Bloombergs julie hyman has the latest Bloombergs Julie Hyman has the latest. Selling off on the news. Julie it has not been as dramatic a reaction. Lets take a look at stocks. All three major averages are falling to their lows of the day, down pretty sharply here. If you look at the interpretations i have been seeing and hearing about on the past hour of bloomberg tv of the fed statement, there is nothing to warn of this kind of reaction. Didal he said the fed not do anything that differently in this statement, aside from acknowledge what has been going on out in the world, but not really raise any sharp alarm bells. If you take a look at the intraday chart of the s p 500, this move is even more stark. Some vacillation when the statement came out. After unusual as people read through thats not unusual as people read through it. Then, sharply lower. Again, now falling to the lows of the session. Interest rate expectation being priced into the fed funds futures, 21 chance of an increase at the march meeting. 30 ahead30 , 26 to of the statement coming out. The chart on the bottom, those expectations trending lower. Take a look at the 10year note. On an absolute price basis, very little change. Points01 percentage changed. You saw the Sharp Movement lower after the statement came out. A big not seeing overall price change, but definitely directional change. Betty and directional change on the euro, too . Julie this is interesting, because it sort of contradicts what weve been seeing recently in the 10 year 10year. With yields moving lower than they were, the euro has been gaining some strength. Prices,n uptick in gold which is what you might expect with that downtick in the dollar. And oil, which has sort of been a separate story today, it has talkso do with inventory, between russia and opec producers about cutting production, and it is holding onto its gains. Betty thank you so much, julie hyman. Mark crumpton has more from the news thats. The news desk. Ark Bernie Sanders has a slight lead over Hillary Clinton in iowa. The poll has sanders with 49 support among likely caucusgoers. Mrs. S clinton is at 45 clinton is at 45 . Just 2 are undecided. This is live from des moines, iowa, this week, ahead of next weeks caucuses. It begins at 5 00 p. M. New york time. Following a twoday visit to italy, irans president Hassan Rouhani is in france, looking to drum up as this business. The Associated Press reports france today announced it is asking the European Union to consider new sanctions against iran over recent missile tests. The head of Russian State Oil pipeline monopoly transnet says talks on cuts are planned. The a negotiation the negotiation could be within opec format. The construction workers unearthed the bones of a mammoth and other ice age mammals on the Oregon State University football field. Crews down the femur from one of the ancient elephants and bones from a bison and camel, reportedly dating back some 10,000 years. 24 hours a day, from the bloomberg personal desk. Betty you never know what you are going to take up in your backyard to dig up in your back yard. The fed decided to sit tight on interest rates. The fed said the committee is closely monitoring Global Economic incidental elements and is assessing their applications to the labor market and inflation and for the balance of risks to the outlook. That was one of the key phrases in the statement. Joining us now is a senior Portfolio Manager at Oppenheimer Funds and Carl Riccadonna. I read your note before the meeting. You said the feds goal is to contradict, not agitate two coaches take is to cogitate, not agitate. Think the acknowledgment here is the fed is less optimistic about the economy and therefore going to go slower, certainly not going to be delivering more rate hikes. Off theit is largely table unless we see a very impressive rebound in growth and the the next next data point in that regard is fridays gdp report. Betty is that the impression you got, too . Ira it is important that they are looking international at international markets. I dont think the statement was quite as dovish. There was still acknowledgment that they want hikes. There were still two mentions of potential hikes. Even if the fed only hikes twice s year, that is still only that would still be a tightening, maybe a little bit too far. We operate if they want to hike four times, they would be making a big policy mistake by tightening that much. The fed did not have to do anything to jawbone the market. In fact, if they were more aggressive in that regard, potentially the market would push that to 2017. Ira why should they wait . What would be the point in waiting for the june or september to hike . Is it because there is a little bit of volatility now . The u. S. Economic data is not terrible. We know that gdp in the Fourth Quarter is not going to be great, but the whole year of 2015 was not terrible. 2016 seems we talk about plus or minus 2. 5 growth. Thats not bad. As long as you wind up having stable core inflation and gdp growth kind of where it is and isnt jobs numbers decent jobs numbers, there is not a lot of reason for them to necessarily pause here. Betty but that doesnt sound like its a reason to hike. Carl the data is not terrible, but it is not good. Growth is not good. If we grow at, lets say, 0. 5 in the Fourth Quarter, the year on year growth three is below 2 . Thats territory that creates concerns about a growth stall in the economy. It makes us more vulnerable. We think we are going through a slowdown, but that slowdown is going to be rather temporary. I think the risk is that financial conditions have gotten so tight because of credit spreads think somewhat wider. When you look at mortgages, they are not that much higher. Conditions were a large push. Commercial mortgages, car loans. Financial conditions are changing in different places. If they stabilize here, we dont see a reason why you cannot have this 2. 5 growth this year. Betty i am not hearing a yesening yes screaming to a rate hike. Ira think about the tanks we st we wente ang through to get that hike. They still have to do that if they were to hike in march. Betty you are saying it is harder in june. Carl they did not want rate hike expectations to shift in 2016, so they were less pessimistic relative to what we heard from draghi last week, for example. Betty in december, didnt they buy themselves some time . Carl whats interesting is the absence of the balance of risk. That was the critical sentence in the statement. We expected to see the balance of risk remain neutral. That was a signal that potentially they are ready to backtrack. The fed does not want to see that say that either. But to cloak that with invisibility raises an interesting question that suggests they are nowhere close to pulling the trigger for the next hike. Ira the balance has changed a little bit carl if they were balanced, why not leave it in . Ira they want to add the sentence about looking at Global Conditions and how that will affect the forecast in the future. That new sentence is very important. Its an acknowledgment. In order for us to reach our four hikes this year, we need to see a stabilization soon in the outlook for Global Growth and for Global Markets to stabilize. Betty more to come on our analysis of the feds they can. Fed statement. I would jersey and Carl Riccadonna ira jersey and Carl Riccadonna, thank you. Much more ahead. Boeing shares hit turbulence following turbulence, falling the most in five months. Waning demand for new airplanes. Facebook earning reports earnings reports after the close. While keep down costs growing mobile video revenue . And here is a look at todays trade. The dow dropping big time. We have been digesting the that decision that fed decision. Betty good afternoon. Welcome back to bloomberg. Rkets we are near lows on the s p. Nine of 10 of the major sectors are in the red right now, led by check tech. The dow is also down, as you can see, off by almost 2 . Finally, the nasdaq has been hit the most. Apple shares down. We are waiting for facebook results after the bell. The off that index is off by 2. 5 . Lets look at some of the biggest is this stories in the news right now. Spotify wants to borrow 500 million from investors, eight months after it raised the same amount. The company may go public one to from now. S the company has raised more than 1 billion since its founding. Says that it launched an investigation with Cyber Security experts and is asking customers to watch for unauthorized charges on their cards. Shares of Devry Education Group are down as much as 20 after the forprofit College Change was sued by the u. S. Government. Devry says accusations are without valid basis and it will contest its case against the government. That is your update. Boeing is a huge drag on the dow today, down around 8 . Boeing says it will deliver fewer planes in 2016. It also reduced its burning protection. Joining us is george ferguson. Explain to us whats going on with their deliveries and the problems around the triple t he 777. George boeing announced a delivery schedule for 2016 that looked a little bit light compared to last year, about 20 planes light. Apparently part of this is the refresh of the 737. Perhaps a little bit of caution on boeings part. That is going to knock down revenues and profits. Into 2017, they announced they will take down the 777 rate. Thats their most popular international, flyingoverthe flyingovertheocean plane. They want to transition to the 7 77x, which comes in 2020. They are knocking the rate down. I think there is some risk here that they will have to do that again. Betty why are they doing that . What is the problem . George they have refreshed the airplane for 2020. Airbus built a competitor to this airplane. It has been a very strong seller for boeing. Its got a very it has been a very high margin airplane. Its almost as big as a 747, but it has two engines. It is quite efficient. It got high margins. A350, which the is a competitor to this airplane. Now, that is taking sales away from the 777. Especially if you are looking at 777, the refresh coming in 2020, you would probably prefer to have the newer airplane. Hat is what we are seeing people may want to buy used rather than new. Betty its a combination between more opposition from airbus and more competition from airbus and maybe a slowdown in emerging and new markets. Is it a pretty balanced mix between those . Is it more because of competition from airbus . The competition from airbus is quite strong. The 350, which airbus introduced to compete with boeing, it has 700 orders, 800 orders behind it. They have sold it quite well. Competition is a large portion of it. Betty what about the costs associated with the dreamliner . George if the dreamliner costs keep coming down one of the challenges here for boeing is the dreamliner is going to increasingly become more and more of their widebody production. Its going to a rate of 12 next year. Actually, here in 2016. The challenge is it makes low singledigit margins where the 777 makes middoubledigit margins. They need to bring costs down as quickly as possible to improve margin on an airplane that is going to be the majority of their widebody that they sell in 2016 and beyond. Betty thank you so much, george ferguson, on boeing and the deep dive that stock is taking right now. Still ahead, a check on markets as the options soon. The dow is now down. 280 points. Betty welcome back to bloomberg markets. Im betty liu. The selloff accelerating after the fed minutes. Julie is standing by. Julie there does seem to be a bit of a negative reaction. Joining me for todays insight, mark sebastian, joining me from the cboe in chicago. Good to see you. We do have this selloff going on in stocks here, despite the fact that there essentially, the statement seems to have done what many traders were calling for it to do, which is to ignore knowledge what has happened to acknowledge what has happened so far this year. The fed says, yeah, we are keeping a ninen keeping an eye on it. Mark i dont think anyone raising ould be s p. E off 30 in the the bigs is not of even two up even the vix is not two points. It makes me feel like todays selling is a little bit of a oneoff event. A lot of times after fed decisions, the first way of reaction ends up being wrong and things turn around. Is setting uprket and the vix is moving, it does not seem like there is a lot of fear and chasing of insurance in the overall market place. Julie amid the turmoil we had thus far this year we have had thus far this year in all markets, stocks, oil, do you think we are reaching any kind of point of stabilization . Mark one of the things i have been noticing is the decoupling oil. Latility and monday, yes, s p was off 28 handles on an 8 move in oil. A couple weeks ago, that probably would have been 50 or 60. The vix only a couple dollars. We got a pretty decent rally yesterday. I see some decoupling. In al like oil may be stabilizing area where maybe it 33nces between 29 or 33 or 434 before it makes another 29 or 33 or 34 before it makes another leg down. I feel like, at least at a minimum, the market volatility is stopping overreacting, if only just to s p movement. Julie one other element that has not helped the markets has been earnings. We did get Apple Earnings after the close yesterday. Thats been putting pressure on some things today. Out withompany earnings after the bell is facebook. Fromve seen this breakdown facebook, amazon, netflix, google. Weyou think that there, too, are starting to see a little bit of stability or will see stability . Of those names, is the one i really like. Apple, im not a fan of. Facebook is one that i think is going to move higher. As it dips toward 90, i think thats an absolute scoop. Im going to be watching instagram. That was a brilliant purchase a couple years back. They are just now starting to monetize that thing. Facebook could have a valuation your google or even higher at this time in the next couple of years. I think both legal and facebook will be worth more than apple. I like selling to volatility. Facebook expiring on friday, the put spread, collecting about . 80 to . 90, depending on where facebook is. I might even be willing to take delivery on the stock. As it approaches 90, it looks like such a value. Julie mark sebastian, interesting. He might end up eating an owner of the stock. We appreciate he might end up being an owner of the stock. We appreciate it. Betty still ahead, amazon reports earnings after the bell tomorrow. Saying its only a matter of time before jeff bezos is the richest man in the world. Thehe is so bullish on ecommerce giant. Oh remotes, youve had it tough. Watching tvs get. Sharper. Bigger. Smugger. And you . Rubbery buttons. Enter the x1 voice remote. Now when someone says. Show me funny movies. Watch discovery. Record this. Voila. Remotes, come out from the cushions, you are back the x1 voice remote is here. Betty livebetty from bloomberg has World Headquarters in midtown manhattan, lets get a check on the headlines. Mark crumpton has more from the desk. Ext news mark the refugee flow to europe will reportedly not slow down in 2015. According to a new report as many as one Million People will seek refuge in europe this year. Thats a smaller toll than year. The fighting in syria and a rack expected to be the main source of refugees. The Associated Press reports france has asked the European Union to consider new sanctions against iran over recent missile tests. The disclosure came as the iranian president visited as to increase business and diplomatic ties. Michigan Officials Say that water samples in flint are trending better but it is too soon to give the goahead to resume drinking unfiltered water. The water supply was tainted with lead from pipes leading to old homes. The state is working to identify neighborhoods without lead pipes. Those residents can potentially get the all clear on their water sooner. The fbi has established checkpoints around a National Wildlife reserve in oregon, where some armed activists are still believed to be hold up. While they were on their way to a Community Meeting they were apprehended. Shots were fired and one of the bundy supporters was killed. Bundys group wants the wildlife refuge turned over to local control. Global news, 24 hours per day, power by 2400 journalists and more than 150 news journalists around the world. Less than 30got minutes away until the close of trade. Fedks are tanking after the decision. The nasdaq still continues to be the worst performer in the averages. Abigail dooley at doolittle joins us with more on how the big tech stocks are doing. And of course, apple. Outpacingosses are the other major averages. A big pay a big piece of that is the overweight apple and other big techniques. Apple shares, as we know, are down sharply and selling has accelerated this afternoon. A massive point drag on the index. Iphone sales are dropping. The Company Forecast the drop in sales for the march quarter for the First Time Since 2003. Putting this in a colorful way, they said they ripped off the bandaid, something that has not proven to be helpful for a stock that is deeply in a bear market. Even so, apple is still above the support and last years lows but you have to wonder if the negative macro commentary could send the stock lower yet. Right behind apple is the biggest drag, amazon, microsoft, and facebook. Facebook reporting its fourthquarter today after the bell. Jittery environments, but analysts are expecting nice solid, mobile by advertising. Bernstein has however highlighted the possibility that growth and expenses in 2015 could outpace growth in revenues. Theve also said that operating expenses could hold the key for the stocks. Of focus on expenses for facebook. It will be interesting to see whether or not facebook can buck the neg