1
00:00:03,240 --> 00:00:06,640
Speaker 1: Global business news twenty four hours a day. If Bloomberg

2
00:00:06,680 --> 00:00:09,720
Speaker 1: dot Com the radio plus mobil and on your radio.

3
00:00:10,039 --> 00:00:14,480
Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.

4
00:00:14,520 --> 00:00:18,280
Speaker 1: I'm Charlie Pella, folks from Ramco, Gersons and Properties, ringing

5
00:00:18,320 --> 00:00:20,720
Speaker 1: that closing bell, and we are brought to you by

6
00:00:20,920 --> 00:00:23,560
Speaker 1: Sector Spider et f S. Why being a y by

7
00:00:23,600 --> 00:00:26,360
Speaker 1: a single stock when you can invest in the entire

8
00:00:26,400 --> 00:00:30,520
Speaker 1: sector of visits sector spd rs dot com or call

9
00:00:30,600 --> 00:00:35,480
Speaker 1: one six sector e t F stock smooth floor. Today,

10
00:00:35,600 --> 00:00:39,400
Speaker 1: disappointing numbers from Walt Disney to Macy's raising doubts about

11
00:00:39,440 --> 00:00:42,520
Speaker 1: the strength of the U. S economy. Oil rose after

12
00:00:42,560 --> 00:00:45,640
Speaker 1: an unexpected drop in inventories. Crude oil up today by

13
00:00:45,760 --> 00:00:49,120
Speaker 1: three point two percent, back about forty six dollars a barrel.

14
00:00:49,479 --> 00:00:52,360
Speaker 1: Uh it was hired by one dollar forty two cents.

15
00:00:52,479 --> 00:00:55,480
Speaker 1: Crude now at oh eight. Now, what is the head

16
00:00:55,520 --> 00:00:57,640
Speaker 1: for equities for the rest of the year. Michael Bailey

17
00:00:57,760 --> 00:01:00,640
Speaker 1: is director of Research at FBB Capital part Partners. He

18
00:01:00,720 --> 00:01:03,800
Speaker 1: was our guests afternoon right here on taking stock. Investors

19
00:01:03,880 --> 00:01:06,480
Speaker 1: right now are thinking there's a very low probability of

20
00:01:06,480 --> 00:01:08,480
Speaker 1: a rate hike. UM and so if that does happen,

21
00:01:08,920 --> 00:01:11,840
Speaker 1: I think there's a there's some validity there. So especially

22
00:01:11,840 --> 00:01:14,280
Speaker 1: if you get you know, two or RABE three rate hikes. UM,

23
00:01:14,360 --> 00:01:17,360
Speaker 1: certainly I think that that would keep a lid on stocks.

24
00:01:17,400 --> 00:01:19,080
Speaker 1: But I think at this point, just looking at if

25
00:01:19,120 --> 00:01:21,040
Speaker 1: the data has been coming out of my sense, I

26
00:01:21,080 --> 00:01:23,039
Speaker 1: guess I tend to go along with with some of

27
00:01:23,040 --> 00:01:26,200
Speaker 1: those other broader views that were like unlikely to see

28
00:01:26,200 --> 00:01:29,600
Speaker 1: a hype for a while. Tough day for retailers. Macy's

29
00:01:29,640 --> 00:01:33,200
Speaker 1: down fifteen point two percent. Diane Swank is the founder

30
00:01:33,240 --> 00:01:35,720
Speaker 1: of Diane Swank and Associate. She was also our guest

31
00:01:35,800 --> 00:01:38,199
Speaker 1: right here on taking Stock. We're looking at is even

32
00:01:38,200 --> 00:01:40,760
Speaker 1: though we've seen some bad news from retailers, we also

33
00:01:40,800 --> 00:01:43,760
Speaker 1: are seeing retailers that are going bankrupt. There's a restructuring

34
00:01:43,800 --> 00:01:46,000
Speaker 1: in the retail sector. That doesn't mean the consumer is

35
00:01:46,040 --> 00:01:48,960
Speaker 1: anywhere near dead. In fact, we know that some of

36
00:01:48,960 --> 00:01:52,760
Speaker 1: the consumer data from the first quarter was underestimated because

37
00:01:52,800 --> 00:01:55,920
Speaker 1: of the way we account for the retail sales data.

38
00:01:56,040 --> 00:01:58,960
Speaker 1: We look at retail sales by type of retailer, not

39
00:01:59,040 --> 00:02:03,080
Speaker 1: by what they sell x RT the spider, s m T, SMP,

40
00:02:03,240 --> 00:02:06,680
Speaker 1: retail et F down today by four point four percent,

41
00:02:07,360 --> 00:02:10,080
Speaker 1: SMP down twenty points, the drop of nine tenths of

42
00:02:10,120 --> 00:02:12,560
Speaker 1: one percent, the down down two hundred sixteen, a drop

43
00:02:12,600 --> 00:02:16,680
Speaker 1: of one gold up one point one percent, and now

44
00:02:16,880 --> 00:02:20,880
Speaker 1: a look at the other stories making use Charlie. Thank

45
00:02:20,919 --> 00:02:23,679
Speaker 1: you from the Bloomberg news Room by Mark Crumpton. How

46
00:02:23,760 --> 00:02:27,320
Speaker 1: Speaker Paul Ryan says the Republican Party needs to come

47
00:02:27,360 --> 00:02:32,480
Speaker 1: together to defeat likely Democratic presidential nominee Hillary Clinton in November.

48
00:02:32,520 --> 00:02:35,560
Speaker 1: To pretend where unified at a party after coming through

49
00:02:35,560 --> 00:02:38,040
Speaker 1: a very bruting primary which just ended like a week ago.

50
00:02:39,000 --> 00:02:42,160
Speaker 1: Um to pretend reunified without actually unifying, then we go

51
00:02:42,200 --> 00:02:44,680
Speaker 1: into the fall at half string. Speaker Ryan meets with

52
00:02:44,760 --> 00:02:49,800
Speaker 1: presumptive GOP presidential nominee Donald Trump tomorrow. A significant portion

53
00:02:49,840 --> 00:02:53,560
Speaker 1: of West Virginia's Democratic primary voters say they will vote

54
00:02:53,560 --> 00:02:56,880
Speaker 1: for Donald Trump in November. As according to an ABC

55
00:02:57,000 --> 00:03:00,480
Speaker 1: News exit poll analysis, about a third of Democrats say

56
00:03:00,520 --> 00:03:03,960
Speaker 1: they'll vote for Trump regardless of who wins the party's nomination.

57
00:03:04,440 --> 00:03:08,440
Speaker 1: Six of Democratic primary voters say the economy and jobs

58
00:03:08,680 --> 00:03:12,880
Speaker 1: are the most important issues. FBI Director James Comey, speaking

59
00:03:12,919 --> 00:03:16,480
Speaker 1: out on the investigation into the private email server account

60
00:03:16,520 --> 00:03:19,840
Speaker 1: Hillary Clinton used during her time as Secretary of State.

61
00:03:20,080 --> 00:03:23,480
Speaker 1: Director Comy told reporters, quote, I remained close to that

62
00:03:23,560 --> 00:03:26,840
Speaker 1: investigation to ensure that it's done well and has the

63
00:03:26,880 --> 00:03:30,880
Speaker 1: resources it needs and quote. ABC News reported last week

64
00:03:31,040 --> 00:03:34,280
Speaker 1: the FBI was seeking to interview Mrs Clinton soon, but

65
00:03:34,320 --> 00:03:37,640
Speaker 1: a Clinton spokesman says she hasn't received an invitation from

66
00:03:37,640 --> 00:03:40,880
Speaker 1: the FBI to answer questions. A new right to Die

67
00:03:40,920 --> 00:03:43,840
Speaker 1: bill has been introduced to New York's legislature. It would

68
00:03:43,840 --> 00:03:47,280
Speaker 1: allow terminally ill patients to request life ending drugs from

69
00:03:47,280 --> 00:03:50,760
Speaker 1: a physician. The proposal would require two doctors to certify

70
00:03:50,840 --> 00:03:55,080
Speaker 1: the patient's illness is in fact terminal. Global News twenty

71
00:03:55,080 --> 00:03:58,400
Speaker 1: four hours a day, powered by our two hundred journalists

72
00:03:58,560 --> 00:04:01,880
Speaker 1: in more than one hundred the news bureaus around the world.

73
00:04:02,240 --> 00:04:06,000
Speaker 1: From the Bloomberg Newsroom, I'm Mark Crunton, Charlie, and we

74
00:04:06,080 --> 00:04:09,560
Speaker 1: thank you and again recapping a two hundred seventeen point

75
00:04:09,640 --> 00:04:12,520
Speaker 1: dropped today for the down Jones Industrial Average down one,

76
00:04:13,840 --> 00:04:18,640
Speaker 1: Disney down four, SMP down nineteen, a drop of one percent.

77
00:04:18,760 --> 00:04:23,000
Speaker 1: I'm Charlie Palatine. That's a Bloomberg Business flash move around.

78
00:04:23,120 --> 00:04:28,880
Speaker 1: Mosten creates the motion the elite move. You move like

79
00:04:28,960 --> 00:04:35,680
Speaker 1: they do. I've never seen anyone move that br let's

80
00:04:35,680 --> 00:04:43,400
Speaker 1: move like. To get a purpose is called movers and shakers.

81
00:04:43,760 --> 00:04:46,160
Speaker 1: It costs a little more, and that name cracked me up.

82
00:04:52,040 --> 00:04:56,320
Speaker 1: Bloomberg taking stock movers and Shakers with Pim Fox and

83
00:04:56,400 --> 00:05:01,000
Speaker 1: Kathleen As on Bloomberg Radio. Movers and Acres for Wednesday,

84
00:05:01,040 --> 00:05:05,320
Speaker 1: May eleven, twenty sixteen eighties. Six issues in the SMP

85
00:05:05,480 --> 00:05:09,640
Speaker 1: five hundred index advance, four hundred and fifteen decline, and

86
00:05:09,760 --> 00:05:14,200
Speaker 1: four remain unchanged. Dave Wilson, Bloomberg Stocks Commist, joins us

87
00:05:14,240 --> 00:05:16,480
Speaker 1: now to begin our movers and shakers. I'll tell you.

88
00:05:16,600 --> 00:05:20,400
Speaker 1: Charlie Pellett mentioned that fifteen percent dropping Macy shares after

89
00:05:20,440 --> 00:05:23,360
Speaker 1: they came out with their fiscal first quarter results. They

90
00:05:23,440 --> 00:05:26,279
Speaker 1: may have hit home for investors because it really was

91
00:05:26,320 --> 00:05:30,320
Speaker 1: the kickoff of earning season for these companies because after all,

92
00:05:30,600 --> 00:05:34,080
Speaker 1: typical fiscal year and retailing ends in January, which means

93
00:05:34,120 --> 00:05:36,159
Speaker 1: the first quarter ends in April, so it's a month

94
00:05:36,200 --> 00:05:41,000
Speaker 1: behind everybody else. Tomorrow, you've got two more retailers coming

95
00:05:41,000 --> 00:05:43,600
Speaker 1: out with Ernie's and their stocks got hit today. I'm

96
00:05:43,640 --> 00:05:47,520
Speaker 1: refer into Cole's, which lost six percent, and Nordstrom, which

97
00:05:47,520 --> 00:05:51,040
Speaker 1: fell seven percent on Friday, you get numbers out of J. C.

98
00:05:51,240 --> 00:05:54,000
Speaker 1: Penny and that stock dropped two and a half percent

99
00:05:54,000 --> 00:05:58,240
Speaker 1: in today's trading, definitely following Macy's lead. Well, let's take

100
00:05:58,240 --> 00:06:00,240
Speaker 1: a look at Fossil, because it was more and just

101
00:06:00,279 --> 00:06:03,600
Speaker 1: the fact that so many retailers got beaten up today. Uh,

102
00:06:04,040 --> 00:06:06,360
Speaker 1: what people are seeing is a Fossil has yet to

103
00:06:06,440 --> 00:06:10,119
Speaker 1: beat back competition from smart watches like the Apple Watch

104
00:06:10,200 --> 00:06:14,880
Speaker 1: and Samsung Gear. In fact, the Fossils share price down

105
00:06:15,480 --> 00:06:19,200
Speaker 1: today four cents in the clothes he's sitting as low

106
00:06:19,200 --> 00:06:21,360
Speaker 1: as price and more than six years. It slashed its

107
00:06:21,400 --> 00:06:24,600
Speaker 1: full year earnings forecast, saying they will be one dollar

108
00:06:24,640 --> 00:06:26,560
Speaker 1: and eighty cents to two dollars and eighty cents a

109
00:06:26,600 --> 00:06:28,760
Speaker 1: share in the current fiscal year. Compare that to the

110
00:06:28,800 --> 00:06:32,160
Speaker 1: earlier projection of two dollars and eighty cents to three

111
00:06:32,200 --> 00:06:34,800
Speaker 1: dollars in sixty cents. Now, this is, of course what

112
00:06:34,800 --> 00:06:37,800
Speaker 1: they said in a statement yesterday, but earnings down twelve

113
00:06:38,000 --> 00:06:40,800
Speaker 1: cents per share in the first quarter. UH analysts were

114
00:06:40,800 --> 00:06:45,120
Speaker 1: looking for a fiferent average estimate. So the company also

115
00:06:45,120 --> 00:06:48,400
Speaker 1: saying it expects gross margins to contract because of an

116
00:06:48,560 --> 00:06:51,839
Speaker 1: expected increase in outlet promotions, a greater reliance on sales

117
00:06:51,880 --> 00:06:54,680
Speaker 1: through off price retailers, and more. Anyway, Fossil having a

118
00:06:54,680 --> 00:06:56,799
Speaker 1: tough day to day luck up a lot of other retailers.

119
00:06:56,800 --> 00:06:59,520
Speaker 1: All right, so you mentioned Apple, so we'll talk about Apple.

120
00:06:59,640 --> 00:07:02,599
Speaker 1: Share down about one percent today, down eight seven cents

121
00:07:02,839 --> 00:07:05,200
Speaker 1: ninety two fifty five on the closed stock is down

122
00:07:05,240 --> 00:07:08,200
Speaker 1: about twelve percent so far this year. But it might

123
00:07:08,200 --> 00:07:11,080
Speaker 1: be getting even worse for some of the mobile phone

124
00:07:11,080 --> 00:07:16,160
Speaker 1: makers because Pegatron, which assembles iPhones, they missed profit expectations

125
00:07:16,200 --> 00:07:19,920
Speaker 1: and said that April sales were down sixteen percent. Uh

126
00:07:20,040 --> 00:07:23,000
Speaker 1: minam Bia, which makes the LED lights for mobiles, they

127
00:07:23,080 --> 00:07:25,600
Speaker 1: lagged their own forecast for revenue as well as earnings,

128
00:07:25,600 --> 00:07:29,360
Speaker 1: and japan Display, they supply the screen to Apple and

129
00:07:29,520 --> 00:07:32,880
Speaker 1: other mobile phone makers, said that profit has deteriorated so

130
00:07:33,040 --> 00:07:36,080
Speaker 1: rapidly it's gonna lose money for the first for the

131
00:07:36,120 --> 00:07:39,960
Speaker 1: fiscal year and also will suspend a promised dividend payment.

132
00:07:40,040 --> 00:07:42,880
Speaker 1: Shares of Apple down about one percent today tell you

133
00:07:43,000 --> 00:07:46,240
Speaker 1: the declines among the department store chains. They also played

134
00:07:46,280 --> 00:07:50,080
Speaker 1: out among suppliers, and one of them Ralph Lauren has

135
00:07:50,120 --> 00:07:53,640
Speaker 1: earnings coming out tomorrow, and you have to be concerned

136
00:07:53,640 --> 00:07:57,160
Speaker 1: because Ralph Lauren gets about twelve percent of their revenue

137
00:07:57,200 --> 00:07:59,880
Speaker 1: from Macy's, one of the bigger suppliers to that Jay.

138
00:08:00,480 --> 00:08:02,920
Speaker 1: So what Nacy has had to say about their sales

139
00:08:03,120 --> 00:08:06,560
Speaker 1: got people concerned about what's ahead for Ralph Lauren, and

140
00:08:06,600 --> 00:08:10,240
Speaker 1: that stock fell almost five and a half percent today. Well,

141
00:08:10,440 --> 00:08:14,160
Speaker 1: Amazon continues to climb. The move is not that big today,

142
00:08:14,160 --> 00:08:17,080
Speaker 1: one and a half percent to UH seven or thirteen dollars,

143
00:08:17,080 --> 00:08:18,720
Speaker 1: But let's bear in mind a couple of days ago,

144
00:08:19,160 --> 00:08:22,200
Speaker 1: UH Amazon was trading around six d fifty dollars a year,

145
00:08:22,240 --> 00:08:25,119
Speaker 1: a high profile call this week for Amazon share price

146
00:08:25,440 --> 00:08:28,480
Speaker 1: to hit a thousand dollars a share over the longer term,

147
00:08:28,800 --> 00:08:32,480
Speaker 1: and now today um Cohen analysts saying that they expect

148
00:08:32,679 --> 00:08:36,360
Speaker 1: Amazon to become America's top clothing retailer by next year.

149
00:08:36,840 --> 00:08:39,960
Speaker 1: Their apparel and accessories market share will go from five

150
00:08:39,960 --> 00:08:43,360
Speaker 1: percent to fourteen percent, the team led bye John black

151
00:08:43,559 --> 00:08:47,679
Speaker 1: Ledge wrote today, and they compare that to UH mar

152
00:08:47,760 --> 00:08:51,600
Speaker 1: Mart and Target, where the apparel purchases from those chains

153
00:08:51,760 --> 00:08:55,000
Speaker 1: felt one percent year over year and five percent respectively.

154
00:08:55,280 --> 00:08:59,400
Speaker 1: Amazon the only retailer in the SMP rise today, are

155
00:08:59,440 --> 00:09:02,040
Speaker 1: just gonna tell quickly about Boeing shares a bowing down

156
00:09:02,120 --> 00:09:05,120
Speaker 1: about four tenths of a percent today. Uh. This comes

157
00:09:05,240 --> 00:09:09,439
Speaker 1: after the chief financial officer of Boeing said that cash

158
00:09:09,480 --> 00:09:13,480
Speaker 1: flow is going to help with stock repurchases. Now. One

159
00:09:13,520 --> 00:09:16,280
Speaker 1: of the issues having to do, of course with Boeing

160
00:09:16,720 --> 00:09:18,640
Speaker 1: is what they're gonna do with all that cash. Well,

161
00:09:18,760 --> 00:09:21,840
Speaker 1: Gary greg Smith rather said during an investor conference that

162
00:09:22,840 --> 00:09:26,400
Speaker 1: cash flow it's gonna outpace earnings gains and that that

163
00:09:26,600 --> 00:09:29,600
Speaker 1: will make it so that there's a return of free

164
00:09:29,600 --> 00:09:33,640
Speaker 1: cash to the shareholders. They expect significant returns from the

165
00:09:33,679 --> 00:09:36,320
Speaker 1: seven eight seven, from the max from the triple seven

166
00:09:36,920 --> 00:09:40,360
Speaker 1: as well, and they're going to be recovering about seven

167
00:09:40,400 --> 00:09:43,960
Speaker 1: eight seven costs. Once again, shares A bowing down about

168
00:09:43,960 --> 00:09:46,240
Speaker 1: a half percent today. It is time now with the

169
00:09:46,280 --> 00:09:49,040
Speaker 1: Volatility Index report, brought to you by cbo AIX Options

170
00:09:49,040 --> 00:09:52,080
Speaker 1: and Futures. Volatility can be harnessed with CIX options and

171
00:09:52,080 --> 00:09:54,840
Speaker 1: future c disclosures. Learn more at cbo dot com. Slash

172
00:09:54,840 --> 00:09:58,120
Speaker 1: Powerful Outcomes VIX. The bicks up point nine five to

173
00:09:58,240 --> 00:10:00,480
Speaker 1: fourteen point five eight to the cloth is up five

174
00:10:00,520 --> 00:10:03,679
Speaker 1: and a half percent, so the first climb in fact

175
00:10:03,679 --> 00:10:06,560
Speaker 1: in five days. The VICS though down about five percent

176
00:10:06,679 --> 00:10:11,120
Speaker 1: this month after rising in April. All right, Dave, you're up.

177
00:10:11,679 --> 00:10:16,840
Speaker 1: H Hi, my name is Dave. Just what do you

178
00:10:16,960 --> 00:10:25,079
Speaker 1: think you're doing. We're going for a price on Wilson, Dave, Dave, Hey,

179
00:10:25,200 --> 00:10:30,679
Speaker 1: Mr Wilson, continue your excellent theme of busted initial public offerings. Well,

180
00:10:30,720 --> 00:10:33,640
Speaker 1: we're gonna talk about Phogo to Chow today. It's an

181
00:10:33,679 --> 00:10:38,720
Speaker 1: owner of Brazilian steak houses or cerascaris. Waiters carved meat

182
00:10:38,800 --> 00:10:41,160
Speaker 1: table side, and customers can eat as much as they want.

183
00:10:41,320 --> 00:10:44,480
Speaker 1: Company has twenty four restaurants in the US, including one

184
00:10:44,559 --> 00:10:48,120
Speaker 1: here in Midtown Manhattan. They're also locations in Puerto Rico,

185
00:10:48,440 --> 00:10:52,199
Speaker 1: Mexico and Brazil. The Fogo to Chow was founded back

186
00:10:52,200 --> 00:10:54,959
Speaker 1: in nineteen seventy five and went public last June. Companies

187
00:10:55,000 --> 00:10:58,480
Speaker 1: ticker is its first name, fo g O Fogo. The

188
00:10:58,480 --> 00:11:01,120
Speaker 1: initial public offering was done at twenty dollars a share,

189
00:11:01,160 --> 00:11:03,719
Speaker 1: and by the end of August the stock became a

190
00:11:04,000 --> 00:11:07,240
Speaker 1: busted I p O by falling below the initial price

191
00:11:07,520 --> 00:11:10,760
Speaker 1: it's lowest thirteen dollars and forty cents set in February.

192
00:11:11,120 --> 00:11:13,920
Speaker 1: Well Fogo to Chow rallied in the past three months.

193
00:11:13,960 --> 00:11:17,240
Speaker 1: The recovery was set back late yesterday with the release

194
00:11:17,240 --> 00:11:20,360
Speaker 1: of first quarter results. Ernie's were twenty one cents of share,

195
00:11:20,640 --> 00:11:23,840
Speaker 1: trailing the average estimate of twenty three cents among analysts

196
00:11:23,840 --> 00:11:26,800
Speaker 1: and Bloomberg survey. Revenue came up short of the average

197
00:11:26,800 --> 00:11:30,000
Speaker 1: projection by about four percent, and the company cut full

198
00:11:30,080 --> 00:11:33,439
Speaker 1: year sales forecast. The results sent Fogo to Chow to

199
00:11:33,600 --> 00:11:37,040
Speaker 1: its biggest one day loss since going public. The shares

200
00:11:37,120 --> 00:11:40,880
Speaker 1: fell eleven and a half percent. It still makes me

201
00:11:40,920 --> 00:11:43,440
Speaker 1: hunger when you talk about it, Dave, Dave Wilson, thanks

202
00:11:43,440 --> 00:11:47,040
Speaker 1: so much. Are Stocks editor. I'm Kathleen Hayes along with

203
00:11:47,120 --> 00:11:50,040
Speaker 1: PM Fox. This is taking Stock up. Next, we're gonna

204
00:11:50,080 --> 00:11:53,240
Speaker 1: look at some of the big retailers in the news today.

205
00:11:53,240 --> 00:11:54,800
Speaker 1: We're gonna look at Macyson, and we're gonna look at

206
00:11:54,840 --> 00:11:58,360
Speaker 1: a deal that got busted up by a federal judge.

207
00:11:58,960 --> 00:12:05,960
Speaker 1: This is Bloomberg Grade. You keep it right here, Bloomberg.

208
00:12:06,000 --> 00:12:08,160
Speaker 1: Taking Stock has brought you by Withem, Smith and Brown

209
00:12:08,280 --> 00:12:10,800
Speaker 1: c P. A s aught a tax and advisory services

210
00:12:10,800 --> 00:12:13,000
Speaker 1: to help your business be in a position of strength.

211
00:12:13,200 --> 00:12:16,760
Speaker 1: Experienced the WITHTHM way by visiting WITHIM dot com, w

212
00:12:16,960 --> 00:12:20,199
Speaker 1: I T h u M dot com