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Speaker 1: Global business news twenty four hours a day. It's Bloomberg

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Speaker 1: dot Com the radio plus mobile 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. It is a sound of the

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Speaker 1: closing pallet the New York Stock Exchange. As we wrap

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Speaker 1: up trading on this Wednesday, August third, the Dow, the SMP,

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Speaker 1: NZDAC all advancing, the Dow snapping a seven day losing streak,

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Speaker 1: SMP five hundred index ending eight two day decline. Stocks

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Speaker 1: moved higher as investors way weather the latest corporate earnings.

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Speaker 1: Economic data under rebounding crude prices could spur further gains

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Speaker 1: as equities trade near records. Financial shares rose, with a

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Speaker 1: i G American International Group having its biggest jump in

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Speaker 1: four years after profit beat estimates. A i G surging

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Speaker 1: seven point three percent to fifty eight eleven, Oil jumping

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Speaker 1: more than four percent to rise back about forty one

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Speaker 1: dollars a barrel Following weekly supply data, lifting energy producers

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Speaker 1: West Texas Intermediate crewed a four point one percent of

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Speaker 1: a dollar sixte barrel tow. Michael Allison, his portfolio manager

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Speaker 1: at Eaton vance management. He was our guest today right

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Speaker 1: here on taking stock number one in terms of just

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Speaker 1: start the market back drop, and we've been fairly surprised

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Speaker 1: at how uh steadily the wall of worry has been client.

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Speaker 1: You know, there's a lot to worry about, Chinese situation, Brexit,

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Speaker 1: election uncertainty, economic concerning Fed policy, all those sorts of things,

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Speaker 1: and yet the market has just continued to, you know,

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Speaker 1: to march upward um in relatively sanguine fashion. And speaking

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Speaker 1: of Fed policy, Federal Reserve Bank of Chicago President Charles

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Speaker 1: Evans says an interest rate increase could be warranted this

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Speaker 1: year as the economy picks up steam, even though he

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Speaker 1: is still worried that inflation is too low. The tenure

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Speaker 1: of four thirty seconds yield one point five three gold

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Speaker 1: downounced thirteen six. You had dropped there of six tenths

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Speaker 1: of one percent, and the SMP as we recap here,

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Speaker 1: up six to sixty three, a gain of three tenths

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Speaker 1: of one percent. Town Industrial is up thirty eight, a

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Speaker 1: gain of two tenths of one percent, and at four

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Speaker 1: o two on Wall Street. Now, let's take a look

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Speaker 1: at the other stories making news. Charlie, thank you from

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Speaker 1: the Bloomberg news Room. I'm Mark Crumpton. Frances President is

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Speaker 1: weighing in on Republican presidential nominee Donald Trump. French President France,

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Speaker 1: while Olan says Donald Trump's excesses in the U s

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Speaker 1: presidential race are sickening. Lan speaking with journalists over drinks

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Speaker 1: worn against the authoritarian tone adopted by Trump. Land also

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Speaker 1: says he was not happy when the Republican presidential nominee

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Speaker 1: spoke ill of the memory of a soldier. It's a

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Speaker 1: reference to the war of words between Trump and the

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Speaker 1: parents of a Muslim American soldier who was killed in

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Speaker 1: the Rack. Alan says if the American people choose Trump,

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Speaker 1: it will have consequences worldwide because the US is a

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Speaker 1: global economy. Michael Barr Bloomberg Radio. The federal emergency declaration

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Speaker 1: for Flint, Michigan, expires August fourteenth, but city, state, and

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Speaker 1: federal officials are reassuring residents they're still working to provide

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Speaker 1: them with safe water. Bob Kaplan is the e p

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Speaker 1: a's acting regional administrator. How long EPA will be here

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Speaker 1: will be driven by the facts and the science, by

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Speaker 1: the water quality, and that by a date on the calendar.

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Speaker 1: The most decorated athlete in Olympic history will carry the

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Speaker 1: American flag during the opening ceremony of the Rio Games.

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Speaker 1: Michael Phelps was selected in a vote by members of

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Speaker 1: the U S Olympic team. Fire officials are investigating a

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Speaker 1: massive fire last night that gutted a grocery store in

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Speaker 1: Queens that had served the neighborhood nearly a century. It

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Speaker 1: took more than one hundred sixty firefighters several hours to

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Speaker 1: put out that blaze at the Strawberry Farm supermarket at

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Speaker 1: one hundred fifty Street and twenty fourth Avenue in white Stone.

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Speaker 1: Global News twenty four hours a day, powered by more

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Speaker 1: than twenty hundred journalists and analysts and more than one

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Speaker 1: hundred twenty countries. I'm more Crumpton. This is Bloomberg, Charlie,

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Speaker 1: and we thank you. We are on Tesla watch. Tesla

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Speaker 1: shares down today by six tenths of one percent. Tesla

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Speaker 1: now at recapping a move higher for equities SMP, snapping

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Speaker 1: a two day losing streak, up six to sixty three,

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Speaker 1: a gain of three tenths of one I'm Charlie Pellaton.

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Speaker 1: That's a Bloomberg business flash move around motion. Creates the

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Speaker 1: motion a move they do. I've never seen anyone move

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Speaker 1: that back hard people. Let's move to great a purpose.

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

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

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Speaker 1: and Shakers with Bim Box and Kathleen As on Bloomberg

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Speaker 1: Radio Movers and Shakers for this Wednesday, August the third,

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Speaker 1: twenties sixteen, broadcasting live from Atlantic Wharf in Boston, site

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Speaker 1: of Smith and Woolenski. Taking a look at the SMP

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Speaker 1: five hundred, three hundred and twenty two issues are higher,

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Speaker 1: one hundred eighty two declined, and one remain unchanged. That's

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Speaker 1: go to Bloomberg's Stocks Commis Dave Wilson to begin our

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Speaker 1: movers and shakers. But you know a lot of those

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Speaker 1: SMP five hundred stocks are on the New York Stock Exchange,

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Speaker 1: and uh one of them is the owner of the exchange,

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Speaker 1: and that would be Intercontinental Exchange or ICE. That they

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Speaker 1: reported second quarter results the top to analysts average Asthimus

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Speaker 1: of Bloomberg Survey I said, they're buying back a billion

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Speaker 1: dollars of stock. The key thing, though, is that they

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Speaker 1: plan a five for one stock split. Ice has one

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Speaker 1: of the most expensive stocks on its own markets, and

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Speaker 1: so the split will bring down the Ice of a

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Speaker 1: single share uh Ice with a gain of five point

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Speaker 1: three percent in today's training closing a two hundred and

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Speaker 1: seventy eight dollars and two cents h Taking a look

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Speaker 1: now at handbag maker Kate Spade, which David, of course

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Speaker 1: you were talking about, is taking stock opened today. I

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Speaker 1: think at that point it was down about so not

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Speaker 1: quite as bad, but still an eighteen percent declined today

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Speaker 1: after Kate Spade said that prop will be sixty three

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Speaker 1: to seventy three to seventy cents a share. And you're

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Speaker 1: ending January after priving previously forecasting seventy cents to eighty cents.

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Speaker 1: Analysts had a projected seven gate cent average for their

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Speaker 1: profit over that time period. And you know, k It's

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Speaker 1: been trying to reduce promotions at department stores and then

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Speaker 1: sell more items at full price, not discounted, not on sale,

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Speaker 1: because they want to maintain the brands Caher. You know,

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Speaker 1: it's sending in their way a dearth of foreign tours

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Speaker 1: to the United States. They've put off visits because of

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Speaker 1: the strong dollars slowing foot traffic and forcing the company

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Speaker 1: to mark down e merchandise and a course PM. There's

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Speaker 1: also competition from you know, increasingly strong rivals like Coach

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Speaker 1: and Michael Course. I'm gonna tell you about twenty one

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Speaker 1: century Fox. The company just releasing its fourth quarter results

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Speaker 1: EPs of fourty five cents to share compared to estimates

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Speaker 1: of a thirty seven cents a share. The stock is

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Speaker 1: higher by about three and a half percent, and after

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Speaker 1: hours of trading, the company also announcing an incremental three

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Speaker 1: billion dollar share buy backup program. Once again, the stock

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Speaker 1: of century Fox higher in after hours trading, buy about

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Speaker 1: three and a half percent. You know, there's a certain

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Speaker 1: amount of irony. Shares of Twitter are moved by tweets.

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Speaker 1: That's what happened today. Though there was some speculation out

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Speaker 1: there that two of Twitter's largest shareholders, former Microsoft chief

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Speaker 1: executive Steve Bomber and Saudi Prince Ahaid Been Tollal, would

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Speaker 1: buy the social network shares they don't already own, but

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Speaker 1: them they have an eight point eight percent steak in Twitter.

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Speaker 1: Analysts were rather skeptical. We talked to Acting and Capital

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Speaker 1: Victor Anthony Webb Bushes, Michael Packedor and neither of them

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Speaker 1: put much credence into speculation. Uh not. In the last

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Speaker 1: you had Twitter shares with a gain of seven and

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Speaker 1: a quarter percent in today's trading. Well, hey, David, as

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Speaker 1: you know A i G American International Group also gaining

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Speaker 1: about that amount amount seven point three percent today after

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Speaker 1: it said we'll buy back three billion dollars of stock

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Speaker 1: after second quarter profit climbed six point three percent, helped

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Speaker 1: by assets sales. This is something that the CEO, Peter Hancock,

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Speaker 1: has been doing, along with slashing jobs to boost margins

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Speaker 1: after posting losses for three straight periods through the first quarter.

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Speaker 1: A i G also announcing today that it's reduced bets

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Speaker 1: on event driven and long short strategies, scaling back its

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Speaker 1: hedge fund investments, KIM and fit pretty fit stock. Today

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Speaker 1: to share is a fit Fit up more than thirteen percent.

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Speaker 1: This is the biggest gain in more than three months.

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Speaker 1: They reported second quarter results that exceeded analysts estimates. The

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Speaker 1: company reported that revenue group forty six percent in the

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Speaker 1: second quarter compared to a year earlier revenue, coming in

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Speaker 1: at five hundred and eighty six million dollars. Fitbits earnings

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Speaker 1: also excludes some costs, but the shares as I mentioned,

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Speaker 1: up more than thirteen percent. Time now for the Volatility

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Speaker 1: Index report brought to you by cbo E VIX options

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Speaker 1: and futures Volatility can be harnessed with CBOE VIX options

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Speaker 1: in futures c disclosures. Learn more at cbo E dot com.

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Speaker 1: Slash powerful outcomes of VIX well. The VIX down about

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Speaker 1: a half point at twelve point eight six at the close,

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Speaker 1: putting this in some perspective. According to a report from

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Speaker 1: the head drivative strategist at Macro Risk Advisors this week,

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Speaker 1: he points out at the gap between c b o

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Speaker 1: E the Volatility Index contracts and the underlying index, the

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Speaker 1: VIX wide last month to its highest positive readings since

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Speaker 1: September twelve. He says markets are pricing in greater risk

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Speaker 1: premium in the next few months. All right, Dave, you're up, Hi,

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Speaker 1: My name is Dave. Just what do you think you're

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Speaker 1: doing today? We're going for the floor to Dave Food.

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Speaker 1: Mr Dave Wilson tell us about Nations Star Mortgage a

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Speaker 1: certainly well but first quarterly earnings that some companies are

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Speaker 1: so predictable that analysts estimates are accurate down of the penny.

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Speaker 1: Others defy any attempt at predictions, and Nation Star Mortgage

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Speaker 1: Holdings is a good example. UH data compabby Bloomberg shows

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Speaker 1: the home loan servicing companies earning for share differed from

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Speaker 1: analyst consensus estimate and Bloomberg survey by an average of

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Speaker 1: thirty four percent since twelve. That's when nations Star win

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Speaker 1: public quarterly sales varied from projections by an average of

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Speaker 1: about twenty percent. Now Nation Star, whose ticker is n

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Speaker 1: s M, reported second quarter results today. There was even

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Speaker 1: more of a disparity than usual. On the one hand,

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Speaker 1: adjusted the EPs PTE estimates by forty two percent. On

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Speaker 1: the other, revenue trailed by thirty five percent. Now, the

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Speaker 1: earnings carried the day. City Group anialist Michael k raised

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Speaker 1: profit projections and lifted his twelve month to share price

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Speaker 1: estimate by a dollar to fourteen dollars. That he's neutral

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Speaker 1: in the company, Others were anything but neutral. In fact,

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Speaker 1: Nation Star actually got to K's twelvemonth estimate in a

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Speaker 1: single day. The stock jumped almost nineteen per cent. It

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Speaker 1: was the biggest one day advancedince going public and a

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Speaker 1: close at fourteen dollars and one cent. Steve Wilson, our

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Speaker 1: stock sitor, thank you so very much. I'm Kathleen Hayes

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Speaker 1: along with Pam Fox. We're gonna continue our special broadcast live.

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Speaker 1: It's Smith and Molsky here in Boston. This is Bloomberg

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Speaker 1: m HM. Coming up on taking stock, will take stock

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Speaker 1: of Tesla Motors. The shares are down about six percent

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Speaker 1: so far this year. The company reports results later today.

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Speaker 1: We've got details