Time, and this is going to create tremendous value for our customers and, really, our investors. This is a good deal for investors. Speaking of timing, martin, it has been a challenging one for your industry. Oil services hundreds of thousands of layoffs. Where does that leave the industry . Are the layoffs done, and is there a sense that youre on the brink of a recovery . You know, sarah, we all hope that the layoffs are done. As ive said over and over again, thats the most difficult thing about this industry. That all said, you know, when you have these two great franchises coming together as lorenzo talked to the synergies and the example that we gave on the investor call this morning, so much of it is going to come out of product redesign and bringing that engineering expertise to play. Being able to leverage a much bigger spend, you know, in excess of 20 billion annually into the marketplace in terms of our combined supply chains, these are the efficiencies that will come and get
Financials and industrials are the losers on the day. I think theres Something Else weighing on stocks. Weve talked about that. Steves talked about amazon. The transports are the things that concern me now for the last week or so. We talked about it last night. Tim brought it up. The iyt has been rolling over since the high at 145. That seems to be headed towards levels potentially we saw in january. Thats number one. Russells in a very longterm downtrend. That seems to be rolling over as well. You couple that with bond strength which is undeniable at this point. The fact that gold still seems to have a bent to it. It leads me to believe the s p is the last thing to fall. Gold was higher even with the Dollar Strength today. Yeah. I thought the price action today was horrible. If i was a bull, i would be very frightened. You had retail sales which were actually good. It beat expectations. Broad economy very well. Countered what happened to macys and nordstroms this week. So this should
10year note yield around 1. 6 and crude oil the story as oil prices down, as you see it right there. Maybe we get the fed moving before the end of the year, right as we come out of the jackson hole meeting. A look, though, at wti. Lets get to our road map this morning. On this late august monday. Mylan, the controversy continues. The Company Announcing a generic version of its epi pen. It is going to be enough to satisfy critics and congress . The herbalife Hedge Fund Drama man here we are, year three, four, five, ackman, icahn, going yet another round. On this battleground stock. Well have news from williams by the way responding to activist pressure and the proxy fight that is looming for the company. It nominates three new independent directors to its board. I will give you updates there in terms of what we can expect on that front. First, though, lets get to the broader markets. Economic data to consider this week includes fridays key job reports especially after yellens marks at j
February. Some good news, america, median Household Incomes rising for the first time in eight years. Now stand at 56,500 per home. Unfortunately, as melissa noted, median investments are likely down a bit today. Stocks are getting whacked as we head deeper into the trading day. The dow is down 1. 5 . That would be pretty big slide for the dow. And volatility has really ramped up in the last couple of days, your story, though, once again, maybe oil. Crude could be a cause. Crude oil is down nearly 3 . Lets get more now on this market. Bob pisani on the floor of the new york stock exchange. Starting to get a couple of calls from friends and family and random strangers. What is going on with the market. Is it oil . Is it trump . Is it the fed or, is it, d, all of the above . A little bit all of the above but largely on the fed and what the fed is going to do next week, even though the chance is 25 , thats what the market says, people down here dont believe that. Take a look at where we a
The story of the day, the dow losing 258 points and really started with the bond market. Check out the yield. This is why it matters to stocks. 7 of the 10 s p sectors currently yield more than the tenyear bond. Investors buying stocks because they are the new bonds. How big of a problem is this . Bk. Well, listen, weve talked about this. I mean, its made me sick, we talked about it so much. This is what is going on. People are buying bonds. Were buying bonds for Capital Appreciation and stocks for yield. Its an upside down market. Its an upside down world. Now its starting to come home to roost. The volatilities increased. And the other thing you need to know, there is some underlying krentsz. Some strategies out there that buy both stocks and bonds. And when the volatility is low, they get bigger in their stock positions. When the volatility goes high, then they have to sell those stock positions and sell the bond positions. So thats why youre starting to see both of these come down.