1 00:00:02,680 --> 00:00:06,039 Speaker 1: Global business news twenty four hours a day at Bloomberg 2 00:00:06,120 --> 00:00:09,200 Speaker 1: dot com, the Radio plus mobile, last and on your radio. 3 00:00:09,480 --> 00:00:13,600 Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow. 4 00:00:13,640 --> 00:00:16,840 Speaker 1: This updates brought to you by National Realty Returns on 5 00:00:16,920 --> 00:00:19,119 Speaker 1: cash and rented real estate find them at n r 6 00:00:19,200 --> 00:00:22,840 Speaker 1: i A dot net. US stocks are lower following two 7 00:00:22,840 --> 00:00:24,920 Speaker 1: weeks of gains for the S and P five hundred 8 00:00:24,920 --> 00:00:27,720 Speaker 1: index before central bank meetings this week in the U 9 00:00:27,880 --> 00:00:30,840 Speaker 1: S and Japan. As an investors weight earnings reports to 10 00:00:30,840 --> 00:00:33,920 Speaker 1: gauge corporate health, WH checked the markets every fifteen minutes 11 00:00:33,960 --> 00:00:36,360 Speaker 1: throughout the trading day on Bloomberg. The S and P 12 00:00:36,520 --> 00:00:39,320 Speaker 1: five hundred down about four tenths percent, down seven points 13 00:00:39,320 --> 00:00:42,599 Speaker 1: to eighty three. Dow Jones Industrial Average down half per 14 00:00:42,600 --> 00:00:45,760 Speaker 1: cent or eighty five points, to seventeen thousand, nine hundred eighteen. 15 00:00:46,040 --> 00:00:48,479 Speaker 1: Then astects down a tenth of upper center five points 16 00:00:48,479 --> 00:00:51,960 Speaker 1: to forty nine hundred ten. Your treasury down to thirty seconds, 17 00:00:52,000 --> 00:00:54,040 Speaker 1: the yield one point eight nine percent. That yield on 18 00:00:54,120 --> 00:00:57,040 Speaker 1: the two year point two percent nim X screwde oil 19 00:00:57,120 --> 00:00:59,160 Speaker 1: up three tenths per cent, or thirteen cents, to forty 20 00:00:59,240 --> 00:01:02,000 Speaker 1: three eighty four a barrel comic scold is up eight 21 00:01:02,040 --> 00:01:04,040 Speaker 1: tenths per cent, or not all their seventy cents at 22 00:01:04,080 --> 00:01:07,800 Speaker 1: twelve thirty ounce, the euro at all our twelve fifty nine, 23 00:01:07,840 --> 00:01:11,840 Speaker 1: the en one eleven point oh seven. Valiant Pharmaceuticals hiring 24 00:01:12,120 --> 00:01:16,000 Speaker 1: Parago's former CEO, Joseph Papa's it's a new executive. It's 25 00:01:16,040 --> 00:01:19,200 Speaker 1: new chief executive and Sherman task with turning around it 26 00:01:19,240 --> 00:01:21,880 Speaker 1: in battled drug maker that has faced multiple setbacks over 27 00:01:21,920 --> 00:01:25,560 Speaker 1: the past month. And Valiant Pharmaceutical shares are up three 28 00:01:25,600 --> 00:01:28,280 Speaker 1: and a half percent. This morning, Ginette, the publisher of 29 00:01:28,360 --> 00:01:31,840 Speaker 1: USA Today, made a eight hundred fifteen million dollar unsolicited 30 00:01:31,880 --> 00:01:34,560 Speaker 1: bid for a Tribune publishing seeking to add the Los 31 00:01:34,600 --> 00:01:38,480 Speaker 1: Angeles Times in the Chicago Tribune to its newspaper portfolio. 32 00:01:38,640 --> 00:01:42,319 Speaker 1: And that's a Bloomberg business flash. Mike and Francine Karen, 33 00:01:42,319 --> 00:01:45,240 Speaker 1: thank you very much showing us now. Artoban, he's director 34 00:01:45,319 --> 00:01:50,000 Speaker 1: of equity research, chief market strategist for Wonderlock Securities. Uh, 35 00:01:50,000 --> 00:01:52,760 Speaker 1: He's met who has his finger on the immediate pulse 36 00:01:52,840 --> 00:01:54,280 Speaker 1: of the market. So I've got to go to you 37 00:01:54,360 --> 00:02:01,280 Speaker 1: and ask excuse me. Uh, All of a sudden I 38 00:02:01,360 --> 00:02:04,440 Speaker 1: saw what was happening and choked out. The markets are worsening. 39 00:02:04,600 --> 00:02:07,360 Speaker 1: What's what's wrong today? Um, that doesn't seem to be 40 00:02:07,400 --> 00:02:10,680 Speaker 1: a catalyst for a real down move. We saw last 41 00:02:10,720 --> 00:02:13,799 Speaker 1: Friday people writing profit taking, which is a sort of 42 00:02:13,800 --> 00:02:17,080 Speaker 1: a band term around here. Um, what is it that 43 00:02:17,200 --> 00:02:19,760 Speaker 1: people are negative about when we have all these articles 44 00:02:19,760 --> 00:02:22,639 Speaker 1: over the weekend about how things have bottomed out? Yeah, 45 00:02:22,760 --> 00:02:26,079 Speaker 1: it's interesting the I think it's very much of a 46 00:02:26,200 --> 00:02:29,160 Speaker 1: situation where the market has had a significant move off 47 00:02:29,240 --> 00:02:32,640 Speaker 1: the bottom. So if you remember back on February eleventh, um, 48 00:02:32,680 --> 00:02:35,040 Speaker 1: you know we were we were some fifteen percent lower 49 00:02:35,080 --> 00:02:37,639 Speaker 1: than we are now. That's that's that's a pretty good turnaround. 50 00:02:38,000 --> 00:02:40,400 Speaker 1: I think the most interesting thing to me is that 51 00:02:40,480 --> 00:02:42,720 Speaker 1: the earning season seems like I've been going on forever 52 00:02:42,800 --> 00:02:46,760 Speaker 1: and we're only of the way through the sp five hundred. 53 00:02:46,760 --> 00:02:48,320 Speaker 1: Coming into the week, we've got about a third of 54 00:02:48,440 --> 00:02:52,280 Speaker 1: SPFND company's reporting, and expectations are so low. I will 55 00:02:52,280 --> 00:02:55,680 Speaker 1: tell you that throughout the cycle, we have lower expectations 56 00:02:56,320 --> 00:02:58,720 Speaker 1: every quarter for the last eight quarters. Coming into this 57 00:02:58,800 --> 00:03:03,240 Speaker 1: reporting season, we've actually companies actually beat their earnings estimates. 58 00:03:03,320 --> 00:03:05,480 Speaker 1: And you know, the average there's over last figures about 59 00:03:05,480 --> 00:03:08,280 Speaker 1: fifty eight percent of companies beating, so we clearly are 60 00:03:08,320 --> 00:03:12,160 Speaker 1: doing better than feared. And that's okay. You know. The 61 00:03:12,200 --> 00:03:14,760 Speaker 1: problem though, was last week we ran into a bunch 62 00:03:14,800 --> 00:03:17,520 Speaker 1: of household names that actually disappointed. So when you get 63 00:03:17,560 --> 00:03:22,080 Speaker 1: American Airlines, Google, Microsoft, Kimberly, Clark's, Starbucks, and Verizon missing 64 00:03:22,400 --> 00:03:25,280 Speaker 1: and having very abrupt sell offs, I think that that 65 00:03:25,360 --> 00:03:27,480 Speaker 1: puts the dent in our expectations that we're gonna get 66 00:03:27,520 --> 00:03:29,880 Speaker 1: to this earning season unscathed. And I think we're getting 67 00:03:29,880 --> 00:03:32,840 Speaker 1: some of that today. I think it's just the realization that, yes, 68 00:03:32,960 --> 00:03:35,880 Speaker 1: we're beating much lowered expectations, and you know, where do 69 00:03:35,920 --> 00:03:39,320 Speaker 1: we go from here? At seventeen times this year's earnings estimates, 70 00:03:39,320 --> 00:03:42,240 Speaker 1: so the SPF I foundered well, Yet I would imagine 71 00:03:42,320 --> 00:03:44,800 Speaker 1: that paired back a little bit when you get as 72 00:03:44,800 --> 00:03:47,920 Speaker 1: of this morning, six and a half percent decline in 73 00:03:48,000 --> 00:03:51,200 Speaker 1: earnings for the quarters so far, right, you know, and 74 00:03:51,200 --> 00:03:53,080 Speaker 1: and Michael, I know we can't do this, but if 75 00:03:53,080 --> 00:03:56,040 Speaker 1: we were to backout energy materials, you'd be plus four 76 00:03:56,120 --> 00:03:58,520 Speaker 1: or five percent. So it's you know, you have to 77 00:03:58,560 --> 00:04:00,880 Speaker 1: put some of this in contact. And I think one 78 00:04:00,880 --> 00:04:02,160 Speaker 1: of the things that's interesting here, and this is the 79 00:04:02,160 --> 00:04:04,160 Speaker 1: first time we've seen this in the cycle, at least 80 00:04:04,160 --> 00:04:06,400 Speaker 1: over the last four quarters. This may well be the 81 00:04:06,440 --> 00:04:09,240 Speaker 1: inflection point. We may start seeing earnings growth in the second, third, 82 00:04:09,280 --> 00:04:11,839 Speaker 1: and fourth quarter of this year. And that inflection point 83 00:04:11,960 --> 00:04:13,920 Speaker 1: comes on the heels of a couple of headwinds that 84 00:04:13,920 --> 00:04:17,040 Speaker 1: have become tailings. The strength of the US dollars dating. 85 00:04:17,080 --> 00:04:19,200 Speaker 1: I think that's a real positive for the sp F hundred. 86 00:04:19,240 --> 00:04:22,160 Speaker 1: And energy prices are creating higher where at twenty six 87 00:04:22,160 --> 00:04:24,760 Speaker 1: and change in February, and you know we're you know, 88 00:04:24,880 --> 00:04:27,520 Speaker 1: forty three and change, you know as we entered the week. 89 00:04:27,640 --> 00:04:29,920 Speaker 1: So you know, both of those these are helping. They're 90 00:04:30,040 --> 00:04:32,080 Speaker 1: you know, they're helping, you know, to a certain extent, 91 00:04:32,400 --> 00:04:34,960 Speaker 1: you know, the worst part of the of the SPS hundred. 92 00:04:35,000 --> 00:04:36,839 Speaker 1: But I think what's been more telling as we started 93 00:04:36,880 --> 00:04:40,640 Speaker 1: the quarter is that the best performing sectors in the 94 00:04:40,720 --> 00:04:42,720 Speaker 1: market in the first quarter are now the worst performing 95 00:04:42,760 --> 00:04:44,440 Speaker 1: sectors in the market in the second quarter. I think 96 00:04:44,480 --> 00:04:47,599 Speaker 1: that's important. What does that mean? That means the dividend darlings, 97 00:04:47,600 --> 00:04:50,320 Speaker 1: whether it's the utilities and the telcom to the staples 98 00:04:50,360 --> 00:04:53,599 Speaker 1: that crowded trade is actually unwinding and people are actually 99 00:04:53,680 --> 00:04:56,200 Speaker 1: chasing some under performers. That's I think that's a constructive 100 00:04:56,200 --> 00:04:58,960 Speaker 1: mixt So you're seeing financials, healthcare and energy stocks being 101 00:04:58,960 --> 00:05:01,520 Speaker 1: bought and and some of those crowded divid and darlings 102 00:05:01,520 --> 00:05:03,560 Speaker 1: are being sold. I think that's been something that we've 103 00:05:03,600 --> 00:05:05,760 Speaker 1: been looking for for some time, and I think that 104 00:05:05,839 --> 00:05:09,320 Speaker 1: ends up being pretty positive. Well, we go through this 105 00:05:09,360 --> 00:05:13,440 Speaker 1: all the time. You mentioned the the beat rate for companies, 106 00:05:14,040 --> 00:05:19,080 Speaker 1: you know, and the average is always sixties. Do better? So, um, 107 00:05:19,640 --> 00:05:23,120 Speaker 1: a company sandbagging us, do endless get it wrong? Or 108 00:05:23,720 --> 00:05:27,719 Speaker 1: is there any point to paying attention to expectations? Now? 109 00:05:27,760 --> 00:05:29,840 Speaker 1: I don't think there is. Unfortunately, have to go through 110 00:05:29,880 --> 00:05:32,080 Speaker 1: this process. You know, we like to think about our 111 00:05:32,120 --> 00:05:34,080 Speaker 1: any reporting seasons when we work the hardest to make 112 00:05:34,120 --> 00:05:37,160 Speaker 1: the least difference to investors, because it's it's just the 113 00:05:37,200 --> 00:05:39,200 Speaker 1: process you have to go through, right that. You know, 114 00:05:39,279 --> 00:05:41,440 Speaker 1: companies try to get you to, you know, to to 115 00:05:41,880 --> 00:05:44,159 Speaker 1: walk down your your estimates so that they have a 116 00:05:44,200 --> 00:05:46,800 Speaker 1: bar that's beatable. Um, you know, we got through this 117 00:05:46,839 --> 00:05:49,760 Speaker 1: every quarter. But what's telling and and and I think 118 00:05:49,760 --> 00:05:52,200 Speaker 1: this is important, is is actually guidance. But the news 119 00:05:52,240 --> 00:05:54,159 Speaker 1: that we get from an earnest report is not that 120 00:05:54,480 --> 00:05:56,960 Speaker 1: the history book of the last quarter looks like, but 121 00:05:57,040 --> 00:05:58,960 Speaker 1: what does your business look like? What you know, what 122 00:05:59,040 --> 00:06:01,400 Speaker 1: things are improving? How is your organic growth if you 123 00:06:01,480 --> 00:06:04,279 Speaker 1: back out fex you know, are you gaining market share 124 00:06:04,360 --> 00:06:08,200 Speaker 1: in your sector, you know, versus your competition? And those 125 00:06:08,240 --> 00:06:09,760 Speaker 1: are the things that come out in guidance that come 126 00:06:09,760 --> 00:06:11,480 Speaker 1: out of the the conference. Cost that's harder to track, but 127 00:06:11,520 --> 00:06:14,560 Speaker 1: I would say this, you know this, the guidance has 128 00:06:14,680 --> 00:06:17,599 Speaker 1: shown the modicum of of actually clarity and and and 129 00:06:17,760 --> 00:06:20,240 Speaker 1: much more of a positive tone for the rest of 130 00:06:20,279 --> 00:06:22,400 Speaker 1: this year that we've seen you know, probably in three 131 00:06:22,440 --> 00:06:24,640 Speaker 1: or four quarters. So that's the good That's the bad 132 00:06:24,680 --> 00:06:26,559 Speaker 1: news is we have to go through this Kabucky dance, 133 00:06:26,680 --> 00:06:28,640 Speaker 1: you know, four times a year, and it's it's difficult 134 00:06:28,680 --> 00:06:30,080 Speaker 1: to sort of sit through and say, of course you 135 00:06:30,200 --> 00:06:32,800 Speaker 1: beat you know, you had expectations set too low. But 136 00:06:32,960 --> 00:06:35,159 Speaker 1: the guidance, you know, a portion of the of the 137 00:06:35,200 --> 00:06:37,960 Speaker 1: earning reporting season is actually a little more robust than 138 00:06:38,040 --> 00:06:41,479 Speaker 1: the actual earning season itself. What are you watching now 139 00:06:41,480 --> 00:06:45,200 Speaker 1: and asking in terms of you know, is there is 140 00:06:45,240 --> 00:06:48,600 Speaker 1: a a stock or sector that is going to drive 141 00:06:48,960 --> 00:06:52,279 Speaker 1: sentiment more than you know, just the absolute returns. But 142 00:06:52,760 --> 00:06:55,080 Speaker 1: you know, less here for a while, everybody had to 143 00:06:55,120 --> 00:06:58,560 Speaker 1: buy or sell Apple. Um, you know, is there a 144 00:06:58,600 --> 00:07:02,160 Speaker 1: stock like that now? Uh? Now, I'll say that, and 145 00:07:02,240 --> 00:07:04,039 Speaker 1: that has been true for a while, right, And and 146 00:07:04,080 --> 00:07:05,840 Speaker 1: you know there's a lot of fanfare around Apple. There 147 00:07:05,839 --> 00:07:08,599 Speaker 1: aren't exactly be down sequentially and down the year of 148 00:07:08,600 --> 00:07:12,120 Speaker 1: a year, uh in this particular quarter. And and I 149 00:07:12,120 --> 00:07:14,680 Speaker 1: think that you know probably gets a pass um when 150 00:07:14,720 --> 00:07:16,640 Speaker 1: you look at Apple in and of itself. It's probably 151 00:07:16,760 --> 00:07:18,880 Speaker 1: you know, for for a company of growing you know, 152 00:07:20,360 --> 00:07:22,680 Speaker 1: realme and straighting at twelve times when we back out, 153 00:07:22,680 --> 00:07:24,720 Speaker 1: cash is trading and something cheaper than that. So it's 154 00:07:25,000 --> 00:07:27,559 Speaker 1: you know, it's believed or not. It's it's it's trading 155 00:07:27,640 --> 00:07:30,840 Speaker 1: much more in territory than it is in growth territory. 156 00:07:30,840 --> 00:07:32,880 Speaker 1: And that's okay. I think what you really want to 157 00:07:32,920 --> 00:07:35,920 Speaker 1: look at is on a sector basis, are we seeing improvement? Right? 158 00:07:35,960 --> 00:07:38,440 Speaker 1: And I think the pivot here will be just that. 159 00:07:38,480 --> 00:07:42,000 Speaker 1: Are we seeing improvement and manufacturing in the US um 160 00:07:42,200 --> 00:07:45,160 Speaker 1: and on the heels of what's done a manufacturing recession? 161 00:07:45,320 --> 00:07:47,760 Speaker 1: Are we actually seeing that, you know, the benefits of 162 00:07:48,080 --> 00:07:50,600 Speaker 1: rising oil prices and a weakening dollar in the economy, 163 00:07:50,640 --> 00:07:53,000 Speaker 1: and is that show up and and earnings? And I 164 00:07:53,040 --> 00:07:55,240 Speaker 1: think we're seeing that, and what the heck is the 165 00:07:55,240 --> 00:07:56,960 Speaker 1: consumer doing with all the savings that they have in 166 00:07:56,960 --> 00:07:58,760 Speaker 1: the jobs that have been created. So we have a 167 00:07:58,760 --> 00:08:01,440 Speaker 1: confident consumer over the spending money and interesting ways, and 168 00:08:01,480 --> 00:08:03,600 Speaker 1: we're heading to the driving season and they're gonna save 169 00:08:03,600 --> 00:08:06,080 Speaker 1: them more on a over your basis, and we hope that, 170 00:08:06,240 --> 00:08:09,240 Speaker 1: you know, translates into some robust consumer spending over the 171 00:08:09,280 --> 00:08:11,640 Speaker 1: next three months. Yeah, well, we did see. We started 172 00:08:11,680 --> 00:08:14,600 Speaker 1: the show talking with Nick Hayman about ge Honeywell, the 173 00:08:14,680 --> 00:08:18,559 Speaker 1: industrials doing better than people anticipated in the first quarter 174 00:08:18,680 --> 00:08:22,360 Speaker 1: given what everybody was saying about manufacturing. Yeah, it's interesting 175 00:08:22,520 --> 00:08:25,080 Speaker 1: to the two sort of sneaky bowl markets that are 176 00:08:25,120 --> 00:08:28,840 Speaker 1: going on. Is that transition and industrials, You know, it 177 00:08:28,880 --> 00:08:30,800 Speaker 1: won't show up and and and make a whole lot 178 00:08:30,840 --> 00:08:33,959 Speaker 1: of headlines that you know, we're incrementally seeing better data, 179 00:08:34,000 --> 00:08:37,200 Speaker 1: whether it's in the industrial production compassiblization numbers, whether it's 180 00:08:37,200 --> 00:08:39,040 Speaker 1: in the in the p M I S. I think 181 00:08:39,080 --> 00:08:42,400 Speaker 1: that's an important pivot. And they had a quiet move 182 00:08:42,440 --> 00:08:44,160 Speaker 1: that we've seen as the transports you know, if I 183 00:08:44,160 --> 00:08:45,560 Speaker 1: told you they were up seven and a half percent 184 00:08:45,559 --> 00:08:47,720 Speaker 1: in the year the basis, you'd probably said that was crazy. 185 00:08:47,840 --> 00:08:50,280 Speaker 1: But that's the case, and and and and that's probably 186 00:08:50,280 --> 00:08:52,840 Speaker 1: a toll that we're seeing some economic activity that we 187 00:08:52,880 --> 00:08:55,520 Speaker 1: didn't see last year. That we're plagued with the sort 188 00:08:55,520 --> 00:08:58,040 Speaker 1: of you know, transportation of energy product that you know, 189 00:08:58,080 --> 00:09:01,000 Speaker 1: obviously for obvious reasons, came to a screeching halt. But 190 00:09:01,080 --> 00:09:04,040 Speaker 1: the innermodal traffic, the part of traffic that you know 191 00:09:04,480 --> 00:09:07,280 Speaker 1: moves goods around the country, is actually at a pivot 192 00:09:07,280 --> 00:09:09,040 Speaker 1: point here, and a very important one. I think that's 193 00:09:09,520 --> 00:09:11,080 Speaker 1: you know that the transports are trying to price in 194 00:09:11,160 --> 00:09:15,280 Speaker 1: right now the time. Yeah, I guess you and I 195 00:09:15,280 --> 00:09:17,760 Speaker 1: are probably the only ones told up listening to this radio. 196 00:09:17,640 --> 00:09:21,560 Speaker 1: Tom is on vacation, he would know. But right I 197 00:09:21,640 --> 00:09:23,920 Speaker 1: think if we were just to get into that a 198 00:09:23,960 --> 00:09:26,839 Speaker 1: little bit and talk about that, we we have a 199 00:09:27,120 --> 00:09:29,160 Speaker 1: we have a Dow theory that hasn't been confirmed by 200 00:09:29,160 --> 00:09:31,520 Speaker 1: the day of industrials, even though we're you know, at 201 00:09:31,600 --> 00:09:33,120 Speaker 1: or near all the time highs. We need to see 202 00:09:33,120 --> 00:09:34,600 Speaker 1: a bit of a breakout in the industrials for that 203 00:09:34,640 --> 00:09:36,679 Speaker 1: to be confirmed. I think what's more important is the 204 00:09:36,720 --> 00:09:38,719 Speaker 1: reason that the theory start in the first places. It's 205 00:09:38,720 --> 00:09:42,760 Speaker 1: hard to hide economic activity from the transportation sector. So 206 00:09:42,800 --> 00:09:44,160 Speaker 1: I think that if we're seeing a pick up an 207 00:09:44,160 --> 00:09:47,360 Speaker 1: intermodal traffic and we're seeing um, you know, pick up 208 00:09:47,400 --> 00:09:49,680 Speaker 1: and leisure travel on business travel, I think that's probably 209 00:09:49,679 --> 00:09:51,800 Speaker 1: a pretty good sign for the economy and and should 210 00:09:51,840 --> 00:09:54,880 Speaker 1: translate back into the broad market industries at some point 211 00:09:54,880 --> 00:09:56,199 Speaker 1: in time, both of Dow and the S and T 212 00:09:56,960 --> 00:09:59,280 Speaker 1: have a little catching up to do there. Quickly, before 213 00:09:59,280 --> 00:10:01,040 Speaker 1: we let you go to me, ask you about what 214 00:10:01,080 --> 00:10:03,320 Speaker 1: you were talking about at the beginning of you know, 215 00:10:03,720 --> 00:10:09,120 Speaker 1: energy being the huge dragon earnings worst over for them. 216 00:10:10,559 --> 00:10:12,840 Speaker 1: I think the worst is over yet. But the problem 217 00:10:12,840 --> 00:10:14,440 Speaker 1: with the worst being over is there's going to be 218 00:10:14,480 --> 00:10:16,959 Speaker 1: some collateral damage along the way. Right, So what happens 219 00:10:17,080 --> 00:10:20,160 Speaker 1: this time of year is banks redetermine your debt as 220 00:10:20,160 --> 00:10:22,120 Speaker 1: an energy company. There are a lot of energy companies 221 00:10:22,120 --> 00:10:25,679 Speaker 1: that we put out of business during redetermination season. So yes, 222 00:10:25,720 --> 00:10:27,880 Speaker 1: the worst is over, but that also means we're gonna 223 00:10:27,880 --> 00:10:30,079 Speaker 1: see a whole lot of companies go out of business. 224 00:10:30,080 --> 00:10:31,720 Speaker 1: We've seen a lot of that already, so it's gonna 225 00:10:31,720 --> 00:10:34,400 Speaker 1: be a survival of the fittiest year. I think we 226 00:10:34,520 --> 00:10:37,280 Speaker 1: bottomed out in the commodity price. We need to you know, 227 00:10:37,320 --> 00:10:40,160 Speaker 1: we need to get you know, the bankruptcies behind us, 228 00:10:40,280 --> 00:10:42,920 Speaker 1: and then the strong balancing companies will survive and probably 229 00:10:42,920 --> 00:10:45,800 Speaker 1: thrive in seventeen. Alright, Hogan, thanks so much for being 230 00:10:45,840 --> 00:10:47,959 Speaker 1: with us from Wonder Look Securities, and thank you to 231 00:10:48,080 --> 00:10:50,840 Speaker 1: Francie Lackwise. She'll be with me again tomorrow. Here on 232 00:10:51,040 --> 00:10:55,680 Speaker 1: Bloomberg Surveillance on Radio and Television, Tom Keane continues his vacation. 233 00:10:55,760 --> 00:10:58,960 Speaker 1: That smile you see is why you and our producer, 234 00:10:59,559 --> 00:11:03,240 Speaker 1: our well technical director Ken Felue, thanks to him as well. 235 00:11:03,320 --> 00:11:06,960 Speaker 1: Stocks continue to trade lower. SMP five hundred down by nine, 236 00:11:07,400 --> 00:11:11,800 Speaker 1: Dow Jones off by eight seven. This is Bloomberg Radio Worldwide.