And the biotechs sbas he things could have a potential upside. And jeff bezos. Producing an agreement. The real story could be a power struggle in saudi arabia that appear taos be emerging. Well take you live doha for more on that story, but lets begin with netflix. Two big stories out. Our Julia Boorstin is standing by. Josh is all over ibm. Give us a little preview here to kick things off. When netflix reports all eyes will be on ids streaming video subscribers and whether they need or sur paez the nearly 18 million that would reach this quarter and we could expect particular focus on how many they project for the Second Quarter. Also the impact of some price hooiks rolling out next month in the u. S. The companys forecast to grow revenue 25 , 1. 97 billion while earnings per share are expected to fall. This is the companys Global Expansion as well as more original and exclusive conflict. Well also be listening to see what is said about amazons new offering. Prime video service, stand alone for 9 a month. Thats a direct attack on netflix and a dollar less. Netflix shares declined about 3 . Amazon shares are up 1 . Well be back after the bell with numbers and the commentary from reed hastings. Kelly and mike . You mentioned, too, maybe this significance isnt just so much to make a point of, hey, weve got to this inventory available and its out there for you but to also kind of poke netflix on the even of its earningings with a lower price. To undercut the list price and act as an anchor. I wonder about that that they might be able to impose over time. Thats part of the bold case here is that netflix really does have room to do that as theyve tried recently to raise prices. Absolutely. Theyve been building out their range for some time. If you look at the alternatives, they have childrens programming, original shows from marvel, their own exclusives like house of karsd, so ned felix is trying to off a lot of things to different niche audiences and they have so much different data that theyve been able to use that to develop these different shows and figure out what kind of content to buy. Certainly a battle over it. Julia, well see you in a little while. Meanwhile josh lip of the has more on what we can expect with ibm. Set it up for us, josh. My big blue can be on a tear. Analysts expect eps of 209 on a revenue of 18. 3 bill. Theyre calling it their Strategic Imperatives. It will account for some 40 of sales by 2018. Since that market bochled in february, ibm stock up nearly 30 . Analysts chalk that up to a few different reasons. Also remember a court ruling in japan granted a 1 billion tax refund. That could give the company more financial flexibility. And finally ibm did announce or close ten acquisitions in q1 with the street which means it could contribute meaningly to the top line. No surprise after that big run. We kpould see whos right after one hour. Back to you. Thank you. Josh, thinking of streaming, we had an announcement come up about it amping up its offerings for video Going Forward. Hosting video streaming, outside providers essentially using, i guess, big blues streaming stability and cloud analytics. It seems like theyre staking everything to crunch large amounts of data. It almost seems as if they can pull this turn around plan theres questions how profitable ibm will be in that case Going Forward. Youre right. Theyre telling them to commit capital. A lot of skepticism. They want to know as ibm skates as to where the puck is headed, the new growth areas, are they on track. Software, a big deal. Steve mills steps down in november. They want to know how softwares performing without him and then broad hi how is ibm performing as the corporate clients simply change the way they want to get their computing done. Any vulnerabilities there. So much to talk about coming up after the bell. Thank you so much, josh. Were going to be speaking to the ibm ceo. Dont miss it. Its coming up the next hour. As we get back to the market, jeff reaves, peter costa, and, of course, our own rick santelli. I think its a shift in sentiment. We saw it get dovish. I think its important a lot of the performers weve seen. They were some of the big snapback plays but i dont think theres a lot of potential there. I caution people not to look too much into the rebounding since february. I think this is going to be persistent. I think its important whats sustainable and whats not. I think some of those risky plays, i think weve seen all were going to see from them for a while. Do you agree with that, peter, how are you thinking now about where oil prices will go . I think theres a little more room on the upside. I think we might touch 45 and probably trade between 35 and 45, id say for probably the whole summer. But i think one of the things that were seeing today also is a divergence. I think the s p is starting to uncouple a little bit from the market even though this morning the oil is down and the market opened down. But as oil stayed around, you know, down a little bit more than 1 , the market rallied. So i think theres going to be an uncup ling between oil and u. S. Equity market. I thought it would be later, but i think its starting a little sooner and i think what youre seeing, people have a little bit more positive feeling over what looked like a very mediocre to bad earning season. I think that theres some surprises there and i think theyre trying to take advantage of that. Rick, on the macro front, not a lot of change in the general story. Relatively soft. The dollars been, you know, kind of quiet. We obviously had the tenyear treasury staying in its range. Kind of downgrading prospects for the u. S. Economy. Do you think that the market had already figured all that out and this is just the economy and the markets that we knew we had all along . Well, its the economy. We definitely knew we had all along. The treasury market has been telling us that for years but i think its also Central Banks nobody is mentioning. Its about Central Banks and a bit of desperation. Ny read the doha meeting wrong. I had a trader on the floor who had it right and nobody believed him. He said, listen, you can only win in this kind of Energy Situation coming from a position of strength. What we saw at the heart of doha was desperation. Russia running out of money, saudi arabia had so many issues going on right now and the motion over time of technology and fracking of how quickly some of this shuttered supply can come online. We think we know the answer, but weve been wrong a lot on the technological side. The nikkei is down and the dax after its consecutive close of 10,000. It hasnt happened since last year, beginning of next year is still down on the year. And the final comment about ship to shore. As long ads they continue to shift the central planners and bankers will continue to show up blass sheets not in a good way but a debtladen way and almost continues to leave the equities in a sweet spot for a moment. There might be a u. S. Consumer benefit. Jeff, it looks like you see here, you know, the consumer bed is the place to be, is that right . Yeah, yeah, definitely. I think Consumer Spending is so pretty strong if you look. 200 jobs, 200,000 jobs out of clockwork. I think thats going to continue. I do actually think that the dollar is going to firm up a little bit. So some of the retail plays im looking at like home depot or macys because theyre insulated, i expect it to bounce back the second half of the year, so now might be a Good Opportunity to get in the rest of the retail displays. That was a pretty good move previously to kind of insulate yourself from a strong dollar, but i would definitely start looking at the stocks now. The focus on energy is a little bit too much. Its 7 or 8 of the s p 500. Im not going to act like oil doesnt matter. But the divergence does provide an opportunity for people to look beyond energy. Look at some of these growth names that are out there and take advantage of it like maybe netflix. Im guessing youre going to say its not important but what about the general idea that the indices are now close to the alltime highs that we may want to get up there and have another look at them . I think 18,000 is not really a big thing for me. 2,100 on the s p would be, and i think that looking at the beginning of the year, there are a lot of fairly bullish analysts that felt that 2,100 you know, we see 2 rkds,100, 2,150,e getting there faster than most people thought. Maybe that tells us that were a little overboard. Were eight points way from that level. Right. Exactly. I look at that and i look at the numbers that you know, the analysts had talked about at the beginning of the year. Those are my targets. I think 2,150 would be that would be a good year considering where weve come from. Especially considering where weve been. Thank you so much for joining us this afternoon. Jeff, pete e rick santelli. We still have 45 minutes left to go in this session. But, again, what a turnaround. Intriguing to talk. The dow is up. The nasdaq sup 15. Well continue talking about that dow run to 18,000 even if its not some magical number. Plus we have Morgan Stanleys chief equity executive, adam parker. Also ahead saudi arabia startling, an opec igs to freeze oil production. Well discuss whos calling the shots in the kingdom. Youre watching cnbc, first in business worldwide. Welcome back. Were keeping an eye on markets. Certainly some psychological levels. The dow back at 18,000. The s p as we heard peter constantine, were looking to see if it can reclaim the 2,100 mark. The Energy Stocks are among the big gainers after saudi arabia threw cold water on a deal. Theres a look. Kelly, helping out, crude oil trading pretty firm after a meeting in doha of those Major Oil Producers ended. The real story may now be the power struggle. Brian sullivan is in doha. Hes covering the aftermath and he can give us some color on the saudi point of view and how this nonagreement came about. Brian. Yeah, mike and kelly. Thank you very much. The what, no deal. The why. Nobody wu going to golong if iran wouldnt. The minister saying why are we going to do a deed. For 20 plus years, the who, the big guy, the big gun in global oil negotiation was the saudi oil minister. He ran saudi arabias oil business. He basically controlled the worlds oil. Everything he said, the utterances he gave could move markets. Thats why when he walked in the door yesterday morning throngs of reporters jumped all over him saying he had a potential deal. He had a big smile on his face. It looks like that might have been a little bit of brinksmanship. Ill paraphrase them. Meet the new boss. Maybe not the same as the old boss. Its become clear the new biggest power in Oil Worldwide still remains with saudi arabia, but its the 30yearold calling the shots, the oldest shot of the king of saudi arabia. He made comments about iran. It became clear after yesterday that the saudi delegation here perhaps was not calling the shots, that maybe the shots were still being called from saudi arabia and that allay ail i nemi was not actually in charm of the decisionmaking. So i think, guys, yes, we did not get a shortterm deal, no, were not going to see a freeze any time soon, however, i think if we take a Bigger Picture and look out, we say, okay, aly al naimi. Maybe he has been throned. He may be the one calling the shots in the global oil world. We can take way what we want, guys, but when we listen, maybe theres a different person we need to start listening to. Brian, im also just wondering. Hes been unpredictable in other avenues, whether its the war in yemen, other regional proxy fights with iran. So if we now know that this political figure blatantly is calling the shots in the oil market, how do you think that changes relative to what nigh emeigh might have done or would have done in the past . I think that its not about oil. I think you make a lot of good points. If you talk about the price of oil, maybe a deal got done. Theres battle for market share where saudi arabia can still charge a premium. So i think we have to look at oil. Weve always had a look at geopolitical issues. Its more about price and market share. It is now about a direct tie from the oil field to the king of saudi arabia and his 30yearold son. Were going to wrap it up. Fascinating. Thank you. Its been a long day and a long weekend following that meeting. Brian sullivan joining us there out of doha. So whos the boss in saudi arabia, the oil minister, the deputy crown prince or the king himself. Lets talk more about the power struggle emerging. Good to see you again, francisco, a and what do you make of the shifts and what is happening behind the scenes . What does it portend from the direction of oil prices from here . Well, look, we actually didnt expect a deal precisely for the comments that mohammed had made recently. We knew iran was going to it all along. I think the prince may be trying to expert his influence on the markets from afar, but the key point here is that saudi wants to maintain the level of certainty theres no better way to get the market higher than by discouraging investment around the world. Thats exactly what theyre doing by creating this incredible uncertainty and removing al naimi from his commanding position within the global market. Francisco, that makes a lot of sense, however, on the other hand, the response to the oil market to the fact there was no agreement on the production freeze, what does that tell us that the market is trading firm enough . Is it more imbalanced than before . Our view has been with the Fourth Quarter o thf year would be the First Quarter of inventory dross. We will have brought that forward to a Third Quarter where we have a bit of balanced market. So im not surprised the market is not selling aggressively. We probably got down to 40s, high 30s. Thats happened overnight. But they have acted very positively. Were going to see prices in the higher 40s by the driving season. So we think theres still an upside here. But this is going to be a bit of a w. Were going to see a lot of choppiness. Even though were going to see a more balanced market, theres more on the macrofront and on the supplies sigh. For instance, kuwait started facing this weekday a strike in its oil industry thats removing some supply. That may come back in a week or two weeks, we dont know. Thats going to create pressure as well. Think i the bottom line is the saudis want to retain a lot of uncertainty in the market. They want to make sure. Just briefly, francisco, then, is it the case that saudi arabias main role here at this point we know their market share globally has fallen a half to a third from what we have seen in past decades or opecs market share, so is there main influence they could have helped to stabilize prices but by this point in sort of reneging on that its like, okay, well, good luck to try to finding some sort of calmer range from here. Is that how you read it . Thats exactly how i read it. They also have a very strong Balance Sheet and theyre playing both advantages really hard. One of the things the prince said as well is he said over the weekend which i found a little disturbing, he said we can go to 11 1 2 Million Barrels a day if we want, 12 1 2 if we want to. Im not sure hes signaling something but certainly for as much as we know from this person, i mean he should not be taken lightly. Hes making a lot of comments, which are reshaping the world of oil. Thats made it so clear. Thank you so much for joining us. About 35 minutes left to go still. And despite all that the oil price kind of hanging in there and markets certainly are. Look, the markets up 19 points, the nasdaq up 15. And General Motors is up after detroit said theyre back. Car punching inflating numbers. Also earnings from netflix and ibm. Well bring you the numbers as soon as they hit the tape and instant analysis. Stay with us. T Td Ameritrade, they work hard. Wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. 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It raised disneys price target to 121 from 104, and, of course, this comes a week after disneys liva jungle book. 80 of that was out of my pocket. 80 . Four people, 3d movie. Is it good . Its good. Im not going to go against the consensus that its a lou. Spooky for the kids. The two have 25 potential upside. The article says detroit is back in vehicle sales profitability and financial strength. Even though were seeing that, our next guest says those numbers could be inflated due to whats known as car punching. This is when dealers punch up cars that stay on the lot as loaners and demos. Graetz t great to have both of you. Jesse, what is car punching . Some of it is very natural, very normal. You want Service People to have good loaners but the problem comes when you have too many of them and they just sit on the lot. They dont have any miles on them and