Speaker 1: Global business news twenty four hours a day. If Bloomberg
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Speaker 1: This is a Roomberg business flash from Bloomberg World Handquarters.
Speaker 1: I'm Charlie Pellett's folks from World Parkinson's coalition ringing the
Speaker 1: closing bell. Biggest drop for stocks in three weeks as
Speaker 1: Apple at an afternoon sell off in technology shares, overshadowing
Speaker 1: corporate deals and strong results from Facebook. Facebook up today
Speaker 1: by seven point two percent, Apple lower by three point
Speaker 1: one percent. Jeff Morris is head of US Equities at
Speaker 1: Standard Life Investments. He was our guest minutes ago right
Speaker 1: here on taking stock. When you think about how we
Speaker 1: came out of the financial crisis, there was ample despair,
Speaker 1: you know, valuations were lower, and now the market is
Speaker 1: has moved up, has escalated for some time, and now
Speaker 1: seems to be just chopping sideways trying to digest this
Speaker 1: environment of slow growth and relatively high valuation. So it's
Speaker 1: really a time, I think that, and someone has to
Speaker 1: be more focused on how they think about the market.
Speaker 1: And today the SMP five hundred index fell nineteen points
Speaker 1: down nine tenths of one percent down. Industriels down two
Speaker 1: hundred seven points, a drop of one two percent, and
Speaker 1: has stack down fifty seven, a drop there of one
Speaker 1: point two percent. Gold advancing nineteen ten the ounce to
Speaker 1: twelve sixty nine fifty a gain of one and a
Speaker 1: half percent. Crewed up seven tenths of one percent forty
Speaker 1: five sixty five a barrel. Abbot Labs buying heart device
Speaker 1: makers St Jude Medical for twenty five billion dollars. Sasha
Speaker 1: the Moony covers healthcare for Bloomberg News. She was interviewed
Speaker 1: right here on taking stars. A good time for Abbott
Speaker 1: to come in for this acquisition St Jude. I've been
Speaker 1: covering healthcare for thirteen fourteen years. St. Jude has been
Speaker 1: a perennial target every single year to the point where
Speaker 1: you think, you know what, this company is never going
Speaker 1: to be acquired, so they get acquired. The valuation if
Speaker 1: you if you look at where they're trading at right now,
Speaker 1: around seventy nine per share. The valuation is in line
Speaker 1: to what it was in jull I last year and
Speaker 1: St Jude up today by twenty five point six percent.
Speaker 1: Am Jin top first quarter profit estimates, also boosting its
Speaker 1: two thousand sixteen forecast. SMP down nineteen, the drop of
Speaker 1: nine tenths of one percent four O two on Wall Street.
Speaker 1: Now we'll look at other news from around the world
Speaker 1: on Bloomberg Radio. Charlie, thank you from the Bloomberg News Room.
Speaker 1: I Mark Crumpton. The United Nations Security Council is condemning
Speaker 1: Wednesday's deadly air strike at a Syrian hospital run by
Speaker 1: doctors without Borders. More than twenty people were killed in
Speaker 1: the latest attack on a hospital in the country. Opposition
Speaker 1: activists blame the government of Syrian President but shar Alissade
Speaker 1: for the renewed violence. Senator Ted Cruz, at a rally
Speaker 1: in Fort Wayne, Indiana, today, praised his new vice presidential pick,
Speaker 1: Carly Fiorina. Carley has spent her whole life shattering glass
Speaker 1: seilings and the naming of vice presidential nominee that may
Speaker 1: well be the most solemn, serious decision any president candidate has.
Speaker 1: Donald Trump says the Republican presidential race is over if
Speaker 1: he wins in Indiana next week, but he's still railing
Speaker 1: against what he calls the crooked way the party picks
Speaker 1: its nominee. Speaking in Evansville, Indiana, today, Mr Trump claimed
Speaker 1: that Ted Cruz was unfairly winning delegates. How Speaker Paul
Speaker 1: Ryan is inviting Indian Prime Minister narnthram Mouthy to speak
Speaker 1: at a joint meeting of Congress this summer. This address
Speaker 1: presents a special opportunity for us to deepen our ties
Speaker 1: with our with our ally India. It is a chance
Speaker 1: to hear from the Prime Minister on how we can
Speaker 1: work together to promote our shared values into increased prosperity.
Speaker 1: Duke Ellington's suits, piano and other belongings are heading for auction.
Speaker 1: Auction house Gernsney says about two hundred fifty items will
Speaker 1: be offered May eighteenth at the National Jazz Museum in Harlem.
Speaker 1: Ellington's iconic white baby grand piano could bring as much
Speaker 1: as one million dollars. Global News twenty four hours a day,
Speaker 1: powered by our two hundred journalists in more in one
Speaker 1: fifty news bureaus around the world. From the Bloomberg News Room.
Speaker 1: I'm Mark Crumpton, Charlie, and we thank you and again
Speaker 1: recapping a move horor for stocks today SMP down nineteen,
Speaker 1: a drop of nine tenths of one percent. Seconds ago.
Speaker 1: We did hear from Amazon dot Com reporting earnings per
Speaker 1: share of a dollar seven estimates there fifty seven cents.
Speaker 1: Net sales twenty nine point one billion dollars estimates twenty
Speaker 1: eight billion right now looking at Amazon shares six sixty
Speaker 1: seven in the extended session. They finished the regular session
Speaker 1: New York trading at six o two. So certainly a
Speaker 1: stock and a story we're watching after ours. I'm Charlie Palatine.
Speaker 1: That's a Bloomberg business flash. Move around, most great promotion.
Speaker 1: I the el move you move like they do. I've
Speaker 1: never seen anyone move that shot five people. Let's move
Speaker 1: luck to get a purpose. That was called movers and shakers.
Speaker 1: They cost a little more. That name cracked me up.
Speaker 1: Bloomberg taking stock movers and shakers with Bim Fox and
Speaker 1: Kathleen As on Bloomberg Radio. Well, Charlie palotis reporting on
Speaker 1: those Amazon results. Wow. The first quarter earnings for Shore
Speaker 1: at a hundred excuse me, a dollar seven cents versus
Speaker 1: an estimated fifty seven cents reminds me of Facebook. Uh,
Speaker 1: just blowing off the door with its EPs yesterday. On
Speaker 1: the second quarter net sales, Uh, they were a bit
Speaker 1: higher the net sales coming in. But it's a second
Speaker 1: quarter outlook where they're expecting twenty point eight to thirty
Speaker 1: billion dollars in change versus the twenty nine point billion
Speaker 1: one billion reported in the first quarter that we're going
Speaker 1: to be looking at shortly. I just want to break
Speaker 1: down the SP five hundred today. We've got nine gamers
Speaker 1: for Herden, two losers, four un changed. Dave Wilson are
Speaker 1: stocks set, a r is here, and we've got of
Speaker 1: course Pim Fox and meet Kathleen Hayes. Paul Sweeney, who's
Speaker 1: the director of research at Bloomberg Intelligence follows Amazon very closely.
Speaker 1: Probably want you to jump in and give us your
Speaker 1: first blessed analysis of these results be able. The market
Speaker 1: certainly likes these numbers. The stocks up about nine or
Speaker 1: ten percent uh here in the aftermarket. So just a
Speaker 1: real blowout in quarter in terms of revenue and EPs
Speaker 1: relative to consensus estimates. And I think even more more importantly,
Speaker 1: the company's guidance for for revenue for the second quarter
Speaker 1: is better than expected as well. So you know what,
Speaker 1: Amazon investors have always been, uh, you know, accustomed to
Speaker 1: extremely strong top line growth, but now the company is
Speaker 1: actually starting to deliver some profits, which is something that
Speaker 1: Amazon investors really haven't had much of in the past.
Speaker 1: Let me just add a little bit having to do
Speaker 1: with Amazon Web Services, one of the most well one
Speaker 1: of the strongest growing businesses that Amazon has about ten
Speaker 1: percent of their business. But Amazon Web Services reporting that
Speaker 1: they did two point five seven billion dollars in business.
Speaker 1: That's compared to two point five three billion that was
Speaker 1: estimated by analysts, so beating analysts estimates there. And also
Speaker 1: the company says that customers bought twice as many fire
Speaker 1: tablets as a year ago, So uh, customers buying more
Speaker 1: and people using the Amazon Web Services even more. Shares
Speaker 1: of Amazon are up twelve and a half percent UH
Speaker 1: in after hours trading. Dave Wilson, Well, you know, you
Speaker 1: can't just look at the web services business, which really
Speaker 1: the growth engine of Amazon, uh, with without sort of
Speaker 1: looking at the year or two year comparisons. We're talking
Speaker 1: about sales up by a billion dollars, sixty percent, operating
Speaker 1: income more than tripling. I mean, do we really need
Speaker 1: to focus more on this side of the business, the
Speaker 1: whole cloud community business to understand what's going on at
Speaker 1: Amazon these days? That's the question to you. Paul Sweeney. Yeah,
Speaker 1: I think that you know, one of the things about
Speaker 1: the cloud business for you know, all the tech tech companies.
Speaker 1: It's obviously um extraordinary growth story within tech overall. But
Speaker 1: what's I think Amazon investors like about this business in
Speaker 1: addition to that huge six revenue growth, is the fact
Speaker 1: that it's actually profitable UM and you know, very strong
Speaker 1: profit margins there, which again is something profits that Amazon
Speaker 1: investors really haven't seen too much in the life of
Speaker 1: the company. So it's certainly you know, Amazon has certainly
Speaker 1: got a leading position in that marketplace. But as our
Speaker 1: tech research has shown over the last couple of years,
Speaker 1: it's an incredibly competitive market plays lots of big players,
Speaker 1: lots of price competition UM. But AWS is clearly a
Speaker 1: leader there. And again it's a profitable business for Amazon,
Speaker 1: one of the best performing stocks last year. That's Amazon
Speaker 1: really doubling its market volume. TEA. What are we waiting
Speaker 1: to hear on the call from Jeff Bezos? You know,
Speaker 1: I think it's uh, I think we're waiting to see
Speaker 1: a little bit about how they're thinking about the overall
Speaker 1: expense and investment UM in terms of operating expenses and
Speaker 1: capital expenses in the core business. Again, there's always a
Speaker 1: question there of are they going to rewatch it up
Speaker 1: uh expense growth and at the expense of near term profits.
Speaker 1: So I think people want to get a sense of
Speaker 1: what is their outlook for expense growth going forward, because
Speaker 1: we know the top line is very strong. And then
Speaker 1: number two is again on the cloud business. You know,
Speaker 1: how sustainable is this type of growth in this type
Speaker 1: of profitability because investors are certainly getting used to seeing
Speaker 1: these kind of numbers out of the cloud business. Just
Speaker 1: to recap, Amazon dot Com reporting first quarter earnings per
Speaker 1: share of a dollar seven versus analyst estimates of fifty
Speaker 1: seven cents. Company also reporting net sales of twenty nine
Speaker 1: point one billion dollars versus estimates of eight billion dollars
Speaker 1: that was provided by analysts. Once again, shares of Amazon
Speaker 1: right now are up about twelve percent and after hours trading.
Speaker 1: I want to thank you very much Paul Sweeney joining
Speaker 1: us from Bloomberg Intelligence. All right, now, it's time for
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Speaker 1: The VIX move higher today, up more than a ten percent,
Speaker 1: up one point three eight, settling at a fifteen point
Speaker 1: of fifteen. Now taking a look at the VIX, it's
Speaker 1: important to note that many people have been piling money
Speaker 1: into e t f s connected to the VIX, and
Speaker 1: that typically in the past has been a sign of
Speaker 1: a potential market downturn. All right, Dave, you're up. Uh Hi,
Speaker 1: my name is Dave. Just what do you think you're doing? Things?
Speaker 1: We're going on will for moment four Dave. Carbo Ceramics, Dave,
Speaker 1: how come they've gotten left behind? Well, that's really the
Speaker 1: question you think about what's going on with energy stocks.
Speaker 1: The way the price of oil is rebounded in the
Speaker 1: least two and a half months, Carbo Suramics has been
Speaker 1: certainly left out of the recovery. Now, this is a
Speaker 1: company that provides what's called a suram mcpropp and used
Speaker 1: by oil natural gas producers to prop open wells in
Speaker 1: shale fields after fracking. Carbo Ceramics listed under the ticker
Speaker 1: c R. Are they really tracked the two energy booms
Speaker 1: and bus that have taken place since two thousand nine,
Speaker 1: That said it came out with first quarter results today
Speaker 1: that showed just how badly it's business has suffered. For
Speaker 1: the fifth grade quarter, carbon Ceramics postal loss and saw
Speaker 1: revenue fall more than fifty percent. Now chief exacutive Gary
Speaker 1: Coolestants in the statement the Carbon Ceramics may need to
Speaker 1: tap news sources of financing. He had that company may
Speaker 1: try to generate revenue from its technology and plans more
Speaker 1: cuts in pay, but that altogether shares a carbon Ceramics
Speaker 1: fell as much as twenty one percent today, traded at
Speaker 1: a record low and closed with a loss of Dave Wilson,
Speaker 1: Thank you very much Bloomberg Stocks comments. Follow him on
Speaker 1: Twitter at the One Dave. Send him an email at
Speaker 1: d Wilson at Bloomberg dot net. Sign up for his
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