billion in tariffs, the problem was. that's american money, that's from small business in my district. >> in the meantime, tariffs on imports and higher prices for domestic steel if .ey can get >> without the imported steel coming in, that's p amary driver as to what's inflating the prices like they are. >> more u.s. steel should be available by the end of the year. time is money. >> for nightly business report. >> t te a look at some of todaysupgrades and . downgrad ups's rating was upgraded to bye. revenue groh and potential st savings.5. price target $ shares finhed up 1 1/2%.

the same analysts that upgraded fedex.wngraded the firm cited the company's global footprint. price target $256. shares dropped to 130.18. wells fargo was underperformed the stock's valuation is compelling. wells far go could return to st in class status among the 2020y center banks by ckice target $63. the s rose nearly 3% today to 56.98. >> an industry tha is climbing to new heights. are the defense and aviation sectors moving into an extended super cycle? i'll have that story coming up.

i goldman sachs expected to name david sol 3457b as the firm's next ceo. he's currently goldman's president. the announcement could come as early as tomorrow. >> the current ceo will stay on during a transition period. he's been ceo for 12 years now. lower costs help bank of america top earningsti tes, that's where we begin tonight's market focus. the savings and a rise in loan growth help the bank's profits rise at a faster than expected clip. revenue edged higher in all of its visions. and shares rose as a result by

4% to $28.78. black rock said higher fee and strong performance helped it turn a better than expected profit, but the world's largest asset management also said that less demand for its etf's as investors rangeled wit market uncertainty last quarter, that took a toll.>> shares fell as a result. higher shipping ratesnd more deliveries helped jb hunt top earnings expectations even as it operated a smaller fleet of trucks. sharesere initially higher, but did reverse on analysts concerns that the company did not rise guidance, and that the pouck market may have peaked at this t. they finished off about half a% to 121.13 today. valley and pharmaceuticals changed its name today to baush health.l

n an effort to distance themselves from a number of accounting and drug pricing investigations that happened under previous management. bausch r said they're on tht path. >> we've increased our research and investment we d reduce our debt by $7 billion just in the last two years, we do think we're making gre progress, there's a lot to do to be clear. we think today being day one, bausch health captures the legacy and innovation ofca heal . >> shares fell 1 1/2% today to 23.05. >> sinclair broadcast has hit another regulatory roadblock. the fcc chair says he hasse ous concerns with the nearly $4t billion deal and doesan to approve it the way it's currently structured. the fcc will consider having an administrative law judge review

that deal. >> tribune fell by 16% to 32.12. the aviation industry is in the midst of one of the longest and most proffistableuns in its history. and the assent may not be over yet. the industry's fortunes could climb even higher despite the overhang of rising trade tensions. phil lebeau reports tonight from outside of london. >> the global aviation market i soaring to new highs. airbus has announced quarters of at least 17 a-350 airplanes. boeing has booked $11.6 billion in orders for 68 planes. >>e're seeing a strong

marketplace. predicting a$8.1 trillion market over the next several years. the world will need fewer airplanes in the next 20 years. >> why is business taking off? on the defense side. countries are increasing military budgets. especially as president trump calls on allies to pick up more of thef costs global military alliances. meanwhile, the comrprcial aine business keeps growing as the number of people flying is d increasingue to a strong global economy a relatively low air fairs. >> we're in a super cycle right now, we have to be honestde nd is up 7% again after an 8% growth in demand for air travel. you have to make hey when the sunshines. >> keeping up with that demands will not be easy. as plane manufacturersush each year, ge will have to expand production.

that's n p ablem nor a large company like ge or rolls-royce. the challenge will be getting smaller suppliers to spend billions of dollars in order to build more product. the solution, more mergers and acquisitions, with larger aviation fir buying smaller companies. >> there's going to be a aconsolidation in levels of the supply chain. to do what the boeings and airbus are going to demand. >> reaching new highs industry looking to break a long history u of and down cycles. >> phil lebeau, nightly business report, farnborough engld. iconic signed its largest supply contract with boeing. companies will provide aluminum sheet -- separately, the wall street journal reports they've drawn takeover interests from private equity fms and that's what helped send those shares higher. it was one of the bestpe orming stocks in the s&p 500 toy, up more than 10% in

y's session. onees of the hoparts of the already steamy real estate sector. amazon's prime day today with some glitches. customers reported that the site was crashing on what is among the busiest shopping days of the year for e the commerce giant. amazon shares rallied to theirt fourthght record close and eighth straight day of gains. so far this ckyear, the s is up more than 55%. amazon prime day means a lot of stuff is going to be shipped over the next several days. and all of s thatff has to come from somewhere. that's why the warehouse sector is heatingup. a new report showses that deman

for warehousspace is now outstripping supphe. that meansalue of warehouses is climbing. >> it is arguably the least sexy sector of real estate. but warehouse is hotter than ever. demand for space for all the stuff we order has ren rising globally, now up 3.2% annually commercial cbre a real estate firm. that is up from2.2% a year ago. gr th in e commerce has bee the big warehouse story, there's now even newer demand. >> we have somethi w that call global -- like micro breweries, people are forming small businesses into some of these industrial senders. >> levy has been in commercial real estate for 22 years, he's surprised at not just the demand but that the average lease is getting longer. >> why is that. >> that's because the demand is so high. landlords have the ability toig driver rents and longer

term contracts to stay in there, which mak these buildings more valuable from a demand standpoint and capital standpoint as ll. >> there's less supply, but three of the top 10 rent gaynery globre in the u.s. pricing markets there land build on is scarce. >> there's plenty of land out in america to build warehouses on, so much of the demand is coming from big cities where land is limited. that's why developers are now starting to think rather than build out, why not build up. planning a multistory warehouse becaushigher is better. the most valuable goods are transported. airplanes,ollow the you willlo folw the money. we see airplane industrial as a segment of the market that's very attractive. >> airports, big cities and suburbs all hot, if you build o it, question, more stuff will

come. for nightly business report, diana olick in capital heights, maryland. >> before we go, a fal look at the day on wall street. kind of a flat day, there are a lot of earnings coming this week. jerome powell will be testifying before congress this as well. the dow rose 44 points today, the nasdaq was down 20. the s&p down 2. that is nightly business report for tonight. i'm bill griffith, thanks for watching, everybody, have a great evening, hope to see you again tomorrow night.

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