jack hough with earning season starting next week what are we looking at? >> there is not a lot of growth to be found with rates headed lower. i think the most exciting thing happening for big banks over the next year will be stock buyback. you rather see organic growth. expectations are pretty low they are pretty false about johnson & johnson. people are going to be reminded that this is an actual company and not only that they will sell some decent organic growth. think people think johnson & johnson is in the business of a gigantic lawsuit getting hit over the head with one, and a billion-dollar headline this past weekend in the stocks drop that much in market value. i think people are probably too bearish. czech do you think that judgment will come down a little bit? >> one analyst we spoke with said the market is $40 million too much in legal costs for this company. that's a massive number so there's probably an upside to get to be patient on the stock. this probably upside long term. netflix is that maker break quarter for netflix. everyone is coming

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carol roth, future file planning system legacy creator and jack hough from "barron's." i said there was something in the jobs report for everyone, but how the federal reserve interprets it but the market up 372 on the dow, what do you make of it all? >> this was the goldilocks report that everybody wanted. it took any economic concerns off the table but it wasn't so overheated that it took the fed off the table. that is why you saw the market react very postively. they were hanging around for powell's comments. he seemed to reaffirm what everybody else thought. the markets went through the roof. this was that perfect middle of the road, maybe we should call it goldilocks and the three bulls, instead of goldilocks and the three bears. it was just right, connell. connell: not bat ad -- bad at a. jack we've come three days of craziness, back and forth we went through this week. we don't know what will come next on the political front. that is obviously uncertain but we have china trade next week, right, the big meeting in washington? >> to get an interim deal with china, n

jack hough, baron's associate editor. what are you looking for on they netflix. >> we call it earnings report, how many new customers you bring in who are willing to pay. last quarter was a disappointment. the stock plunged. i think in this report they don't really have to beat the estimate. i think they do have to meet it. you can't go into this later part of the year without -- melissa: hold on right there. we have numbers. connell: revenue is right in line. 5.25 billion was exactly what we were expecting. deirdre will have more details what you see. stock is selling off there. i don't have a comparable earnings per share number that i can give you yet. i'm not sure if it is earnings per share. as jack rightly points out is subscriber growth number. sees its fourth quarter earnings at 51 cents a share. if that is comparable to the estimates. that is well below what the street was looking for in the next quarter. the street estimate is 81 cents. again not sure if that is comparable. do see revenue below forecast as well

jack hough from barron's is with us now. jack, the market is going up despite the violence in hong kong. the action just not a factor for the market today? >> we had this wheelbarrow full of ugly political news, then saw this awful image on the screen, why would the stock market be moving higher. investors must do something with their money. we live in the best performing economy in the developed world and stocks are the most attractive asset class relative to whatever else is out there, namely bonds. we are reaching a point in the year where investors will begin looking forward to next year. we will have difficult comparisons next year, early estimate for 10% growth in earnings. i don't think you will get it but you might get 5%. that's good enough to keep the market moving higher. stuart: jack, stay there, please. i've got to do this. yet another data breach to tell you about. this one is a big one. it's on the screen. words with friends? >> yeah, a very popular mobile game that millions and millions of people play. this ha

want to bring in on this trade situation, jack hough with barron's. the market of course still very sensitive to what happens here, jack. listen, i think, listen, it's an arrangement, potential truce, an arrangement, not a deal. i think president trump shouldn't call it a deal because he invites scrutiny because to me, this is chapter 13 in a potential 26-page, you know, saga, if you will. but certainly no one thinks this is the final part of it but it does change the tone potentially. >> i don't want to pooh-pooh the phase one. i'm happy for the phase one. things aren't getting worse and that's good. that's what the market wants to see right now. the actual numbers here, this isn't going to be big upside for the economy in terms of a direct impact to gdp, but all investors need to see is that the relationship with china is not going to continue to become more confrontational, get worse from here. i think this could set the stage for better things. charles: imf came out last week and said next year this trade situation will hit china's gdp by two perce

let's bring in jack hough, he's senior editor at barron's. let's suppose there is no significant increase in profit in the current reporting period over last year. no significant increase. does that put a cap on the stock market? >> i don't think so. i'm with the dim part of this but not with the ominous part. the quarter is going to be dim. the expectation is for a 4% decline year over year in earnings. you have to remember, you know, it's like if you have ever seen the old "price is right" game show, the showcase showdown, you get the price but you definitely don't want to go over. that's what analysts do when they guess earnings for companies. you almost always get companies beating those expectations. you will see that this quarter. you will probably end up with pretty flat earnings for the third quarter. i don't think it matters that much for stocks because investors are forward-looking and this is the last lousy quarter for earnings. going forward, expectations get a little bit easier in the fourth quarter and much easier next year. stu