netflix one of our top stories. shares falling after getting downgrade to under perform at jeffreys. long-term growth should be flatter than current expectations. stocks down about 7% this year after jumping 140% in 2015. they go through sort of the general narrative that's being built which is first strike advantage. they've had the sand box to themselves for a long time but over the top is going to make it crowded and more competitive over the next five or so years. >> one of the core arguments is that the broadband penetration rate that would be necessary for netflix to get to the level where investors wanted to be, it isn't likely to get there by 2020. a lot of policy considerations there. hillary clinton wants everybody to have broadbay band by 2020. can netflix expand the value that it delivers to sub vibers beyond content? amazon has certainly done that. with other items and now includes content. there's no reason netflix couldn't. if you bet against netflix with that broadband penetration thesis there is tha

julia, start us off here with netflix. >> for netflix, key number to watch is subscriber additions.rojecting 2.5 million new subscribers. half a million of those here in the united states. now, netflix's revenue expected to grow 2.1 million and earnings to decline 60% to 2 cents a share. nemt fl sent the shares lower in april. we'll see if guidance sends the stock swinging this afternoon and gained or lost an average of nearly 13% for the past 3 years the day after earnings. kelly? >> yeah. big mover. julia, thank you. josh covering yahoo! for us today and seems like the earnings not top of the mind today. >> well, kelly, wall street not expecting much good news from yahoo! after the bell here. analysts predict yahoo! to report 10 cents on revenue of 1.08 billion. that would mean drops of 39% and 13% respectively. neil says he'll also be watching growth in mavens, a metric they use for mobile, video, native and social ads and looking for 410 million or 3% growth year over year. bgc says the real focus won't be the metrics but any news, any color on the sale of this business. guys, b

we start with the nightmare earnings for netflix. the beg headline, subscriber growth or the lack of it. only 160,000 new subscribers were added in the quarter. that's against expectations of over half a million, and the company slashing its subscriber growth guidance for the next quarter. the question now, is netflix any longer a growth stock? dan, let's start with you. >> well, here is the problem. it's international subscriptions. that was the thing that took it down last quarter when they reported in mid-april. they guided down from this quarter from 3.5 net subscribers to 2 million. they just missed that number. they came in at 1.5 for international subs in the q2 and then guided the q3 below expectations. for a stock that trades at this valuation, you need to see that ramp internationally. there's been no shortage of questions about competition. maybe that's coming into play. we know that they have that price increase here domestically for long-time subs. a lot of headwinds. >> you're talking about the price increase. reed hast

>> the international component is key for netflix.he deal for the star trek series to be shown on netflix internationally within 24 hours of airing is part of the strategy. churn is the big deal. a little price increase can turn a lot of people away. when you have so much competition for entertainment, i worked a lot on the movie side, we see this all the time. getting audiences in the theater takes a lot of work in terms of the marketing that you do for these movies. you have to have compelling content. when your competition is netflix, hulu, amazon, all these entertainment platforms are vying for the hearts and minds and dollars of the consumer. it is rough seas. a one or two dollar increase can turn away subscribers. that is their challenge. they were predicting 2.5 million subscribers. it came in at 1.7 million. it is all about the content, price, and competition. all of those are in play for netflix. emily: what about the price on making original content? they are spending $13.2 billion to make original content. we ask this every

when they spend less on marketing, fewer people go to -- four up for netflix netflix. it leads to a disappointing number in terms of subscribers and that is a great concern. it still a growth stock and is priced with great relief that they can expand into every geography. scarlet: and investors are willing to see netflix pay for the growth. earnings per share was expected to decline somewhere in the neighborhood of two cents or three cents. it did increase, so it looks like netflix is posting a profit increase if you compare it with the same time one year ago. cory: at the end of the day, it is about free cash flow. if they can add the subscribers, lower the marketing costs and keep it manageable, someday they can be profitable enough. maybe they can squeeze out other competitors along the way. at hbo we are looking and showtime or hulu and amazon prime, the cost of producing this is going up. don't give us a clear indication of how far they spread that out and how valuable is the first season of house of cards or daredevil when it is four years old? do they use it ove

shares of netflix under pressure. the stock falling sharply under weaker than censexpected subscr growth. suddenly comcast is at new highs. plus dow component, johnson and johnson. >>> the road to the white house, donald trump with a dramatic entrance on night one. his wife melania pitches her husband to the gop convention, but this morning she's facing accusations of plagiarism. we will tell you why and remind you about neil kinic. straight ahead. it's july 19, 2016. "squawk box"." >> good morning welcome to "squawk box" right here on cnbc. let's take a look at u.s. equities futures at this hour. you're looking at red arrows. nasdaq looking to open down. as well 17 points and the s&p 500 about 7.5 points off. the dow is riding a 7-day winning streak. one more up day would make it the longest since march of 2013. ov

netflix sinking on disappointing subscriber growth.urrently down 14%, the company reporting second quarter us subscriber addition well below the estimated 500,000. international subs, or 1.5 million, that was also below the street's 2.1 million estimate. so is binging on netflix still a good idea? michael, i will start with you. you have the price tart kept in place how much air was taken out of it last night? >> well, there's no question it was an ugly quarter. there's no hiding behind this one, but i think it's important to put it in perspective. this is a miss of about 7 to 800,000, compared to a base -- less than 1% of the overall subbase. there's short-term issue, the un-grandfathering and olympics impacting the numbers in q 2, 3 and 4, but it really doesn't change our view that they're going to reach 140 million subscribers by 2020, so we're able to maintain our earnings and price target based on that. >> but the company down down the q 3 expectations, how do you think they got it so wrong? >> they've had a choppy history with pr

like netflix. when you see a stock down this hard you have to belief there are multiple institutions trying to get out and they can't dump everything in one day. they own too much stock. there weren't enough downgrades and number cuts netflix may not be able to sustain these lower prices. when it's good there are no price people won't pay. johnson & johnson's earnings were that type of good. now you have to wait for the next brexit type of event before you can buy it at a discount though it's up more than 20 points. here's the bottom line. at this point in earnings season the markets in nonstop grading mode and you understand how this process works. you have a much easier time of it. it's always best to seek out the true or false and multiple choice test. they are much easier and much more lucrative ways to both trade and invest. bud in ohio. bud. >> caller: boo-yah, ski daddy! this is your long time bud in beautiful akron, ohio. >> we love it there. what's going on? >> caller: i was hoping you cou

vonnie: is it time to sell netflix?xplaining the downgrade today of the stock because shares are up on the verge of a new collaboration. we are around session lows so let's head to the markets desk where we have the latest. >> a sense of relief fading after four days of gains. we are seeing them trading lower with the nasdaq leading those declines falling 1.3%. the s&p 500 also adds to the lows of falling 1% while the dow is down .9%. if you look at the function on the bloomberg, you can see the sectors falling most declined as well as financials. remember, financials were some of those that saw the biggest recovery from those february lows. energyprising that sectors are following today headed forhave crude the biggest five-month decline. trading below $47 a barrel. gainingeing the dollar momentum after trading lower. is again at ad record low. the lowest level since 1985. we also see the japanese yen those majornst counterparts. volatility has surged again. but then a fall of about 43% last week. we are now climbing b

at netflix headquaters out west and 11:00 a.m. on wall street and squawk alley is live. ♪ ♪ >> good thursday morning welcome back to squawk alley. john forte and kayla at post 9. joining us is the business insider and ceo, top story this morning, japanese messaging app line making its debut on the new york stock exchange opening at $32 a share. trading around 42.72. this is what the chief global officer had to tell us on the last hour of squawk on the street. >> it's a kind of trend and evolution. so we start but there's service and game service, they want it so there's two occasions they're searching. so if the users can be very rare and nonstop service i think we can satisfy users. >> when they did it markets were at new highs and pokemon go was a global phenomenon. >> they priced it low. that was a big advantage here. user growth was stagnated. revenue growth is still good. it's game dependent. this reminds me of when twitter went public. and these companies were going public when they already grasped most of the market opportu

vonnie: is it time to sell netflix?y of the stock because shares are up on the verge of a new collaboration.

david: charles, excuse me, netflix has revenue problem. they have missed revenue estimates past four quarters now it is five, five quarters in a row. isn't this emblem mattic what is happening in country where you have high stock valuations but they keep missing on the revenue front? >> revenue fronts you're right have been tough over last few years. that is the big key. some can argue is the strong dollar. there is a reason why smucker's has been a great stock much late. church & dwight which makes arm & hammer baking soda, clorox, these domestically-based companies that benefit from strong dollar, with stronger u.s. consumer. contrarian argument of course is the larger multinationals are getting hurt by it. that's a problem. also pricing power, david. you're right. only right now in the last five weeks am i seeing signs of potential wage pressure to the upside. retailers, businesses are tough to be able to raise prices. they might later on in the year. david: is it, steven or chris who is available now? melissa: chris. david: chris, okay

netflix may be the stock of the day.k subscriber growth, that will be down big, the opening bell. one of our market watchers will explain why he is buying netflix on this dip. that's later. joining us now is the author of cocktail investing, market watcher lenore hawkins. look it, several days in a row we've had chaos, confusion, anxiety, terror overseas and at home, but the market keeps going up. can you explain this for us? >> three things, the first one, we're kind of getting used to it, which is sad. we're getting used to this and getting out and seeing another horrible event and we're going to continue on with our life which is what we should be. the second thing, the economic news not as bad. it's not great, but early in the year, it was looking like a recession was much more likely than now. the third and most important thing is post brexit, every major central bank around the world, a heads up they're putting the foot on the accelerator. they said we're not going to do it, the bank of japan doing it, people think

the best way to express that is to own netflix. they're giving you exactly what you want at the price you want it. >> that will be january the 13th. days later the same analyst doubled down and said this. >> what investors need to be looking for is the belief that this company can continue to grow subs robustly in the u.s., meaning 5 plus going forward on an annual basis and that overseas subscribers, especially now that they have launched everywhere in the world other than china, that they can grow 10, 11, 12 million subscribers overseas, that type of robust growth internationally in terms of the guidance is really going to be the focus. >> now, since that initial january call, the stock is down nearly 24% according to yesterday's report. rich greenfield joins us live. very unfair that you should be pulled out in this way, i have to say. >> no, no, no. >> but it's the nature of the beast. >> we don't hide from our mistakes. there's no doubt -- >> was that a mistake? >> there's no doubt the stock is down 23%. i would call that a mi

sadness from netflix and yahoo! sending shares into a tailspin.netflix reported a slowdown in user growth in yahoo! had a deep love for the quarter. this can be yahoo!'s final report is an independent company. investment bank goldman sachs reports before the opening bell on what to expect. goldman earnings have dollars a share. microsoft reports after the close today. investors hope for a rebound from april. let's check in on stock market futures. you have to have futures down 26 points. s&p futures down six. gold record highs yesterday. nasdaq futures up 11-point disappointing. that's a look at what's happening now. nicole: goldman today, morgan stanley tomorrow. major political leaders highlight day two at the republican national convention. live in cleveland with more of the details. peter, good morning good >> to explain how president trump would create jobs and jumpstart the economy commits a nice program called make america work again will feature a pair of trump rivals commit two of his adult children in the highest ranking republican in to

is right there and sign in to the netflix account to watch on netflix like "house of cards" or "orangethe new black" and you get it on the comcast platform, a series of apps and things like that. >> cara, you mentioned in the article, the piece you put out earlier, the eye toward regulators and play well. how much do you think it -- >> comcast said that's not the case but tom wheeler, chairman, said he's talking about opening cable boxes. not something comcast likes. you wonder if they'll add hbo and amazon and better for consumers. like being able to buy a certain record at one store and another record at another store and as a consumer you should get everything. >> why do you see it going, denn dennis? >> netflix won the power to make comcast play ball. the consumer wants to have that access on his or her cable becomes. >> netflix wants to be involved? >> why not? >> why not have access? keep in mind -- >> isn't that a -- comcast, my point is when's the one benefits from -- >> in. >> who's winning from this? >> i would want to know what kara thinks but netflix won with the brand name

now, we have "netflix and chill." there is push back on that netflix and chill model.r complaints even on twitter about the worst tinder date is when the guy just wants to netflix and chill. now maybe he wants to take you to dinner and a movie and i am for it. emily: so do you think attendance goes up as a result of movie pass and by how much? mitch: absolutely. you are absolutely right. the business has been flat to a slight decline in ticket sales. the only reason there is more revenue is the increase in pricing. but the experience can be a wonderful one, and i think if we can make it seamless from figuring out which movie are you are going to see to getting to the movie theater to getting your concessions to finding your seat to comfortable seats, i think it can dramatically increase. 10% or 20% is not unrealistic in the growth of the business. emily: and how are you going to make money off of this, because you're saying the theaters are going to get full price? mitch: the theaters get full price. we're going to create an amazing amount of data. we are going to be a

they are not just snapping up these netflix hits. and netflix is saying we're going to work on it. we're going to do more dubbing, we're going to make an attempt. also china is killing them; right? because china has blocked all disney content and china has also blocked anything that netflix does in association with apple. so that's a pretty big gross market to miss out on. and also netflix is saying even domestically here in the u.s. they're getting more cancellations than they thought they would. a part of the statement was it's not because of hulu and it's not because of amazon, but i also think if i were running a business, may i alsoly wouldn't give a shout out to my competitors, so we don't know if that's true or not. charles: the reed hasting guy runs a business in a unique way. what about the pricing? it felt to me they've had a series of price increases. they did a price increase, looked around and got away with it. and now it has caught up to them. even though it may look like a little, i think that may have hurt them. >> and honestly, charles, the math is still out. i don

netflix is not, doing as well.le are focusing on subscriber numbers. 1.68 million subscribers with the addition, that missed quarters. netflix is blaming it on the increase in prices. onflix has had the steps that front before. shares are plunging by 13%. johnson & johnson boosting its full gear profit forecast. as we talked about earlier, the arthritis treatment is helping matters there. shares of by 1.5%. lockheed martin shares are moving higher by .6%. jonathan: let's get to another company story. the future of yahoo! remains in question. shares down slightly after the open. investors remain focused on the sale of yahoo! for more, i am pleased to say i am assisted by gene munster. great to have you with us. the headline across the at&t --g -- verizon and set to submit yahoo! bid. what do you think will be the best fit? verizon makes a lot of sense given what they have done with aol, and at&t fits in the same camp. the typical buyers that you may have thought years ago are different. connect has been more active

netflix reporting tonight after the close.nalysts expecting earnings of 2 cents a share down from 6 a year earlier on $2.1 billion in revenue. obviously, some of the potential worries are slowing user growth and sluggish international expansion. in fact, guy, some of the downgrades or downward revisions we've seen on netflix are directly tied to things like brexit. do you think that holds any water? >> that's a stretch for me also. what does brexit have to do with netflix? tell me about this. >> i hear you. the call specifically, dan, was about nervousness in the medium term. and households, and countries in europe and that a netflix subscriptiop is easy to shut off. >> it's an incredible value. people are really happy with their netflix subscription. it's not growing nearly as fast as it used to, but it's still working. works for me. >> brexit having an impact on netflix, john is not the craziest thing when this company had a lot of stumbles with a credit card chip transition. we didn't think that was going to be a game-chang

a big reversal in netflix. a report suggesting comcast will let viewers stream netflix on its interactive x 1 platform, a teal similar to the networks they have with smaller cable companies. we should note that comcast is is our parent company and we've got a content sharing partnership with renode. >> i think there are a lot of reasons to downgrade netflix. ten's made a bunch of reasons, i don't think this is it though. yeah -- >> brexit. >> that's, what do i know, but i don't think europe's the big a deal. what's their expansion going to be into asia and are they going to get growth there. you site and the answer is yes. i think the comcast deal means other people are going to get in line. that's first in terms of a major in chakd be ready for netflix. i think they report in a couple of weeks. it's held these 94 level many, many times. inn you stay long the stock in earnings. i like netflix, just don't think it's the environment to buy. >> comcast, you get a yield. it's up 15%, netflix is down and there's a r

short, netflix. >> obviously the man who brought netflix's first big hit, short the name, in large partecause he argues they don't have the sandbox to themselves anymore and it's a matter of time before apple, or facebook, or some unknown player gets big into original content. >> and that's one -- obviously they tried to rebut that on the call. they bring up -- >> the competition is there. >> whether amazon or hulu. >> and obviously hbo. >> there's always room for everybody. the fact is there were a lot of people who just decided, do you know what, we just don't need this, and maybe they feel they can get it everywhere, i don't know. people -- there always seems to be time for everything else, many sites to read. this was -- like i said, it was baffling, and i -- i'm going to talk about that on mad money. i don't think they really know. those who in the household using it a bunch of times, and they're not anymore. there was no clear answer. they -- it's this ungrandfathering thing, i was very uncomfortable with that term because it just didn't res innate. >> the people who decided not t

that next hour. >> but let's start with netflix. shares plunging today as the company reported last night. on kelly's watch. the big disappointment came in the slowdown of user growth. that's the metric that everybody watches in this company. the company added fewer new subscribers than was expected, even than they forecasted and they blamed planned price increases for that slowdown in new users. is netflix losing the pricing power? >> let's ask rob sanderson joining us with will power. guys, thanks for being here. rob, what does this mean for netflix? are they just not able to keep people around? >> yeah. i would put this in to context. they miss subscribers combined, international and domestic by 800,000. they have 85 million subscribers. so less than 1%. they -- you know, shortfall this quarter. largely because of turn and cancelation as you mentioned and to say that less than 1% of the base leaving means they have lost their pricing power i think is a bit of a stretch. >> what do you think, will? you have lowered the price targe

some growth out there still to be had for netflix.at control on thatflix have growth? they could spend money on markets. asl is look at the numbers really a function of how much you are willing to pay to get them. it is like circulation in the newspaper magazine business. if you want to spend a lot of you can haveomers, those customers but what is the value of the customers? that folks can look at the headline numbers and hope someday they can make sense in terms of reaching profitability. but if you look at the marketing spent for netflix, as they have taken their foot off the pedal and slow down the marketing percentage of revenues, the revenue growth has slowed down and the user growth has slowed down. a great concern because it suggests one of the biggest way users is to spend money on marketing and when they slow down the marketing, they spend on the user growth. that will not attract users automatically. vonnie: marketing but also the .ontent valley stoplicon worrying about subscriber growth? it is a problem for twitter as well.

comcast and netflix to top boxes. netflix says other deals to pay tv providers. first time netflix will be distributed directly by comcast network. the two companies at odds over various issues. >>> the federal trade commission is investigating the infidelity website ashley madison and the investigation comes nearly one year after a massive security breach that resulted in the leak of customer data. the exact nature of the investigation is not known but an independent report found the firm has used computer programs to impersonate women and attract subscribers. men subscribers. >>> the blackberry classic was introduced two years ago with a touch screen and longer battery life. they will have two smartphones by early next year. >>> apple is adding a software update to its health app to encourage organ donations. it lets people sign up for the national organ registry. the apple comes installed in every iphone. ceo tim cook says he would add the option after seeing apple cofounder steve jobs struggle to get a liver transplant. i'm sure it will make a difference. >>>

netflix account , i do like my netflix. >> good for you. >> i got rid of cable, one day at a time is coming back too i understand. >> really, i love these re boots. >> are you a big fan. >> huge,. >> i only got introduced to it recently when i binge watched it on netflix. >> i have never seen that. >> i think you would love it. >> i'm with her? it is about family, would you like it. >> okay. >> very witty lines and some great, great the throw backs. >> very good cultural references. >> we have some great references, to the weather. >> you keep avoiding my eye contact here. >> it is not all that, we are going to see a break in the heat wave, but we are also going to unfortunately trade off with showers and thunderstorms, but we recall what happened on monday but when it poured down, on that variety here. flash flood watch will go into effect. lets go outside first it is a nice innocent look at the day, beautiful shot here out overlooking lake harmony. this was taken at poconos. you get red shapes are shades over the sky ape it does mean that there is something looming and there will b

and netflix and yahoo!, set to report earnings.s. vonnie: 21st century fox responding to a report that the company is planning to remove the foxnews chairman and ceo, roger ailes, in the wake of the gretchen carlson sexual-harassment lawsuit. the company commented in an e-mail statement and said that the matter is not yet resolved and that a review is contributing. shery: time for look at the bloomberg business flash. a look at the biggest stories in the news right now. archer hathaway has agreed to purchase mutual insurance company in a 1.8 ilion dollar acquisition. highlighting the warren buffett leadership role in protecting doctors from lawsuits. the biggest medical underwriter of liability insurance in new york coming from a policy own business to a stock is this. the deal is expected to close next year. analysts of piper jaffray upgraded recommendations for the moveon online marketplace. this is the highest groupon in three months, which has struggled since it went public in 2011. overweight and neutral, they cited the compan

netflix is one of the big movers today.etflix.uge move in i have a chart that hillary put together. this shows you the one-day move with the earnings denominated by -- the problem was subscribers. drop we have seen in netflix shares since late last year. because of this drop in subscriber growth, you saw a 14% moved to the downside. is taking with his price target of $122 a share because he thinks they will get the subscribers to $140 million by 2020. this is a concern for netflix shares today. vonnie: talk to me about yahoo!. the closer we are getting to some kind of insert -- answer, the less volatile the stock is. matt: as you said in your global business flash a moment ago, the amount of bitterness is narrowing down. isthe amount of bidders narrowing down. they are about a week away from releasing the names. shows the stock price in white. more interesting, the 30 day volatility in blue. concern in may about this process. we have narrowed down the group of bidders. gene munster talks about the tax affects that should be

what is your take on what this period represents for netflix? change their focus getting more money out of subscribers they have or another spike in groek to be found in the relative near teerm? >> we've stoke about this before. netflix is in the early stages of conquering a very, very content market worldwide and also run by one of the strongest if not the strongest management teams in the tech community. personal opinion. reid hastings probably the best in the united states today. the trades will go up and down. going to have temporary aberrations, whatever they may happen to be. look at the longer term, their ability to create content, ability to innovate, the massive share they have of people that are actually watching video on the internet than that are paying for it, those trends have all gone in the right direction for them. short term/long term, yeah, different things we'll see on the trading side, but i want to point out, though -- sorry. go ahead, jon. >> just going to say, but there's more competition in streaming now and from some pl

let us role netflix into this. valuations.rket netflix valuation is around 42 billion.endo has done that as well. let us zoom in. , bluerple line is netflix line sony, and the white line is nintendo. they have all crossed. nintendo has gone north of what is happening with netflix. maybe the story of last year which made so many investors so much money may need a new end and that could be nintendo. let us bring in stephen king to talk about innovation. we talked about stagnation and the economic story going forward from here using incredibly low rates. what are you we this reading --misreading? no one saw this coming. what could change this stagnation, this economic demographic problem we now face? >> we found one of those little pokemon rings in my garden the in my-- pokemon things garden the other day. slightly disturbing. the winner take all process in the global economy. people have become rich at this. in they are relatively few number. in the u.s., new technologies are driving out white-collar clerical workers who are going into occupations which are lower skilled,

netflix and chill. >> jimmy: that is right. [ cheers and applause ] netflix and chill.ix and chill is. >> i can't. >> jimmy: it's when you watch netflix and relax, basically. >> it has something to do with computers? >> yes. [ laughter ] >> you can get on netflix on the computer. >> jimmy: the next question is for anthony. complete this phrase. up your nose with a rubber blank. from a television show in the '70s. >> duck. >> jimmy: what? >> rubber duck. >> jimmy: that is incorrect. walt, up your nose with a rubber -- >> hose. >> jimmy: hose is right. that is exactly right. what an exciting game. it's tied, and -- [ laughter ] >> jimmy: the next question is for anthony. anthony, this is a visual question. who is this expert in the martial arts? >> bruce lee. [ cheers and applause ] >> jimmy: that is bruce lee. walt, who is this expert in the martial arts? >> hermann the turtle. >> jimmy: anthony, do you want to guess to steal? >> i think that's michelangelo. >> jimmy: that is michelangelo. [ cheers and applause ] anthony takes the lead with 40 points. walt, you get the n

a lot of earnings to sift through with netflix being one of them.in this trading range after record highs. julie: there is always the sort of balancing act between all the mixed earnings reports that you get. it's just a question of which ones are sort of more dominant than others. none of them are dominant today in terms of setting the tone for the trading action because the dow is higher. the s&p and the nasdaq are being dragged lower in part by netflix. there's enough on either side that you are not seeing more of a direction. netflix, as scarlet mentioned, coming up with earnings that beat estimates, but subscriber growth trailed estimates because it raised its prices. goldman sachs beating estimates, but equities and trading revenue falling but the company not raising dividends. ibm is now lower at the moment. t saw profit fall year-over-year. spirit airlines came in the below -- below what somewhere estimated. the are seeing -- we are seeing some pressure from the department of justice. according to bloomberg's reporting, the department of jus

>> i know, sharing your netflix passwords is now a federal crime. >> oh! >> sorry, guys, i know, sorry to be the bearer of bad news here. so it comes in a court ruling in which a man left his job but still uses the passwords of someone working there. it is interesting because the ceo of netflix said he actually doesn't mind when people share passwords, because it does create bigger audience for its shows. so i guess you could it it, just don't tell anyone, right? >> i just need to use my phone for a second. >> thanks, jill. >> we'll check in with you in the neck hour. >> i buy my own netflix. >> okay? >> happening today, this is an important story, free slurp east. >> free? >> at seven/11. >> all because today's date is seven/11, annual flea slurp idea is getting more attention because the slurpee turns 50 years old this year. free slurp east are available from 11:00 a.m. to 7:00 p.m. and if you buy seven slurp east between now and next monday, and you use the 7-eleven app you get 11 slurpee's free, that's 18, according to my matt. coming up after the brea

they gained 1.million users far below the 2.5 billion netflix forecasted.xperts are saying the low number may be a reflection of recent price hikes on netflix services. >> lvrt get get to par gary mcgrady and talk good the weather. >> as little hotter than yesterday. and tomorrow will be gorgeous. and to give you an idea of showers and thunderstorms back out to the west of us and technically getting closer and moving over i 81 now. winchester just to the north of you. martinsburg most of this heavy stuff is staying south. i'll continue to track that over the next couple hours. don't think they hold together until they get towards the metro. i'll keep an eye on. it sunny, most of date high tomorrow turz not 95. upper 80s in responsible spots and humid at times and thunderstorms possible this afternoon and here's erin como it's tuesday morning she has all the details in the traffic. hey, erin. >> you know 4:56 now thank you so for vaik waking up with us tuesday morning roads work in the district in conjunction near the kennedy center between s and roosevelt b

we have lots of messy quarters out of netflix this year.nalyst who has been dead on is corey at m science. he carries consensus numbers in the quarter. now he did e-mail our team earlier, saying he's very cautious in tonight's report. his concerns on the third quarter guide, he thinks there which a price hike continues to hit. he thinks domestic subscriber growth can be flat to the second quarter. end of the day corey says he thinks it's going to be an interesting and exciting report. chart ofk at a bloomberg data, netflix could swing by 11% up or down. so it could be time to fasten our seatbelts. scarlet: corporate earnings spring optimism that earnings will be sturdy enough to help sustain these equities near record levels. while the pressure is on for high-yield stocks in the s&p, the next guest says it could justify higher prices for equities. joining us is gina martin adams, wells fargo market strategist. we are talking about the dividend payers being sought-after. we see the 10 year yield, approaching that level after approaching 1.3

so if you pay, i pay $10 subscription for netflix. if i'm writing the twins, my brother, my parents and a friend use it, netflix is getting five or six people getting access for ten bucks. they want all their money. >> what about doing prison time for that. >> that is a little much. >> i think what would hurt worse if you ban people from having a netflix subscription because then you are missing all of their good content. >> i don't like privacy issues where someone knows what i'm watching. i want to watch gia where angelina jolie is naked you don't want your wife to know that. >> i don't want her to know what i'm watching. >> four will 51 is the time. >> photograph some are saying symbol of this past weeks protest, why this photo, coming out of baton rouge is getting so much attention. >> oh, yeah. >> baton rouge, right. >>> every friday through july between the second we are taking over a local town this friday we are heading to king's highway in haddonfield, new jersey. we will be broadcasting live from 7:00 to 10:00. >> best part

netflix shares higher today. because there's two big calls on the stocks and one of those analysts will join us. and, also, big warning about driverless cars. are they really ready for the road? you need to hear this. now back to you, melissa. see you at 2:00. >> see you then, michelle. thanks. >>> oil prices falling after the rally. and at the nymex. >> good afternoon. right. oil prices seemingly making their way back to 50. again, starting out the week in the negative when it comes to crude. scott, let's talk about the drop we saw today concerns about global growth. is that all that's out there now? >> well, the concerns come from everywhere around the globe as we're down 5%. nigeria coming back online. china throwing strategic petroleum reserve using low prices for that. that's full, and that excess demand is now going to become excess supply. here in the united states, good news if you're a gasoline buyer on the east coast. supplies of gasoline out there are setting records. so there's no good news, no matter

love my netflix.f cable, that's why, so i saved the money for that it, so the benjamin's. >> still a pretty good deal. we'll check in with you next hour, thanks, jill. well, coming after the break, another check on weather and traffic. plus, headed to national. >> we'll introduce you to south jersey team getting ready for a big tournament later this week. longhorn's grilled tastes of summer. our new smoky pepper crusted filet. our new hawaiian salmon. and our famous outlaw ribeye. but hurry, summer doesn't last forever. only at longhorn steakhouse. you can't fake steak. >> big different in the humidity levels, so good stretch of mid summer weather coming at us. the good news we're dry, as well, all of the showers and storms have exited the region. storm scan3, quiet. few clouds out there. but you can see the full moon, is providing a lot of moonlight this morning. watch out for little bit of fog, especially north and west of the city, up into berks county, visibility down to 1 mile in reading. keep th

julia bore step has more on netflix results. >> the big surprise in netflix earnings. disappointing subscriber additions and projections. >> the company said the number of new subscribers was on target, the amount of turn or the number of people dropping the service as a result of a price incr kicking in was higher than expected and will continue to impact subscriber numbers in q3. the disappointing numbers are not the result of competition or market saturation, finishing the quarter with over 83 million members. they believe the opportunity is as big as ever. for nightly business report, i'm julia borsstyn in los angeles. >>> the company earned $2.95 a share, and that was six cents better than expectations. revenues also topped estimates 37 when compared to last year, the results were 2 1/2% lower. shares of big blue rose in after hours tradin the key thing investors should focus on in ibm support. >> a straight review -- what analysts were looking for were signs of improve in growth as ceo ginny remetty reports. cloud watson and cognitive computing along with social

coming up, netflix price hike now prompting subscribers toto turn off.snap chat rolls out a new personality to your snap chat tweets. how long it took for her rnc dress to be completely sold out online. i love that dress. me, too.me, that dress is pretty awesome.soe outside right now, a lot of sunshine, but quieter than this time yesterday as we had all the storms stay out of the d.c. area. mostly cloudy skies, the relative humidity down to 43 percent. the key out of the north, bringing in some dryer, mucher, less humid air for tonight. tomorrow, a nice break from them heat and humidity. coming up next is our seven day forecast when fox5 returns. and we just couldn't say thno to that face.ns then we wanted more of that local flavor oh yeah, that's betty. you're going to want to do this alligator thing. and betty didn't lead us wrong. a little later we passed some dancing. and who doesn't like dancing? especially when it's followed by fireworks ever