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Speaker 1: Glomboo business news story four hours a day at Bloomberg

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Speaker 1: dot Com, the Radio plus Mobile Act and on your radio.

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Speaker 1: This is a Bloomberg Business Black from Bloomberg World Headquarters.

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Speaker 1: I'm Charlie Pellet. There. You have the sound of the

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Speaker 1: closing belt of the New York Stock Exchange as we

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Speaker 1: wrap up trading on this Wednesday, May eighteen, Folks from

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Speaker 1: Shareholders Services Association ringing that closing bell and it is

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Speaker 1: a higher close for the SMP five hundred index. Stocks

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Speaker 1: were fluctuating right up until the closing bell. There that

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Speaker 1: the SMP five hundred index, showing a gain of less

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Speaker 1: than half a point, had been swinging between gains and

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Speaker 1: losses in a volatile session. Down Jones Industrial Average down

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Speaker 1: five points, to drop there of less than point one percent,

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Speaker 1: the nan Stack Composite Index showing a gain of twenty

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Speaker 1: three points. Federal Reserve policymakers signaling a willingness to raise

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Speaker 1: borrowing costs in June if the economy continues to improve.

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Speaker 1: Lindsay pex's chief of him as that Stephial Nicholas. She

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Speaker 1: was our guest this afternoon right here on taking stock.

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Speaker 1: This time around, they're raising rates in anticipation of improvement

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Speaker 1: rather than realized improvement. So yes, we have the continued

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Speaker 1: hiring games near seventy consecutive months, but the pace of

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Speaker 1: hiring remains very modest without upward momentum in wages, business

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Speaker 1: investment remains negative, the consumer remains under pressure, so the

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Speaker 1: state of the U. S. Economy is still very fragile.

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Speaker 1: The lightest seven minutes show that Federal Reserve policy makers

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Speaker 1: indicated that a June interest rate increase was likely if

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Speaker 1: the economy continued to improve, boosting market expectations they will

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Speaker 1: act next month. The Tenure down thirty seconds, Zeal there

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Speaker 1: one eight five percent, Gold down one and a half percent,

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Speaker 1: falling eight to twelve fifty eight, Crude oil down fifty

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Speaker 1: two cents of barrel forty seven seventy nine on West

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Speaker 1: Texas Intermediate a drop there at one point one percent.

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Speaker 1: Frank Crew down one and a half percent, target, falling

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Speaker 1: the most in more than seven years. Quarterly sales missed

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Speaker 1: analyst estimates, target down seven point six percent, again recapping

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Speaker 1: a move higher for the SMP up by less than

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Speaker 1: half a point and now at four oh two on

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Speaker 1: Wall Street. Let's look at other news from around the

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

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Speaker 1: news Room. I'm Mark Crompton. The White House is criticizing

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Speaker 1: a plan by House Republicans to pass six D twenty

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Speaker 1: two million dollars in emergency funding to fight ZEKEA that

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Speaker 1: numbers well below the one point nine billion dollar request

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Speaker 1: from the administration. White House Press Secretary johns earnst the

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Speaker 1: approach that Republicans vaducated for in this in the House

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Speaker 1: is wrong. It's unwise, and it is inconsistent with prioritizing

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Speaker 1: the public health and well being of the American people.

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Speaker 1: The House Oversight Committee is taking a closer look at

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Speaker 1: how the Environmental Protection Agency handles employee misconduct and as

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Speaker 1: the agency can improve its response to the issue. Committee

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Speaker 1: Chairman Jason chaffins, most of them are good, hard working,

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Speaker 1: patriotic people. They care, they work hard. But you have

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Speaker 1: some bad apples at the e p A and they're

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Speaker 1: not being dealt with. The Obama administration has issued a

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Speaker 1: new rule aimed at strengthening overtime protections. Beginning in December,

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Speaker 1: the annual salary threshold at which companies can deny overtime

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Speaker 1: pay will double to nearly forty seven thousand, five hundred dollars.

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Speaker 1: That would make more than four million additional workers eligible

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Speaker 1: for overtime. It could be another rough commute this afternoon

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Speaker 1: for Metro North customers. The railroad says riders traveling into

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Speaker 1: an out of Grand Central terminal could experience delays of

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Speaker 1: up to eighty minutes. Following yesterday's fire underneath the elevated

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Speaker 1: tracks near one hundred Street, one hundred fifty thousand riders

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Speaker 1: experienced delays and crowded trains this morning. Global News twenty

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Speaker 1: four hours a day, powered by our twenty four hundred

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Speaker 1: journalists and more than one hundred fifty whose bureaus around

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Speaker 1: the world. From the Bloomberg Newsroom. I'm Mark Crumpton, Charlie,

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Speaker 1: and we thank you. And this headline now crossing the

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Speaker 1: Bloomberg Professional Service TESLA reporting a two billion dollar public

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Speaker 1: offering to accelerate the Model three ramp up. Tesla shares

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Speaker 1: advanced today by three point two percent. Again for the

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Speaker 1: SMP five hundred index, up by lesser than half a

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Speaker 1: point down. Industrials fell three points and ASTA gained twenty three.

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Speaker 1: I'm Charlie Pelton. That's a Bloomberg Business flash move around

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Speaker 1: most and create aromotion at the elite move you move

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Speaker 1: like they do. I've never seen anyone move that back

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Speaker 1: five peoplet's move like you got a purpose. That was

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Speaker 1: called movers and shakers. It costs a little more and

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Speaker 1: that name cracked me up. Bloomberg taking stock movers and

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Speaker 1: shakers with Pim Fox and Kathleen Hay's on Bloomberg Radio.

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Speaker 1: I'm Kathleen Hayes along with Pim Fox Dave Wilson are

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Speaker 1: stock stors back, guys. This Tesla news is very interesting.

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Speaker 1: First though, let me just break down the SMP five

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Speaker 1: hundred today. UH stocks hit this afternoon by the FEDS

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Speaker 1: hawkish minutes from their last meeting as a result of

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Speaker 1: modest rally turned into kind of a mixed close. We've

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Speaker 1: got two hundred and nine shares share prices closing higher

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Speaker 1: tune or ninety five lower, just one unchanged. UH. Tesla though,

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Speaker 1: is very interesting right because Tesla had had a good

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Speaker 1: day today after it got that upgrade from Goldman to

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Speaker 1: buy Now reports this two billion dollar public offering to

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Speaker 1: accelerate the Model three ramp up, and it looks like

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Speaker 1: Tesla's stock prices getting hit by this a little bit. Well,

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Speaker 1: they are. They haven't quite given back all of today's games,

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Speaker 1: and they've given back some of them. Stock down two

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Speaker 1: point three percent at the moment and barren line. Tesla

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Speaker 1: is only selling one point four billion dollars of the shares.

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Speaker 1: The rest are being sold by Tesla's founder, Elon Musk

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Speaker 1: because he's about to exercise options on five and a

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Speaker 1: half million shares and he needs to raise money to

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Speaker 1: cover the tax obligations on that exercise. So, you know,

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Speaker 1: there are a couple of pieces to the puzzle here. Uh.

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Speaker 1: It is interesting though, the timing, you know, to have

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Speaker 1: Goldman Sacks come out and raise its rating on the

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Speaker 1: stock early in the day, and then at the end

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Speaker 1: of the day to have the share sale come along.

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Speaker 1: Uh well, at the very least, it is a rather

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Speaker 1: interesting bit of timing. Let me just tay about another

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Speaker 1: automobile company. Shares of GM today up about four tenths

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Speaker 1: of a percent. GM is said to be reducing deliveries

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Speaker 1: to rental fleets this month by about twenty thousand units.

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Speaker 1: That's the most so far this year, and this month

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Speaker 1: also has fewer selling days, so that's something to take

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Speaker 1: note of um that could also reduce delivers by another

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Speaker 1: seven to eight percent. But GM expects its retail market

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Speaker 1: share to rise in May as sales probably will continue

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Speaker 1: to decline, so maybe GM will be bucking the trend anyway,

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Speaker 1: Shares of GM up of four tenths of a percent.

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Speaker 1: I want to take a look broadly at the banks

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Speaker 1: and City Group, and particularly because the bank shares are

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Speaker 1: having a pretty good day to day anyway, people perhaps

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Speaker 1: anticipating the VF for m C would at least keep alive,

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Speaker 1: just keep the door open to an interest rate increase

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Speaker 1: in June or July over the course of the year.

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Speaker 1: When the minutes released at two o'clock Wall Street time,

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Speaker 1: minutes from the last meeting, but they got another pop

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Speaker 1: up after that was confirmed. We see the KBW Bank

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Speaker 1: index up nearly four percent. We've got Bank of America

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Speaker 1: and City both of nearly five percent, JP Morgan at

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Speaker 1: nearly four percent. I wanna just bring you some analysis

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Speaker 1: from Alison Williams from our Bloomberg Intelligence team. When you

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Speaker 1: look particularly at City Group, she says, City estimates the

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Speaker 1: coordnet interest income would increase by one point nine billion

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Speaker 1: dollars if interest rates rose broadly by one hundred basis points.

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Speaker 1: With that related to the United States, that equals four

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Speaker 1: point two percent of total net interest income and two

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Speaker 1: point six percent of revenue over the prior twelve months. Well,

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Speaker 1: we have to take a look at Cisco Systems. They're

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Speaker 1: out with fiscal third quarter results. Adjusted earnings fifty seven

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Speaker 1: cents to share, that's two cents higher than analyst average

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Speaker 1: estmate in Bloomberg survey, and adjusted gross margin to gage

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Speaker 1: a profitability sixty five point two percent. Put it another way,

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Speaker 1: after a production costs, they made sixty five point two

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Speaker 1: cents on every dollar of sales. That's two full cents

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Speaker 1: more than analysts we're looking for on average. And so

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Speaker 1: you've got Cisco shares up more than four percent in

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Speaker 1: late trading after the release of fiscal third quarter results.

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Speaker 1: And I'll just quickly to tell you about Kinder Morgan.

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Speaker 1: The shares down about three and a half percent. Not

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Speaker 1: Kinder Morgan's trans Ountain pipeline review. Pipeline review is due

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Speaker 1: today this coming from Canada. The National Energy Board plans

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Speaker 1: to issue its recommendation on a proposal to triple the

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Speaker 1: capacity of the only pipeline between Canada's oil sands and

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Speaker 1: the West Coast serving Pacific markets. Shares of Kinder Morgan

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Speaker 1: today lower by three and a half percent. Time now

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Speaker 1: with the Volatility Index report brought to you by cbo

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Speaker 1: hire today up by about three percent, a gain of

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Speaker 1: point five four, settling at a sixteen point oh two

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Speaker 1: and the increase in volatility, of course, just reflecting perhaps

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Speaker 1: today's awakening on the part of investors that the rally

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Speaker 1: is not going to continue unabated. All right, Dave, you're up. Hi,

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

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Speaker 1: We're going for the prank found will Findave. Cast Light

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Speaker 1: Health another busted I p O. But things are looking up, David, Well,

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Speaker 1: at least today, no question you know. Cast Light Health

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Speaker 1: is a software maker that helps businesses reduced medical costs

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Speaker 1: for their employees. Company offers a benefit site that workers

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Speaker 1: used to assess healthcare options and companies used to communicate

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Speaker 1: with their staff. Cast Light was founded in two thousand

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Speaker 1: and eight and made its initial public offering in March.

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Speaker 1: Company shares trade under the ticker c s LT Now.

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Speaker 1: Cast Light went public at sixteen dollars a share price

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Speaker 1: won't double on the first day of trading within a

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Speaker 1: mount though the stock gave back the entire game. It

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Speaker 1: then swung on either side the initial price before turning

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Speaker 1: into Indeed they busted I P O and how stock

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Speaker 1: fell all the way to two hours and fifty four

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Speaker 1: cents reached that low in February. Today, cast Light's fortune

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Speaker 1: turn for the better thanks to SAP, the German maker

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Speaker 1: Business Software agreed to a partnership with the company and

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Speaker 1: invested eighteen million dollars for a four point seven percent stay.

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Speaker 1: S A p Also received a warrant to buy additional shares.

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Speaker 1: In response to all this, cast Light posted the biggest

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Speaker 1: gain in its stock since the very first day of trading.

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Speaker 1: The price of cast Light up twenty six and a

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Speaker 1: half percent on the day. Thank you very much, Dave Wilson,

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Speaker 1: Bloomberg Stocks commist, once again. Send him an email at

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Speaker 1: d Wilson at Bloomberg dot net and sign up for

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Speaker 1: his daily free email newsletter. It will make you a

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Speaker 1: smarter investor. Shares of Cisco higher right now and after hours,

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Speaker 1: trading by more than five and a half percent after

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Speaker 1: reporting quarterly results that exceeded analyst estimates. Will have more

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Speaker 1: coming up on Bloomberg Radio. You're listening to taking Stock.

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Speaker 1: I'm pim Fox my co host Kathleen Hayes Bloomberg. Taking

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Speaker 1: Stock is brought to you by the accountants and advisors

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Speaker 1: at Eisener Emperor. Cybersecurity is on the mind of every

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