If it closes up higher again today that will be eight days in a row of gains thats the first time the nasdaq would have done that since february of 2015 got a whole lot of earnings coming out that will very likely influence where we trade today look at the dollar dropping to a tenmonth low against a basket of currencies the euro rising above 1. 15 for the First Time Since maze of 2016 look overnight in asia the nikkei down by 0. 6 . Markets in china were higher with the hang seng up 0. 2 the shanghai up by 0. 3 . In europe, in the early trade, you will see dax is weaker down by a half percentage point. The cac is down by a third of a percentage point markets flat in london with the ftse sitting just fractionally higher lets get you through the big corporate story of the morning netflix shares soaring to new highs. The company added 5. 2 million new streaming customers in the Second Quarter thats 2 million more than wall street predicted most new subscribers came from foreign markets. This is what investors had been looking for. As of the end of june, netflix recorded more members abroad than in the United States. The Company Issued upbeat guidance for the Third Quarter well talk more about netflix with an analyst in came minutes. Up close to 11 . Almost double the subscribers. Like 60 more. Is it the analysts just cant add or or is it just too hard to figure out whats going on the user time, the time people spent on it dropped, but that doesnt matter when you get more and more people signing on they need a new hit they have done well with the two. Havent binged either one of those, house of cards or orange is the new black. That will get long in the tooth. Afrnlgts l a lot of new growth you have amazon, hulu once they have your credit card, its hard for you to to decide youre really turning it off. We can put a man on the moon. Why cant we have a password only usable once they have to fix that. So you dont have 15 people i think it is an issue, but theres a reason why people will eventually get it that. You have so many devices youre using now its complicated. Got to be a way to do it. The problem becomes if you tick off a user who is paying for it and is legit nimately usn it on a different device, thats sure way to get people to drop your subscription. Ill make it more complicated. Please dont. A parent gives their kid a password they dont happen to use netflix, but the kid does. For some reason they decide that they want to use it but they want then they decide im going to drop it. Then the kid will never pick it up got to be a way its not so simple. Earnings alert for you United Health reporting quarterly profits of 2. 46 per share beating estimates by 8 cents. Revenue in line with wall street forecasts. Also raising the fullyear outlook to 9. 90 per share from the prior range, 9. 20 to 9. 35. The current consensus estimate, 9. 80 United Health sees strong growth from new businesses and sees exceptional customer retention. A lot in this story number one, the headline is United Healthcare is a dow component. Okay. Which explains a lot. Why the dow is up. The stupid healthcare thing is dead but who cares whether you have the taxes youre saving from healthcare repeal when youre not getting rid of the taxes so tax reform no longer needed the sequential obama care repeal first and then tax reform because theyre keeping they whimped out and they were keeping the taxes. For a long time yeah. The Investment Income was never going away right now i think one of the reasons the market is taking this in stride, look what happened in the house that was like war and peace. Watching that happen was war and peace. Theres bandages all over the thing. It gets through and it goes to the pa tritricians in the senate could they ever really do it its almost like democrats and republicans, the gulf is so wide between a Susan Collins and a rand paul. Within the whole Political Party. I dont know. At this point, dont you think they try to not tax reform, but a tax cut across the line . Thats what theyll focus on. Then i started thinking with just the repeal part of it. You look at the websites, obamacare stays the law of the land so it stays. Now supposedly because they didnt do this si, single payer next do you think in this country right now, years from now democrats retake the houses of congress, they retake the presidency, i think getting all the way to single payer is just as hard. I dont see that happening either i see more jamie dimon shihtzu in washington in gridlock. Were not going to single payer. We wont stop anything and the stock market continues to go up explain that because its the waterboarding. Its the Corporate America not being water boarded anymore. Just take away i think this is earnings plus the fed. But why are earnings doing well business is back sort of a little bit more unindumb kcouun from the stroke of a pen House Republicans are unveiling their Budget Proposal for 2018 it does have reconciliation for the tax reform did you see that, ylan this budget dedicates more money to defense but it also includes some big cuts to mandatory spending programs. Here are the numbers 621 billion for defense. More than the white house had in its budget but still may not be enough to satisfy the hawks. Discretionary spending at 511 billion. And cuts to social safety net by 203 billion. This budget would Institute New work requirements on programs like food stamps for democrats, those are all basically nonstarters. Remember republicans do need democrats to pass a budget through the senate and they need a budget to pass tax reform. Tle here are the details on tax reform, lower rates, deficit neutral, so tax cuts can be paid with new revenue or spending reductions and a territorial system its unclear how the opposition to the healthcare bill that emerged last night will affect this budget. We do know they were counting on it passing in order to make the budget balanced. Back over to you okay. Ylan, thank you. A lot more to get to the other big political story, Senate Republicans failing to win support for their healthcare reform bill. Now President Trump and Majority Leader Mitch Mcconnell are calling for a vote to repeal obamacare without an immediate replacement. John harwood has the details on that good morning. This is something that ted cruz warned about when he was trying to prevent obamacare from bein implemented in the first place in 2013. He said if we let the exchanges and the subsidies get put into place, its going to become almost impossible to repeal obamacare. Thats because people tend to like benefits given to them. You had 20 Million People through medicaid and the Obamacare Exchanges who have gained coverage under this law the rate of people without insurance has declined precipitously. To come in and do something that takes that away through a bill that changes medicaid, through a bill that reduces subsidies, is just very difficult to do. S what happwhats happened thate promises republicans made that this would be easy and they would do it quickly, in the end republicans were not willing to stand up and say im the one who killed the repeal and replacement of obamacare were not true they were willing to do that mike lee and jerry moran were last night to join rand paul and Susan Collins. That suggests that Mitch Mcconnell may attempt to have a vote on a straight repeal of e obamacare, but its not clear senator also tas will take thatd that means in reality that republicans, like ylan mentioned r poised to move towards tax reform and they need to pass a budget first to get that done that wont be easy either. I was thinking if you wanted to get some payback, if you were mcconnell, you would do the clean the repeal. Because people would be on record and they might have problems in the next election. If you think about it i think Mitch Mcconnell would rather keep his job as Senate Majority leader. The spinelessness goes across the entire spectrum of leadership i thought thats what mcconnell was planning to do if he did i was thinking that would be a good thing to do that way you would know who knows how many there would be. Maybe 8 to 10 like they said but then you would know them why does he want to put the red letter why does he want to out his colleagues when they can maybe he thinks it would actually pass. No. No. Its not going to pass but what what i think Mitch Mcconnell is trying to do, one of the tensions within this process is Mitch Mcconnell has known for some time this would be extremely difficult to get done the part of the logic of pushing a quick vote before the july 4th recess, which didnt materialize in the end was whether it passed or failed you could have a conclusion to it its been dubbed the show them a body strategy. That is to say show the Republican Base that we tried to do this, we had a vote and it didnt work, rather than having the thing end with a complete whimper that vote may be the voete a motion to proceed to this repeal bill in the senate you have to have a vote to take up something. If they had that vote and it doesnt get taken up which is the likely outcome that means mcconnell will be able to say i tried, procedural vote didnt work time to move on. I just thought of this yesterday. You can see your hair looks great. Im quickly mine looks good i just got it cut yesterday. Thank you i get it cut at this fancy place. I dont pay for it at the lowes. You point pay for it . Who is there checking out bob corker at the desk i walked in i saw senator corker john, i asked him what i asked barrasso yesterday what is so great about being a senator that really all they care about is making sure they can stay a senator is it the power . Is it people seeing them and going, hello, senator, youre a god . Is it the corner table at the washington doing interviews with people like us. Theres something great about staying in office. They say the three most popt things, staying in office, staying in office, staying in office thats all they care about i asked him, you know how is he. Differential, geez, joe, i dont flow what it is. Trying to make thats a good corker. Not bad but, you know, i wonder if this was all off the record i asked him what is so great that you dont do not him, i think he was on board. You dont do what you promised your constituents you would do because youre worried about your own survival. Constituents change their mind heres the thing. As a former bush aide said last night in an interview on another network, the Republican Party oversimplified thisfor seven years. They magnified the problems with obamacare. They minimized the problems with replacing it they suggested as donald trump did over and over and over again, this will be easy this will be quick ill do a better cover more people at a fraction of the cost. Thats more from your prism that theyre over that they were like its prop kand ga, t propaganda. Its Jonathan Gruber boobytrapping this thing. You give somebody an entitlement you can never take it back thats not a boobytrap yes, it is, its like a hurt locker how do i make this thing not explode if i remove this thing by removing it, everything blows up that was the key. How do you make it not explode thats not a boobytrap. They cant. How do we get to single payer . Is it possible in your view, you have your pulse on the left, do you think its possible to get to single payer legislatively in the next ten years no. I dont either so were stuck in this morass, with what weve got . You could call it a morass, or as Mitch Mcconnell said places with no Insurance Companies no more. They have zero or one. Medicaid will turn into the biggest entitlement we ever thought about having if we let it go. Thats why mcconnell has said if the Senate Bill Fails, we will sit down with democrats and work on some sort of fix for the marketplaces i think if you do that, it is possibility to remedy some problems that not all of them but some problems you talked about. Did mcconnell mean that or using that as a threat both. I had a conversation with the republican member of congress a week ago who said i dont expect the senate bill to pass, but im and i voted for the house bill right down the line once that Senate Bill Fails i will start working with democrats because ive got thousands of people in my district who are concerned about not having Insurance Options thats the pressure that can make something happen. There are ways to fix some of this its not like this was the only plan in the entire world how you are going to fix medicate for all it used to be a fairly specific answer to a fairly specific thing. Medicaid can almost become single payer if you can cover everyone under medicaid. The plan was not going to fix it, it would cut off federal spending for it. Its like a black hole. If it goes to where its going, and you cover everybody, its hard to have education, fire, police, roads. Look at all of the plans that the house put forward, all of the plans that the senate put forward, all put the most pressure on the people who need it most, the least pressure on the people who need it least you could have tried to address this in a more equitable way thats the narrative that youre thats the narrative youre getting rid of the obamacare taxes which were only seven years old. If you get rid of that, rich and wealthy ones, if you try to reform medicaid,at the lower end, yes, you can point to things you have to decide what your goal in life is. If the goal is to lower taxes, thats a different story than if the goal in life is to fix the healthcare system. But thats as if the taxes were always there and now youre cutting them they werent they were put in for this unpopular program. It didnt get popular until six months ago. But im suggesting to you that they they left the taxes so that your people couldnt argue that narrative. Thats why they left 3. 9 in. It was a problem optically. In a Perfect World you could say part of obama care you passed with reconciliation and no republican votes was raising these taxes. If you get rid of it, taxes go away but there should be ways to try to bend the cost curve thats what obamacare never addressed. It did address it not well. We saw lower healthcare insurance inflation costs largely because of the recession. It is not clear exactly why the cost curve has bent. But it has bent. To say it hasnt is not right. Correlation is not causation. John no understood seven years ago there are multiple contributors seven years ago the cadillac tax, which the republicans delayed in this bill because it was politically unpopular. The democrats didnt like it either because it was unpopular with unions. But it passed you told me long ago when this was wallowing at 40 approval, obamacare, you said people dont know what is good for them, they need this i did the American Public doesnt know this is what they need. Now reform of certain entitlements is what we need youre not on that side of thing. This is not a medicine you think people need to have. Trump is against it all right you know what, john . Netflix. Netflix is something you should have bought yesterday. The rest of this is just fluff netflix up 17 after it reported 5. 2 million you cant have a point 2 point 2 subscriber unity of the year is back the mercedesbenz summer event. Get to your dealer today for incredible onceaseason offers, and start firing up those grilles. Lease the e300 for 569 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. When this guy got a flat tire in the middle of the night. Hold on dad. Liberty did what . Yeah, Liberty Mutual 24hour roadside assistance helped him to fix his flat so he could get home safely. My dad says our insurance doesnt have that. Dont worry i know what a lug wrench is, dad. Is this a lug wrench . Maybe . You can leave worry behind when liberty stands with you™. Liberty stands with you™. Liberty mutual insurance. Welcome back joining us for a check on the broader markets is jack lacheney and on set with us is eddie perkin gentlemen, thank you for being here mark, lets ask you first what do you think is happening . Weve been asking why the markets continued to climb higher even while we see the trump agenda caught up in washington whats happening i think the fundamentals are overriding the politics. We have Economic Activity that remains sturdy we have corporate profits that are rising at a double digit pace so the combination of the two and obviously the teamup principle remains alive and well there is no alternative for risk space capital and bodes well for stocks the advance continues over the course of the second half. If we get fiscal programs that are stimulative in nature, that will write further advances in equity prices. The rest of the picture looks bright for the time being. The big star lately has been technology you have a warning you think Big Technology may be the nextpariah what do you mean i think antitrust is something to keep an eye on and cybersecurity is something to keep an eye on i think there are bigger markets to invest in i would look for those stocks and sectors hitting 52week lows like telecoms, industrial stocks i think well get back to the trump trade. The market was strong in the first half of theyear but not so much trump policies, those were laggards in the market, i think its time to rotate back into the stocks that worked immediately after the election what do you mean by antitrust for technology you saw the news on google from the European Union. Amazon post whole foods deal is getting flack. Is amazon going to do is already doing major damage to retailers,