If you look at the s p 500, you will see what looks like some swings, but you are talking about narrowing of the index here. Drop of volume going into the holiday weekend. We are not seeing that much on the big scale. Material stocks are down as a group. Financials as well. Defensive groups are doing better today. That is the push and pull we are sector level. On the individual level, stocks facebook is higher as is apple and costco. Companyising after the came out with earnings that beat estimates. Antiscience yellen, regarding what they are expecting in that event . Uptake uptick in bond yields. We heard was seemed to indicate the fed clearly saying the market is not pricing in as many increases as could happen. That is at least taking a pause going to her talk tomorrow. A little drop in the yield. Futures, Interest Rate we see a little bit of a drop. Big upward move. Similar movement there. 1 . S down by one quarter of the recent trend has been up in yields. Mark crumpton has more from the newsroom. Mark the republican president ial nomination is in hand for donald trump. Ofthe horizon, the selection a running mate. Trump said he asked next women to be vetted for his vice Vice President ial candidate. Mr. Trump we are looking for absolute competence. I suspect we will have many women involved, not only with the campaign ive had, but many women involved. You will see that very strongly. Mark trump said he would be willing to debate Bernie Sanders couldat such an event raise millions for charity. Election results has not changed the outcome of the kentucky president ial primary. Sanders says he except the outcome and will not ask a judge to order a recount. In baghdad have killed at least 12 people. Baghdad, whereof a house exploded as Security Forces entered during the search. Man was intercepted at a checkpoint before he could detonate explosive strapped to his body. The republican controlled house is moving in toss of zika virus. Toward ae progress compromise. Fight theeasure to god as well as broader bills. Global news powered by our 2400 than 150ts in more news bureaus around the world. Back to you. Economicinas to his bowler talked about positive signs for the u. S. Economy. Quite labor markets very strong. Factor indefinite favor of the fomc view that you have normalization of u. S. Interest rates. Classy is a Research Fellow at stanford university. You sk a little bit of a longerterm view and the economy has in evolved so much. News. Of that is good they do not show up in gdp. Bad news, we have seen the last four recoveries for the recession get slower and slower. I do not think the fed can do anything. They can moderate the short term. I worry that is too much stimulus. Gdpd we will get the provision tomorrow. Talk more about why the fed is so powerless in terms of growth. They have started to bring them back up. We have a 2. 1 average growth rate during the recovery. It was 4. 5. I do not think you could push it further to reduce the economy. Turn away from policy makers, test pulses are slowing down entrepreneurs. Housing, pending home sales. Good news and housing, i am having a flashback flashback to 10 years ago. We have got stimulus Interest Rates. It looks like good news now and then is on the other side of the bubble. I do not know. There is a ton of debt. It is probably time to slow that down. The appetite for that seems so low. When you think politicians will take more policy more serious . They are great at giving us false choices. Is a boringolicy issue. You know the burden of paperwork gets heavier and heavier. It is a crisis because policymakers have been focusing on what have we been doing wrong. I will not bet on it. David it seems like the conversation when it comes to the Affordable Care act, the question is, do we repeal the law whole scale . Why doesnt that conversation happen across government . Either ornot an conversation at the micro level. They want to hire more people and yet the law has made it much more expensive. Bankrupt thel not country. What will is these entitlements. That is what is out of control. Said, lets work on social security. It cannot end well. Nothing. Challenge we0 year face. Im hopeful we get serious politicians to look at those. Thed i want to ask about role of technology on the economy today. Do you see Technological Advancement as a net positive . Do you worry about what that might mean for folks who work service jobs . Thomas wrote a great book about capitalism in the 21st century. Century, thee last middleclass got nothing but crumbs. That is silly. Look at the crumbs that have been invented. Airconditioning and electricity in our homes, indoor plumbing. These are worth way more to people in my research than their takehome income. Is threesured growth times as big as the measured growth. I am bullish on america and freedom. We get the good technologies. We do great job by making tractors. Capital equipment is good for the rich and good for the work. David you mentioned focusing too much on the fed. What will change that . The fed has an Important Role stabilizing the economy. That would not change. Growth, back to the heyday of 4. 5 gdp, instead of having 30 of the economy required to get a license before go back to 10 to 5 . Thank you so much. Coming up next, wall street likes to have a good time but the fed are crashing the party. That is coming up next. David donald trump is going to give a speech on energy. He said he would not ban hydraulic fracking and you can watch it at live go. A pretty narrow trading day. We see the dow down about 17. 70 thousand 834. Some of theook at biggest business stories in the news right now. Simone is challenging his removal as a director. It doesnt say why she saw it. After herom father step down from the role. 70,000 customers missed flights on security delays this year. This generally first, 40,000 bags misplaced, taking steps to shorten lines. Unitedn delta and Airlines Spend as much as 40,000 each to help manage lines. A proposal from a Major Airline provides inflight wifi as the company is still negotiating with the airline and there is no guarantee a deal gets done. Meanwhile, a junkbond offering. The Company Plans to use the proceeds to fund its nextgeneration technology. Investigators examine up to one dozen banks. Hacked or in southeast asia. That is your business flash update. Taking in new approach to rooting out bad behavior on wall street, investigators are heading up the circuit to get a better handle on who is up to no go no good. This is a wild tale. You have folks from the fcc crashing these conferences or registering . Mixing and mingling. Attending the very specific and wonky conferences. The crisis is all coming out of the more specialized. Everyone was a generalist and a lawyer. A great line, to folks talked to them while they are there . Not taking because theyll be against they are trying to create a dialogue. The agencys biggest criticism was that they do not fully understand. Say, we wantng to to be knowledgeable about these markets and we cannot Police Things that we do not know about. If you have suspicion, let us know. Something the agency never had before. If you help us spot bad behavior, there could be a big payout down the line. Handing out whistles. What is the goal . What youlinger and see might hear and see what might be happening . Questionnaire china to be more proactive. Some people still say it still haunts the office and they want to make sure they are out in front on these kinds of things. Legacyyou mentioned the of the crisis, the kinds of conferences are they going to . The financial Interest Group , thatut of the crisis particular unit has gone to these kinds of conferences and individuals from the Credit Ratings is gone. Quite a few people are attending conferences they never did before. David for those who follow the backandforth, the fcc ,eadership said time and again the focus of changing overall. Comes out of the training budget, saying your job is to know everything about these markets. Sayink it is reasonable to going to where the big deal makers are, it is important to know what theyre talking about. Piece, itoint in your might not be a good thing to encourage so much mingling between the regulators. Right, it is probably a good thing. There is a chance that the closer you get to the industry, maybe you are enticed to get a job on the street. Had instructive conversations. Had a dialogue and is pursuing some inquiries. I think it shows how proactive the agency has become. Ahead, we will tell you how to trade on it coming up next. Donald trump is giving a speech on energy. He earlier pledged support for all energy. You can watch the event at live go. David time now for options insight here julie joining me who is joining me from chicago. Today after aerk couple of updates for the market. People are looking ahead tomorrow. Janet yellen will be speaking. Trade on it byto tomorrow . A good question. Around. Ll be people a couple of items can influence the market. , but there is an interview involved in that. Market participants are looking into that as well. We have that jobs report also. As you are looking ahead to these reports, to the you think you will get a solidification of the recent sentiment that seems to be the fed be more aggressive . Maybe june or july . Are a lot of news items that could influence the decision. I think it might help solidify where they are moving. I think the following monday, maybe well get an inkling of what will happen the following week. We will clarify things a little better. The market may be will move in june. Do you think given what youre saying, that the rally is justified . I think right now it is we have pushed off and tested the high against the range. It will be interesting to see if we can get through here. I think if they actually move theer rather than later, market will have a difficult time maintaining the valuations. You are looking at a bearish spread . I am. Looking out to august because that gets you pass the next teedos rate decisions. Very inexpensive right now given the current market. A nice protective put spread here. If you break through that level, i think were going to that level possibly lower. Do you find the sentiment is as broadly negative as it has been . It is sort of a hated rally. Is that the case, do you think . Case appears to be the here it is the undecided vote that is having a difficult time influencing the market one way or the other. You look at the last couple of months. It allows you to put the trade on for better pricing. There is opportunity. It offers a nice put spread. Thank you so much. Good to talk to you about possible moves to the fed in the market ahead. David thank you. The ambitions coming up next. Media ambitions coming up next. David you are watching bloomberg markets. Lets start with a check of the headlines. Mark crumpton has those from our newsroom. Mark donald trump says an audit critical of Hillary Clintons use of a private email server is devastating but the likely democratic nominee insist it will not affect her campaign. Here she is in an interview before mr. Trump spoke. Ms. Clinton there may be reports that come out but nothing has changed. It is the same story. I used a personal email and many people did. It was not at all unprecedented. I have turnover all my emails and no one else can say that. I have been open about doing that and have will continue to be open. It will not affect him to campaign or my presidency. General found ms. Clinton ignored clear guidance that this could lead to vulnerabilities. That is according to the latest online poll for bloomberg politics. Toily incomes from 30,000 75,000 in ohio and wisconsin. To 39 . A key player in the impeachment of president bill clinton is being demoted for allegedly handling Sexual Assault claims from a football team. Will remain chancellor. Also planning to fire its football coach as a result of the investigation. Yearsnt five investigating bill clinton, the myth culminating with the Monica Linsky scandal. Used tear gas to break up violent clashes and dispersed crowds protesting a labor reform law. Police say they made 19 arrests taking part in the protest. They are demanding that westlaws latest reforms he scrapped. One would make it easier to fire. Global news 24 hours a day powered by our 24 hundred journalists and one and 150 news bureaus around the world. Back to you. In 30 markets close minutes. Abigail doolittle is live at the nasdaq. Abigail we have the nasdaq up slightly after flipping between gains and losses today, trading in a tight range, trading in extreme fashion are the shares of pharmaceuticals plunging in the worst day since 1999 after a decision not to test a drug method two companies are developing together for a rare heart condition. It is in fact the worst performer in the nasdaq composite and also the third worst drag on the index. The worst percentage performer on the nasdaq after the Storage Company missed estimates for its april quarter and guided july estimates below consensus by smudges 24 . 4 . Much as 20 24 . He says he sees a devalue situation. One of the top percentage performers the nasdaq today are shares of netflix. Netflix is up five days in a row, its longest winning streak in more than a year. Reports stock are some are mentioning netflix has a possibility. A report on weaker International Subscriber growth. Scriber growthys internationally is expected to drop 15 yearoveryear in the second quarter, and of course, this will not help offset the u. S. Market. Netflix will be higher but the may haveal picture investors looking more at the numbers over the glossier news we had in recently. David we will talk about apple more in a second. That that strength will continue . We see the trend is reversing. That is bearish. Reversers have been in a tugofwar in the last six or nine months. Volatile strings are up and down. The recent strength has taken the stock back up toward the top of a range. The sellers are right there. It appears unless the buyers gather huge momentum and strength, the sellers are more likely than not to push netflix back down probably below 100 at least in the near term. David thank you so much. Lets explore this more with cory johnson. Here to talk about apples media ambitions. There is a report apple is interested in time warner how much of a surprise was that to you . Cory that all in. It is interesting when you look at the big four players in over the top service, netflix, hulu, then prime, and apple only one not making original content. Dr. Dre and house, but outside of that, they have not been a lot in terms of investment in their own content. We know a year ago they negotiated with the likes of cbs trying to put together a service. They would offer subscribers of apple tv what is known as skinny bundle. I do not think those go together well as words. Without espn or some of the to paypeople do not want for, it would be a lot cheaper. It fell apart. They could not start a deal that was Cost Effective for them. Those deals fell apart and apple said it was no longer pursuing the business plan. We can see the ambitions were serious. David i imagine hbo would be the one that is greatest to them. Cory hbo has had a Great Success record. Bombsx has had a lot of and some successes. Amazon has taken a different approach where they put all of islets on the service to see how people like them. And see what the reaction will be. My favorite example they have done which has been very successful for them, renew it for a third season. Use that data to and they base this series on these books. A very successful show as a result because they reached the right audience. Apple has thatf data advantage but it could be interesting to see them be a real player. Vid why is it apple has had the struggle so late in the game . Of those any content creation, behind these three other players . Cory apple would say they have never been first at anything. They were not the first cell phone or pc maker or mp3 maker. They just say we do it better. There is something to be said for that. Those Services Efforts have struggled in the way apple would not have liked. Is there a danger here that by getting in when they are getting in, a point of saturation, so many people making new content and spending money creating new content . Cory i bought a camera truck, have i ever told you this . With specialck holders for camera equipment. It would take about three years to break even. On the road every day. These are the glory days right now. Every are is working, every shooter is shooting. Every camera truck is being used. What else will i do . If i am making content, why would apple be an appealing outlet for me . Cory they have a bit a big reach. It is a sellers market now in terms of content. All the best names of people doing things, it is hard to build that up or be good at it. As a result, a time Warner Acquisition or Something Like that would make sense given their ambitions. In terms oft drift what apple does and what they do well. Looking at services and recognizing there in a saturated cell phone market, it could start to get weird. David spell trouble. All right, thank you. Gears from apple and google to tech giants. Dominating around the gold around the globe but it is facing challenges. Joining me now with more from san francisco, what is the problem here is you see it . The word is fragmentation, a real problem for android. It basically means there is a massive amount of android phones out there, way more than iphones. There are a lot of different versions of the operating system the basic album is problem is google wants to get its web service out to as many as possible. When they release something new, it does not really go to all these phones or operating systems, which means it is moneymaking tools, first seen when you look at android in total. David surely this is something they could have seen. Is it something they regret now . Think it has always been a problem. Starting in 2007, they are chasing the iphone and took a completely different approach and tried to make it as open as possible and get as many other Companies Involved and compete with apple at with apple as possible. There is about one point 4 billion active users. It has been a huge success. David what can they do at this point . They need to do a, nation of carrots and sticks, which means on the stick front, they need to really pressure the wireless people, and the companies who make android phones like samsung, and need to try to say, when there is a Security Patch up or the new operating system with great features on it, they need to persuade these other partners to upgrade all the phones out there already. That is a big challenge. Is security paramount here . Thin end of the ledge and google is using that to their advantage. A big shock to the android ecosystem last year. On that atocusing least for the moment. When they are releasing android Security Patches about once a of the big phone makers like samsung and lg have committed to doing monthly somedes for their phones, of the other smaller players have not bothered to commit to that. They have a lot of work there. The idea is if they could get people updating for security, then they could say, it is the same system for the operating system. David thank you very much. , a surprisext resignation at the Carlyle Group. For does his departure mean carlisle . The Carlyle Group . David this is bloomberg markets. Dow down 200 points three s p 500 up just barely about a point, 2091. To 4905. Goldman sachs is changing the way employees get performance feedback. They will start a Pilot Program where workers get reviews more quickly. This is obtained by Bloomberg News. It scores employees on a nine point scale and they are more focused on strengths and weaknesses. Microsoft and facebook are teaming up to build an underwater internet cable across the Atlantic Ocean 4100 miles will serve between america and southern europe. We operated by an affiliate of the Spanish Television station. Airlines has airlines to nigeria next month. United is ending the flights because of weakness in the energy sector. The last flight will be on june 30. That is the business flash update. A matter major shakeup of the Carlyle Group. Halfbrother of the former french president. What do we know about the circumstances . I i cannot think of a guy more wellknown in the banking world then bolivia are olvier sarkozy. They have not commented on it yet, but he did some of the biggest deals in the 2000. He did it sale of sally may, creation of bny mellon. Since he joined Carlyle Group, they had formed bankunited, dustman felt, they raised money. He was very established, seemed like he was in it for the long run. But surprised recognition. David no one more broadly known that is relationship with mary cables. So he shied away from the spotlight . Reporter he has shy away from the financial press, certainly. This is the guy you might think likes to do his own thing. Quite intrapreneurial. Entrepreneurial. You think about things he has done outside of carlisle. Last year he created a Company Called up in art fair finance athena art finance. This is a lender to owners of highend art, he did it on the side, brought carlisle in. Would not be surprised if he took a larger role there, maybe fulltime. He likes to do his own thing. Maybe he was not comfortable with the confines of the Carlyle Group. Pretty traditional private equity firm. You work with your team, you do deals for your fund, that sort of thing. David so how big a deal is this vacancy, for Carlyle Group to not have him . Reporter Carlyle Group has had a lot of departures recently. They are not all related, but it is fair to say carlyle needs to think more about its retention of these highprofile dealmakers. Mr. Patrick, who oversaw the credit and groups, he left. Another left earlier this year. Hole. Leave a whole there are issues for the investors. They will be working through some of these issues for the foreseeable future. David thank you. Coming up on bloomberg markets, a taser u. S. Foods. Taste for u. S. Foods. Here are the major averages, not a lot of movement. 0. 8 . Wn 8 david markets close in 10 minutes time. Julie has your check. Julie we talked about the concentrated range, secondhighest of the year. Here we have it in the clothes, still the case. All the average is little changed. Averages little changed. At volume. Volume by sector versus the 20 day average. It can see all the 10 sectors are declining in volume versus the average, in particular materials. About 30 , and health care is around the same figure. Lets also take a look at the various sectors moving. Utilities is the biggest gain after seeing a decline yesterday. Materials now on the downside, pulling back 1 . Losers, lets look at the individual basis, dollar tree really surprising for the upside today. Really bucking a decent downtrend. Dollar general is doing the same, and hp coming out with estimates that beats. And on the downside we have earnings losers to mention, issuesjewelers showing in retail, cutting the Sales Forecast for the full year. Csr a, provider of government i. T. Services, and netapp as well. David thank you so much. Death ipo has been pretty weak for u. S. Foods. It is jumping in the first day of trading. We see it up 9 . Alex covers this for Bloomberg News and joins me now. Tell us about this. Reporter you recall u. S. Foods is the biggest should bidder behind distributor behind cisco. Sysco. The federal government finally blocked a merger because of antitrust issues. Now we have been going public, raising more and what has been the biggest corporate ipo this year. Also a big day for me, we have three other Companies Listing two big sponsor backed Companies Listing. With u. S. Foods and that is going out today, we had the busiest week of the year this year. David you wouldnt talk about truly oh . Reporter we had these for stocks of trading this morning. They filed this morning, they make cloudbased applications for Companies Like uber or whatsapp. This is really interesting because of what the landscape has been this year. 44 of the companies that went public in the u. S. Have been private equity backed like u. S. Foods. We have one Venture Capital backed a Technology Company go public, acacia. And with the better activity weve seen in the last four or five weeks, it seems there is more momentum with some of these smaller highgrowth companies are willie out twilio looking to go public. David i know when we talked last time read work resorts was coming out red rock resorts was coming out. Reporter it has so well not done so well. Acacia, the Technology Company i mentioned is up more than 30 for some of the venture back to check companies. And you look across the board, u. S. Foods is up, 9 . Cotivity is down, a health care company. So it is a bit of a mixed bag. Because we have been so busy and given us a few data points, there is some excitement, but i talked to u. S. Stock exchange president tom farley, and he said june will be when people will be paying attention when you look at a gauge and the rest of the year. It is only been 36 corporate ideas so far this year. David thank you. That is it for bloomberg markets. Not much scarlet we are moments away from the closing bell. Alix u. S. Stocks mixed as we head to the holiday weekend. Brent in crude suppressing 50. But the question is, what you miss . Scarlet we speak with dominic quantum who says white there would be a rate increase in july better than june. Alix and pressing the reset button for the gold default market. The 9 billion euro bond sale. Reporter and el nino comes to an end, la nina may be the next Global Weather pattern. We look for the impact on global markets. Scarlet we begin with markets as alex mentioned, a mixed day for u. S. Equities. A little changed when you see how they ended the session. This is after a strong rally. That kind of faded as we head to the holiday weekend. If you look at the industry gr
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