1
00:00:03,000 --> 00:00:06,400
Speaker 1: Glombo Business News twenty four hours a day at Bloomberg

2
00:00:06,400 --> 00:00:09,520
Speaker 1: dot Com, the radio, plus mobile and on your radio.

3
00:00:09,800 --> 00:00:15,400
Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.

4
00:00:15,440 --> 00:00:19,079
Speaker 1: I'm Charlie Folks from Vanek ringing that closing balt of

5
00:00:19,120 --> 00:00:22,160
Speaker 1: the New York Stock Exchange, the DAL, the SMP, MAZDAC

6
00:00:22,239 --> 00:00:25,960
Speaker 1: all closing at or near their best level of the day.

7
00:00:26,320 --> 00:00:29,280
Speaker 1: SMP five hundred index rising the most in four weeks,

8
00:00:29,640 --> 00:00:34,040
Speaker 1: joining in equity market gains from Japan to Europe. Energy producers,

9
00:00:34,080 --> 00:00:37,559
Speaker 1: industrial shares and banks were among the strongest contributors to

10
00:00:37,640 --> 00:00:41,560
Speaker 1: today's rally. Matt Mayley is equity strategist at Millerity Bank

11
00:00:41,600 --> 00:00:43,960
Speaker 1: in Boston. He was interviewed moments ago right here on

12
00:00:44,040 --> 00:00:46,640
Speaker 1: taking stock. The one group that has is defensive that

13
00:00:46,760 --> 00:00:48,920
Speaker 1: hasn't done as well. It's started to do better finally,

14
00:00:49,159 --> 00:00:51,199
Speaker 1: but hasn't done as well as a defensive play in

15
00:00:51,200 --> 00:00:53,840
Speaker 1: the last year or so. Is it is the healthcare stocks?

16
00:00:54,160 --> 00:00:56,560
Speaker 1: Of course, the problem is, as we've learned very much,

17
00:00:56,600 --> 00:00:59,400
Speaker 1: you can't just go in annual healthcare stock anymore. The

18
00:00:59,600 --> 00:01:02,520
Speaker 1: town owns Industrial average up two hundred twenty two points,

19
00:01:02,520 --> 00:01:04,680
Speaker 1: a gain of one point three percent. Has some P

20
00:01:04,880 --> 00:01:07,800
Speaker 1: five hundred index up twenty five again also of one

21
00:01:07,800 --> 00:01:10,880
Speaker 1: point three percent, NASA stand up fifty nine back to

22
00:01:11,000 --> 00:01:13,679
Speaker 1: a gain of one point three percent. We are awaiting

23
00:01:13,680 --> 00:01:16,080
Speaker 1: the latest numbers out of the Walt Disney Company. Paul

24
00:01:16,120 --> 00:01:19,840
Speaker 1: Sweeney as director of North American Research at Bloomberg Intelligence.

25
00:01:20,120 --> 00:01:22,959
Speaker 1: He was interviewed right here on taking stock. Well, I

26
00:01:22,959 --> 00:01:25,640
Speaker 1: think investors are certainly going to focus on the ESPN

27
00:01:26,080 --> 00:01:30,000
Speaker 1: numbers principal, because you know, last summer the company really

28
00:01:30,000 --> 00:01:33,880
Speaker 1: took the market by surprise by disclosing that ESPN had

29
00:01:33,959 --> 00:01:38,600
Speaker 1: been losing subscribers um and that was going to impact, uh,

30
00:01:38,640 --> 00:01:41,280
Speaker 1: they're anticipated growth in profits coming out of the cable

31
00:01:41,280 --> 00:01:44,440
Speaker 1: network business. That was a real shock, uh two investors.

32
00:01:44,440 --> 00:01:47,160
Speaker 1: We had not seen that really and ever really for

33
00:01:47,240 --> 00:01:49,560
Speaker 1: the in the history of Disney. And Disney shares up

34
00:01:49,600 --> 00:01:51,960
Speaker 1: today by one point two percent. We are on Disney Watch.

35
00:01:51,960 --> 00:01:54,360
Speaker 1: We'll get to those those numbers to you as they

36
00:01:54,440 --> 00:01:58,960
Speaker 1: become available. Lumber Liquidators tumbling today after reporting first quarter

37
00:01:59,000 --> 00:02:01,920
Speaker 1: results that were weak than expected. L l on the

38
00:02:01,920 --> 00:02:06,360
Speaker 1: ticker down seven point nine percent. Gap shares plunging today

39
00:02:06,480 --> 00:02:10,080
Speaker 1: by eleven point five percent after the apparel chain posted

40
00:02:10,360 --> 00:02:13,640
Speaker 1: disappointing results gold of a dollar fifty a gain of

41
00:02:13,639 --> 00:02:16,360
Speaker 1: point one percent four oh two on Wall Street. Now

42
00:02:16,360 --> 00:02:18,280
Speaker 1: we'll look at other news from around the world. A

43
00:02:18,480 --> 00:02:22,440
Speaker 1: Bloomberg Radio Charlie. Thank you from the Bloomberg news Room

44
00:02:22,440 --> 00:02:27,000
Speaker 1: by Mark Crumpton. Former Republican presidential candidate Marco Rubio today

45
00:02:27,040 --> 00:02:30,280
Speaker 1: addressed a round table on the crisis in the Middle East.

46
00:02:30,600 --> 00:02:33,639
Speaker 1: He took a swipe at Donald Trump's NATO policy. It's

47
00:02:33,639 --> 00:02:35,679
Speaker 1: a lot easier to say, for example, you know, let's

48
00:02:35,720 --> 00:02:37,960
Speaker 1: not why why do we give why do we give

49
00:02:38,000 --> 00:02:39,720
Speaker 1: all this money to NATO and these other people that

50
00:02:39,720 --> 00:02:43,600
Speaker 1: were protecting do not. And it's easier to say that

51
00:02:43,639 --> 00:02:46,440
Speaker 1: than to explain what would happen if you didn't. And

52
00:02:46,680 --> 00:02:48,520
Speaker 1: so that doesn't mean we shouldn't do it. I just

53
00:02:48,560 --> 00:02:51,359
Speaker 1: think it takes time. Senator Rubio dropped out of the

54
00:02:51,400 --> 00:02:54,799
Speaker 1: presidential race in March after losing the primary in his

55
00:02:54,960 --> 00:02:58,720
Speaker 1: home state of Florida. President Obama Supreme Court nominee has

56
00:02:58,760 --> 00:03:03,160
Speaker 1: sent an extensive questionnaire to the Senate Judiciary Committee detailing

57
00:03:03,240 --> 00:03:07,440
Speaker 1: his judicial qualifications. Republicans have said they won't give Judge

58
00:03:07,480 --> 00:03:10,359
Speaker 1: Merrick Garland a hearing we expect that upon receiving his

59
00:03:10,440 --> 00:03:14,440
Speaker 1: questionnaires in Judiciary Committee members will do their jobs by

60
00:03:14,480 --> 00:03:17,399
Speaker 1: reviewing the information, noticing the hearings that the American people

61
00:03:17,440 --> 00:03:20,080
Speaker 1: can hear directly from Chief Judge Garland as he answers

62
00:03:20,080 --> 00:03:22,560
Speaker 1: the questions under oath, and then give him a fair

63
00:03:23,040 --> 00:03:26,040
Speaker 1: yes or no vote. White House Friends Secretary Josh Ernest.

64
00:03:26,080 --> 00:03:30,000
Speaker 1: In the document, Judge Garland lists details of his work experience,

65
00:03:30,200 --> 00:03:35,040
Speaker 1: his biographical background, his financial information, and his most significant cases.

66
00:03:35,360 --> 00:03:38,320
Speaker 1: The New York City landlords facing mortgage fraud charges and

67
00:03:38,400 --> 00:03:41,960
Speaker 1: a tenant harassment lawsuit. Stephen Crowman's accused of trying to

68
00:03:42,000 --> 00:03:46,320
Speaker 1: bully tenants out of regulated apartments. Attorney General Eric Schneiderman

69
00:03:46,400 --> 00:03:50,360
Speaker 1: is also suing a private investigator who allegedly deceived, threatened,

70
00:03:50,360 --> 00:03:53,800
Speaker 1: and even stalks some of Crowman's tenants, hoping to intimidate

71
00:03:53,880 --> 00:03:56,960
Speaker 1: them into moving global news twenty four hours a day,

72
00:03:57,040 --> 00:04:00,280
Speaker 1: powered by our two journalists in more than one hundred

73
00:04:00,360 --> 00:04:03,520
Speaker 1: fifty news bureaus around the world. From the Bloomberg News Room,

74
00:04:03,560 --> 00:04:07,160
Speaker 1: I'm Mark Crumpton, Charlie, and we thank you and again

75
00:04:07,200 --> 00:04:10,000
Speaker 1: recapping Rally on Wall Street today with the S and

76
00:04:10,040 --> 00:04:13,680
Speaker 1: P five Index climbing twenty five points to two thousand

77
00:04:13,760 --> 00:04:17,000
Speaker 1: eighty four. That is a gain of one point three percent. Again,

78
00:04:17,040 --> 00:04:19,479
Speaker 1: we are awaiting the latest numbers out of Disney. I'm

79
00:04:19,560 --> 00:04:23,839
Speaker 1: Charlie Palette and dance a Bloomberg Business flash. Move around,

80
00:04:23,960 --> 00:04:30,120
Speaker 1: Motion creates promotion, a move you move like they do.

81
00:04:30,240 --> 00:04:36,640
Speaker 1: I've never seen anyone move that back five Peoplet's move

82
00:04:36,720 --> 00:04:44,200
Speaker 1: like you've got a purpose. That was called movers and shakers.

83
00:04:44,560 --> 00:04:47,000
Speaker 1: They cost a little more of that name. Cracked me up.

84
00:04:52,880 --> 00:04:57,120
Speaker 1: Bloomberg taking stocks Movers and Shakers with Pim Fox and

85
00:04:57,240 --> 00:05:02,159
Speaker 1: Kathleen as on Bloomberg Radio. Pretty big thumbs up for

86
00:05:02,200 --> 00:05:04,880
Speaker 1: the stock market today. If we look at the SMP

87
00:05:05,120 --> 00:05:09,119
Speaker 1: five hundred, there were four hundred forty seven gainers, only

88
00:05:09,200 --> 00:05:13,400
Speaker 1: fifty four losers. Four share prices closing unchanged. I'm Kathleen

89
00:05:13,440 --> 00:05:15,719
Speaker 1: Hayes along with Pima Fox as we continue our live

90
00:05:15,760 --> 00:05:19,160
Speaker 1: broadcast at the Boston Convention Exhibition Center out of tonight's

91
00:05:19,160 --> 00:05:23,440
Speaker 1: Greater Boston Chamber of Commerce Annual Meeting. Dave Wilson is

92
00:05:23,440 --> 00:05:25,800
Speaker 1: back at Bloomberg World headquarters in New York City, and

93
00:05:25,839 --> 00:05:28,680
Speaker 1: he's ready to kick off. Movers and Shakers. Let's talk

94
00:05:28,720 --> 00:05:31,400
Speaker 1: about Alagon. You know them as the maker of the

95
00:05:31,440 --> 00:05:36,240
Speaker 1: anti wrinkle treatment Botox. You know yesterday they had a

96
00:05:36,400 --> 00:05:40,360
Speaker 1: six percent gain after as have a pharmaceuticals set expected

97
00:05:40,400 --> 00:05:43,960
Speaker 1: to complete the forty billion dollar purchase of Allgan's Generics

98
00:05:44,000 --> 00:05:47,960
Speaker 1: youn In on time by midyear. While today Alegan came

99
00:05:47,960 --> 00:05:50,479
Speaker 1: out and said they're going to buy back as much

100
00:05:50,520 --> 00:05:54,000
Speaker 1: as ten billion stock dollars in stock after the deal

101
00:05:54,080 --> 00:05:57,640
Speaker 1: gets stunned. And beyond that, Alegan posted first quarter profit

102
00:05:57,680 --> 00:06:00,919
Speaker 1: that beat analysts average estimate the Bloomberg Serve so on

103
00:06:01,080 --> 00:06:06,320
Speaker 1: top of yesterday's game olegant of five point three percent. Today,

104
00:06:06,440 --> 00:06:08,880
Speaker 1: I'll tell you about the shares of General Mills higher

105
00:06:08,960 --> 00:06:10,840
Speaker 1: today by a little bit more than one and a

106
00:06:10,839 --> 00:06:15,240
Speaker 1: half percent. This comes after City Group analyst David Driscoll

107
00:06:15,640 --> 00:06:19,160
Speaker 1: wrote in a report that General Mills maybe a takeover

108
00:06:19,279 --> 00:06:22,760
Speaker 1: candidate for three G Capital. That's the private equity firm

109
00:06:23,000 --> 00:06:25,880
Speaker 1: that has pushed a lot of consolidation in the food

110
00:06:25,920 --> 00:06:29,039
Speaker 1: industry with the help of warm Buffett, and of course

111
00:06:29,080 --> 00:06:34,760
Speaker 1: three G Capital controls Burger King owner Restaurant Brands International.

112
00:06:34,880 --> 00:06:37,640
Speaker 1: Once again, shares of General Mills hired by a little

113
00:06:37,640 --> 00:06:40,880
Speaker 1: bit more than one and a half percent. Well, it's

114
00:06:40,920 --> 00:06:45,120
Speaker 1: not to it's one thousand dollar price target yet, but

115
00:06:45,240 --> 00:06:49,360
Speaker 1: Amazon having a pretty good day after a Sanford Bernstein

116
00:06:49,440 --> 00:06:53,479
Speaker 1: analysts said, yes, he's bullish on Amazon short median and

117
00:06:53,560 --> 00:06:58,039
Speaker 1: long term, and he is predicting this climb that would

118
00:06:58,040 --> 00:07:01,240
Speaker 1: be cheese, would be almost a fifty percent Washington climb

119
00:07:01,240 --> 00:07:03,600
Speaker 1: from where it is, but close to it. Amazon closing

120
00:07:03,640 --> 00:07:05,920
Speaker 1: up three point four percent at seven hunt three dollars

121
00:07:05,960 --> 00:07:09,680
Speaker 1: and twenty four cents. Uh. This is Karl Kershner. His

122
00:07:09,760 --> 00:07:12,920
Speaker 1: price target is now the highest on the street. Analyst

123
00:07:12,960 --> 00:07:15,320
Speaker 1: at JP Morgan has the next highest at nine hundred

124
00:07:15,400 --> 00:07:20,760
Speaker 1: and fifteen dollars. A venture capitalists at Social Capital said

125
00:07:20,800 --> 00:07:24,200
Speaker 1: this past week that Amazon will be a three trillion

126
00:07:24,280 --> 00:07:28,280
Speaker 1: dollar company with in ten years. Day boy boy, if

127
00:07:28,280 --> 00:07:30,480
Speaker 1: you buy any of these arguments, there's still time to

128
00:07:30,480 --> 00:07:33,360
Speaker 1: buy Amazon and make some money. Indeed, you know it's

129
00:07:33,400 --> 00:07:37,120
Speaker 1: coming up to retail earning season. We get results from

130
00:07:37,200 --> 00:07:42,320
Speaker 1: Macy's tomorrow, Cole's, Nordstrom, and Ralph Lauren on Thursday, and

131
00:07:42,360 --> 00:07:45,400
Speaker 1: so what happens. The government comes out with wholesale inventory

132
00:07:45,440 --> 00:07:49,720
Speaker 1: figures and they show that inventories a clothing relative to

133
00:07:49,800 --> 00:07:53,480
Speaker 1: sales when we're talking to POWERL wholesalers are the highest

134
00:07:53,560 --> 00:07:56,640
Speaker 1: on record at two point thirty two months. Not what

135
00:07:56,680 --> 00:07:58,960
Speaker 1: you want to hear in advance of these results. So

136
00:07:59,080 --> 00:08:02,240
Speaker 1: all the stocks I just mentioned went lower, uh, with

137
00:08:02,440 --> 00:08:05,320
Speaker 1: Calls taking the biggest hit, down two point four percent,

138
00:08:05,640 --> 00:08:09,440
Speaker 1: Macy's down two percent, Ralph Lauren down one, and north

139
00:08:09,520 --> 00:08:12,360
Speaker 1: From down seven tents of a percent in today's treading.

140
00:08:13,040 --> 00:08:17,800
Speaker 1: Shares of Kroger lower today, down one and a half percent,

141
00:08:18,000 --> 00:08:20,960
Speaker 1: after the grocery store chain says that it is going

142
00:08:21,000 --> 00:08:25,120
Speaker 1: to hold a nationwide hiring event to fill fourteen thousand

143
00:08:25,280 --> 00:08:29,679
Speaker 1: open jobs across its supermarket chains that includes Ralph's, fred

144
00:08:29,720 --> 00:08:33,480
Speaker 1: Meyer and Food for Less and Uh. This company, of

145
00:08:33,520 --> 00:08:36,480
Speaker 1: course are based in Cincinnati. They've got nearly twenty eight

146
00:08:36,559 --> 00:08:41,280
Speaker 1: hundred stores, including the pay Less and the King Scoopers

147
00:08:41,320 --> 00:08:44,120
Speaker 1: as well as Baker's, and they are looking to create

148
00:08:44,720 --> 00:08:51,360
Speaker 1: twenty thousand new jobs since well, another retailer, Gap, Gap

149
00:08:51,480 --> 00:08:53,920
Speaker 1: is down about eleven and a half percent today, closing

150
00:08:53,960 --> 00:08:58,120
Speaker 1: around nine ninets a share. What happened, well, Uh, they

151
00:08:58,120 --> 00:09:01,120
Speaker 1: are same store sales, the very import benchmark for retailers

152
00:09:01,160 --> 00:09:03,880
Speaker 1: down seven percent in April. That's what Gaps said, today

153
00:09:03,880 --> 00:09:06,280
Speaker 1: and analyst A predicted gain at one point one percent.

154
00:09:06,559 --> 00:09:09,000
Speaker 1: They got a new CEO last year, he's today He's

155
00:09:09,040 --> 00:09:11,640
Speaker 1: gonna have a big turnaround that would show up by now. Instead.

156
00:09:12,080 --> 00:09:14,800
Speaker 1: Their slugg a store traffic from March continued in April,

157
00:09:15,240 --> 00:09:18,120
Speaker 1: especially bad at Old Navy. Comparable sales at that chain

158
00:09:18,160 --> 00:09:21,800
Speaker 1: plunged ten percent in April. It is time now for

159
00:09:21,840 --> 00:09:24,160
Speaker 1: the Volatility Index Report. It is brought to you by

160
00:09:24,200 --> 00:09:27,959
Speaker 1: cbo E VIX Options and Futures. Volatility can be harnessed

161
00:09:27,960 --> 00:09:31,680
Speaker 1: with cbo E VIX Options and Futures c disclosures. Learn

162
00:09:31,760 --> 00:09:36,360
Speaker 1: more at cbo E dot com Slash Powerful Outcomes VIX.

163
00:09:36,720 --> 00:09:40,560
Speaker 1: The VIX lower today down more than six percent, down

164
00:09:40,640 --> 00:09:44,920
Speaker 1: point nine oh, settling at thirteen point six seven and

165
00:09:45,040 --> 00:09:47,480
Speaker 1: at one point you know the wild moves today in

166
00:09:47,520 --> 00:09:51,080
Speaker 1: the VIX of one percent and down one percent. Currently

167
00:09:51,360 --> 00:09:53,400
Speaker 1: the level of the VIX is half what we saw

168
00:09:53,480 --> 00:10:00,720
Speaker 1: in February. Complacently is setting in. All right, Dave, you're hi,

169
00:10:01,559 --> 00:10:05,960
Speaker 1: My name is Dave. Well, just what do you think

170
00:10:06,000 --> 00:10:14,760
Speaker 1: you're doing? Day? Were day? An investress might put up

171
00:10:14,760 --> 00:10:17,280
Speaker 1: with one or two disappointing earning supports, but when you

172
00:10:17,320 --> 00:10:21,520
Speaker 1: have four straight quarterly losses or disappointments in a row.

173
00:10:21,640 --> 00:10:23,720
Speaker 1: I guess that could be tough, and this brings us

174
00:10:23,720 --> 00:10:25,600
Speaker 1: to Dave Wilson and his stock of the day. Pr

175
00:10:25,640 --> 00:10:28,200
Speaker 1: A Group. That's right, Kathleen. This company is a debt

176
00:10:28,240 --> 00:10:32,839
Speaker 1: collector that begins twenty years ago as Portfolio Recovery Associates.

177
00:10:33,000 --> 00:10:35,400
Speaker 1: Company buys consumer loans have gone bad and tries to

178
00:10:35,440 --> 00:10:38,160
Speaker 1: get borrowers to pay up. It does business in the US, Canada,

179
00:10:38,160 --> 00:10:41,080
Speaker 1: and Europe. Pr A has been publicly traded since two

180
00:10:41,120 --> 00:10:44,800
Speaker 1: thousand two, as listed under the ticker p r A. A.

181
00:10:44,840 --> 00:10:47,520
Speaker 1: Company shares rose as much as tenfold during the current

182
00:10:47,559 --> 00:10:50,360
Speaker 1: bullmarket in the US, stocks peak at sixty five dollars

183
00:10:50,440 --> 00:10:54,040
Speaker 1: each in November four. Since then, p r A has

184
00:10:54,080 --> 00:10:57,240
Speaker 1: given back most of its bullmarket games. The shares retreated

185
00:10:57,320 --> 00:11:00,959
Speaker 1: as one earnings reported after another proved to be disappointing.

186
00:11:01,120 --> 00:11:03,559
Speaker 1: The company's results for the first quarter were released late

187
00:11:03,640 --> 00:11:06,640
Speaker 1: yesterday and brought Moore the same p r A earned

188
00:11:06,720 --> 00:11:10,160
Speaker 1: eighty five cents to share. Alice expected ninety four cents

189
00:11:10,160 --> 00:11:13,040
Speaker 1: on average. According to a Bloomberg Survey revenue trail the

190
00:11:13,080 --> 00:11:16,600
Speaker 1: average estimate by six point three percent, and that was

191
00:11:16,640 --> 00:11:20,240
Speaker 1: the fifth straight quarterly shortfall on the top line. Now,

192
00:11:20,280 --> 00:11:23,319
Speaker 1: the latest disappointment sent p r A shares to their

193
00:11:23,360 --> 00:11:27,520
Speaker 1: biggest one day loss ever. The stock tumbled almost nineteen

194
00:11:27,679 --> 00:11:31,800
Speaker 1: percent in today's trading. Thank you very much, David Wilson.

195
00:11:31,840 --> 00:11:36,360
Speaker 1: Bloomberg Stocks commis coming up. We continue broadcasting live from

196
00:11:36,520 --> 00:11:42,439
Speaker 1: the Boston Convention and Exhibition Center four Tonight's Greater Boston

197
00:11:42,600 --> 00:11:47,520
Speaker 1: Chamber of Commerce sixteen Annual Meeting. We're gonna introduce you

198
00:11:47,640 --> 00:11:53,439
Speaker 1: to one of the first investors in Cascade Communications. Find

199
00:11:53,440 --> 00:11:57,000
Speaker 1: out how to turn a tech idea into a tech business.

200
00:11:57,320 --> 00:12:05,599
Speaker 1: If you're listening to taking stock on Bloomberg Radio, Boomertiki

201
00:12:05,679 --> 00:12:07,800
Speaker 1: stock is brought to you by the Town of Hempstead

202
00:12:07,840 --> 00:12:10,720
Speaker 1: Industrial Development Agency. Find out how to put the Town

203
00:12:10,720 --> 00:12:13,280
Speaker 1: of Hempstead I d A to work for your business.

204
00:12:13,280 --> 00:12:15,760
Speaker 1: Called one eight hundred five nine three thirty eight seventy

205
00:12:15,840 --> 00:12:18,280
Speaker 1: or visit t O h I d A dot org.