Here at the New York Stock Exchange. We will discuss whether the oip ipo market has gone flat. Netflix getting crushed after disappointing earnings last night. The shares are down nearly 8 on the session today. Someone who says the valuation still ridiculously high and he will tell us why coming snup lots of volatility on that one lately. A Sports EquipmentCompany Investing in new technology that it says could change the landscape for concussion injuries that we have all been focusing on so much recently. We have the ceo of this company, performance sports group, to explain the technology and the potential in the Business World coming up. Then after the bell, barney frank and larry kudlow together and both here at the New York Stock Exchange to discuss whether democrats are becoming too much of an lets start with first datas first day of trade. Bob pisani standing by. The payment processors post right behind us, not doing is well today, bob. The good news is it got done and they i had needed to get done, they needed to pay down debt. 16 b 16 below the midpoint. 18 to 20 was the price talk but they got it done. The bad news, its dropped below 16, 15. 86 now and thats happened a couple times during the day. Ive been saying all day its good to close above 16 that would indicate that the price was right. Theyre floating 160 million shares, thats the offering size, but look at this volume, 53 million. Thats a little unusual. A typical rule of thumb would be on a good day of trading, active trails for an ipo you trade almost 100 of the flow, that would be 160 million shares. This is a big ipo, but 54 3 million shares very much on the light side for a big ipo. That indicates to me that the buying interest is very muted on this now. It has been trading at a narrow range, all anybody cares about did if it closes 16 or somewhere above that. Mean 250i78, there are other payment processors, they have competiti competition, they trade right here at the New York Stock Exchange, here is global payments, up about 2 . The other major competitor thats publicly traded, move right over here, vantiv and their stock has held up well in the last few months. Thats up fractionally. The other big ipo story of the day, albert sons did not price last night, they were going to try to price tonight. Word out, though, is they may not make it as well. David faber saying it could be post pond as well. The bottom line that deal also looking very iffy right now. And remember Neiman Marcus also postponed earlier this week. So some lie profile ipos not happening at least right now. Guys, back to you. We are not hearing much about univision and petco. We will see how ferrari does next week. Joining our Closing Bell Exchange with the market now up 192 points, aroon daniels, steve grasso there at post 9 and we welcome back Rick Santelli in chicago there. Steve, i am going to reenact what often happens on the floor when you get a rally like this, traders start looking at each other going you got anything . Whats going on here . Were brushing right up against recent resistance, you started off the show talking about reversal in the financials. The market is more concerned with rates staying low and no fed increase on those rates and ive been consistent, i think that theyre boxed into the corner. They are unable to raise rates. That sends not an all clear sign, but it really makes equities definitely the target for a lot of these portfolio managers. They are shrugging off earnings misses and going right back into the equity market because its the only game in town for now. It seems like lately when the fed has held off on raising rates markets reeked with a disappointme disappointment. Are we back to an ak day testify fed equaling good news. Yes. The market has a shortterm memory like a fouryearold child and i dont mean that to be a derogatory comment. It just does. In this world of Immediate Gratification steve has nailed it. Time has passed and the decision by investors that the fed isnt going to be coming to the table and raising rates anytime soon gives you a much wider interpretation to being long and trying to time it right thinking that you can dance between the rain drops. Even todays data that really moved in the opposite direction on cpi versus yesterdays ppi, especially as bert bookfar underscored in the Service Sector which is a wider sector and you have to extract some of the volatility due to energy. So, yes, i agree. I also think that tomorrow one of the data points we dont often discuss but traders have always liked it, Treasury International capital flows, it comes out in the afternoon. With the recent impression that china has been in liquidation mode i think many investors are not only going to look at asia, china, you know, all the areas, belgium, that have involvement in purchasing u. S. Treasuries, but also to assess whether there is others stepping up to take the liquidation side and neutralize t these are all big issues and of course the 2 mark today maybe if the treasury would have sold off as aggressively as it was bought up yesterday pushing rates briefly under 2 , maybe the equity maurkt would have made more attention. Aroon do you dust off the quantitative easing playbook. I think what we like to focus on is really companies that are dislocated due to the macro environment. Number of companies, for example, in the Consumer Sectors have come in a lot. We like to focus on companies that can produce Free Cash Flow over longterm and have double digit Earnings Growth. Companies like tiffany which have pulled back, continues like jarden, we think there is a longer term opportunity in some of these companies where you could see Solid Earnings growth over the longterm that have pulled back and we can take advantage of it during this time of a shortterm market dislocation and really take a longterm investment. Would you buy walmart here . What do you make of what it told us and the markets reaction . I think a number of issues that walmart or are walmart specific really. If you look at it the lower end consumer is clearly struggling on their end, plus they have a tremendous amount of investment that they are making. If you look at the actual reduction in the Earnings Growth for next year almost 75 of it comes from investmentrelated which they have to do because you are clearly competing with amazon with most of the revenue going to Online Retail these days, as you can see from the amazon. Walmart and the brick and Mortar Retailers have to make a change otherwise they are going to suffer. Walmart specific problems. Tell them to albertsons. They are desperate to get something off the ground here. Steve, lately you have been fading these rallies, this this market is sensing its going to be a while before we get a rate increase are you going to rethink that . Definitely. As a trader you have to adapt to those circumstances you are in. The investors for the last week or so has been served pretty well with selling the gains in the marketplace and the s p cash right around 2020, 2030. So until proven otherwise i would say this is probably a good place if you have some recent gains which i know a lot of people do to probably lighten up. We talked mean while, rick, about how autos are the one area of strength in this economy. We will see again how ferrari does when it lists here. We are going to talk to phil lebeau about teslas new Autonomous Car technology. What do you think about all this, not having to touch the Steering Wheel for ten seconds . You know, i think it all sounds like Science Fiction and im very happy that Yankee Ingenuity are take making these big strides. I think from an investors standpoint these things are so tso far into future. If there is a trouble bubl in stocks how the teslas and apples and investments in space and cars is going to turn out. I think its fascinating, but i think we are definitely putting the cart miles in front of the horse. Kelly, i will give you one micro trade wheel quick. Please. I did buy mobile eye today based on the exact thing you just asked rick. Maybe its not a reason to buy tesla but mobile eye does have relationships with a lot of different auto makers. They are going to be across the board for now, not to say they are going to be the Technology Ten years from now, but for now they seem to be the premiere company. We will be talking about a chip space more in just a moment. I will wait for sit tron to deal with you when it comes to mobile eye. Gentlemen, thank you all. Good to see you chltd r. 50 minutes to go here into the close. Mirror image of what we saw yesterday as oil is holding in about flat here, the dow is levitating up 179 points, led by goldman and jpmorgan, even though goldman missed on earnings this morning. One High Profile Company not participating is netflix, thats getting crushed on the slowing profit and subscriber growth that we told you about on the program late yesterday. When we come back a leading netflix analyst will tell us if he think todays decline presents a good buying opportunity or not. Also ahead, Chip Companies that could be next in line for consolidation across the sector, more closing bell right after this. Profit and subscriber growth more closing bell right after my name is jamir dixon and im a locate and Mark Fieldman for pg e. Most people in the community recognize the blue trucks as pg e. My truck is something new. Its an 811 truck. When you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you dont hit them when youre digging. 811 is a free service. Im passionate about it because every time i go on the street i think about my own kids. Theyre the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then ill drive it every day of the week. Together, were building a better california. Suddenly a rally day just in the last hour, big gains for the major averages, the dow is up 182 points right now, in fact, all the major averages are up more than 1 . Look at the nasdaq, thats up almost 1. 5 . Look at the i shares of the i bmplt b, the nasdaq biotech etf ridesing for the first session out of the last five, amgen, sell gene, gilead. Ready or not autonomous driving is here. Phil lebeau is taking teslas model s equipped with its Auto Pilot Software out for a spin somewhere near cnbc headquarters. He joins us live. I notice your shands are on the wheel for right now. Put them on the wheel. It is. This is how you do it, guys, with tesla auto pilot, you put a button twice t activates. I will show you how you can do lane changing. All do you is signal, it knows theres no cars blocking our path so we were able to change lanes. Now i want to go back, its as simple as hitting the turn signal, it makes a check all the way around, there are 12 ultrasonic centers in the car, in addition to a camera in the windshield, forward looking radar and gps. Thats how the vehicle knows when its okay to lane change and obviously its regulating our path in this lane based on the lane markings, vehicle in front of you and all of the data it is taking in right now. It is autonomous driving and coming very quickly. This is the first place. So the whole idea is that not that you want to be hands free all the time but that option is there, especially on long drives on highways. Wow. We are hoping our camera holds out while you are in there. Have you tried parking yet . Its supposed to be able to Parallel Park for itself and find Parking Spaces and all those other fun things as well. I have not done parking, bill. I have to be honest with you, so many auto makers have Parallel Parking thats a nice feature and im sure tesla owners will enjoy it, we wanted to join this because the lane change is whats new here. Tesla is the first auto maker that allows you to have this autonomous lane change. I will do it one more time. Dont hit the camera guy, he is next to you there. See, that waited until it was time. See. Thats interesting. Here we go. You might have to do it again, phil. One more time. The camera decided to hold. Its not tesla camera equipment, by the way. Looks like you changed lanes pretty smoothly. Yeah. Do you know what, it senses if there is a vehicle next to you. Go ahead. Are you comfortable taking your hands off the wheel . Kelly and i were talk about this before. You can take it off for ten seconds, i dont know that i want to ever take my hands off the wheel. Or be near someone who has. I have to be honest with you, this is a lot like cruise control. Its comfortable once you have done it for a number of times. Ive done it now five or six different drives in the new york city area. Im very comfortable. Again, this does not mean is that you go like this and say im not going to pay attention. They want you to stay engaged. Every once in awhile a chime will sound and they will say, okay, put your hands on the Steering Wheel. We are going to lane change. It knows to neighboring maik that lane change because our car behind us was, you know, not in the path and we are going by and at some point we are going to lane change here. It is a system that can determine when it is safe to do it and when it is not. I thought i read that tesla didnt necessarily seek approval from california regulators before coming out with this technology. The ten second rule is meant to keep the feds off its back. Is it going to succeed or when this comes to market will people take a much closer look whether they are going to allow it . They have been in consultation with [ inaudible ] developing this software and this technology. [ inaudible ] with your hands off the Steering Wheel we want you [ inaudible ]. This is that transition were going through, guys, towards completely autonomous drive vehicles. This is the first big step in that direction. Were going to let you go, phil. Youre getting into a dead zone. I think i know right where you are, you are on a road i take home. Be careful of the cops in that area for excessive lane changes. They will be all over you if you keep doing that. Maybe we can blame the car. It wasnt me, officer. Thank you, phil, very much. Our phil lebeau somewhere out in new jersey. He can cry, it works every time. Netflix getting whacked, week weaker than expected Third Quarter earnings. The Ceo Reed Hastings saying the company will continue to focus on original content. Shares down 8 . The more that we have amazing originals, then over time were going to be able to ask consumers for more, to be able to invest more and thats been the rhythm we have been on. Will it be enough . Joining us is David Trainer who is ceo of new constructs. David, are the shares attractive to you here after the selloff . Not even close. The current valuation implies that the companys profits will grow 25 compounded annually for over two decades. Still very expensive. What do you think is going on . One of the things that stood out to me as frivolous, but this idea that so many of the customers got the new chip cards, credit cards, and they didnt have time to change their card on their subscriptions and thats why they saw this slow down in subscriber rate. Is that whats going on or is it Something Else here . I agree with you, bill, it sounds like a little bit of a head fake getting away from the fundamentals. They have quite a few customers, they have a 13 penetration in the united states, internationally they are still growing, but their margins are getting worse, more negative internationally. They are not making any money internationally. Another head fake is that netflix has been showing positive earnings for many years now, their cash flow are highly negative. They burned over 2. 5 billion in cash flow over the last 2 1 2 years. This company is not making money, thats why were seeing them have to go back to the Capital Markets to keep the business running. Plenty of people are also focused on the content costs which were up 17 on the year. Is there emphasis on original programming going to mitigate that . Original content creation is expensive. There is an accounting loophole that allows them to meaningfully understate the cost this have content that they are acquiring and building. Their earnings are meaningfully overstated. This is an unprofitable business. A big part of the reason there are so many missouri positive analysts is theyre chasing the banking business for this secondary or debt raise. Investors need to look through the headlines and the superficial earnings numbers and understand this is a highly negative cash flow business right now. So you may have answered my question. Is there anybody else you like in this category or you just dont like this category . Well, i think the category its a tough one in general. The streaming content, the advantage is going to be in creating original content and the people who do that well consistently over time are few and far between, but the one company thats sort of not really in the space but kind of is verizon and their ability to be first to market on streaming live content because you cant dvr the live content like you can a tv show or other types of are you talking about the nfl . Yeah, nfl and concerts and things like that, yes. Okay. And, by the way, yesterday we had a rowdy discussion about whether netflix could simply just raise its prices to the 15 level or even above it, especially in the u. S. In the years ahead. Do you think they would have at least that Pricing Power . I dont know. I mean, look at the price of all the other services. You know, i think the max one is around 20 bucks a mont