1
00:00:03,560 --> 00:00:06,960
Speaker 1: Bloomboo Business News twenty four hours a day. If Bloomberg

2
00:00:07,000 --> 00:00:10,080
Speaker 1: dot com the radio plus mobile and on your radio,

3
00:00:10,360 --> 00:00:14,560
Speaker 1: this is a Bloomberg Business flock Strom Bloomberg World Handquarters

4
00:00:14,600 --> 00:00:17,040
Speaker 1: signed Charlie Pellett's sound of the closing Bell at the

5
00:00:17,200 --> 00:00:20,119
Speaker 1: New York Stock Exchange and it's the folks from the

6
00:00:20,520 --> 00:00:25,000
Speaker 1: sixteen Hong Kong Dragon Boat Festival ringing that closing bell.

7
00:00:25,400 --> 00:00:29,480
Speaker 1: The down lower SMP and nestack advancing the SMP five

8
00:00:29,560 --> 00:00:32,440
Speaker 1: hundred index, staging an afternoon comeback as it heads for

9
00:00:32,479 --> 00:00:35,760
Speaker 1: a fifth monthly game. Final trading session of the month

10
00:00:35,920 --> 00:00:39,000
Speaker 1: is tomorrow. We did get a raft of corporate earnings trading,

11
00:00:39,040 --> 00:00:42,680
Speaker 1: though light as investors await data tomorrow on the strength

12
00:00:42,800 --> 00:00:46,120
Speaker 1: of the U S economy, SMP five hundred index picking

13
00:00:46,200 --> 00:00:48,920
Speaker 1: up three points to twenty one seventy, the record there

14
00:00:49,520 --> 00:00:52,160
Speaker 1: seventy five. That is a gain today of two tents

15
00:00:52,159 --> 00:00:56,480
Speaker 1: of one percent. Town industrials fell sixteen points to eighteen thousand,

16
00:00:56,720 --> 00:00:59,360
Speaker 1: four hundred fifty five, a drop of point one percent.

17
00:00:59,760 --> 00:01:02,400
Speaker 1: Now stack up fifteen to fifty one fifty four, a

18
00:01:02,440 --> 00:01:05,639
Speaker 1: gain of three tenths of one percent. Gold of twenty

19
00:01:05,800 --> 00:01:08,759
Speaker 1: ounce the thirteen thirty four, a gain of six tenths

20
00:01:08,760 --> 00:01:11,959
Speaker 1: of one percent. Ford second quarter profit fell short of

21
00:01:11,959 --> 00:01:15,600
Speaker 1: analysts estimates, driving shares down the most in eleven months,

22
00:01:15,880 --> 00:01:18,759
Speaker 1: after the company warned that a stalling US auto market

23
00:01:18,800 --> 00:01:22,559
Speaker 1: threatens its full year earnings target. Bob Shanks is Ford's

24
00:01:22,600 --> 00:01:26,000
Speaker 1: chief financial officer. He was interviewed this afternoon right here

25
00:01:26,120 --> 00:01:28,240
Speaker 1: on taking stock. It was a strong quarter for us.

26
00:01:28,240 --> 00:01:31,360
Speaker 1: It wasn't quite what the market expected, but when you

27
00:01:31,440 --> 00:01:34,080
Speaker 1: take it with the record first quarter that we had.

28
00:01:34,160 --> 00:01:36,520
Speaker 1: For the first half, we had the best results we've

29
00:01:36,560 --> 00:01:39,720
Speaker 1: ever had for North America and for the company itself,

30
00:01:39,760 --> 00:01:41,480
Speaker 1: So you know, it's a very very strong start to

31
00:01:41,560 --> 00:01:44,479
Speaker 1: the year. Ford shares down today by eight point two percent,

32
00:01:44,600 --> 00:01:49,000
Speaker 1: dropping a dollar thirteen to twelve seventy one. Oracle buying

33
00:01:49,120 --> 00:01:52,280
Speaker 1: net Suite for nine point three billion dollars. Oracle has

34
00:01:52,320 --> 00:01:56,800
Speaker 1: been lagging the competition in cloud based services. Oracle shares

35
00:01:56,840 --> 00:01:59,720
Speaker 1: they're up six tenths of one percent to forty one nineteen.

36
00:02:00,080 --> 00:02:03,440
Speaker 1: The big story though, net net Suite, surging eighteen point

37
00:02:03,480 --> 00:02:07,560
Speaker 1: four percent to one oh forty one, again recapping a

38
00:02:07,680 --> 00:02:10,359
Speaker 1: move higher for the SMP five decks up three to

39
00:02:11,200 --> 00:02:14,880
Speaker 1: seventy a gain of two tenths of one percent four

40
00:02:14,919 --> 00:02:17,000
Speaker 1: oh two on Wall Street. Now, let's take a look

41
00:02:17,000 --> 00:02:21,079
Speaker 1: at other news from around the world. Charlie, thank you

42
00:02:21,120 --> 00:02:24,200
Speaker 1: from the Bloomberg News room, I Mark Crumpton. Hillary Clinton

43
00:02:24,240 --> 00:02:28,120
Speaker 1: takes center stage tonight as the Democratic National Convention draws

44
00:02:28,160 --> 00:02:31,600
Speaker 1: to a close in Philadelphia. Bloomberg's Bob Moon with more

45
00:02:31,600 --> 00:02:34,640
Speaker 1: on the story. Clinton's acceptance speech tonight could be crucial

46
00:02:34,639 --> 00:02:37,360
Speaker 1: to showing voters she's got the grit. President Obama spoke

47
00:02:37,440 --> 00:02:40,760
Speaker 1: up last night. Clinton, if that woman in the area,

48
00:02:41,400 --> 00:02:43,680
Speaker 1: she is tonight, and it's her chance to launch herself

49
00:02:43,680 --> 00:02:46,040
Speaker 1: on the same kind of post convention bounce. Donald Trump

50
00:02:46,080 --> 00:02:48,160
Speaker 1: has been quick to brag about this week we're leading.

51
00:02:50,000 --> 00:02:53,120
Speaker 1: Clinton strategist Joe Bennis until Bloomberg Politics, he doesn't give

52
00:02:53,200 --> 00:02:55,360
Speaker 1: much weight to the Trump bump. The bounce is only

53
00:02:55,400 --> 00:02:57,920
Speaker 1: relevant in that it's reinforcing that the election is going

54
00:02:57,960 --> 00:02:59,919
Speaker 1: to be close, and Clinton could see her own bill

55
00:03:00,040 --> 00:03:02,280
Speaker 1: so she can win over progressives who backed rival Bernie

56
00:03:02,360 --> 00:03:05,720
Speaker 1: Sanders and convinced independence she has the right stuff. Bob Moon,

57
00:03:05,760 --> 00:03:09,840
Speaker 1: Bloomberg Radio. State Department spokesperson John Kirby today commented on

58
00:03:09,960 --> 00:03:13,359
Speaker 1: reports that the Turkish government has ordered dozens of media

59
00:03:13,520 --> 00:03:18,440
Speaker 1: organizations closed following that failed military coup. State supports freedom

60
00:03:18,480 --> 00:03:22,359
Speaker 1: of expression around the world, and we have concerns when

61
00:03:22,400 --> 00:03:25,000
Speaker 1: any country makes a move to close down media outlets

62
00:03:25,000 --> 00:03:28,880
Speaker 1: and restrict this universal value. We expect church authorities to

63
00:03:28,960 --> 00:03:31,840
Speaker 1: uphold their assurances that the Turkish government will protect the

64
00:03:31,919 --> 00:03:34,840
Speaker 1: rule of law and fundamental freedoms. The FBI and the

65
00:03:34,960 --> 00:03:38,520
Speaker 1: NYPD are asking the public for help finding a suspect

66
00:03:38,560 --> 00:03:42,280
Speaker 1: they say robbed a Santander bank on Staten Island dressed

67
00:03:42,320 --> 00:03:44,800
Speaker 1: as a woman. Authorities say the man had on a

68
00:03:44,880 --> 00:03:47,920
Speaker 1: silver and black dress, silver high heels, a black at

69
00:03:47,960 --> 00:03:51,320
Speaker 1: and sunglasses, and then pulled his silver handgun on a teller.

70
00:03:51,560 --> 00:03:54,760
Speaker 1: Police say he should be considered armed and dangerous. Global

71
00:03:54,800 --> 00:03:57,240
Speaker 1: News twenty four hours a day, powered by more than

72
00:03:57,240 --> 00:04:01,280
Speaker 1: twenty undred journalists and analysts in more than one twenty countries.

73
00:04:01,520 --> 00:04:06,320
Speaker 1: I'm more Crumpton, this is Bloomberg, Charlie, and we thank you.

74
00:04:06,360 --> 00:04:10,000
Speaker 1: In Amazon's second quarter numbers around dollars seventy eight estimates,

75
00:04:10,000 --> 00:04:13,680
Speaker 1: there were four a dollar twelve sales thirty point four

76
00:04:13,720 --> 00:04:17,880
Speaker 1: billion dollars estimates on Amazon twenty nine point five billion,

77
00:04:18,200 --> 00:04:21,080
Speaker 1: an update for the SMP five hundred indecks up three

78
00:04:21,080 --> 00:04:23,960
Speaker 1: points to one seventy, a gain of two tenths of

79
00:04:24,000 --> 00:04:27,680
Speaker 1: one percent. I'm Charlie Pellett, and that's a Bloomberg business

80
00:04:27,720 --> 00:04:35,280
Speaker 1: slash move around motion, great promotion. I move, you move

81
00:04:35,360 --> 00:04:37,560
Speaker 1: like they do. I've never seen anyone move that back

82
00:04:41,560 --> 00:04:48,360
Speaker 1: hard people. Let's moved like to tread A purpose that

83
00:04:48,600 --> 00:04:51,400
Speaker 1: was called movies and Shakers. They cost a little movement.

84
00:04:51,720 --> 00:05:01,080
Speaker 1: That name cracked me up. Bloomberg taking stuff Movers and

85
00:05:01,279 --> 00:05:05,200
Speaker 1: Shakers with bim Box and Kathleen May's on Bloomberg Radio

86
00:05:05,680 --> 00:05:10,200
Speaker 1: Movers and Shakers for Thursday twenty sixteen. Taking a look

87
00:05:10,200 --> 00:05:13,920
Speaker 1: at the SMP five hundred, two hundred and ninety issues advanced,

88
00:05:14,000 --> 00:05:18,440
Speaker 1: two hundred and nine decline, and six remain unchanged. I

89
00:05:18,520 --> 00:05:22,400
Speaker 1: want to bring in Joe Cioli, Bloomberg News Stocks Reporter,

90
00:05:22,600 --> 00:05:26,160
Speaker 1: to kick off our movers and shakers. Alright, First up,

91
00:05:26,200 --> 00:05:29,400
Speaker 1: we have g NC Holdings. You may know this company.

92
00:05:29,480 --> 00:05:31,720
Speaker 1: It's the vitamin supplement retailer that you can find at

93
00:05:31,720 --> 00:05:35,400
Speaker 1: your local mall. Well, it was down today, a lot

94
00:05:35,440 --> 00:05:38,040
Speaker 1: of a lot of bad news. Um their chief executive officer,

95
00:05:38,560 --> 00:05:41,680
Speaker 1: Michael Archbold resigned and stepped down from the board of directors.

96
00:05:42,080 --> 00:05:45,039
Speaker 1: He was replaced by the former pet Smart CEO, Robert

97
00:05:45,120 --> 00:05:49,520
Speaker 1: Moran on an interim basis. UM Also, g NC suspended

98
00:05:49,560 --> 00:05:52,960
Speaker 1: its two thousand sixteen financial guidance on Thursday and said

99
00:05:53,000 --> 00:05:55,920
Speaker 1: in a statement that second quarter sales in domestic company

100
00:05:55,960 --> 00:05:59,320
Speaker 1: owned stores fell three point seven percent, which prompted a

101
00:05:59,400 --> 00:06:02,520
Speaker 1: slew of analyst downgrades. So, um, a lot going wrong

102
00:06:02,560 --> 00:06:05,880
Speaker 1: for g NC right now, and that ignores the fact that, uh,

103
00:06:05,920 --> 00:06:07,720
Speaker 1: you know, most of their stores are in malls and

104
00:06:07,960 --> 00:06:12,720
Speaker 1: foot traffic is down there as well, so down well. Uh. Alphabet,

105
00:06:12,880 --> 00:06:16,360
Speaker 1: parent of Google, just reporting as well, and the shares

106
00:06:16,400 --> 00:06:20,560
Speaker 1: are up five percent, going on six percent after the close.

107
00:06:20,680 --> 00:06:24,120
Speaker 1: They beat in a couple of very important ways. Revenue

108
00:06:24,160 --> 00:06:26,279
Speaker 1: came in at seventeen and a half billion dollars. There

109
00:06:26,360 --> 00:06:30,719
Speaker 1: was sixteen point nine billion dollars expected, earnings per share

110
00:06:31,040 --> 00:06:33,360
Speaker 1: eight dollars and forty two cents versus eight dollars and

111
00:06:33,480 --> 00:06:36,840
Speaker 1: three spins cents expected. And it's only the third quarter

112
00:06:36,880 --> 00:06:41,440
Speaker 1: that Alphabet has reported under its new operating structure. So, boy,

113
00:06:41,760 --> 00:06:43,440
Speaker 1: three is a charm. This is so far looking like

114
00:06:43,480 --> 00:06:45,640
Speaker 1: a good report. PIM. Yes, so I'm gonna tell you

115
00:06:45,680 --> 00:06:48,280
Speaker 1: though about well an old economy company, and well, just

116
00:06:48,279 --> 00:06:51,720
Speaker 1: tell you about US Steel now. The shares of US

117
00:06:51,760 --> 00:06:56,360
Speaker 1: Steal today moving higher mainly because of a report earlier

118
00:06:56,640 --> 00:06:59,560
Speaker 1: in the week about their earnings per share, but also

119
00:06:59,680 --> 00:07:03,599
Speaker 1: about their future and the introduction of tariffs that would

120
00:07:03,640 --> 00:07:08,239
Speaker 1: present a problem for imports. Steal shares of US Deal

121
00:07:08,279 --> 00:07:11,360
Speaker 1: today higher by more than five and a half percent,

122
00:07:11,560 --> 00:07:13,800
Speaker 1: and the shares of U Steal this is their highest

123
00:07:13,880 --> 00:07:18,000
Speaker 1: level in nearly fourteen months. The company also saying that

124
00:07:18,040 --> 00:07:21,880
Speaker 1: full year forecast will include a profit of about fifty

125
00:07:21,880 --> 00:07:25,400
Speaker 1: million dollars and steel price increases announced earlier in the

126
00:07:25,480 --> 00:07:29,400
Speaker 1: year will be implemented with customers who buy Steal contracts

127
00:07:29,400 --> 00:07:32,840
Speaker 1: once again. Shares of U s Steal symbol X up

128
00:07:32,880 --> 00:07:35,680
Speaker 1: more than five and a half percent. Next up group

129
00:07:35,720 --> 00:07:39,239
Speaker 1: on UH the UH. This company's up twenty nine today.

130
00:07:39,360 --> 00:07:41,960
Speaker 1: It's stared the most in five months after raising its

131
00:07:42,000 --> 00:07:45,840
Speaker 1: full year revenue forecasts, citing recent customer gains after revamping

132
00:07:45,880 --> 00:07:49,400
Speaker 1: its market programs. UM. What we've seen here is the

133
00:07:49,400 --> 00:07:52,200
Speaker 1: their new CEO, Rich Williams, has been transforming the company

134
00:07:52,560 --> 00:07:55,280
Speaker 1: from the daily deal email provider that we kind of

135
00:07:55,440 --> 00:07:57,880
Speaker 1: all know it to be to an online destination for

136
00:07:57,880 --> 00:08:00,600
Speaker 1: people looking for bargains. They were able to add about

137
00:08:00,600 --> 00:08:03,360
Speaker 1: one point one million new active customers from North America

138
00:08:03,480 --> 00:08:06,400
Speaker 1: last quarter, bringing their total to seven point nine million.

139
00:08:06,680 --> 00:08:09,120
Speaker 1: So some nice growth trends. They're kind of pivoting a

140
00:08:09,200 --> 00:08:12,880
Speaker 1: business strategy and investors rewarding them for it. Well. Uh,

141
00:08:13,120 --> 00:08:15,840
Speaker 1: master Card speaking of another old line company, who the

142
00:08:15,920 --> 00:08:18,600
Speaker 1: thought that with all the credit cards solicitations, doesn't everybody

143
00:08:18,640 --> 00:08:20,960
Speaker 1: already have more credit cards than they need? And yet

144
00:08:21,520 --> 00:08:25,600
Speaker 1: um more customer cards spending increasing. That's what boosted master

145
00:08:25,680 --> 00:08:28,960
Speaker 1: Card today second quarter net income climbing six point seven

146
00:08:29,000 --> 00:08:32,800
Speaker 1: percent to nine d eighty three million dollars. The chief

147
00:08:32,800 --> 00:08:35,880
Speaker 1: financial officer, in a phone interview today told Bloomberg News,

148
00:08:35,880 --> 00:08:38,600
Speaker 1: the underlying fundamentals of our business have not changed. They're good.

149
00:08:38,640 --> 00:08:40,840
Speaker 1: We're going to continue to exit execute in terms of

150
00:08:40,840 --> 00:08:44,040
Speaker 1: what we said we would be doing. More people replacing

151
00:08:44,120 --> 00:08:47,480
Speaker 1: cash and checks with electronic payments. Um, there's all kinds

152
00:08:47,520 --> 00:08:50,760
Speaker 1: of new technologies beyond plastic cards, from refrigerator that can

153
00:08:50,840 --> 00:08:53,600
Speaker 1: order groceries to a robot named Pepper that can take

154
00:08:53,640 --> 00:08:57,560
Speaker 1: customers orders. A pizza hut PAM three convenient it certainly is. Um.

155
00:08:57,600 --> 00:08:59,720
Speaker 1: Let me tell you what's going on with Amazon after

156
00:08:59,760 --> 00:09:02,640
Speaker 1: a second quarter earnings per share of a dollar seventy

157
00:09:02,720 --> 00:09:06,840
Speaker 1: eight that exceeded analysts estimates of a dollar twelve, also

158
00:09:07,160 --> 00:09:10,520
Speaker 1: sales coming in better than estimated. Taking a look at

159
00:09:10,600 --> 00:09:14,439
Speaker 1: the results, a thirty point four billion estimate was for

160
00:09:14,559 --> 00:09:18,560
Speaker 1: twenty nine point five. Yet the shares well basically unchanged

161
00:09:18,640 --> 00:09:19,960
Speaker 1: right now. A lot of it having to do with

162
00:09:20,040 --> 00:09:24,040
Speaker 1: Amazon saying that they see third quarter operating income between

163
00:09:24,080 --> 00:09:28,199
Speaker 1: the five hundred to six hundred and fifty million dollars

164
00:09:28,320 --> 00:09:31,880
Speaker 1: and the estimate there was for eight hundred and fifteen millions.

165
00:09:31,880 --> 00:09:34,560
Speaker 1: So we'll be watching the shares of Amazon, which are

166
00:09:34,600 --> 00:09:36,880
Speaker 1: just trading a little bit higher, about half a percent

167
00:09:37,160 --> 00:09:40,199
Speaker 1: in after hours trading. Should we take a quick look

168
00:09:40,200 --> 00:09:43,439
Speaker 1: at volatility with Jose the early Trific story out today. Yeah,

169
00:09:43,480 --> 00:09:46,880
Speaker 1: So what we've seen is this uh, this volatility product

170
00:09:46,920 --> 00:09:49,560
Speaker 1: called the v x x UH. It's it's a long

171
00:09:49,640 --> 00:09:52,040
Speaker 1: vaul instrument that people used to get exposure to the

172
00:09:52,120 --> 00:09:55,520
Speaker 1: vix um. What we've seen there is UH is people

173
00:09:56,000 --> 00:09:58,679
Speaker 1: using that as head for a hedge or to maybe

174
00:09:58,679 --> 00:10:02,160
Speaker 1: make a directional bet on SMP five hundred However, to

175
00:10:02,240 --> 00:10:04,559
Speaker 1: make money, the SNP has to drop. And what we've

176
00:10:04,559 --> 00:10:06,960
Speaker 1: seen is that when people load up on the VXX,

177
00:10:07,080 --> 00:10:09,719
Speaker 1: the SMP keeps gaining, So it hasn't exactly been the

178
00:10:09,760 --> 00:10:28,600
Speaker 1: most effective hedge. Yeah, alright, he comes with his own

179
00:10:28,960 --> 00:10:33,120
Speaker 1: music today. The whole world, well, the Whole Foods market

180
00:10:33,280 --> 00:10:36,720
Speaker 1: share is not really happening today, right, Yeah, Whole Foods

181
00:10:36,760 --> 00:10:39,040
Speaker 1: had a really rough day, down nine, the most in

182
00:10:39,080 --> 00:10:42,000
Speaker 1: the SMP. Five. Uh, that's the most in almost a year.

183
00:10:42,400 --> 00:10:45,560
Speaker 1: And what we saw was third quarter sales missing analyst estimates,

184
00:10:46,160 --> 00:10:48,600
Speaker 1: a sign that the organic food chain is struggling to

185
00:10:48,600 --> 00:10:52,240
Speaker 1: fend off new competition from mainstream supermarkets. Uh. Same store

186
00:10:52,240 --> 00:10:54,400
Speaker 1: sales fell two point six percent in the period, which

187
00:10:54,480 --> 00:10:57,760
Speaker 1: was more than what analysts had expected. And uh, really,

188
00:10:57,800 --> 00:10:59,800
Speaker 1: what we're seeing his Whole food suffering through its worst

189
00:10:59,800 --> 00:11:02,760
Speaker 1: sale else slump since two thousand nine as its struggled

190
00:11:02,760 --> 00:11:06,960
Speaker 1: to shed its quote unquote whole paycheck image and um

191
00:11:07,400 --> 00:11:10,680
Speaker 1: places like Kroger, Walmart and other major chains have boosted

192
00:11:10,760 --> 00:11:13,959
Speaker 1: their offering offerings of organic and natural foods, which is

193
00:11:14,000 --> 00:11:17,880
Speaker 1: bringing competition to to this market. Bloomberg News is gadifly

194
00:11:17,960 --> 00:11:20,640
Speaker 1: columnst Shelley Banjo actually had a really interesting column today.

195
00:11:21,000 --> 00:11:23,320
Speaker 1: She thinks that Whole Foods made a mistake by cutting

196
00:11:23,320 --> 00:11:26,640
Speaker 1: prices along with everyone else, uh in a in a

197
00:11:27,080 --> 00:11:30,280
Speaker 1: h an attempt to boost sales. They did cut prices,

198
00:11:30,320 --> 00:11:32,800
Speaker 1: but Shelley is arguing here that that's not really their

199
00:11:32,880 --> 00:11:35,160
Speaker 1: sweet spot. No one goes to Whole Foods to bargain hunt.

200
00:11:35,160 --> 00:11:37,120
Speaker 1: They go there for quality. They go there because they

201
00:11:37,120 --> 00:11:39,040
Speaker 1: know that they're going to get a great product and

202
00:11:39,040 --> 00:11:41,440
Speaker 1: that they should probably keep their prices a little higher.

203
00:11:41,840 --> 00:11:44,200
Speaker 1: As a as a customer, I'm fine with them being low,

204
00:11:44,480 --> 00:11:46,719
Speaker 1: but as an investor, maybe I'd want them to raise them.

205
00:11:47,040 --> 00:11:51,360
Speaker 1: Very interesting analysis, Joseila, thank you so very much. Whole Foods. Yes, um,

206
00:11:52,000 --> 00:11:54,959
Speaker 1: they've got some struggles. But that last person you sided,

207
00:11:55,000 --> 00:11:56,680
Speaker 1: maybe go in a bit of a contrary and maybe

208
00:11:56,679 --> 00:11:59,880
Speaker 1: that's the right called. Josian Stockmach, reporter for Bloomberg News.

209
00:12:00,640 --> 00:12:07,600
Speaker 1: This is Bloomberg coming up right now. The shares of

210
00:12:07,720 --> 00:12:10,599
Speaker 1: Amazon are hired by one and a half percent. A

211
00:12:10,679 --> 00:12:13,680
Speaker 1: company reports second quarter earnings per share of a dollar

212
00:12:13,800 --> 00:12:17,800
Speaker 1: seventy eight, exceeding analysts estimates of a dollar twelve. What's

213
00:12:17,800 --> 00:12:19,040
Speaker 1: next for the retail giant