1 00:00:03,279 --> 00:00:06,680 Speaker 1: Global business news twenty four hours a day at Bloomberg 2 00:00:06,720 --> 00:00:09,799 Speaker 1: dot com, So Radio plus Mobile LAFT and on your radio. 3 00:00:10,039 --> 00:00:14,400 Speaker 1: This is a Bloomberg Business Black Bom Bloomberg World Handquarters, 4 00:00:14,440 --> 00:00:17,800 Speaker 1: Signed Charlie Pelota. Another record for the down Jones Industrial Average. 5 00:00:17,960 --> 00:00:20,960 Speaker 1: Folks from star Trek ringing that closing belm. We're brought 6 00:00:21,000 --> 00:00:24,160 Speaker 1: to you by Sector Spider ETFs. Why buy a single 7 00:00:24,200 --> 00:00:27,520 Speaker 1: stock when you can invest in the entire sector? Visit 8 00:00:27,600 --> 00:00:31,160 Speaker 1: sector spd rs dot com or call one eight six 9 00:00:31,200 --> 00:00:35,199 Speaker 1: six Sector e t F. Eighth day of gains on 10 00:00:35,240 --> 00:00:37,960 Speaker 1: the down Jones Industrial Average, closing at the best level 11 00:00:37,960 --> 00:00:41,080 Speaker 1: of the day, up twenty seven points, advancing one tenth 12 00:00:41,159 --> 00:00:44,760 Speaker 1: of one percent to eighteen thousand, five hundred fifty nine. 13 00:00:45,080 --> 00:00:48,159 Speaker 1: The SMP five hundred index did slip from a record 14 00:00:48,200 --> 00:00:51,400 Speaker 1: following a mix of corporate earnings reports. Art Hogan is 15 00:00:51,520 --> 00:00:54,600 Speaker 1: chief market strategist at wonder Legs Securities. He was interviewed 16 00:00:54,640 --> 00:00:57,520 Speaker 1: moments ago right here on taking stock. The real attraction 17 00:00:57,560 --> 00:01:00,800 Speaker 1: here is does the SMP five hundred look any any 18 00:01:00,920 --> 00:01:02,840 Speaker 1: more attractive than you know putting your money in the 19 00:01:02,920 --> 00:01:05,920 Speaker 1: US ten here in terms of what your ultimate yield is. 20 00:01:05,959 --> 00:01:07,880 Speaker 1: And I think that's one of the biggest draws. I 21 00:01:07,880 --> 00:01:10,080 Speaker 1: also think that the economic date of the second quarter 22 00:01:10,160 --> 00:01:11,920 Speaker 1: certainly seems to be better than the first quarter, and 23 00:01:11,959 --> 00:01:14,320 Speaker 1: certainly seems to be back in line with a two 24 00:01:14,319 --> 00:01:16,720 Speaker 1: and a half percent GDP growth rate, which is probably 25 00:01:16,760 --> 00:01:18,800 Speaker 1: going to be good enough and certainly better than a 26 00:01:18,880 --> 00:01:22,160 Speaker 1: lot of of alternatives. And the tenure up eight thirty 27 00:01:22,160 --> 00:01:24,720 Speaker 1: seconds the old on the tenure now one point five 28 00:01:24,800 --> 00:01:28,479 Speaker 1: five gold up three forty ounce the thirteen thirty two 29 00:01:28,480 --> 00:01:30,960 Speaker 1: a gain. There are three tents of one percent crude 30 00:01:31,000 --> 00:01:34,520 Speaker 1: oil down sixty one cents of arrow forty four sixty 31 00:01:34,560 --> 00:01:37,240 Speaker 1: three back below forty five dollars a barrel on West 32 00:01:37,240 --> 00:01:40,480 Speaker 1: Texas Intermediate a barrel of crude down one point four 33 00:01:40,520 --> 00:01:42,800 Speaker 1: percent oil by the way, closing up the lowest in 34 00:01:42,880 --> 00:01:47,680 Speaker 1: more than two months. Former UBS Group trader Matthew Gardner 35 00:01:47,800 --> 00:01:50,400 Speaker 1: banned from the banking industry by the Federal Reserve for 36 00:01:50,640 --> 00:01:55,040 Speaker 1: manipulating currency benchmarks, and the International Monetary Fund today scrapped 37 00:01:55,080 --> 00:01:57,520 Speaker 1: its forecast for a pickup in global growth this year, 38 00:01:57,880 --> 00:02:02,160 Speaker 1: citing Britain's vote to leave your pen Union again, recapping 39 00:02:02,240 --> 00:02:04,720 Speaker 1: down industrial is picking up twenty six points to a 40 00:02:04,840 --> 00:02:09,200 Speaker 1: record eighteen thousand, five hundred fifty nine point one SMP 41 00:02:09,360 --> 00:02:12,079 Speaker 1: five hundred in next down the three points a drop 42 00:02:12,160 --> 00:02:15,760 Speaker 1: of point one four oh two on Wall Street. Now, 43 00:02:15,840 --> 00:02:18,040 Speaker 1: let's take a look at other news from around the world. 44 00:02:18,120 --> 00:02:22,280 Speaker 1: On Bloomberg Radio, Charlie, thank you from the Bloomberg news Room. 45 00:02:22,280 --> 00:02:25,280 Speaker 1: I'm Mark Crumpton. After a roll call of delegates at 46 00:02:25,320 --> 00:02:28,920 Speaker 1: the Republican National Convention tonight, Donald Trump will be the 47 00:02:28,919 --> 00:02:33,000 Speaker 1: party's official nominee. His campaign chairman as Paul Manafort. He's 48 00:02:33,040 --> 00:02:35,960 Speaker 1: excited about the fact that his quest will finally come 49 00:02:36,000 --> 00:02:38,240 Speaker 1: to an end, and all of you who doubted that 50 00:02:38,280 --> 00:02:40,440 Speaker 1: he could be nominated will no longer be able to 51 00:02:40,440 --> 00:02:43,560 Speaker 1: say yes. But maybe it won't happen. It will have happened. 52 00:02:43,840 --> 00:02:48,200 Speaker 1: Hillary Clinton is criticizing Indiana Governor Mike Pence, donald Trump's 53 00:02:48,240 --> 00:02:53,960 Speaker 1: vice presidential pick. He's picked someone who stood for a 54 00:02:54,080 --> 00:02:59,919 Speaker 1: law that would have legitimized blatant discrimination against the lgb 55 00:03:00,080 --> 00:03:03,919 Speaker 1: T community. When he was in Congress, he was willing 56 00:03:03,960 --> 00:03:06,240 Speaker 1: to shut down the government and an effort to try 57 00:03:06,280 --> 00:03:10,920 Speaker 1: to defund Planned parenthood. Mrs Clinton made her comments during 58 00:03:10,919 --> 00:03:14,000 Speaker 1: an interview with Charlie Roose. The location of the first 59 00:03:14,040 --> 00:03:17,560 Speaker 1: presidential debate in September is moving from Ohio's Right State 60 00:03:17,639 --> 00:03:21,880 Speaker 1: University to New York's Hofstra University. The Commission on Presidential 61 00:03:21,880 --> 00:03:25,800 Speaker 1: Debates made the announcement earlier today after Right State dropped 62 00:03:25,800 --> 00:03:30,440 Speaker 1: out signing security concerns. Hofstra also hosted a presidential debate 63 00:03:30,639 --> 00:03:34,800 Speaker 1: in two thousand twelve. German investigators say the Afghan asylum 64 00:03:34,840 --> 00:03:37,680 Speaker 1: seeker who went on a rampage aboard a train had 65 00:03:37,720 --> 00:03:40,760 Speaker 1: gotten word a friend of his had died in Afghanistan 66 00:03:41,040 --> 00:03:43,800 Speaker 1: in the days ahead of the attack. The seventeen year 67 00:03:43,800 --> 00:03:46,600 Speaker 1: old is said to a vow to quote take revenge 68 00:03:46,600 --> 00:03:49,920 Speaker 1: on these infidels in a note he wrote before carrying 69 00:03:49,920 --> 00:03:53,120 Speaker 1: out the acts and knife attack. Five people were wounded 70 00:03:53,160 --> 00:03:56,600 Speaker 1: before the team was killed by police. Global News twenty 71 00:03:56,600 --> 00:03:59,880 Speaker 1: four hours a day, powered by more than twenty journalists 72 00:03:59,880 --> 00:04:03,520 Speaker 1: and analysts in more than one countries. I'm More Crumpton, 73 00:04:03,640 --> 00:04:06,800 Speaker 1: this is Bloomberg, Charlotte, and we thank you and again 74 00:04:06,880 --> 00:04:11,880 Speaker 1: recapping the SMP five hundred index down three points to three, 75 00:04:12,280 --> 00:04:15,640 Speaker 1: a drop of one tenth of one percent. Dow Industriels 76 00:04:15,920 --> 00:04:19,679 Speaker 1: rise for an eighth straight session. I'm Charlie Pellaton. That's 77 00:04:19,800 --> 00:04:24,000 Speaker 1: a Bloomberg Business Flash move around motion creates the motion 78 00:04:24,160 --> 00:04:28,880 Speaker 1: at the elite time. Move you move like they do. 79 00:04:29,080 --> 00:04:35,320 Speaker 1: I've never seen anyone move that back hard people. Let's 80 00:04:35,320 --> 00:04:43,039 Speaker 1: move to get a purpose. That's called movers and shakers. 81 00:04:43,400 --> 00:04:45,800 Speaker 1: It costs a little more about that name. Cracked me up. 82 00:04:51,680 --> 00:04:55,920 Speaker 1: Bloomberg taking stock movers and shakers with pim Fox and 83 00:04:56,040 --> 00:05:00,839 Speaker 1: Kathleen As on Bloomberg Radio. Movers and Shape cares for Tuesday, 84 00:05:00,920 --> 00:05:05,280 Speaker 1: July nineteen, twenty and sixteen. Two hundred issues are higher 85 00:05:05,279 --> 00:05:08,640 Speaker 1: in the SMP five two hundred and nineties, seven decline 86 00:05:09,080 --> 00:05:12,200 Speaker 1: and eight remained unchanged. Here to tell us more and 87 00:05:12,279 --> 00:05:15,520 Speaker 1: kick off our movers and shakers is Dave Wilson, Bloomberg 88 00:05:15,560 --> 00:05:19,360 Speaker 1: Stocks columnist. You know companies that become takeover targets a 89 00:05:19,360 --> 00:05:21,520 Speaker 1: lot of times they're earnings sort of take a back 90 00:05:21,640 --> 00:05:24,520 Speaker 1: seat to whatever the deal is. And I bring this 91 00:05:24,640 --> 00:05:27,400 Speaker 1: up because we got results late yesterday from e m C, 92 00:05:27,920 --> 00:05:31,000 Speaker 1: which is a takeover target for Dell now the data 93 00:05:31,040 --> 00:05:35,400 Speaker 1: storage system makers second quarter earnings in revenue beat analysts 94 00:05:35,400 --> 00:05:38,880 Speaker 1: average estimates in the Bloomberg survey. And then you also 95 00:05:38,920 --> 00:05:43,120 Speaker 1: had results from e MC software unit vm Ware. They're 96 00:05:43,200 --> 00:05:47,080 Speaker 1: quarterly profit and sales top projections, and the company raised 97 00:05:47,120 --> 00:05:50,160 Speaker 1: its forecast for the full year. E m C had 98 00:05:50,160 --> 00:05:52,920 Speaker 1: a gain of two point one percent in today's trading. 99 00:05:53,240 --> 00:05:56,919 Speaker 1: Vm Ware was a real standout this stock gain nine 100 00:05:56,960 --> 00:05:59,720 Speaker 1: point one percent, which was the biggest advance on the 101 00:05:59,800 --> 00:06:03,400 Speaker 1: day and the Russell three thousand index of US stocks. 102 00:06:03,720 --> 00:06:07,120 Speaker 1: I'm gonna tell you about Philip Morris International. Shares of 103 00:06:07,160 --> 00:06:12,640 Speaker 1: Philip Morris International, the international tobacco and branded cigarettes company, 104 00:06:13,400 --> 00:06:18,760 Speaker 1: shares down about three percent today. Pressure on margins. International 105 00:06:18,839 --> 00:06:22,160 Speaker 1: net revenue may continue to decline. Second quarter earnings per 106 00:06:22,200 --> 00:06:27,080 Speaker 1: share mis consensus by four percent, cigarettes shipment volume down 107 00:06:27,120 --> 00:06:33,400 Speaker 1: nearly five percent, and operating margins narrowed versus forty two 108 00:06:33,480 --> 00:06:36,640 Speaker 1: percent in the same quarter last year. Once again, shares 109 00:06:36,680 --> 00:06:39,599 Speaker 1: of Philip Morris sometimes a dividend darling. It pays a 110 00:06:39,680 --> 00:06:43,200 Speaker 1: dividend of four percent. Nevertheless, shares of Philip Marris down 111 00:06:43,240 --> 00:06:46,440 Speaker 1: three percent. Let's stick with the takeover theme. Talk about 112 00:06:46,440 --> 00:06:49,440 Speaker 1: F five Networks. About six weeks ago, Router has reported 113 00:06:49,480 --> 00:06:52,600 Speaker 1: that the company had hired Golden Sacks to help the 114 00:06:52,680 --> 00:06:57,560 Speaker 1: con sort through potential takeover offers. Well. Today, the New 115 00:06:57,640 --> 00:07:01,440 Speaker 1: York Post reported that F five become a takeover target 116 00:07:01,480 --> 00:07:04,919 Speaker 1: for the private equity firm Toma Bravo at least that 117 00:07:04,960 --> 00:07:07,560 Speaker 1: they're very interested in making a deal on the tone 118 00:07:07,560 --> 00:07:10,920 Speaker 1: of a Bravo has actually been involved in five transactions 119 00:07:10,960 --> 00:07:13,560 Speaker 1: that since the beginning of June, including a three billion 120 00:07:13,600 --> 00:07:17,280 Speaker 1: dollar deal to buy the software maker Click Technologies. Now, 121 00:07:17,520 --> 00:07:21,160 Speaker 1: the report on F five started an unnamed technology banker 122 00:07:21,240 --> 00:07:25,440 Speaker 1: and said tom A Bravo and F five declined to comment. Nonetheless, 123 00:07:25,920 --> 00:07:28,000 Speaker 1: F five had the day's biggest game the S and 124 00:07:28,040 --> 00:07:31,320 Speaker 1: P five hundred, the stock rising four point one percent. Well, 125 00:07:31,360 --> 00:07:35,240 Speaker 1: the shares of Microsoft in regular trading UH down about 126 00:07:35,320 --> 00:07:37,320 Speaker 1: one and a half percent. But we're gonna have to 127 00:07:37,360 --> 00:07:40,080 Speaker 1: see what happens because they have just released their second 128 00:07:40,160 --> 00:07:43,280 Speaker 1: quarter I beg your pardon their fourth quarter adjusted earnings 129 00:07:43,280 --> 00:07:47,000 Speaker 1: per shaff sixty nine cents that exceeds consensus estimates of 130 00:07:47,080 --> 00:07:50,560 Speaker 1: fifty eight cents. And they're also reporting a fourth quarter 131 00:07:50,680 --> 00:07:54,200 Speaker 1: revenue of twenty two point six billion, and it is 132 00:07:54,240 --> 00:07:57,960 Speaker 1: better than average annle assessments of twenty two point one 133 00:07:58,240 --> 00:08:02,040 Speaker 1: four billion. Once again, during the irregular session, shares a 134 00:08:02,120 --> 00:08:04,520 Speaker 1: Microsoft down one and a half percent. Will be watching 135 00:08:04,600 --> 00:08:07,440 Speaker 1: the stock as it trades in after hours, right late trading, 136 00:08:07,480 --> 00:08:10,520 Speaker 1: it's up a bit more than four percent. I wanted 137 00:08:10,520 --> 00:08:14,520 Speaker 1: to mention W. W. Granger. This is an industrial distributor 138 00:08:14,520 --> 00:08:16,720 Speaker 1: of the kind of company that you look at if 139 00:08:16,760 --> 00:08:19,040 Speaker 1: you're trying to get a broader sense of how industry 140 00:08:19,080 --> 00:08:22,440 Speaker 1: is doing. And the short answer is not so well. 141 00:08:22,480 --> 00:08:25,160 Speaker 1: If you look at their second quarter results, earnings and 142 00:08:25,240 --> 00:08:29,040 Speaker 1: sales trailed estimates and Granger cut the midpoint of its 143 00:08:29,320 --> 00:08:32,160 Speaker 1: forecast rangers for the full year. And I should point 144 00:08:32,200 --> 00:08:36,080 Speaker 1: out that their competitor Fastenal, which had results out last week, 145 00:08:36,280 --> 00:08:40,280 Speaker 1: and they were also disappointing. Granger shares falling four eight 146 00:08:40,280 --> 00:08:42,360 Speaker 1: percent on the day, one of the biggest losses in 147 00:08:42,400 --> 00:08:46,439 Speaker 1: the SMP. Semparate Energy the shares down about a half 148 00:08:46,440 --> 00:08:49,360 Speaker 1: a percent today. They lowered their buy back target in 149 00:08:49,440 --> 00:08:52,719 Speaker 1: order to fund the Mexican pipeline project. They affirmed their 150 00:08:52,760 --> 00:08:55,760 Speaker 1: twenty sixteen earnings per share forecasts. They say that they're 151 00:08:55,760 --> 00:08:58,160 Speaker 1: going to be earning between four dollars and sixty and 152 00:08:58,200 --> 00:09:01,520 Speaker 1: five dollars to share. The estimate was for four dollars 153 00:09:01,600 --> 00:09:04,920 Speaker 1: and nine nine cents. They'll also be receiving some cash 154 00:09:05,160 --> 00:09:09,040 Speaker 1: from the Alysso Canyon Insurance, and they say that they're 155 00:09:09,040 --> 00:09:11,400 Speaker 1: going to be lowering that share buy back in order 156 00:09:11,440 --> 00:09:14,240 Speaker 1: to fund that pipeline project. Once again, shares a semperate 157 00:09:14,320 --> 00:09:16,280 Speaker 1: energy down a half a percent. I'll give you a 158 00:09:16,320 --> 00:09:19,640 Speaker 1: quick overview Health Insurance. United health Group had earnings out 159 00:09:20,000 --> 00:09:22,520 Speaker 1: uh they were well received in the end, shares up 160 00:09:22,559 --> 00:09:26,840 Speaker 1: one point three percent. Second quarter results being estimates. Signa, Anthem, 161 00:09:26,920 --> 00:09:30,520 Speaker 1: Humanity and Etna all lower person familior of the matter, 162 00:09:30,600 --> 00:09:33,760 Speaker 1: telling us that US antitrust officials are poised to file 163 00:09:33,840 --> 00:09:36,960 Speaker 1: lawsuits to block all these companies deals. Humanity took the 164 00:09:36,960 --> 00:09:40,280 Speaker 1: biggest hit on the day, down almost four time. Now 165 00:09:40,320 --> 00:09:43,000 Speaker 1: for the Volatility Index report brought to you by the 166 00:09:43,040 --> 00:09:46,760 Speaker 1: cbo E VIX Options and Futures. Volatility can be harnessed 167 00:09:46,760 --> 00:09:50,000 Speaker 1: with cbo VIS Options and Futures CEE disclosures. Learn more 168 00:09:50,080 --> 00:09:54,680 Speaker 1: at cbo e dot com Slash Powerful Outcomes VIX. The 169 00:09:54,800 --> 00:09:59,000 Speaker 1: VIX declining once again. This is the fourth consecutive decline 170 00:09:59,040 --> 00:10:01,960 Speaker 1: for the VIX and down zero point three percent, a 171 00:10:02,080 --> 00:10:05,920 Speaker 1: drop of zero point zero four settling at twelve point 172 00:10:06,080 --> 00:10:11,319 Speaker 1: four oh and comparing the VIX today with its position 173 00:10:11,400 --> 00:10:16,640 Speaker 1: at the beginning of the year, it is down thirty. Alright, Dave, 174 00:10:16,760 --> 00:10:22,400 Speaker 1: you're up. Uh Hi, my name is Dave. Just what 175 00:10:22,559 --> 00:10:28,320 Speaker 1: do you think you're doing? We're going for the pandown, Dave, 176 00:10:28,040 --> 00:10:33,800 Speaker 1: Dave Hey, Mr Wilson. I can guess what stock you're 177 00:10:33,800 --> 00:10:38,920 Speaker 1: gonna talk about. Funny, guess that's your answer. Companies approaching 178 00:10:38,960 --> 00:10:42,280 Speaker 1: the twentieth anniversary of its initial public offering. The powermaker 179 00:10:42,320 --> 00:10:45,920 Speaker 1: and retailer went public in August. It's been a real 180 00:10:46,040 --> 00:10:48,640 Speaker 1: up and down stock the last ten years. Peaked in 181 00:10:48,679 --> 00:10:52,280 Speaker 1: October two thousand seven, plummeted as much as eighty two, 182 00:10:53,240 --> 00:10:56,960 Speaker 1: recoup most of that loss, and then retreated a new 183 00:10:57,360 --> 00:11:00,280 Speaker 1: just last month, Guests traded at the lowest price since 184 00:11:00,320 --> 00:11:03,120 Speaker 1: March two thousand nine, and the company has been trying 185 00:11:03,120 --> 00:11:06,280 Speaker 1: to come back. The latest bid was set back today 186 00:11:06,360 --> 00:11:09,080 Speaker 1: after Piper Jaffrey lowerd it's rating the equivalent of sell 187 00:11:09,200 --> 00:11:12,000 Speaker 1: from neutral. Analyst Aaron Murphy wrote a report that the 188 00:11:12,040 --> 00:11:15,559 Speaker 1: company's planned for turnaround faces growing risks in the next 189 00:11:15,600 --> 00:11:18,280 Speaker 1: six to twelve months. She signed a potential drop in 190 00:11:18,400 --> 00:11:22,560 Speaker 1: licensing income and price cuts, along with increases in store 191 00:11:22,640 --> 00:11:26,800 Speaker 1: openings and inventory. The data compiled by Bloomberg shows Piper 192 00:11:27,120 --> 00:11:30,640 Speaker 1: is now the only firm to recommend selling guests. Many 193 00:11:30,679 --> 00:11:34,640 Speaker 1: investors did just that today as the stock lost seven 194 00:11:34,720 --> 00:11:37,560 Speaker 1: point one percent. That was the biggest decline for guests 195 00:11:37,600 --> 00:11:42,960 Speaker 1: since March and Paul and Maurice Marciano they own I 196 00:11:43,040 --> 00:11:47,240 Speaker 1: believe more than twenty seven percent of the shares of 197 00:11:47,440 --> 00:11:50,920 Speaker 1: guests g Yes. Thanks very much, Dave Wilson, Bloomberg stocks 198 00:11:50,960 --> 00:11:54,840 Speaker 1: Commas sent him an email at d Wilson at Bloomberg 199 00:11:55,120 --> 00:11:58,640 Speaker 1: dot net. Sign up for his daily free email newsletter. 200 00:11:58,800 --> 00:12:06,040 Speaker 1: It'll make you a smarter investor. This is Bloomberg. Bloomberg 201 00:12:06,040 --> 00:12:08,040 Speaker 1: Taking stock has brought to you by Withim Smith and 202 00:12:08,080 --> 00:12:11,360 Speaker 1: Brown CPA's audit, tax and advisory services to help your 203 00:12:11,400 --> 00:12:14,760 Speaker 1: business be in a position of strength. Experience the withm 204 00:12:14,800 --> 00:12:20,200 Speaker 1: Way by visiting with him dot com.