Gorgeous layered its of wrestling . Have you seen it . I have not. Well see how thats affecting subscriber numbers and whether or not they are hitting peak netflix right now. What will to expect coming up here. A lot of competition. Procter gamble taking on activist investor nelson peltz and why the Consumer Products company is fighting back and whether it can be successful well get into that coming up. And why the Health Care Bill remains uncertain. New reports say that tax reform will actually move much quicker. We have details on that coming up lets start though with the big week for earnings. We have black rock shares under pressure at this hour after that disappointing Earnings Report this morning leslie picker steps in with details on that. Leslie. Reporter hey, bill, thats right. Blackrock raked in 104 billion during the quarter to put that into perspective, its qt funds were stand alone they would be the 26th largest in the u. S however, 80 of that comes from money going into blackrocks ishares etfs and index funds the firm has been lowering fees on etfs to capture more share as well thats a big part of the story behind blackrocks financials during the quarter revenue and net income both increased, but they missed analyst estimates. Blackrock reported earnings per share of 5. 24 on an adjusted basis while analysts were expecting 5. 40. The firm posted revenue of 2. 92 billion versus estimates of 3. 02 billion. The whole industry though is at a turning point. For the First Time Since 2008 at the beginning of the financial crisis the revenue pool and profit of traditional Asset Managers fell worldwide in 2016. Thats according to a new report by the Boston Consulting Group to survive in such a winnertakesall market bcg says Asset Managers need to cut costs, invest in technology and merge. Guys well, leslie, for me thats what makes this morning so interesting because blackrock would seem to have all of that working to its advantage so even if they had, you know, people moving into lowerfee products, they should still benefit from getting the assets overall, right . Why do you think it the market was so disappointing thats our thought exactly. The challenge for analysts is to better understand this new world where much more of the flow is coming in the door from the lowerfee products now, they are seeing you know, they have their equity products and fixed income products that are actively managed and reshuffled their active equity unit during the quarter so were starting to see and this is something that larry fink said on the call this morning, were starting to see changes in outflows as a result of that so the higher fee products is what were seeing move out the door while were seeing coming in the door some of the lowfee products, and so we did see a jump in revenue, but it just cant quite surpass analyst estimates. It just highlights for me again that were in the midst of a watershed period of how things are changing so rapidly. How we shop and how we watch tv and movies and how we invest, and all of those industries are scrambling to try to keep up with those dramatic changes. Technology. Yeah, absolutely. Leslie, thank you. Thank you. Go ahead, finish your thought. I was just going to say that the executives on the call this morning spent at least a third of the time talking about how Important Technology is. Technology is the future they will invest 1 billion in technology this yore and in the next five years 30 of their revenue will come from technology as you guys know, its one thing to invest in technology and another to see the outcome of it. Thats going to be interesting. Leslie, thank you so much. Our leslie picker. Thank you. Investors awaiting earnings from after the bell from netflix. Thats the biggie due out after the close. Our Julia Boorstin has a preview. Julia . Reporter hey, kelly, after earnings netflix shares swing on average 10 in one direction or another and its subscriber growth which investors focus on the most they hope analysts will top the forecast of 200 million new subscribers in q2 and 2. 6 million expected to come from overseas now the Second Quarter is usually the slowest for new subscribers, so netflixs thirdquarter forecast is even more important analysts are looking for nearly 4 million new subscribers then with over 80 of those new subscribers coming from overseas but Ceo Reed Hastings has been pushing for investors focused on revenue and margins as the companys investment in content and Global Expansion pays off. Now, analysts project 31 Revenue Growth to 2. 1 billion and Earnings Growth of 73 to 16 cents per share. Now analysts are speculating just how much netflixs subscribelers get a boost from a new lineup for shows such as glow and 13 reasons why along with favorites house of cards. It was noted in the note that google searches for netflix increased in the Second Quarter, pointing to accelerating international downloads of the app in the corner. One big question for the 6 00 p. M. Webcast is whether content cost will be pushed even higher than what weve already seen projected from hastings. Guys i have a question i may or may not know of a family where they share a single password. How old are the kids . They may be they may be in their mid20s at this point. How does that affect their subscriber growth, and do they plan to do anything about that well, you know, this is an issue that was brought up many times over the past couple of years. We havent heard that much about it from netflix recently, but netflix expects families to share accounts and they have a certain number of streams you have going tame. It sounds like they are not worried about that every couple of quarters we hear more questions about it by i think they are okay with us, just a small family sharing an account and having four streams which is about the standard. As for whether or not accounts are going to be shared boydly which can be more problematic for them, haste its has dismissed Major Concerns for them so far so certainly an area that they are watching on the call. I predict subscriber calls will slow enough. Thats the thing hastings would argue that maybe an older son. Yours was using your password and got hooked on netflix shows he might be inspired to subscribe and sign up himself. Wouldnt that be great, i mean, theoretically speaking. Theoretically speaking. Yes, of course. See you later. Lets get to our Closing Bell Exchange today not a big volatile day, and a reminder that the dow, the s p and the russell are in record territory. Any positive close for those three will put them back in record territory intrepid phoenix suns kevin travis and Kenny Polcari at post nine and Rick Santelli at the cme in chicago kenny, here we go. Earnings, blackrock is already out. Disappointing numbers there and now netflix is out tonight. Interesting about blackrock and the whole Technology Conversation because blackrock came out four or five months ago talking about how they were replacing pms with watsons, right, because they were looking forward to the passive investing and lower costs, blah, blah, blah, so i guess it makes some sense that they are losing a high end and they are seeing a growth in the low end because thats kind of what they laid out a couple of months ago that. Being said, look, its another quiet day. Low, low volumes no action in the market which actually surprises me a little bit because after fridays move higher into this record territory i just figured the market would digest and back off a tiny little bit, but quite honestly its really done nothing all day except holding here tight on edge not only this afternoon but the earnings as we move about in the rest of the week. Im looking, meanwhile, mark, at some of the picks that you have here. Teradata is a tech data and lucadia has jeffries, im not sure if thats relevant to the discussion we were just having but why the names attractive to you . The. Kelly, in the world of the extended valuations we search the globe for mispricings, and were able to pick up leucadia and Patterson Ugi put some stock and has an unimpaired Balance Sheet so we want something when the markets finally do go bump in the night we can protect our shareholders capital and make a reasonable return so those are two securities that we think fit that bill. Rick, you have a couple of Central Bank Meetings coming up overseas are you expecting any fireworks from those, or what are you talking about right now . You know what i think the dynamic with Central Banks, it may be even including the u. S. Is that the idea of trying to get things back to what they used to be was the objective for 2017 i do think many of the Central Banks are going to fall short of that and kick the can down the road a little bit, i think especially europe and europe has to be center stage you know, they are at that point where we were several years ago. And we know that things arent settled up and we know that policy is still having an influence and weve gotten used to the natural gas aroma of policy their currency and market and investors are doing what we did. They love the markets, and, you know, there are underpinnings to be proud of. Some of these economies have started to look better, but, you know, can you ride pretty fast on training wheels until you try to make the sharp turns, so i think those are the issues to keep center stage, but i also would underscore i dont think that its going to impact the markets in a trendchanging fashion any time soon. I think the timeline for europe to have some fun in the sun while it lasts might be longer than most than the u. S. Would think so more of the same. As for treasury yields, you know, they arent playing around with this lower 230 where several base points on long curve and a lot of flattening going on, but lets not forget 2 it. 17 the low close of the year and also settlement for 2015, 2. 27 where were at now and thats the zone you want to pay attention, to especially if violated on a daily or weekly close. Really quickly, kenny, got a bunch of data from china the markets there stumbled a little doesnt seem to be having much of an impact, does it . Absolut more of an impact than it did here in the states listen, we got more kind of disappointing data here in the states the empire state, though positive, still disappointing, and, you know, thats been a string thats been a string of lately which is why im a little bit im a little bit confused on why the markets are holding in here where it is, unless its now thinking that all bets are off come september and december with the fed. All right guys, we have to go. A little bit of breaking news here, but thank you for all your thoughts on todays Market Action thank you very much. Lets go to john harwood in washington where its made in america week john bill, it is made in america week we see if youre taking the live picture of President Trump, Vice President pence coming out to highlight made in america products, but very odd thing just happened in the White House Briefing which is that sean spicer, the White House Press secretary in an audio but not video briefing, was asked the obvious question about trump products ivanka trump and President Trumps products made overseas and asked how you could justify that in light of the made in america emphasis and what sean spicer said the demand of supply chains and scaleability may require some products to be made overseas, that we may not have the capacity to do some things in this country and, therefore, it makes sense now, to state the obvious that is exactly what ford and carrier and walmart and every other American Company that has supply chains overseas, does manufacturing overseas argues about their products its also the argument that Companies Make about immigrant labor, that is to say there arent americans willing to do that work, and the response from the Trump White House has been raise wages enough and people will be willing to do that work, so sean spicer is is justifying practices for the Trump Administration that the Trump Administration does not accept from other multinational companies. Guys im shocked personally. John, thank you. John harwood there we veal more from the president s appearance where hell be making some remarks at made in america week momentarily as he admirers that i dont even know what kind of equipment that is. What they are looking at. They have have around the white house grounds there, they have items that are made in each of the 50 states so hes look at Different Things that have been made here in the United States but specifically made from each of the 509 states. By the way, as Companies Like foxcom look to bring products, what will the supply chain look like maybe its not economical. You cant turn the spigot off overnight. No. Youve got to the change the economics big time in order for that to happen yes, well be monitoring this and the president will be signing a proclamation declaring this made in america coming up in a while. Meantime, headed to the close, about 45 minutes left in the trading session here the dow is now negative and so is the s p so they have pulled out of record territory but the russell is still right there we have activist nelson peltz launching a proxy fight against Procter Gamble to get a seat on that companys board. When we come back, whether he can get his way and how he plans to jump start p gs stock growth. And steve forbes joins us to discuss whether the republican Health Care Bill can pass the senate and whether tax reform will be a bigger challenge to pass in washington coming up. Reach out to twitter, facebook, send us an email, wish somebody a happy birthday who aty or may not be celebrating th birthday today, whatever you want to talk about youre watching cnbc, first in business worldwide [music playing] across the country, we walk. Carrying flowers that signify why we want to end alzheimers disease. 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Finally, gig for your neighborhood too. Fedex still feeling the effects of last months cyber attack and said today in a securities filing the attack will have a material Financial Impact on its tnt express business fedex says that it does not have Cyber Insurance or other insurance to cover that attack, and it cannot estimate at this time when tnt services will be fully resort boy, lesson learned. And medtronics had a computer crash that affected they were saying it was going to affect their result, and these were, you know, whether because of a crash or because of the intentional hack, its becoming more prevalent. Cyber security insurance will be a big thing soon. Nelson peltz forcing a proxy battal peltz smoke to squawk on the street about this earlier today. You have people at p g for the most part, not for the most part but 99 who have never had another job by p g you should have a soft target that at least 25 of them to come from other companies because these guys only know one playbook at p g, okay, and they get together to solve a problem, you know what they are doing, they are talking to themselves joining us now to talk more about this is Jonathan Feeney here at post nine and gene irkin is with commerce street capital. The premies that nelson is going on, john, is they are so entrenched, these people at b g, to solve a problem they are just talking amongst themselves, they are not getting a fresh outside point of view which he feels is badly needed to jump start this company do you agree with that i think thats true to an extent i mean, any consumer leader has a tendency, any time you do a job so well, you start thinking of your own capabilities and how to fit products and consumers desires into that as opposed to thinking of flitting your cape abilities to that. Think about the big changes in the marketplace, able to reach people through social media and local competition and developing markets, makes sense that maybe they are at some other places where new ideas and new responses to those threats could have come about more efficiently and effectively. One of the examples that nelson peltz gave was Dollar Shave Club bought gillette over a decade ago, huge acquisition and said maybe the gillette standalone could have responded more dynamically but under p g