Day. Will see if they hold onto them by the close of trading. Streak this continuing of less than 1 moves in the s p 500. At the moment, all three major averages are at highs if im not mistaken. It looks like some of them are at intraday highs. We are trying to figure out when the last time all of them hit the levels at the same time. Theg back to the last time dow set a record on july 20 of backyear, you can also go to july 20 last year and again we have seen, it took longer to for the nasdaq to hit those levels. In terms of what stocks are contributing to the gains in the dow today, we got nike, chevron, and ibm. Ae only one that has more of catalyst would be chevron which is rising along with oil prices. Is helping with the updraft ghosting in stocks over all this is something that matt miller picked it out earlier is that even though the major averages are hitting highs, many of the stocks are not necessarily their. This is 52week highs in the s p 500 versus lowes. Versus lows. A relatively no number load number when you consider you look at the 200 Day Moving Average as a momentum indicator. Nearly 80 of the s p 500 is trading at that threshold. They may not be making new highs on the year, the momentum of these stocks has been in their favor. They have already been through longerterm pain that there is shortterm momentum but not everything is up right now. Julie there are esoteric earnings laggards. You can see outdoor shares are n 17 on the company was missed by a wide margin. Flowers foods cut its forecast and blue buffalo pet products are some of the smaller earnings casualties in todays session. Scarlet thank you so much. Lets go to our first word news. Mark crumpton has more. Led byouston the crowds minority leader at nancy pelosi say republicans should return early from an august recess. They say there are a variety of issues that need to be addressed including the zika virus, gun violence, and water contamination in flint, michigan. She discussed the latest hacking concerns at the Democratic National campaign committee. I think we have to recognize what is happening here. Russians broken and the and who did they give the information to . I note this is an electronics break in. Mark she said the fbi has been notified of the hacking. Is notma administration going to reclassify marijuana and remove it from the list of the most dangerous drugs. The Drug Enforcement administration concluded that marijuana will remain in the have no drugs that accepted medical use in the United States put the agency is opening the door to further research by expanding number of agencies that can legally marijuana for research purposes. Approvalsh president s rating is at the highs level since he took office two years ago. 2 3 ofhe military coup, turks approve how he is handling his duties. Its the first time he has had a rating above 50 . In sweden, prosecutors will be allowed to question the wikileaks founder, Julian Assange about rape allegations. It will take place at the Ecuadorian Embassy where Julian Assange has been since 2012 and has refused to go to sweden thinking he will be extradited to u. S. Wikileaks released emails stolen from the Democratic National committee. News, 24 hours a day, powered by with an 26 journalists and analysts in more than 120 countries. Scarlet thank you so much. Macys is the bestperforming in the s p 500 today, to its biggest gain in eight years so lets examine why the the big headline for the Second Quarter results result is the plan to close 14 of its stores which is 100 stores. The Company Operates about 808 stores includes bloomingdales and blue mercury stores. This comes as activist investors are ratcheting up the pressure, pushing macys to monetize its store per folio. Macys macys real estate is more of must be 1 billion and today they said it is examining opportunities for downtown Flagship Stores in various cities. The backdrop is the comparable sales have fallen for six straight orders. Were alines last quarter little less than expected. The strong u. S. Dollar is weighing on sales. The main challenge for macys and all Department Stores is pretty much encapsulated in this chart if people are spending their money on Internet Sales which is the orange line or eating out which is the white line but they are not active is a visiting the stores matches the blue line and its not clear what would change that can at macys sales, ecommerce is the yellow bar and that has been the bright spot. Online sales are providing momentum. Macys executives said they are seeing a doubledigit growth in online sales. Bp beat analyst estimates but said the shares are still a long way off from the height region july of last year. We are seeing other retailers get a left as the earnings season gets underway. Lets dig deeper into macys retail and. Earlier, Terry Lundgren, the chief executive officer, talked about. Back the brickandmortar presence. The United States is over stored. We are getting in front of what we know is a trend that has been occurring and that is customers are balancing their spending with online as well as in stores. Online retailers like amazon pose a serious threat, the declining u. S. Luxury sales coach and like michael course is hurting the macys bottom line. Thank you so much for coming on. Retail earnings are out so what is the take away from you . These retailers are finally taking their medicine and doing what they have known they needed to do the interesting thing about Terry Lundgrens comment about getting ahead of it, they are not. Theyre catching up to where they should have been. They have toy think about things so what does the future look like for macys . The stock is up a lot because i think people are encouraged by what they are doing. The incoming ceo came out and said we need to rethink the stores in a different way and this is positive for people give them a chance to say fewer stores, more online sales, lets read forge relationships with brands like coach and ralph lauren and figure out how to get more customers into the stores. Scarlet lets to give to the store closures because they have been Closing Stores but not at the pace investors wanted to see. How significant is that they announced closing down about 100 stores . Its not that big of an impact on their entire store account but you look at the past six years and they have only closed 90 scores. They are announcing what would have taken them six years to do. Theres probably more to come. About when you talk going forward, what have we learned from the executives . Is it something that they feel they have to do or want to . They are starting to realize what they need to do. Of need a certain amount storage to stay relevant with customers but as more people go online, you need fewer stores. You look at macys and other retailers, any sales growth is coming from online. Amazon has made a huge inroad into a barrel this year. The macys ecommerce so grew by 50 of the amazon apparel sales crew by 48 last year. They will have to have this amazon strategy. By closing some stores, it will allow them to focus on their good stores and make them better and showing off ecommerce. Scarlet what did Terry Lundgren do wrong . They were at of the pack a few years ago. The wheels kind of came up over the past year. Peaked lastock year, it has been a Straight Line down. It feels like he missed something. Drop in theazy stock price and it shows how well Terry Lundgren managed macys to recession and after. Amazon was not focusing on apparel. Andoes in for the kill macys is going to have to respond to that. Have nordstromo reporting earnings tonight and you have noted how it is like other Department Stores, trying to grow its Discount Chain presence. That has hurt it because samestore sales were climbing up that has started to decelerate. It will be interesting to see of nordstrom follows the same pattern as macys and calls kohls. Have lowered and nordstrom is trying to figure out their own journey. With the ahead commerce and they are trying to figure out the right and except stores and online. Oliver thank you so much. You can read all of her columns at the bloomberg page. Coming up, shares of valeant are following are falling following the rate the announcement of a criminal code. This is bloomberg. Oliver this is bloomberg markets. Arelet shares of valeant falling, giving back almost half of its gains made tuesday when the drugmaker unexpectedly maintained its fullyear forecast. Its reported federal prosecutors are investigating whether they defrauded insurance by hiding its ties to mail order pharmacy. Cynthia koons joins us now. The investigation has been going on since the fall and new iteration is that its going into a criminal investigative mode and looking at what valiant did by hiding its relationship with philidor criminal. There are a number of investigations new valiant and a number of ways they could essentially have big fines to a for some of their behavior with philidor. This is a reminder that there will be more shoes to drop. Investors cannot get comfortable even with a nice rally in the shares the other day and some reaffirmed guidance was what is a good reassurance. There is still a lot of headline risk with the company. Scarlet i feel like this is a andrew lech who raised a concern about the valeant. That was what he brought up and there are other shortsellers and i talked to him. He said this is an issue because this investigation but its also about who wants to do business with them now that this is out there. Once to work for this company . Will there be a brain drain on the corporate side and what will happen to the business . Dot joe poppa has wanted to is improve morale and bring in new talent and he has called it a remake putting the existing employee to get them excited about working at valeant again. This is part of what he has to manage when he is trying to bring in new talent and turning iseant into a new company about how much the skeletons in. He closet have gone away maybe this didnt and their recruiting efforts but he is trying to chart a new course for the company. How can he communicate that and how quickly can he do it in the face of these investigations which might cost the company a lot of money and compromise their ability to get where they want to be. Scarlet how different is this strategy from other drugmakers . On a Conference Call cometh sounded like valeant is a normal drugmaker and will invest money in r d and they have their own financial and legal problems but charting is not so different from what other drugmakers are doing. They will spend more on rmd we have to take that into historical context. They did not spend much of also they will move into the model they spend more but they will not spend nearly amount nearly the amount that pfizer would. They want to move new compounds into the clinic that might sure diseases can they are not going in that direction but they are looking at spending more money to develop drugs and selling them and getting the salesforce going through age Additional District model that can they do it in time and manage their debt obligations and how much of an issue will this have on their ability to do that. Scarlet thank you so much. Its time for the Bloomberg Business flash. The Russian National regulator has find google almost 7 million for violating antitrust laws and tablets and mobile phones. The penalty comes after a complaint was filed by a local Search Engine who found that they violated laws by requiring mobile Device Services to have its features like search in oliver the nigerian economy has been pushed into second place as the country struggles to the crash and crude oil prices. Africas most populous nation is facing a recession, plunging local currency and inflation at a 10 year high and a widening budget deficit. Gdp figures from 2015, the size of the South African economy is 1 billion at the current brand exchangerate wild nigerias 296 billion. Your Bloomberg Business flash update. Scarlet we will deconstruct the business speak of the ceo of Deutsche Bank. Scarlet this is bloomberg markets. The credit squeeze ceo has been using a four letter word that is unnerving bankers and that word is cost. It may be the only lever he can pull in an increasingly lackluster environment. Here to talk about his management speak and the road ahead is our guest from london. Cost is not a new word for a bank ceo. They have been saying this since the Great Recession. After the recovery from the session as well. What makes this focus on cost different than two or three years ago . Just given the scale of the share price that is hitting europe in banks since the start of the year, Credit Suisse is one of them and Deutsche Bank is another. Forhows of difficult it is them to bring about that restructuring strategy in the middle of a market downturn and worries about a slowing economy. In see it in the interview which he spends time talking about what he would like to be doing like a growth. He admits the only way to boost the share prices by cutting costs which is the only thing a ceo can actually deal with right now with european banks. Mentionedarlet has about the story that media he has been doing a lot of media. What does that signal about his confidence or need to get out there and talk . Scarlet jamie dimon does not get in front of the camera every week. Oliver its great as far as a journalist but can we read into that . Thats a very shrewd observation. Rocky start to the year. In terms of messages to start, some veryding negative signals about a conflict between him and management and executives in terms of potentially hiding information about air liquide positions. That has been a bit of backtracking to boost morale. Its still a people business and you have to make sure your staff is on board it comes to simple business and trading but also restructuring. Theres a bit of trying to show that he has supported internally to bring about his strategy. Scarlet so he is selling his message to his own bank. Pivoter if credit spaces if credit squeeze feels the need to build their business. In the interview coming talks about famous clients such as roger federer. The push for Credit Suisse is in asia which is the expansion story. A lot of it depends on the Economic Outlook in asia. Wealth management and Private Banking which was done so well by ubs is maybe the right strategy in the eyes of shareholders but the economy is getting tougher and even Wealth Management and Private Banking is showing signs of strain. I think its a message internally to get as much unity as possible. A chart thatve shows the discount where the book discount where these banks are trading. If you look at that, you can see Credit Suisse is there in the middle. Low, at about half a book value, but not the lowest and not alone. What are the overarching problems that are not specific to Credit Suisse . Its a story about restructuring. If you look at the banks that are trading at premium to book which is rare or much better discounts, dealer banks that have done the hard work already and maybe just need to show a little better earnings and profitability and a slightly better outlook. Theyd need to prove to shareholders that they can keep delivering. The problem is these banks are still trying to find that Business Model and that is hard to get shareholder support when you do this in the middle of a storm which is what the economy looks like now. Scarlet thank you so much for your perspective. Next, well factor based investing become the norm . We will talk to the head of invesco next. This is bloomberg. Everything is awesome everything is cool when youre watching a screen everything is awesome, when youre sharing a meme a voice remote, show me angry kings you know whats awesome . Everything apps that please, more selfies, endless hours of the best tvs brand new apps, shows to go, awesome internet thats super whoa. Everything is awesome xfinity. The future of awesome. Hohes woiithongestc . Estc. Thlais hotas hkeca hyson at y llseg ca hke cwistomin biness rnte fid , p cth bou e. Juais hotas hkeca hyson at y ddstus azetomimed ag y wiourofr eie esr a adylr onheesev. Or upde its restn i, w c u doe t eth dvery. Oding uc pwiwiro fi hthatpsroui this is bloomberg markets. Scarlet lets go to first word news. Mark Hillary Clinton is expected to highlight her focus on job development, public search projects, and tax policy when she outlined her economic plan today. Her speech will take place at a Manufacturing Company in warren, michigan. Caseill try to make the that her rivals agenda would benefit him and his wealthy friends. Number will have live coverage of mrs. Clintons speech about 35 minutes from now at 1 15 p. M. New york time. The white house is not commenting on Donald Trumps latest accusation. Tosays president obama is blame for the rise of the islamic state. Honoring president obama. He is the founder of isis. He is the founder of isis. He is the founder. Donald trump has long blamed the president and Hillary Clinton for creating a power vacuum in iraq that was exploited by islamic state. Wildfires are going through parts of