Futures up this morning because. About blue chip industry trading up China's worries eased slightly. So to help dissect it off for us this Tuesday morning Jeff -- -- finance breaking down business... See More
Futures up this morning because. About blue chip industry trading up China's worries eased slightly. So to help dissect it off for us this Tuesday morning Jeff -- -- finance breaking down business headlines -- happy royal baby T true. -- a year to my friend they still have a name I voted for long shanks about Arizona got an amendment I don't know -- we'll see them go if called the -- see if she's taking recommendations. Hey listen -- exactly we are in the thick of earnings season what -- -- right. Now a whole lot -- -- today -- will be down we've seen it being over the last few years. And I think you've heard it over and over again that the economy is not improving but stocks keep going higher. We're seeing more of the same companies -- grinding out better than expected earnings only slightly while the revenue side of things the import to all things business. Is flat at best and that combination you know Wall -- -- on expectations -- slightly better than horrible expectations. And away we go our way up back -- what tech sectors anything standing out to you right now. You know banks have crushed earnings but I'll be honest -- I don't trust bank earnings at all -- I can tell a -- report pretty much whenever they want so those earnings been good. Tech -- been all over the place we've seen -- wins tax losses. But for the most part it's just been counted as generalized sense that the market's doing okay with as you pointed out. A little bit of blue chip action -- been slightly better than expected but no great shakes excitement -- just a general broad based rally. Art really this Netflix has a pretty good second quarter numbers and yet the stock. It's not reflective of that. -- you know I was confused by this to us are looked up online it turns out you can't actually sell and east. So I'm thinking -- candidates about as a driver for Netflix earnings are going to be able to chop those -- -- -- -- real sell on -- no that's a legal here's the problem out. I'd like Arrested Development I like house -- cards. I didn't pay one penny -- watch either of those type of who is no one else is either. And that's Netflix big problem they've done so much better than expected in terms of making content they've done just absolutely fantastic shows. No one's shown up to pay form and that's what has Wall Street a little bit concerned keep in mind now. Netflix stock best performer in the S&P 500 this year so who knows what the Sox -- do. Artists are relatively yet it's always a combination between content distribution and who's gonna actually win out and -- take take on the -- and that. Executive if it was a fair world this content right here would be worth one billion dollars. I don't know why they I don't know why would ostracize some shares in this and in this game we got this little -- and dog and pony show. Hey what are the housing market I mean obviously -- -- seen some recovery but -- first time buyers right. Ride the first time buyers -- -- by the flippers. But that does not so great economically speaking -- to -- -- house for some reason except for the fact that maybe they got -- stopped buying them five years ago. So your -- the year -- speculators come in with saga for speculation -- would like 186000. Or something. Homes flipped in the first half of this year up -- their way up. From last year so we got the speculators come in and -- again their -- freezing crazy speed heads. So little jump into anything about the home buyers the actual organic people wanna -- -- eliminate. Are nowhere to be seen and is it is and it's just it's just false hope money that -- kind of re generated into the market. You know what they're making money though and that's the thing is the profitability of flipping out as -- has -- even say this because it's such a bad idea. To start flipping houses I can't emphasize that enough if it is stupid in a stupid -- world to be doing this. But you know what folks are making money and nothing breeds more people coming in like someone making a little bit a -- -- California that went gold rush. It got people doing it again it's it's a horrible -- have we learned nothing people. And California's been going downhill ever since writing this. Exactly ever since fighters in jail and 1849. Different did. They talk to be a little bit about this Steven -- SEC capital investigation because this thing is getting more bizarre by the day. Right 660 million in fines as a priority used to that -- -- -- paid in March think of any kind of bought his way out of prosecution from the SEC. Last week new SEC -- Mary Jo White came -- -- said you know want them not so much are still in trouble body. They came -- the SEC actually just accused him of being a bad boss my -- hundreds that's fine I'm a bad employee. But you know it it's back to go with it the right for Stevie Cohen should not have a hedge fund -- could take away the money that he manages so he's gonna fight that. Besides which SEC has become such a hold -- centers such a figure all things crazy -- on Wall Street. That the Justice Department's coming out from what we've got their seven year investigation they got to come up with something. He's not out of the woods yet apparently the government strategy is just a grind him down and -- walks away. -- well at this business strategy yes nonetheless do you like you don't -- mess when these people it gives. There's so many whispers about this -- I've run -- hedge fund in the past them more investor and talk and had Richard. Listening to -- probably gas but you know whether there's been whispers surrounding -- -- for years and years and what the government's been able to dig up. It has nothing to do with the whispers -- real hard time building that much of a case. The message as always don't took off. The government exactly exactly I think kind of have like money in the law and times on this site are what does it in keeping your -- -- today -- Tuesday. Well you know besides -- long -- idea managing my around apple they report after the bell expectations are unbelievably. -- is just nine months ago that princess Kate was not pregnant and apple is regarded as a good company. Now we've got an -- to the strong and -- just stinks that the expectations are very low and earnings tonight what I want to see is that the company can come up with dared dream and new product. And meeting a stock and I -- -- on the market reacts to -- -- down from 700 all the -- -- -- thirty give -- take so we've had a huge drop over last nine months. We'll see if they get sums are remote -- going bad apples going to be the story of the day and maybe -- maybe it'll be became -- to -- -- Big Apple -- He -- -- that won a single handedly rescued a company in the navy. Well he's brand new east refugees or maybe you'll see new product before he dies does the rest of us don't seem to be likely have that happen. Well let's look at the big over let's go mister -- the Dow is up 49 points at 151594. Jeff MacKey from Yahoo! finance have a great Tuesday assert you -- brother.
This transcript has been automatically generated and may not be 100% accurate.