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Speaker 1: Global business news twenty four hours a day. If Bloomberg

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Speaker 1: dot com so the radio plus mobile and on your radio.

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Speaker 1: This is a Roomberg business flash from Bloomberg World Handquarters.

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Speaker 1: I'm Charlie Pellett's folks from World Parkinson's coalition ringing the

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Speaker 1: closing bell. Biggest drop for stocks in three weeks as

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Speaker 1: Apple at an afternoon sell off in technology shares, overshadowing

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Speaker 1: corporate deals and strong results from Facebook. Facebook up today

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Speaker 1: by seven point two percent, Apple lower by three point

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Speaker 1: one percent. Jeff Morris is head of US Equities at

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Speaker 1: Standard Life Investments. He was our guest minutes ago right

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Speaker 1: here on taking stock. When you think about how we

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Speaker 1: came out of the financial crisis, there was ample despair,

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Speaker 1: you know, valuations were lower, and now the market is

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Speaker 1: has moved up, has escalated for some time, and now

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Speaker 1: seems to be just chopping sideways trying to digest this

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Speaker 1: environment of slow growth and relatively high valuation. So it's

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Speaker 1: really a time, I think that, and someone has to

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Speaker 1: be more focused on how they think about the market.

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Speaker 1: And today the SMP five hundred index fell nineteen points

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Speaker 1: down nine tenths of one percent down. Industriels down two

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Speaker 1: hundred seven points, a drop of one two percent, and

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Speaker 1: has stack down fifty seven, a drop there of one

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Speaker 1: point two percent. Gold advancing nineteen ten the ounce to

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Speaker 1: twelve sixty nine fifty a gain of one and a

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Speaker 1: half percent. Crewed up seven tenths of one percent forty

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Speaker 1: five sixty five a barrel. Abbot Labs buying heart device

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Speaker 1: makers St Jude Medical for twenty five billion dollars. Sasha

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Speaker 1: the Moony covers healthcare for Bloomberg News. She was interviewed

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Speaker 1: right here on taking stars. A good time for Abbott

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Speaker 1: to come in for this acquisition St Jude. I've been

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Speaker 1: covering healthcare for thirteen fourteen years. St. Jude has been

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Speaker 1: a perennial target every single year to the point where

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Speaker 1: you think, you know what, this company is never going

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Speaker 1: to be acquired, so they get acquired. The valuation if

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Speaker 1: you if you look at where they're trading at right now,

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Speaker 1: around seventy nine per share. The valuation is in line

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Speaker 1: to what it was in jull I last year and

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Speaker 1: St Jude up today by twenty five point six percent.

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Speaker 1: Am Jin top first quarter profit estimates, also boosting its

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Speaker 1: two thousand sixteen forecast. SMP down nineteen, the drop of

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Speaker 1: nine tenths of one percent four O two on Wall Street.

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Speaker 1: Now we'll look at other news from around the world

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Speaker 1: on Bloomberg Radio. Charlie, thank you from the Bloomberg News Room.

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Speaker 1: I Mark Crumpton. The United Nations Security Council is condemning

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Speaker 1: Wednesday's deadly air strike at a Syrian hospital run by

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Speaker 1: doctors without Borders. More than twenty people were killed in

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Speaker 1: the latest attack on a hospital in the country. Opposition

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Speaker 1: activists blame the government of Syrian President but shar Alissade

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Speaker 1: for the renewed violence. Senator Ted Cruz, at a rally

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Speaker 1: in Fort Wayne, Indiana, today, praised his new vice presidential pick,

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Speaker 1: Carly Fiorina. Carley has spent her whole life shattering glass

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Speaker 1: seilings and the naming of vice presidential nominee that may

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Speaker 1: well be the most solemn, serious decision any president candidate has.

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Speaker 1: Donald Trump says the Republican presidential race is over if

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Speaker 1: he wins in Indiana next week, but he's still railing

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Speaker 1: against what he calls the crooked way the party picks

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Speaker 1: its nominee. Speaking in Evansville, Indiana, today, Mr Trump claimed

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Speaker 1: that Ted Cruz was unfairly winning delegates. How Speaker Paul

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Speaker 1: Ryan is inviting Indian Prime Minister narnthram Mouthy to speak

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Speaker 1: at a joint meeting of Congress this summer. This address

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Speaker 1: presents a special opportunity for us to deepen our ties

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Speaker 1: with our with our ally India. It is a chance

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Speaker 1: to hear from the Prime Minister on how we can

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Speaker 1: work together to promote our shared values into increased prosperity.

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Speaker 1: Duke Ellington's suits, piano and other belongings are heading for auction.

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Speaker 1: Auction house Gernsney says about two hundred fifty items will

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Speaker 1: be offered May eighteenth at the National Jazz Museum in Harlem.

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Speaker 1: Ellington's iconic white baby grand piano could bring as much

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Speaker 1: as one million dollars. Global News twenty four hours a day,

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Speaker 1: powered by our two hundred journalists in more in one

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Speaker 1: fifty news bureaus around the world. From the Bloomberg News Room.

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Speaker 1: I'm Mark Crumpton, Charlie, and we thank you and again

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Speaker 1: recapping a move horor for stocks today SMP down nineteen,

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Speaker 1: a drop of nine tenths of one percent. Seconds ago.

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Speaker 1: We did hear from Amazon dot Com reporting earnings per

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Speaker 1: share of a dollar seven estimates there fifty seven cents.

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Speaker 1: Net sales twenty nine point one billion dollars estimates twenty

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Speaker 1: eight billion right now looking at Amazon shares six sixty

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Speaker 1: seven in the extended session. They finished the regular session

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Speaker 1: New York trading at six o two. So certainly a

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Speaker 1: stock and a story we're watching after ours. I'm Charlie Palatine.

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Speaker 1: That's a Bloomberg business flash. Move around, most great promotion.

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Speaker 1: I the el move you move like they do. I've

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Speaker 1: never seen anyone move that shot five people. Let's move

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Speaker 1: luck to get a purpose. That was called movers and shakers.

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Speaker 1: They cost a little more. That name cracked me up.

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Speaker 1: Bloomberg taking stock movers and shakers with Bim Fox and

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Speaker 1: Kathleen As on Bloomberg Radio. Well, Charlie palotis reporting on

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Speaker 1: those Amazon results. Wow. The first quarter earnings for Shore

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Speaker 1: at a hundred excuse me, a dollar seven cents versus

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Speaker 1: an estimated fifty seven cents reminds me of Facebook. Uh,

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Speaker 1: just blowing off the door with its EPs yesterday. On

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Speaker 1: the second quarter net sales, Uh, they were a bit

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Speaker 1: higher the net sales coming in. But it's a second

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Speaker 1: quarter outlook where they're expecting twenty point eight to thirty

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Speaker 1: billion dollars in change versus the twenty nine point billion

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Speaker 1: one billion reported in the first quarter that we're going

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Speaker 1: to be looking at shortly. I just want to break

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Speaker 1: down the SP five hundred today. We've got nine gamers

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Speaker 1: for Herden, two losers, four un changed. Dave Wilson are

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Speaker 1: stocks set, a r is here, and we've got of

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Speaker 1: course Pim Fox and meet Kathleen Hayes. Paul Sweeney, who's

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Speaker 1: the director of research at Bloomberg Intelligence follows Amazon very closely.

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Speaker 1: Probably want you to jump in and give us your

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Speaker 1: first blessed analysis of these results be able. The market

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Speaker 1: certainly likes these numbers. The stocks up about nine or

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Speaker 1: ten percent uh here in the aftermarket. So just a

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Speaker 1: real blowout in quarter in terms of revenue and EPs

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Speaker 1: relative to consensus estimates. And I think even more more importantly,

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Speaker 1: the company's guidance for for revenue for the second quarter

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Speaker 1: is better than expected as well. So you know what,

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Speaker 1: Amazon investors have always been, uh, you know, accustomed to

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Speaker 1: extremely strong top line growth, but now the company is

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Speaker 1: actually starting to deliver some profits, which is something that

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Speaker 1: Amazon investors really haven't had much of in the past.

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Speaker 1: Let me just add a little bit having to do

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Speaker 1: with Amazon Web Services, one of the most well one

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Speaker 1: of the strongest growing businesses that Amazon has about ten

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Speaker 1: percent of their business. But Amazon Web Services reporting that

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Speaker 1: they did two point five seven billion dollars in business.

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Speaker 1: That's compared to two point five three billion that was

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Speaker 1: estimated by analysts, so beating analysts estimates there. And also

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Speaker 1: the company says that customers bought twice as many fire

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Speaker 1: tablets as a year ago, So uh, customers buying more

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Speaker 1: and people using the Amazon Web Services even more. Shares

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Speaker 1: of Amazon are up twelve and a half percent UH

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Speaker 1: in after hours trading. Dave Wilson, Well, you know, you

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Speaker 1: can't just look at the web services business, which really

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Speaker 1: the growth engine of Amazon, uh, with without sort of

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Speaker 1: looking at the year or two year comparisons. We're talking

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Speaker 1: about sales up by a billion dollars, sixty percent, operating

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Speaker 1: income more than tripling. I mean, do we really need

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Speaker 1: to focus more on this side of the business, the

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Speaker 1: whole cloud community business to understand what's going on at

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Speaker 1: Amazon these days? That's the question to you. Paul Sweeney. Yeah,

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Speaker 1: I think that you know, one of the things about

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Speaker 1: the cloud business for you know, all the tech tech companies.

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Speaker 1: It's obviously um extraordinary growth story within tech overall. But

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Speaker 1: what's I think Amazon investors like about this business in

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Speaker 1: addition to that huge six revenue growth, is the fact

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Speaker 1: that it's actually profitable UM and you know, very strong

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Speaker 1: profit margins there, which again is something profits that Amazon

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Speaker 1: investors really haven't seen too much in the life of

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Speaker 1: the company. So it's certainly you know, Amazon has certainly

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Speaker 1: got a leading position in that marketplace. But as our

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Speaker 1: tech research has shown over the last couple of years,

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Speaker 1: it's an incredibly competitive market plays lots of big players,

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Speaker 1: lots of price competition UM. But AWS is clearly a

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Speaker 1: leader there. And again it's a profitable business for Amazon,

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Speaker 1: one of the best performing stocks last year. That's Amazon

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Speaker 1: really doubling its market volume. TEA. What are we waiting

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Speaker 1: to hear on the call from Jeff Bezos? You know,

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Speaker 1: I think it's uh, I think we're waiting to see

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Speaker 1: a little bit about how they're thinking about the overall

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Speaker 1: expense and investment UM in terms of operating expenses and

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Speaker 1: capital expenses in the core business. Again, there's always a

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Speaker 1: question there of are they going to rewatch it up

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Speaker 1: uh expense growth and at the expense of near term profits.

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Speaker 1: So I think people want to get a sense of

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Speaker 1: what is their outlook for expense growth going forward, because

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Speaker 1: we know the top line is very strong. And then

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Speaker 1: number two is again on the cloud business. You know,

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Speaker 1: how sustainable is this type of growth in this type

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Speaker 1: of profitability because investors are certainly getting used to seeing

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Speaker 1: these kind of numbers out of the cloud business. Just

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Speaker 1: to recap, Amazon dot Com reporting first quarter earnings per

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Speaker 1: share of a dollar seven versus analyst estimates of fifty

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Speaker 1: seven cents. Company also reporting net sales of twenty nine

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Speaker 1: point one billion dollars versus estimates of eight billion dollars

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Speaker 1: that was provided by analysts. Once again, shares of Amazon

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Speaker 1: right now are up about twelve percent and after hours trading.

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Speaker 1: I want to thank you very much Paul Sweeney joining

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Speaker 1: us from Bloomberg Intelligence. All right, now, it's time for

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Speaker 1: the Volatility Index Report. It is brought to you by

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Speaker 1: cbo E VIX Options and Futures. Volatility can be harnessed

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Speaker 1: The VIX move higher today, up more than a ten percent,

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Speaker 1: up one point three eight, settling at a fifteen point

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Speaker 1: of fifteen. Now taking a look at the VIX, it's

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Speaker 1: important to note that many people have been piling money

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Speaker 1: into e t f s connected to the VIX, and

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Speaker 1: that typically in the past has been a sign of

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Speaker 1: a potential market downturn. All right, Dave, you're up. Uh Hi,

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Speaker 1: my name is Dave. Just what do you think you're doing? Things?

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Speaker 1: We're going on will for moment four Dave. Carbo Ceramics, Dave,

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Speaker 1: how come they've gotten left behind? Well, that's really the

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Speaker 1: question you think about what's going on with energy stocks.

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Speaker 1: The way the price of oil is rebounded in the

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Speaker 1: least two and a half months, Carbo Suramics has been

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Speaker 1: certainly left out of the recovery. Now, this is a

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Speaker 1: company that provides what's called a suram mcpropp and used

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Speaker 1: by oil natural gas producers to prop open wells in

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Speaker 1: shale fields after fracking. Carbo Ceramics listed under the ticker

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Speaker 1: c R. Are they really tracked the two energy booms

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Speaker 1: and bus that have taken place since two thousand nine,

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Speaker 1: That said it came out with first quarter results today

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Speaker 1: that showed just how badly it's business has suffered. For

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Speaker 1: the fifth grade quarter, carbon Ceramics postal loss and saw

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Speaker 1: revenue fall more than fifty percent. Now chief exacutive Gary

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Speaker 1: Coolestants in the statement the Carbon Ceramics may need to

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Speaker 1: tap news sources of financing. He had that company may

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Speaker 1: try to generate revenue from its technology and plans more

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Speaker 1: cuts in pay, but that altogether shares a carbon Ceramics

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Speaker 1: fell as much as twenty one percent today, traded at

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Speaker 1: a record low and closed with a loss of Dave Wilson,

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Speaker 1: Thank you very much Bloomberg Stocks comments. Follow him on

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Speaker 1: Twitter at the One Dave. Send him an email at

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Speaker 1: d Wilson at Bloomberg dot net. Sign up for his

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Speaker 1: free daily email newsletter. You're listening to taking Stock on

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Speaker 1: Bloomberg Radio Bloomberg. Taking Stock is brought to you by

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