1 00:00:02,320 --> 00:00:05,720 Speaker 1: Global Business News twenty four hours a day. If Bloomberg 2 00:00:05,760 --> 00:00:08,399 Speaker 1: dot com the radio plus mobile app and on your 3 00:00:08,520 --> 00:00:11,840 Speaker 1: radio this he's a Bloomberg business flag. And there you 4 00:00:11,920 --> 00:00:14,040 Speaker 1: have its sound of the closing peal. As we wrap 5 00:00:14,120 --> 00:00:17,239 Speaker 1: up trading on this fed Wednesday, July twenty seven, the 6 00:00:17,360 --> 00:00:20,800 Speaker 1: dowin SMP Lower nesdac Hire folks from the National Parks 7 00:00:20,840 --> 00:00:24,240 Speaker 1: Foundation ringing that closing bell. We are awaiting the latest 8 00:00:24,320 --> 00:00:27,320 Speaker 1: numbers out of Alphabet, the parrot of Google and Facebook 9 00:00:27,400 --> 00:00:30,760 Speaker 1: Facebook up today by one point eight percent. We did 10 00:00:30,800 --> 00:00:34,720 Speaker 1: have Alphabet advancing by five tenths of one percent. Stock 11 00:00:34,800 --> 00:00:38,599 Speaker 1: showed little reaction after Federal Reserve policymakers said near term 12 00:00:38,720 --> 00:00:42,040 Speaker 1: risks to the economic outlook have diminished, even as they 13 00:00:42,120 --> 00:00:47,280 Speaker 1: left interest rates unchanged. Reaction from Charles Plosser, former president 14 00:00:47,360 --> 00:00:49,800 Speaker 1: and CEO of the Philadelphia FEDE. He was our guest 15 00:00:49,880 --> 00:00:53,400 Speaker 1: this afternoon right here on taking stock well was pretty 16 00:00:53,479 --> 00:00:56,400 Speaker 1: much as expected. The most interesting part of it was 17 00:00:56,480 --> 00:01:01,080 Speaker 1: they won a long way I think, uh to disavowing, 18 00:01:01,160 --> 00:01:04,560 Speaker 1: in other words, undoing all the fears that they placed 19 00:01:05,000 --> 00:01:07,800 Speaker 1: at the last meeting. They prevented them from moving ahead 20 00:01:07,840 --> 00:01:10,160 Speaker 1: with an interest rate hack. So the Federal Reserve, leaving 21 00:01:10,240 --> 00:01:14,319 Speaker 1: rates unchanged, while saying risks to the economy have subsided. 22 00:01:14,600 --> 00:01:17,360 Speaker 1: The tenure of sixteen thirty seconds with the yield of 23 00:01:17,400 --> 00:01:20,880 Speaker 1: one point five percent. Gold now up twenty dollars the 24 00:01:20,959 --> 00:01:23,280 Speaker 1: ounce to thirteen forty one, a gain there of one 25 00:01:23,319 --> 00:01:26,600 Speaker 1: and a half percent. SMP five hundred index down two 26 00:01:26,680 --> 00:01:29,800 Speaker 1: points to one sixty six, a drop of point one percent, 27 00:01:30,160 --> 00:01:33,039 Speaker 1: the dows swinging between gains and losses right into the 28 00:01:33,040 --> 00:01:36,679 Speaker 1: closed down industrials, now lower by less than half a point. 29 00:01:36,680 --> 00:01:40,919 Speaker 1: We'll call that unchanged at eighteen thousand, four hundred seventy three. 30 00:01:41,319 --> 00:01:44,679 Speaker 1: Oil Crude Oil West Texas Intermediate down ninety one sends 31 00:01:44,720 --> 00:01:46,840 Speaker 1: forty two oh to a barrel, that is a drop 32 00:01:46,920 --> 00:01:50,760 Speaker 1: of two point one percent. Apple shares up today by 33 00:01:50,920 --> 00:01:54,400 Speaker 1: six point six percent after last night's earnings report, lower 34 00:01:54,440 --> 00:01:58,960 Speaker 1: cost iPhone se gaining more traction than expected, with users 35 00:01:59,240 --> 00:02:03,040 Speaker 1: heading the other direction. Twitter plunging fourteen point five percent, 36 00:02:03,440 --> 00:02:07,120 Speaker 1: down two sixty eight to fifteen seventy seven after last 37 00:02:07,200 --> 00:02:11,279 Speaker 1: night's earnings disappointment. So again we are awaiting latest numbers 38 00:02:11,280 --> 00:02:15,359 Speaker 1: out of both Facebook and Alphabet, and now at four 39 00:02:15,440 --> 00:02:17,160 Speaker 1: or two on Wall Street. Let's look at the other 40 00:02:17,240 --> 00:02:22,480 Speaker 1: stories making news. Charley, Thank you from the Bloomberg newsroom. 41 00:02:22,520 --> 00:02:25,840 Speaker 1: I'm Mark Crumpton. Hillary Clinton is counting on the coalition 42 00:02:25,880 --> 00:02:28,800 Speaker 1: that put President Obama in office to keep the White 43 00:02:28,840 --> 00:02:32,720 Speaker 1: House in Democratic hands. Tonight, the President will be speaking 44 00:02:32,760 --> 00:02:37,079 Speaker 1: on her behalf in Philadelphia. Bloomberg's Bob Moon reports President 45 00:02:37,120 --> 00:02:39,880 Speaker 1: Obama is likely to address the economy in his primetime 46 00:02:39,880 --> 00:02:43,120 Speaker 1: convention address, mindful to young people in minorities who propelled 47 00:02:43,200 --> 00:02:46,440 Speaker 1: him into office have lagged behind the economic recovery he shepherded. 48 00:02:46,600 --> 00:02:48,640 Speaker 1: At the same time, Donald Trump is still seen as 49 00:02:48,639 --> 00:02:52,200 Speaker 1: alienating disaffected Obama backers, giving the president a message he's 50 00:02:52,200 --> 00:02:55,119 Speaker 1: been honing in campaign appearances for Hillary Clinton. I don't 51 00:02:55,160 --> 00:02:57,360 Speaker 1: know how you vote for the guy who's a guest. 52 00:02:57,440 --> 00:03:03,280 Speaker 1: The minimum wage a guest. You're again making sure that 53 00:03:03,560 --> 00:03:06,480 Speaker 1: everybody gets the fair shot. Democratic strategists who worried the 54 00:03:06,520 --> 00:03:09,560 Speaker 1: economic struggles of Obama's constituency with death there turn out 55 00:03:09,560 --> 00:03:11,680 Speaker 1: in November are now counting on Trump to be what 56 00:03:11,760 --> 00:03:14,919 Speaker 1: one calls a turnout machine for the Democrats. Bob Moon, 57 00:03:14,919 --> 00:03:19,720 Speaker 1: Bloomberg Radio. Baltimore Prosecutor Maryland Moseby announced today her office 58 00:03:19,760 --> 00:03:23,160 Speaker 1: is dropping all charges against the remaining officers in the 59 00:03:23,200 --> 00:03:30,560 Speaker 1: Freddy Gray case. Do not believe that Freddy Gray killed himself. 60 00:03:30,560 --> 00:03:36,200 Speaker 1: We standing back the medical examiner's determination that Freddy Gray's 61 00:03:36,240 --> 00:03:41,520 Speaker 1: death was a homicide. Today's decision follows three acquittals and 62 00:03:41,600 --> 00:03:45,520 Speaker 1: a mistrial. New Jersey Transits boards considering whether to approve 63 00:03:45,600 --> 00:03:49,280 Speaker 1: contracts with its two remaining rail unions. The other nine 64 00:03:49,360 --> 00:03:52,840 Speaker 1: rail union signed contracts in March, about a day before 65 00:03:52,920 --> 00:03:56,160 Speaker 1: a strike. Deadline Global News twenty four hours a day, 66 00:03:56,400 --> 00:03:59,520 Speaker 1: powered by more than twenty hundred journalists and analysts in 67 00:03:59,600 --> 00:04:04,160 Speaker 1: more than one twenty countries. I'm Mark Crumpton. This is Bloomberg, Charlotte, 68 00:04:05,640 --> 00:04:07,480 Speaker 1: and we thank you. And again we are waiting for 69 00:04:07,560 --> 00:04:11,400 Speaker 1: Facebook and Alphabet, the parent of Google. SMP five hundred 70 00:04:11,400 --> 00:04:15,200 Speaker 1: index lower a little change, down point one sixty six, 71 00:04:15,480 --> 00:04:18,000 Speaker 1: the Dow falling by a point to eighteen thousand, four 72 00:04:18,120 --> 00:04:21,800 Speaker 1: hundred seventy two. I'm Charlie Pellett, and that's a Bloomberg 73 00:04:21,839 --> 00:04:25,960 Speaker 1: business flash. Move around, most great promotion at the elite, 74 00:04:26,880 --> 00:04:31,280 Speaker 1: move like they do. I've never seen anyone move that 75 00:04:31,400 --> 00:04:37,279 Speaker 1: back five people. Let's move like to get a purpose. 76 00:04:42,520 --> 00:04:45,240 Speaker 1: He's called movers and shakers. It costs a little more 77 00:04:45,279 --> 00:04:54,799 Speaker 1: about that name. Cracked me up, Bloomberg taking stock movers 78 00:04:55,040 --> 00:04:59,239 Speaker 1: and shakers with pim box and Kathleen Hays on Bloomberg Radio. 79 00:05:00,320 --> 00:05:04,120 Speaker 1: Kind of a mixed close in the major market indexes today, 80 00:05:04,200 --> 00:05:07,800 Speaker 1: as Charlie Pellach just so ably described for US, But 81 00:05:07,839 --> 00:05:10,120 Speaker 1: when you look inside the S and P five hundred 82 00:05:10,400 --> 00:05:13,040 Speaker 1: seems like a definitive sign that the market was on 83 00:05:13,080 --> 00:05:15,840 Speaker 1: the downside today. Only a hundred forty two gainers, three 84 00:05:16,200 --> 00:05:19,680 Speaker 1: sixty losers, three stocks closing, unchanged. Our stocks reporter, our 85 00:05:19,680 --> 00:05:22,279 Speaker 1: Bloombook StockX reporter Joe Siey is back to kick off 86 00:05:22,360 --> 00:05:27,240 Speaker 1: movers and shakers. So first off, we have acam I Technologies. UH. 87 00:05:27,279 --> 00:05:30,440 Speaker 1: This is a company that helps speed up the delivery 88 00:05:30,480 --> 00:05:33,440 Speaker 1: of Internet content, so it works with customers like Apple 89 00:05:33,480 --> 00:05:38,000 Speaker 1: and Facebook. It's down fourteen percent today after UM forecasting 90 00:05:38,000 --> 00:05:40,760 Speaker 1: earnings and sales in the current quarter that fell short 91 00:05:40,800 --> 00:05:44,360 Speaker 1: of analyst estimates. UM. They're citing UM one of the 92 00:05:44,360 --> 00:05:49,120 Speaker 1: potential headwinds as UH customers like Apple and Facebook adopting 93 00:05:49,160 --> 00:05:51,839 Speaker 1: more of a do it yourself model, UH users being 94 00:05:51,920 --> 00:05:55,279 Speaker 1: more capable of of moving their own data through those systems, 95 00:05:55,400 --> 00:05:57,359 Speaker 1: and UH it's kind of lessening the need for for 96 00:05:57,400 --> 00:06:01,080 Speaker 1: Acami and their products. I'll tell you about the acquisition today, 97 00:06:01,200 --> 00:06:05,080 Speaker 1: Lab Corp announcing that it will buy Sequonom and the 98 00:06:05,120 --> 00:06:09,159 Speaker 1: price tag there indicating a one hundred and eighty well 99 00:06:09,240 --> 00:06:14,440 Speaker 1: nearly on premium over the closing price of Sequonom yesterday. 100 00:06:14,640 --> 00:06:19,520 Speaker 1: Shares of Secunum up one hundred and seventy six percent 101 00:06:19,680 --> 00:06:23,120 Speaker 1: the two dollars and the thirty five cents on the close. 102 00:06:23,560 --> 00:06:26,880 Speaker 1: Lab Corp also reporting results of the shares of Lab 103 00:06:26,920 --> 00:06:28,599 Speaker 1: Corp l ah she had down about a quarter of 104 00:06:28,640 --> 00:06:31,839 Speaker 1: a percent today, but they estimate that revenue growth for 105 00:06:31,880 --> 00:06:34,479 Speaker 1: the fiscal year will be between nine and a half 106 00:06:34,520 --> 00:06:37,400 Speaker 1: to ten and a half percent. That is better than 107 00:06:37,440 --> 00:06:41,800 Speaker 1: they had previously guided. Once again, shares of Sequinum up 108 00:06:42,120 --> 00:06:46,480 Speaker 1: one hundred and seventy six percent. Well, you know interesting, 109 00:06:46,800 --> 00:06:51,560 Speaker 1: State Street getting a big vote of confidence today from investors. 110 00:06:51,680 --> 00:06:56,160 Speaker 1: It's share price rising more than nine percent because it 111 00:06:56,279 --> 00:06:59,600 Speaker 1: showed in its second quarter earnings report that earning is 112 00:06:59,600 --> 00:07:02,800 Speaker 1: actually better than forecast, not because their revenue is jump. 113 00:07:02,839 --> 00:07:04,720 Speaker 1: It's really tough to be a bank right now. Right 114 00:07:04,839 --> 00:07:07,640 Speaker 1: the Federal Reserve lord rates nearly to zero in two 115 00:07:07,680 --> 00:07:09,760 Speaker 1: thousand and eight, they've raised them only one since then. 116 00:07:09,840 --> 00:07:12,960 Speaker 1: But what State Street has done very well is lower 117 00:07:13,240 --> 00:07:18,720 Speaker 1: their expenses. In fact, under CEO J. Hooley, State Street 118 00:07:18,800 --> 00:07:21,920 Speaker 1: is focusing on cost savings in a big way. Total 119 00:07:21,960 --> 00:07:25,400 Speaker 1: second quarter expenses fell to one point eight six billion 120 00:07:25,440 --> 00:07:29,160 Speaker 1: dollars from two point one three billion a year earlier. 121 00:07:29,440 --> 00:07:33,800 Speaker 1: To accelerate cost reductions, the company is introducing a technology 122 00:07:33,800 --> 00:07:38,040 Speaker 1: transformation program that led to job cuts announced in October. 123 00:07:38,120 --> 00:07:41,000 Speaker 1: Not so good for State Street workers, but good for investors. 124 00:07:41,280 --> 00:07:43,240 Speaker 1: So justin on one second, because I want to give 125 00:07:43,280 --> 00:07:45,600 Speaker 1: you this news having to do with Facebook reporting second 126 00:07:45,680 --> 00:07:49,119 Speaker 1: quarter earnings of seven of nineties seven cents a share. 127 00:07:49,520 --> 00:07:53,720 Speaker 1: Estimate was for eighty two cents a share. The shares 128 00:07:53,760 --> 00:07:57,600 Speaker 1: of Facebook are up more than seven percent in after 129 00:07:57,720 --> 00:08:01,560 Speaker 1: hours trading, once again years of Facebook higher as they 130 00:08:01,560 --> 00:08:05,920 Speaker 1: report nineties seven cent surnings versus average analyst estimate of 131 00:08:06,200 --> 00:08:11,400 Speaker 1: a D two cents. Alright, moving on to to net Suite, 132 00:08:11,480 --> 00:08:14,360 Speaker 1: another stock that was in the green today up nine 133 00:08:14,360 --> 00:08:17,520 Speaker 1: point one percent. I had benefited from a GP Morrigan 134 00:08:18,080 --> 00:08:22,480 Speaker 1: analysts comment from Mark Murphy saying that he met with 135 00:08:22,520 --> 00:08:24,600 Speaker 1: some of their partners and and he suggests that there's 136 00:08:24,640 --> 00:08:27,480 Speaker 1: some large deals in the pipeline. Uh. This isn't really 137 00:08:27,480 --> 00:08:30,160 Speaker 1: the first speculation like this that net Sweet has encountered. 138 00:08:30,440 --> 00:08:33,400 Speaker 1: It's gained about thirty percent over the past month amid 139 00:08:33,440 --> 00:08:36,600 Speaker 1: speculation that Oracle could be buying it. Uh. So there's 140 00:08:36,679 --> 00:08:39,160 Speaker 1: there's a lot of of m and a chatter around 141 00:08:39,160 --> 00:08:42,600 Speaker 1: that name and uh. And also Murphy mentioned that the 142 00:08:42,679 --> 00:08:45,080 Speaker 1: demand for net net Sweet products is still very strong 143 00:08:45,240 --> 00:08:48,720 Speaker 1: and very bullish, all combining to send the stock up 144 00:08:48,760 --> 00:08:51,640 Speaker 1: as much as sixteen percent intra day nine percent at 145 00:08:51,640 --> 00:08:53,920 Speaker 1: the close. Him, I'm gonna throw one in. Shares of 146 00:08:54,000 --> 00:08:56,920 Speaker 1: Goodyear Tire and Rubber up more than four percent today. 147 00:08:56,960 --> 00:08:59,760 Speaker 1: They reported improved second quarter earnings thanks to lower in 148 00:09:00,160 --> 00:09:02,320 Speaker 1: tax expenses, but a lot more than that, very important 149 00:09:02,360 --> 00:09:04,920 Speaker 1: here increased demand for its higher entires. All right, not 150 00:09:05,040 --> 00:09:07,240 Speaker 1: just tell you quickly. The shares of am Chin today 151 00:09:07,440 --> 00:09:09,600 Speaker 1: up more than one and a half percent. They reported 152 00:09:09,640 --> 00:09:13,360 Speaker 1: second quarter profit that exceeded analyst estimates. Alright, time now 153 00:09:13,400 --> 00:09:15,600 Speaker 1: for the Volatility Index report. It's brought to you by 154 00:09:15,679 --> 00:09:19,240 Speaker 1: cbo E VIX Options and Futures. Volatility can be harnessed 155 00:09:19,240 --> 00:09:23,280 Speaker 1: with cbo VIX options and futures. See disclosures Learn more 156 00:09:23,320 --> 00:09:28,360 Speaker 1: at cbo E dot Com Slash Powerful Outcomes VIX. The 157 00:09:28,480 --> 00:09:31,480 Speaker 1: VIX lower today, down about two and a half percent 158 00:09:31,880 --> 00:09:34,360 Speaker 1: at the drop of zero point three three, settling at 159 00:09:34,360 --> 00:09:37,880 Speaker 1: twelve point seven to Just a note. After the release 160 00:09:37,880 --> 00:09:42,000 Speaker 1: of those f O m C meeting minutes, the VIX 161 00:09:42,240 --> 00:09:46,840 Speaker 1: moved lower by more than four percent. I'd like to 162 00:09:46,840 --> 00:09:55,560 Speaker 1: teach the world. You know, I'm just a sucker for 163 00:09:55,600 --> 00:09:57,880 Speaker 1: that song, Joe Cioley. You know, I'd like to buy 164 00:09:57,920 --> 00:10:00,240 Speaker 1: the world a coke. And it's of course, it's obvious 165 00:10:00,240 --> 00:10:02,360 Speaker 1: what your stock of the day is now. Yeah, so 166 00:10:02,480 --> 00:10:06,280 Speaker 1: Coca Cola down three three point three percent, the biggest 167 00:10:06,280 --> 00:10:10,480 Speaker 1: to clients since April, at the lowest since February. And um, 168 00:10:10,640 --> 00:10:13,240 Speaker 1: it may not seem like a huge move, but Cocola 169 00:10:13,280 --> 00:10:15,440 Speaker 1: is not a very volatile stock. Uh So three point 170 00:10:15,480 --> 00:10:17,400 Speaker 1: three percents a pretty big deal, and it was sort 171 00:10:17,440 --> 00:10:20,480 Speaker 1: of the greatest hits of of negativity today around the stock. 172 00:10:20,800 --> 00:10:23,680 Speaker 1: Uh First of all, you had current earnings. Um. This 173 00:10:23,760 --> 00:10:27,280 Speaker 1: last quarter they posted sales that missed analysts estimates, as 174 00:10:27,520 --> 00:10:30,480 Speaker 1: falling revenue abroad outweighed modest s games in the US. 175 00:10:31,080 --> 00:10:34,520 Speaker 1: On a forward looking basis, they they trim their forecast 176 00:10:34,600 --> 00:10:38,360 Speaker 1: for so called organic revenue UH for forecasters thought it 177 00:10:38,400 --> 00:10:40,600 Speaker 1: could reach four to five percent. It's actually gonna grow 178 00:10:40,600 --> 00:10:45,240 Speaker 1: about three percent. So that's it wasn't very favorable for investors. UH. Third, 179 00:10:45,440 --> 00:10:48,800 Speaker 1: there's the strong dollar effect. It's been really hurting uh 180 00:10:48,960 --> 00:10:53,080 Speaker 1: the overseas profitability for Coca Cola. What that does is 181 00:10:53,120 --> 00:10:56,560 Speaker 1: it hurts exports, and this is a big exporting company. 182 00:10:56,679 --> 00:10:59,760 Speaker 1: So that's sort of uh one of the big market 183 00:10:59,760 --> 00:11:02,280 Speaker 1: top except we've seen be a market headwin for a while. 184 00:11:02,360 --> 00:11:06,319 Speaker 1: And and fourth, um this whole shift towards healthy, healthier 185 00:11:06,360 --> 00:11:10,000 Speaker 1: alternatives for people looking for um for what to consume, 186 00:11:10,280 --> 00:11:13,360 Speaker 1: Coca Cola, PepsiCo, and then you have Dr Pepper Snapple. 187 00:11:13,440 --> 00:11:17,240 Speaker 1: They've all faced a lot of pressure from potentially declining 188 00:11:17,280 --> 00:11:21,320 Speaker 1: sales volumes as consumers turn to healthier alternatives. So basically, 189 00:11:21,360 --> 00:11:23,960 Speaker 1: everything going wrong for Cocola today, but you know, tomorrow's 190 00:11:23,960 --> 00:11:26,800 Speaker 1: a new day. Thanks very much, Joe Siola. You know 191 00:11:26,840 --> 00:11:29,600 Speaker 1: we talk about going wrong for Coca Cola, what will 192 00:11:29,640 --> 00:11:32,719 Speaker 1: certainly going right for shares of Facebook. Right now they 193 00:11:32,720 --> 00:11:35,880 Speaker 1: are up more than seven and a half percent after 194 00:11:36,480 --> 00:11:39,640 Speaker 1: UH they report of second quarter adjusted earnings per share 195 00:11:39,679 --> 00:11:43,240 Speaker 1: of nineties seven cents versus AVA Channelist estimates of eighty 196 00:11:43,480 --> 00:11:48,040 Speaker 1: two cents UH. The company also reporting revenue that exceeded 197 00:11:48,080 --> 00:11:51,720 Speaker 1: analysts estimates. US said that they made six and a 198 00:11:51,800 --> 00:11:56,640 Speaker 1: quarter billion dollars in AD revenues just in the second quarter. 199 00:11:56,760 --> 00:12:01,319 Speaker 1: We've got more coming up on Facebook. An alphabet, This 200 00:12:01,640 --> 00:12:09,000 Speaker 1: is Bloomberg. Bloomberg taking Stock is brought to you by 201 00:12:09,040 --> 00:12:11,120 Speaker 1: New York Community Bank and New York Commercial Bank, the 202 00:12:11,200 --> 00:12:13,760 Speaker 1: nyc B Family of banks, Bank with confidence. Anywhere you 203 00:12:13,800 --> 00:12:16,199 Speaker 1: see the nyc B logo, visit n y c B 204 00:12:16,440 --> 00:12:20,200 Speaker 1: family dot com.