Chipotle today its a new problem but its an old problem. The stock sinking on news a restaurant in virginia closed after a number of customers became severely ill after eating there. Well tell you where it is i guess i just did, and how chipotle is handling that issue coming up. Lets start with the financials weighing on the dow. Goldman sachs the biggest loser after its Earnings Report out this morning wilfred frost is here to break that down for us. Goldman sachs failed to navigate the market as they aspired following another good quarter in the markets and currencies business. Heres their show Martin Chavez. The primary driver for the declines sequentially are year on year. Was lower client activity with all the drivers that we that we discussed, lower volatility, less dispersion, less opportunity. Commodities is a story of challenges on all fronts, and there was lower client activity and also a difficult marketmaking environment. This was the worst ever quarter for commodities since the company went public. Its also the Second Quarter in a row of significantly worse trading than peers and equity markets have been slipping since 2009 it, therefore, dominated the Earnings Call but ceo Martin Chavez did not settle analyst minds. The result being investors are unsure whether this is cyclical or structural regardless of small beats in other business lines. Bank of america delivered solid numbers. They are grinding out better Net Interest Income as expenses and efficiency slowly improve. A little behind estimates. Trading was soft and unlike gaks not worse that be peers. Both stocks down Goldman Sachs the clear underperformer of the sector guys are they Still Closing their commodities trading business i think that was just up for consideration. I mean, i asked this on the media call to Martin Chavez because the fact that they have remained committed across the tracing sphere is something weighing on their performance. I say are you considered to all these long term. Yes. Thats what they have done over the long term by offering all of these services we get the clients in the long term and thats what they still want. Clearly its hurt them the last couple of quarters having the broad exposure. Let me ask you first about that big drop in fixed income. Getting a lot of focus, much worse and also a sore spot for them in the First Quarter. What more can you said about that performance analysts literally 70 of the questions on the call were about this broadly speaking on the fic, so the fixed income and currencies and credit, it was suggested it was just, you know, a cyclical issue. It was an issue of lower client volumes. The commodities is the one they really highlighted more than lower climb volumes and alsothe commodities they had to hold on their books changing in prices so sort of a positioning issue, but two quarters in a row its a big question plus, slowly slipping market share since 2009 is it a structural issue we saw a definitive answer on that. Weve got to move on, but also they say a bigger change than even what happened with u. S. Regulation since the financial crisis or the new european rules that go into effect in january. The method two rules coming in effect in january is what youre referring to. He was sort of asked about that as aspecific issue what to focus on is the word scale. Its an expensive thing for the industry to impose new rules on research and sales trading issues, but this actually is an area where Goldman Sachs in a relative sense could do better than others because they have the scale and stayed stuck in that business so its a cost relative to the rest of their business it wont be as big but it will be a big cost for the industry. Er in regulation that seems to figure the big players over the small, what do you know. Net effects, deregulation could come through you wouldnt say the industry is in a re regulation phase but thats a small niche share thats coming in in january. Thanks, will. Good to see you netflix shares, hitting an alltime high after reporting Strong Revenue hand guidance with its earnings last night shares up 14 . Joorts be hasulia boorstin has whats going to drive their growth. Not just strong growth of driver numbers in q2 its the fact that the Company Projected stronger than expected revenues in q3 thats really driving shares whats behind their addition of 5. 2 million new subscribeers its a ton of original content including 14 series and 13 comedy specials added in the quarter and Ceo Reed Hastings says theres plenty more room to grow, especially overseas. Were expanding a lot in india and japan and figuring it out market by market asia is very unique and very large so we see a huge opportunity fours over the next couple of years, all of us spending more time there and investingor. Hasting digs missed competition from the likes of amazon, especially since amazon and netflix invest in growing companies such as germany. Amazons super successful around the world if you look at u. S. With prime, you know, incredibly successful. It just doesnt seem to take away from us, so i wouldnt characterize it as us versus amazon in germany. Even though netflix upped its negative Free Cash Flow forecast, between 2. 5 billion for this year, analysts are more bullish than ever against the stock. A number of analysts you go their price targets today. Kell de, back over to you. I think was thinking about this had we lately have been playing this game of every time amazon announces a new initiative we look at the companies its going to affect. The meal kit, blue apron sinking and Grocery Stores go down when they buy whole foods and so forth. This is the one company that hasnt suffered from amazon getting into Television Production and video streaming netflix has not missed a beat through that all. Thats right. We have to remember that netflix was up against a bunch of competitors since day one. At first they were trying to be like hbo and then we saw amazon try to be like netflix and hulu and invest in more original content so Reed Hastings thinks there isnt going to be one player in this space it will be like cable channels where you may subscribe to a bunch of these the services, amazon prime, netflix and hulu as well as you try to get all the different types of exclusive content thats out there the fact that they are investing in original exclusive content means you cant get what netflix is doing on amazon. 91 emmy nominations, thats getting it done on netflix thank you, julia see you later. Lets get to our closing bell exchange. Dow 150 points, down just 58 and joining us to talk about this day on wall street our guests starting with Rick Santelli. Nod just the equity market but today were seeing yields go lower. Were below 2. 30 on the tenyear, gold has gone up and that dollar continues to decline precipitously. Whats going on here well, listen, Interest Rates are interesting, but it is a bit of a drip, drip. Were at 2. 13 about six weeks ago, and when hi look at gold, you know, i see numbers that are, you know, yeah, its pretty decent size, but you hit the gold when you talk Foreign Exchange came with charts prepared. If you lock at the euro versus the dollar, highest level since august of 2015 and ill tell you the exact date, august 24th. One day it was higher than it was now. To find another day that its higher against now against the greenback you basically have to go to january 2015 now ill give you a threeyear chart and you can really see how significant this is. This is a big area if youre a chart, doesnt mean it will all happen in a linear fashion every day, but this bottom that weve established for like two years is now at the bottom, and were moving higher. This is a move that you want to Pay Attention to it affects Interest Rates, it affects exports, imports this is the crown jewel of what every strategist ought to be paying attention to in trading markets. The dollar, by the way, is down i think, michael, 6 , 7 on the year. Yeah. Look at oil, for example. One of the things i was looking at earlier today said wed be at under 45 a barrel still if not for wti and its making all the commodities look better by comparison and probably a lot of equities look bert, too. Absolutely. And i think the starting gun on that trade was really after testimony last week where it was acknowledged the cpi was dormant. We saw the stock market accelerate and saw the tenyear come down. On the tenyear weve got a very, very low cpi so the steepness of the curve is actually intact and were seeing resilience in the stock market weve had setbacks, health care whiff and wobbly Bank Earnings and were seeing resilience and the noteworthy thing to think about, recent new highs in the indexes and recent new lows on the vix is generally a good sign so i think that we may have a sleepy august and earnings season is a proving ground, but, you know, i think weve got some Solid Foundation here. Whats your read from the Trading Floor . Nothing percentagewise. That gets your attention but well come back here. A lot of it was the financials people started to see that, and i think there was a lot of residual selloff based on the financials being a little weaker goldman hasnt rallied much but some of the other stocks have rallied a little bit back and thats helped the markets somewhat you know, its this is a rotational thing that were seeing, and when thebanks drop the text pop, and it goes the other way as well. You know, when the techs drop the banks pop, so its its a jockeying between the two indices right now. Thats all were really league is with this health bill not coming together, how are traders thinking through this . Well, we think tax gets done or infrastructure, or do you start to just write down the possibility of all of that have . Have to wait to see what the legislators say. If they say theres not theres not going to be reform which weve already seen now will they repeal it all together and where do we go from there . You know, youve got to remember, youve got to be careful what you wish for. You know, sometimes they wish for certain things and they dont really understand what the residual effect is going and the residual effect we dont know so that scares me a little bit but overall i like that sector as well. Very quickly before we go, lets make this meaningful to investors. How do you play health care right now, do you think . Good question like the insurers on the pride of said, med tech and others are pretty positive. If youre concerned what happens legislationwise you stay away from the more governmentinvolved insurers and the hospitals. Those are the question marks and i do think that the whiff today sort of reduces the probability of the agenda that the market has to deal with that. All right gentlemen, thank you appreciate it all. See you later. More than 45 minutes to go and quite a comeback for the dow down 62 points the s p turned positive, barely and the nasdaq up 25 and the russell down 4. Banks go lower and tech goes higher. And chipotle the worst stock in the s p today. Yes. More on that, and its been a wild day in washington as you just heard the senate pulling its obamacare replacement bill and the house unveiling its budget proposal. Up next, a look at what that means for the president s agenda and for your money. Plus, ibm highlights a busy day of earnings after the bell dow components cfo will break down the results right before he gets to the Conference Call coming up next hour here. And we want to hear from you. Reach out to the show on facebook, twitter or reach out to us on email, closingbell nbc will be unii. Com youre watching cnbc, first in Business World wilde welcome back lets check some earningsrelated movers starting with Lockheed Martin which beat on the top and bottom line and raised its 2017 guidance for sales, profit and earnings stocks down a little bit drugmaker novartis beat earnings revenue and was in line with forecasts the company cites a continued forecast on key Growth Drivers that stock up 1. 5 Charles Schwab earnings in loin with forecasts and both on revenue. The stock is down a fraction though shares of United Health lower. The insurer said its withdrawal from the obamacare individual market combined with Health Insurance tax deferral reduced Second Quarter revenue and the stock is fractionally higher mobile Telecom Ericsson lowered its forecast and that stock getting clobbered down 16 and finally mote cycle maker harley david, Ticker Symbol hog, with it stock down 5 today. And Senate Republicans do not have enough vote for a straight repeal of obamacare, that after the latest bill to replace the law was pulled Kayla Tausche has more on what may be next now. Kayla in. Were trying to read the tea leaves from Senate Majority leader Mitch Mcconnell who after a lunch with all republican senators that just ended said hell be moving forward with a vote on the repeal in the near future we just simply do not 50 senators who can agree on what ought to replace the existing law. What we do have is a vote that many of us made two years ago at a time when the president of the United States would not sign the legislation. Reporter that was in 2015 when the senate vote on a full repeal at the time senator Susan Collins was the only republican currently serving to vote o, but now senators from West Virginia and alaska have joined her and other republicans in addition to mcconnell, like rand paul, are pointing to that voting record to ramp up pressure i think those republicans who promised to repeal obamacare ought to vote the same way they voteded in 2015. If youre not willing to vote the same way you voted in 2015, then you need to go pack home and need to explain to republicans why youre no longer for repealing obamacare. Reporter theres still a lot of republicans, even if they are not outright nos on the fence, and it could be a conflicted vote the cbo in january estimated that a full repeal would see 32 million fewer people insured and that premiums would double over ten years. That will be a tough vote for some republicans to swallow. Guys this is probably not knowable, but do we know, do they still plan to delay their august recession, and what do they do then do they plan to work on tax reform whats the plan now i wonder. Reporter no word on what happens to recess, whether they will go forward with that twoweek delay, bill, but im told that senators had been hoping to take up a raise in the debt ceiling before recess, so perhaps if they put this to bed sooner they would have more time to tackle that, but it does sound like leader mcconnell wants to at least put a vote on the record for the full repeal and put his members on the record in doing so and still they did that once before, kay. [ laughter ] thats whats so interesting about it when the stakes were so low, when obama was president and never going to sign the thing into law, they had no problem getting everybody on board for that vote and now is he still going to hold that if they dont get all the numbers . Reporter well, it seems like he wants to make an example of members in his party its something that the president was lastiamonting whee said ive been hearing for seven years when we had plans to repeal and replace obamacare and when asked interestingly about whether the president blamed senator mcconnell for this stalled republican agenda, he said no. Interestingly hes not losing faith with the Senate Majority leader despite the fact that hes visibly frustrateded that there doesnt appear to be agreement on this. Thank you busy day for the senate and also the howth house. Health care is not the only topic hot in washington. The budget and the battle over raising the debt ceiling is getting a lot of traction. Ylan mui has more on that story. Reporter the house revealed a budget that balances over the next decade including 203 billion in cuts to mandatory spending programs like medicare and like food stamps, and that is drawing fire from moderate republicans, but the gop right now is under pressure to get something done sometime this year the budget is important not just for funding the government but also because it creates the legislative vehicle that republicans need to pass tax reform without democratic support. Earlier today house ways and means chairman kevin brady tweeted republicans will be moving forward on tax reform regardless of what happens on health care. Now in addition to all of this, lawmakers still need to reach consensus to raise the debt limit. Treasury secretary Steven Mnuchin has called on members of congress to raise the debt ceiling before they leave for august recess in a clean bil with no strings attached, but still no consensus on capitol hill for exactly how to move forward. Unlikely that lawmakers will meet the time line that mnuchin laid out however, what we do know is republicans and democrats will have to Work Together to get that done. Kentucky representative john yarmuth who is a Ranking Member said hes willing to vote for a debt ceiling increase, guys, as long as theres no poison pill attached back over to you. And we havent yet heard mnuchin has talked about some of the emergency funding measures that would be put in place, but how does this all work whats the more importan