this is the first declined so far this week. six of 10 major indices were lower, financials and cyclical groups were the worst. we started lower and did not close in the green, but finishing well off the lows to continue this trend of a bid supporting the markets. alix: materials and banks were the two were sectors. take a look at what happened to them today. it was a brutal morning, near a 10 month high, kicked down, and claude back to neutral. back to neutral. you had that great treasury rally that put pressure on financials. joe: you are never going to onieve this, but yields government debt are lower once again today. there is the 10 year yield. every day. this is my favorite part of the day when i announced the new lower yields. falling below 1.7% for 10 year yields today. grinding lower there. same in the u.k., brand-new low there. , but we can get more of them tomorrow. scarlet: take a look at the dollar recovering, but not against the kiwi. the kiwi the strongest in a year , so when the line goes up, that is the kiwi moving. low, the two-month kiwi has appreciated 6.5%. alix: the dollar put pressure on commodities, oil, copper, coffee all down today. oil dropping from its 10 month high. copper continues to get beaten up this week. is up 25% for the year, but etf holdings in metric tons are around a record high, 6.4% this year. now a huge and change for this commodity. it is surprising given how much we've seen in the holdings of the gold etf. let's take a deep dive into the bloomberg now. alix: i'm looking at a great ecbt about what the corporate bond buying program is doing the u.s. credit. the orange line is high-grade area, 20 the euro billion dollars. is u.s.e line high-grade yield. , eight times the euro equivalent. as you have negative yields in so many countries and an aggressive bond buying program, the search for yield in the u.s. is off the charts. maybe that will be a pickup in the eurozone since they are buying them so aggressively. joe: i'm looking at jobless claims. is it spreading to other labor data? 10 year chart of nonseasonally adjusted initial , and we hit a brand-new post crisis low. for now, this keeps just heading lower, that yellow line the 52 week moving average, we can see for the weak jobs report may is not showing up in the other main u.s. labor data. we want to keep an eye out whether that is noise. we are still not seeing any real problem. especially as we wait for the fed's next move. i'm taking a look at korea's central bank, cutting interest rates to 1.25%, a new record low. risky makers say growing to the economy, slowing trade, and the push to restructure, both indebted companies. change the date to june 8, and out of 18 economists, only one predicted a move. he sees more easing this year because of a fallout from this , tighter restructuring mortgage standards, and trade stagnation. more to come from the bank of korea. korea is often seen as a bellwether for global trade. there are questions as to whether this puts pressure on the bank of japan. you can see all these charts and more on twitter. u.s. stocks have taken the breather today, a rally and oil taking a breather. mood like? is that sentiment justified? >> perhaps. it has been a pretty strong rally off of february lows. been trying to dissect the market to figure out why stocks are still going up. there are a few interesting things to look at. one thing that is most pertinent , i brought a chart to show rsi levels. is a technical analysis type of thing, but when you're looking at momentum in stocks, how quickly things go in one direction or the other. to levels range from zero 100. if you are below 30, you are oversold. this is the number of over company's minas oversold companies, 58 companies that -- minuss overbought oversold companies, 58 companies are qualify as overbought now. 50 or so is relatively high. on average, there are 17 more stocks overbought than oversold, so we are getting at high levels. level, was that one of the most oversold readings we have seen. stock,had almost every 70 5% of stocks in the s&p oversold. and wasit got way down almost 400 companies getting battered. it's not gospel, but something interesting to look at. have gotten around these levels before, you have not seen any rheumatic selloff. in august, it was a specific catalyst that did it. >> that's true. it usually has a level, the difference between overbought and oversold, 17 or so. around 21, the highs you saw fewer companies that were overbought. the chart this morning had to do with foreign investors selling u.s. stocks, which is kind of surprising. we did not notice this until recently. it has been happening for a while. >> i feel like a sore winner because we keep bringing up this chart. at the amount to which foreign holders are selling u.s. stocks. it is pretty straightforward. it's both private equity holders and sovereign wealth funds and stuff. the white line is the one year moving average. it is way down, right? it's pretty incredible. in the past 12 months, they have been net sellers of 140 billion u.s. stocks, so it is interesting to see that during , they got toil where they were net neutral, but they have been negative here for the past couple of years, and especially right now. joe: this speaks to the fact that there does not seem to be anyone participating in all this up side. alix: companies. who buying when you have all that selling? >> a lot of people look at buybacks, and there is a dichotomy in the buyback rome. if you talk about announced buybacks, there have not been many, the biggest quarterly drop , but in termsars of execution, remember these companies plan out that they're going to buy so much over so many years, so they still have thoughying power, even companies are getting more tight with cash and money on hand, in terms of planning, there's still going day-to-day and still very high. sixlet: the money committed months ago or a year ago. >> year. h. scarlet: coming up, with november elections heating up, will the fed stand pat until we get clarity on the next president? we will discuss the banks political cycle. that is next. ♪ president obama has officially endorsed hillary clinton. the president released a video tweeted out on the former secretary of state's account announcing his support. >> i know how hard this job can be. that's why i know hillary will be so good at it. in fact, i don't think there has ever been someone so qualified to hold this office. they will travel to green bay, wisconsin next week in their first political trip together for 2016. today's endorsement comes after the president met with senator bernie sanders, who did not offer an endorsement of mrs. clinton humbert says he will do everything he can to prevent donald trump from becoming president. just responded, he wants four more years of obama, but no one else does. speaker paul ryan has introduced a plan for increasing military spending and taking the fight directly to isis. he also talks about securing the borders, but no talk about building a wall between the u.s. and mexico. three people killed after a small plane crashed near a houston airport. the plane went down after 1:00 p.m. local time. the car was parked at a hardware store knew the airport. officials say they believe the three people killed were on the plane. no one was in the parked car. aere were new details about dozen detainees released from the u.s. military prison at kuan, bay, cuba. thatashington post reports the former detainees had been involved in an attack in afghanistan killing at least six americans. at least nine detainees are now dead or in the custody of foreign governments. global news 24 hours a day powered by our 2400 journalists and more than 150 news bureaus around the world. scarlet: "what'd you miss?" federalshows the reserve does not factor in presidential politics when deciding monetary policy. this would suggest the central bank will not be influenced when policymakers meet. we have crunched the numbers on this. attempted to answer the question, will the fed refrain rates.zin raising what did you learn? >> there is a kind of silent consensus among many investors that the fed will not raise rates because it is during an election, so we crunched the numbers. evidence atsoever that the fed has ever paid attention to the election. in 1998 episode was where there was a brief time of rate hikes. even at was not contested election. close, so overall there is no evidence that the fed pays attention to the election, and if they raise or want to raise, they just do it. joe: what about the impact on the real economy, fed aside. did you find examples of cesticularly close rate that caused nervousness? >> it is usually more impacted by the stock market. think the economy is pretty good at shrugging off these uncertainties. we may have one quarter where there is less investment spending, but overall there is no sustainable impact. rateet: the fed funds versus monetary cycle, and typically during democratic presidencies, rates go higher. they wind up being cut during republican terms. why is that? >> it is a great chart. during republican presidencies, rates go down, democratic presidencies, rates go up. it just has to do with what the economy has been doing, and it might have been coincidence. many republican presidencies have started or after a very brief time have seen a recession , and the fed reacted to that, where is democratic presidencies have usually seen longer recoveries and the fed had to react to this by raising rates. the san francisco fed president has said that the fed is as apolitical as it can get. see the perception of the fed is a politically motivated institution persisting? >> i think it is a relatively new phenomenon. we have heard attacks on one side of the aisle repeatedly over the last five years or led to thishat has perception that the fed is a political institution. -- we can call a spade a spade -- this is been coming from the republican side, so just from the policy that the fed is pursuing, i have no idea where it comes from. i think if you start hearing things long enough, you start to believe it. chart thate this shows the stock market tends to perform better under democratic administrations. how do we know this is not just noise? >> we don't know. what gets even better is we don't have it in our publication, but the real positive news is that if we have gridlock, the stock markets tend to do best, more than 14% annual stock market return for the s&p, and that is my guess in terms of what we are getting again. good to see you. backet: coming up, a look at the foreclosure scandal that rocked wall street. we speak with an author about three whistleblowers. ♪ joe: "what'd you miss?" everybody knows the great recession sought a surge in foreclosure activity, but many foreclosures may not have been done in compliance with the law. author of chain of puddles tells the story of activists who blew the whistle on the way foreclosures were being conducted in this country. thank you for joining us. i love your book. what is the story about. three individuals in the south florida area who were in exposing the disclosure fraud. they had no prior knowledge of real estate or finance. they were foreclosure victims who saw this in their own cases ad found patterns and built movement to expose it. joe: what did they expose was wrong? backdatedof forged, false documents to cover up this inability on the part of the mortgage industry to track properly the transfer of mortgages from one entity to ,nother during securitization during the housing bubble when these loans that packaged up and sent around. specific rules, laws, documents, things that have to be done to specify have these papers are getting moved , but the great securitization machine basically ignored all of that. >> it is supposed to give us confidence that nobody else has a claim on it when we buy and sell property. developedseparates nations from undeveloped nations. particularlye some egregious examples these activists found of him proper paperwork? green, her, linda an authorizedas corporate officer for 20 different banks to sign these documents after the fact, and to speed up the assembly line, they had other employees in the office sign her name. records, thelic name linda green is written in 20 different ways. people get that a lot of these documents were improper, but they say that people still were not paying these mortgages so someone has the right to evict them. what is the response to that? evidence wasd being used in a court of law to convict somebody, whether that person is innocent or guilty, they would throw out that case. it wasn't the homeowner's fault that the banks lost track of ownership and had to cover it up. my favorite aspects of this story is the fact that the activists had no prior knowledge of how the mortgage industry worked or how foreclosure law work. they had to teach themselves. >> these are people self-taught like you and me, bloggers up in the middle of the night with only the blue light of the computer to guide them, looking through public records, looking through websites, reading securitization agreements. educationed the legal for themselves understand what was going on and the patterns all over the country. joe: what is the state of things right now? america,day and somebody is drawn out of their home based on false documents. there were these settlements where you would presume this activity stopped, but it really didn't. it can't. once you break the chain of titles, you can't un-break it. joe: thank you for joining us. scarlet: continental resources founder will discuss his latest call on oil and explain his support for donald trump. ♪ okay, ready? whoa! [ explosion ] nothing should get in the way of the things you love. ♪ get america's fastest internet. only from xfinity. mark: now that she is the likely democratic presidential candidate, hillary clinton is mobilizing her major fundraisers for the general election. to match been asked it what they raised for the primaries by the end of this month. the clinton campaign wants to raise $1.1 billion by the november election. donald trump heading to new hampshire to deliver what is billed as a major address. plans to detail why hillary clinton is unfit to be president. donald trump teased this feature after tuesday's primaries. the trial of a baltimore college charged in the death of freddie gray got underway today. goodson is facing the most serious charges, including second-degree murder and manslaughter. goodson opted for a bench trial instead of a jury. u.n. secretary-general ban -- has saidet failings in syria will make a further escalation all too likely. the syrianng on government to allow unhindered humanitarian access, saying it is a war crime to withhold access. global news 24 hours a day powered by our 2400 journalists and more than 150 news bureaus around the world. i am mark crumpton. back to you. scarlet: let's get a recap of today's action. see the first decline for the dow and s&p so far this week with the dow losing 20 points and the nasdaq off by i third of 1%. joe: the real story was that it look like we were going to have a real down day, and then we have this drift higher, so basically flat. alix: h&r block reporting results. up 55%: the stock is by 5%e h&r block -- up because h&r block boosted its dividend. what did you miss? $70 oil i the end of this year? the founder and ceo of continental resources thinks. his company is the biggest shale oil producer in the u.s.. was calling for $60 oil by the end of the year. wrong,e thought he was but now he is spot on. so great to see you. thank you for joining us. you are looking at $70 oil by the end of the year. a one million barrel a day deficit. how do you get there? down to supply and demand, and the man has been higher than a lot of people predicted. certainly with the disruptions in north africa, indonesia, and that hastened the date when the two curves cross. the blue line's demand and the white line is supply and the yellow bars or deficit. you see a deficit of 2 million barrels a day by 2017. >> we actually went into a deficit the second quarter just briefly. two 120 days quicker than anyone anticipated, so that moved that ford. -- that forward. at the time i was here in january, a lot of people were or 2018t would be 2017 before that happened, but it happen much faster, and part of it is the 800,000 barrels a day ,hat u.s. production is down and so it sets up another scenario out there, a short supply of light sweet crude in the world. scarlet: do others agree with you? is this an out of the consensus call? other people do agree today. at that time, i was out there by , but the rest of the industry analysts caught up. in fact, some of them are much more bullish than i am today. i think $60 at the end of the year is conservative, and i may have been 15% or 20% low on that. you mentioned the supply disruptions. i'm curious how sustainable that , nigeria could be temporary, and as alex has pointed out, it u.s. production might be creeping back up a little bit. you see that as a threat to your call that some of this production might come back? >> absolutely. fearful thatbe riggs would go back into the field at some point. would go back into the field at some point. the rig count is at an all-time low. i don't anticipate a lot of backe will be putting rigs in at $50 oil. alix: your thesis relies on the two big types of grade, light crude and heavy crude, and you say the oversupply is in heavy and the tighter supply is an light, and that's what most global refiners need, and that's the dynamic shifting the market right now. >> they have a lot of complex refineries here in the u.s., but that's not the case in most of the world. basically they need light sweet crude, and that's where the decline has taken place both in sea and and the north other places, nigeria and west , and light sweet crude has been interrupted. , thesets up a differential possibility of a differential souren sweet crude and crude. we have seen differentials in the past. last year, they discounted u.s. crude. when thehours of trade ban was lifted, that went away. certainly this would set up the playing field for a differential between those two with light sweet crude being at a premium. with your overall call for oil to reach $70 a barrel, what does that do to dealmaking? have not seen a lot of consolidation in the energy sector given the collapse of prices at the start of the year. >> i talked about long-term money, and so we did not see a &d, and there may be some deals done as we go now there hasight not been a lot of that going on. we ask you how the mood was in oklahoma, and you say it is definitely better, but there have been some bankruptcies. durex more over the next six months? >> there have been some bankruptcies. a lot of people predicted more than what we have had, so we have been fortunate in that there have not been more. back into are positive situation for a lot of companies, so we may have seen most of the end of that. scarlet: do you it's the rally of markets? i think we may see commodity prices get back to where companies are making money. alix: go ahead. has to what extent continued easy policy from the federal reserve, only the one hike and it looks like they will push it back further, how much does that play into keeping the credit market open and preventing bankruptcies? >> it helps. lower interest rates obviously situation, and that's played a good role. gone up very much, it would have drastically hurt. alix: thank you, harold. i literally learned something new. thank you for teaching us that. continental resources ceo is sticking with us. we will discuss what that means for continental. ♪ scarlet: i am scarlet fu. it is time for the bloomberg business flash. illinois is mired in the worst budget impasse in history. s&p global ratings followed with , to baa 2. some advice for silicon valley firms with merger and acquisition aspirations. don't buy spotify. says companies that sell themselves are holding back the technology sector. nike is standing by maria sharapova. the company says the company found that she did not intentionally break doping rules. that is your bloomberg business flash. africa'sking news from biggest company by market cap. to sell itsng polish online auction site. pers has hired morgan stanley on a potential disposal. alix: i am alix steel. at $60 oil, what is continental resources going to do? what is the order of things you do as oil rallies? one of the first things we have done is get our balance ,heet in order, pay down debt so that is the first order of the day. day, thed order of the on toive dollars moves completing uncompleted wells we had previously drilled, so we have begun that process. so hopefully we will see higher oil prices and ramp up that activity. that's the direction we are headed right now. alix: at what price level do you add rigs. north of $60, perhaps in the 70 deal dollar range, but continental today, we operate 19 rigs, the number one operator in the u.s.. we have been number one in oklahoma for the past five years , so we are very active in our operations. we might be one of the last to bring on rigs. alix: it is not urgent. we are working on an overpressure stack play in northwest oklahoma where we have so very active there in the development of the northwest act. once you see a price really, you will see a huge spike in production after rigs come back online, is that the right these is? >> it is the wrong pieces. -- thesis. i think everybody knows that we could oversupply the market again. they will keep an eye on the market to make sure we don't oversupply it. will being up rigs shorter than people think. people in our industry will certainly keep an eye on it and not get out over the skis like they have in the past. the end you see $70 by of this year, what is your price call for 2017 and beyond. much as oneeing as billion barrels a day shortage and supply later this year. will be some production come on. so next year, that oversupply could grow to 2 million barrels a day, so that will provide some upward pressure to the price of .il that will add significant upward pressure, that 2 million barrels. alix: $80 oil? >> it's possible. alix: we have seen a lot of workers fired -- >> laid off. alix: laid off. how successful have you been bringing these guys back to work? wewe talked about what didn't do and haven't done, and one of those is lay off a lot of personnel at continental. we have not done that. we keep our teams together and have done very successfully. companiesand service have had to lay off a lot of people. in fact, there are 320,000 workers who have been laid off in this industry, great jobs, so a tremendous amount, but a lot of those will be needed. it will take some time to bring them back in, bring those people back on, but we will not need n we have int tha the past. it may take a couple of years to get back our speed. alix: thank you very much. next, harold is backing donald trump, how difficult will it be for him to raise money during the election? ♪ alix: i am alix steel. "what'd you miss?" amid the headlines today, you might have missed donald trump's meeting with donors and lobbyist. one of them is harold hamm. what are the focus of the meetings you had today? >> my focus was energy, talking to mr. trump. it is very refreshing to find somebody willing to listen, and i am not sure that the public realizes that mr. trump once to know. one of the first meetings i had with him, he wanted to know about the american energy renaissance and what that would mean for america overall. that was my meeting with him in 2011. he sat with me for about 30 minutes. scarlet: your focus was on energy policy. can you give us a characterization of what else was said during the meeting? >> i talked about different things that would help our regulationsfar as and all that sort of thing as far as energy policy, so it was a good discussion. like i said, it was very refreshing to have someone listen closely to you like that. mentioned that donald trump years ago was interested in american energy. what are your anxieties about energy policy? felt innk we have all the fossil fuel industry, that's where we live in what we do, that we felt like we had a target on our back. it has been very open that they have intended to take us off also feels, eliminate fossil fossil- take us off of fuels, eliminate fossil fuels. today, where are we going to get our oil? are we always going to be dependent on foreign oil? that is not a good place to be. our own oil sources saves american lives, reduces terrorism, and d intensifies saudi arabia. intensifies saudi arabia. do have concerns that donald trump may not be able to raise the money he needs. ? >> i think he is a great phenomenalwonderful, . i don't think he will have any trouble raising money for his candidacy. joe: what specifically does the next administration have to do to help the u.s. energy industry? >> to give us a level playing field. stop picking winners and losers. are they doing that through taxes? >> mainly regulations. we call it a death by a thousand cuts, and that is what has happened with this administration. everywhere you turn, there are new regulations that come out, basically trying to work on federal lands, permitting has become almost impossible, so when it takes two years to get a federal permit to drill a well in montana, you got a real problem. what is your understanding people say that donald trump might say something else in three months. he is a wildcard. what is your characterization -- understanding of that characterization? >> in the five years i have known donald trump, he has done what he said. he has a kind, generous person, a man of his word, and that has been my experience with him. you. great to see thank you so much for spending time with us today. harold hamm, continental resources chairman, ceo, and founder. scarlet: what you need to know to gear up for the trading day. that is next. ♪ scarlet: i am scarlet fu. "what'd you miss?" japan wholesale inflation be i tonight. alix: german cpi tomorrow. what that means for the ecb. joe: i will be looking out for consumer sentiment at 10:00 a.m. tomorrow. >> with all due respect to the reference -- the revolution, which will not be televised, this presidential election will be subtweeted. ♪ >> he is with her. today, president obama made his full throated endorsement for hillary clinton to be his successor as president of the united states. here is the general outline of what took place. fresh off a bruising election night on tuesday, bernie sanders