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tv   Bloomberg Markets  Bloomberg  October 7, 2015 3:00pm-4:01pm EDT

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from bloomberg world headquarters in new york, good afternoon. i'm betty liu. here's what were watching this hour. stocks have bounced around, they tried to build on afternoon gains in emerging markets and commodities surge higher. overwhelming front-runner, but what do democrats really think of hillary clinton? voters in the key early stages answer that question. verizon is now linking it's tracking ads back to aol following it's a well acquisition last year. are there going to be new privacy concerns? we are one hour to the close of trading here on this wednesday. going to head straight to the markets desk bloomberg's julie hyman has the latest. we have been bouncing around all day now. julie: we have been bouncing
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around now. have been holding relatively steady with a relatively small gain now for much of the afternoon, around a quarter to for the major averages. we could be the sixth session and seven that we see an increase for the major averages. take a look at my bloomberg turnabout -- terminal. 2000, that's a level on the s&p 500 are where we really had the s&p have trouble breaking above that level ever since the big selloff in august. that seems to be the case once again today because we rallied more strongly at various points throughout the session before falling back. the best performing group today is the worst performing group have seen as of late, biotech. the nasdaq biotech index turning around and rising today. right now it's up i 1.2%. some of that rally is fading. individual stocks contributing the most to the s&p 500's gains today are biotech and pharmaceutical stocks.
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companies like amgen, johnson & johnson, the more traditional pharma. earnings reports are not adding to the optimism. julie: not the early ones. we had yum! brands coming out with its numbers. keepeclines here accelerating incredibly, same-store sales in china up 2% where analysts were looking for 9.6% gain. monsanto not faring quite as poorly but that company saying it's going to be cutting 2600 jobs after it reported a wider its quarters and anticipated. it has been a victim of slumping crop prices and adobe systems changing the way it builds -- bills customers. currency fluctuations hurting that company. not that of course you can judge the whole or in a season by a couple of early ones, but thus far -- betty: not looking that great.
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if we are not going to get any more stimulus from the fed, people are wondering where we will get anymore juice in the market. julie: with regard to yum, that will raise the question is some is this a yumds, specific issue? betty: good point. thank you so much. now a look at what is making news on the bloomberg terminal this afternoon, mark crumpton has more from our news desk. has: president obama apologized to doctors without borders for that deadly u.s. airstrike that hit the medical clinic in afghanistan. the weekend attack killed at least 22 people and led to questions on whether the u.s. exceeded its combat authority. >> this morning from the oval office president obama spoke by telephone with doctors without to apologize and express his condolences for the msf staff and patients who were killed and injured when a u.s. military airstrike mistakenly hospital inf field
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afghanistan over the weekend. ernest also said the president has promised doctors without borders that there will be a thorough and objective accounting of the facts. russia is attacking islamic state and other militant groups in syria from the sea. the kremlin says warships in the caspian sea fired missiles at 11 targets today. that is in addition to russian airstrikes. today those attacks were accompanied by a syrian army offensive. that is the first time that has happened. beingere planes are rerouted over syrian airspace according to a pentagon spokesman who says at least one u.s. plane was forced to change course to avoid russian fighter jets. he did not provide details on how many times this has happened. new details aut the deadly shooting at a community college in oregon last week, authorities say christopher harper-mercer killed himself inside a classroom after he was shot and wounded by two plainclothes
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officers who reportedly came under fire after seeing him in the doorway of the building. nine people were killed in that attack. the white house says president obama will not support extending the federal deadline for trains to install crash safety equipment. technology is designed to slow or stop trains to avoid crashes spirit railcars must install the equipment by the end of this year. pacific arenion threatening to suspend some service if the deadline is not delayed. the national football league takes another big step in its attempt to go global. countries like mexico and germany are among those interested. the and fl -- nfl extended an agreement to play in london last -- past 2016. top's a look at our headlines right now, always find the latest news on bloomberg.com . betty: mark, thank you so much. while the fed continues to say a rate hike is likely this year, the market does not seem like it
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is buying it. a look at the fed funds future confirms the fed is not anticipating any move until the first quarter of next year. joining us with more, are bloomberg stocks editor mike reagan, and the founder and research from chicago. you have been saying that the fed should have hiked rates, right? but they haven't, and they are likely not going to move. where does this -- where does this leave the market? >> and control. -- in control. the thing -- the thing the feds did not tell us in september is that if the market does not price it in, if the market does not expect it, the fed is not going to move. you look atnt when things like fed funds futures or the eurodollar futures and what they expect for the market. as you pointed out, they don't have a great rate hike priced in this year. betty: does a good for the -- is that good for the bulls?
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>> yes, it's very good for the bowls. -- bulls. the market does not want a rate hike. all that talk earlier this month in september -- the market once the fed to raise rates, that was never the case. it was the talk of rate hikes that bothered it. it was the week payroll number that killed off a chance of a rate hike this year that has allowed us to have the decent rally we've had over the last week or so. as long as there's no rate hike, that's bullish for the market. betty: mike? seems to have been this rotation over the last month or so out of biotech and health care, some of the really highflying stocks over the last few years. and a little bit back into the beaten-down energy shares, it seems a strange time to be rotating from growth to value. usuallystanding is you look for growth stocks when earnings outlook is as dire as it is.
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do you think that rotation has legs or is that a brief blip that will sort itself out? >> the rotation definitely has some legs. if you look at the earnings expectations, there are none. it is expected earnings will fall on a year-over-year basis. revenues will fall on a year-over-year basis as well. the value stocks should do better in that environment as we move forward from here. energy out take out of the equation, and even energy related to instrument -- industries like basics, materials, and some of the big retailers, it is still not a very good earnings expectation. that will be a big negative for the market to offset with the positive. betty: is anyone saying to you what jim is, that the markets are in control and what the markets are saying is they don't want a fed rate hike and the fed has to listen to them? >> you hear from both sides of it. some people think the market would embrace a rate hike, it would give them certainty.
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there are plenty of people like you look at the bad news turning into good news lately with the jobs report. ie big question i have is, hate to say it, but we are stuck in a range like we were at the beginning of the year. it seems like for whatever reason this round number 2000 seems to be the stopping point. is that what we are going to be looking at for the near futures? the earnings have been brought down so low that there is a good chance they could beat it significantly. will that be enough to get this out of this range? right.i think you are unless earnings come in and really surprise everybody, we should expect mild surprise. something like 75% of the companies usually beat. that is not something that should be unexpected. if we get a big surprise, we can break out to the upside. in this range with
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high volatility, today being another day we were up 175 at the high, we went negative on the day, we went up 100. more days like this. as we manned or sideways, i would not be surprised if we end the year going into the first quarter largely at the same levels we are right now. self-fulfilling prophecy, if the market breaks out of that range it might make people think that the fed has a better chance of raising rates and that will bring us back into it? is the fed the story on why we are stuck in this range? >> it's 1/2 of the story. as far as the self-fulfilling, i would call more of a catch 22. could try and embolden themselves to saying, now we can raise rates and that would put a ceiling on the rally as far as the market goes. at the end of the day, the market has for 5 years like cheap money. cheap money has powered this market higher.
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we will argue about how effective it is. it might not be as effective as it was a couple of years ago. the taking away of cheap money is something that bothers it. it bothered it in august and september and it seems to be relieved now that there isn't going to be a taking away of this cheap money. betty: can you imagine a scenario in the next year where markets might allow the fed to raise rates? beinflation would definitely that scenario, which i don't see right now. if we were to see higher interest rates, higher inflation expectation, the market would probably turn around and say, it's time for you to raise rates. with those higher interest rates , might bring by lower stock prices as well too. and the question was is there a positive scenario where the market says, we want you to raise rates, that would be booming growth. we have been waiting five years for booming growth and we have not really seen it yet. wety: according to the imf,
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will likely not see that around the world for a while. thank you so much. much more ahead in and a 20 minutes of the bloomberg market day, hillary clinton has been slipping in the polls. but the democrats think there's a better option? -- do democrats think there's a better option? daily fantasy sports companies are part of exploding $26 billion industry. ♪
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betty: it is time for our business flash. the rate -- for a third time sab miller has said no to the biggest brewery deal ever. the beer makers board has unanimously rejected a $100 billion takeover offer from budweiser. -- bidsaid the value undervalue the company. uaw members have her checked today proposed contract. they want an end to the two-tier pay system. uaw represents about 40,000 fiat chrysler employees. bank of america taking over as a top u.s. equity research firm. institutional investor ranked them number one, effectively ending jpmorgan's five-year reign as the nation's top performer.
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jpmorgan hamon second. morgan stanley and barclays tied for third it "it's divisional investor" surveyed 3800 equity managers. -- investor"onal surveyed 3800 equity managers. facing inquiry from the new york state attorney, daily fantasy sports companies are taking steps to police themselves. within the last hour, draft kings released the following statements. effective immediately, draft king's employees will be permanently prohibited from participation in any public daily fantasy game for money. we will also prohibit employees from any daily fantasy sports contest operator from participating in games on draft kings. the other company under investigation in new york, has announced a similar change in policy. will it be sufficient to protect the fantasy sports industry from legal and regulatory consequences?
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paul sweeney of bloomberg intelligence joins us from princeton. is it possible that the new york state investigation is just the first step here? paul: it might be. this is a business that has gone very big freight quickly. it has really come up on the radar screen, not just consumers to see these commercials for the sites on every single sporting event you can imagine, particularly foot all, -- football, so everyone is aware of it. some of the shenanigans we've seen over the last week or so from some of these companies about their employees winning big sums of money on other sites, perhaps using information that was not in the marketplace, this raises a lot of red flags for regulators across the board. the new york state attorney general's initial look into this business is probably the first step. to myselfant to say and maybe others have said this to, what took so long? paul: fantasy sports have been around for years but this daily
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fantasy sports business, draft which allowuel, players to play on a week to week basis or day-to-day basis, users for ramped up this business, and therefore the money being transacted here at that is in the last year or so. beingear with all the ads run on all the sporting events, it's really come up on the radar screen. betty: will congress get involved in any of this? paul: historically congress has shied away from this business, it's generally been regulated at the state level. you think about gaming and online gaming -- i suspect that is initially where i think you will see initial inquiry. to the extent that this becomes a bigger story, a broader story in terms of the money being involved and some of the players , it becomes a bigger scale issue than congress could take a look, but initially it looks
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like the states will take a crack at it first. has not labeled it online game -- gambling. 2006 when congress did regulate the online gaming business they did create an exception for fantasy sports, under the expectation that it is really more a game of skill versus chance. but what has happened in the last few weeks has been -- we have seen the business just explode in terms of popularity. it looks like the lawmakers in washington -- they will certainly hold some hearings. i think they will essentially let the states to get look at this, maybe the federal trade commission will look at it from their respective angle. betty: who else may get involved? we have the new york state attorney general, but what about the ftc o?
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paul: there could be regul ulatory approval. it looks at this stage it looks like it will be the states initially. betty: thank you so much. paul sweeney from bloomberg intelligence joining us from princeton, their headquarters. still ahead on the bloomberg market day, will hillary clinton be the inevitable democratic residential nominee? ♪
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betty: welcome back to the "bloomberg market day." the first democratic presidential debate is next week. why do democrats think about their choices? that question was put to voters in iowa and new hampshire. >> hillary clinton, three words or fewer? >> experience and knowledge. >> experience and caring. >> hillary clinton? >> probably when.
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>> still impressive. had a family situation and you could call any of those democrats for help, who would you call? >> hillary clinton. she seems like the most genuinely concerned. >> she's a mom. >> she's well-connected. >> she is such an accomplished female leader who in the face of defeat has continue to persevere. >> she has seen how the system works, so she might have a better chance of getting things accomplished quicker. >> she can skip over any learning curve whatsoever. >> a woman stepping into a predominately male arena, i felt like she had to hold her own with them instead of just being who she is. think she's doing that now. a little moreis general just in that she speaks articulately about her positions without having that edge and that scorn woman thing. that's a little offputting. i think that can put off a lot of male voters. betty: joining us is the
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bloomberg politics comanaging editor. is my second time with you today. betty: i know. differing question, did they believe that hillary clinton would get the nomination? >> different stories in new hampshire and iowa. sometimes you have focus groups that contradict what the polls say. they're interested because the poll seem to suggest one thing and focus groups are telling you something else. our iowa and new hampshire group -- the polls show in those hillary clinton is doing better in iowa with new hampshire. new hampshire voters are overwhelmingly convinced that bernie sanders will win the new hampshire primary and many of them thought bernie sanders would win the democratic nomination. in iowa, a lot of them thought bernie might when the iowa caucuses, but every single one thinks that hillary clinton will be the nominee of the party.
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she has spent a lot of time trying to deal with iowa, which was the pain of her existence in 2008, the thing that caused her whole campaign to come crashing down. in iowa, a lot of time she's campaigning in a different way, closer to the ground, more intimate contact with voters. it was interesting to hear my iowa.of contacts in they could see the difference from 2008 and they appreciated it. betty: eating pork on the stick. >> everything on a stick, exactly right. deep-fried and on the stick. betty: what about biden? the single most surprising, straight up surprising thing from our democratic groups was consistent in iowa and new hampshire for mark and me. for all this talk about joe biden and all the people that were genuinely telling joe biden he should run, voters, consultants, financiers, funders -- in our groups, no one wants him to run.
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in my group of 11 there was only one woman who put her hand up when i asked if they wanted biden to be in the race. mark's group was virtually the same. they all think he's a great vice president, a wonderful guy, but the fact that he's not in the race yet makes him think he does not really have the fire in his belly. the played the stephen colbert interview with biden. they all looked at it and thought, this guy is still so upset about the death of his son that he should not run for president. betty: thank you very much. 5:00 all due respect" at p.m. ♪
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betty: you are watching me "bloomberg market day." speaking of the markets, let's
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head over to the markets desk for julie hyman and check on the company movers, including ipo's. julie: it's not going so hot. pierce storage, a flash storage company, it raised 420 $5 million in its ipo but the stock is down more than 5% in its first day of trading. storage among a new breed of tech startups with valuations of more than $1 billion. this was a test for the receptiveness of the market to companies like this. if you look at my bloomberg terminal you can look at the recent history of ipo's. the blue bars are the value, how much deals raised. the green is number of deals. if you go to the third quarter we just passed, we saw companies raising $6.1 billion through initial public offerings. that was the lowest since the third quarter going back to 2012. it was down 80% year over year because we had alibaba going public.
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interesting perspective on what has been going on in the ipo market. we're also watching gopro. it is trading at its lowest since it's ipo. it is still down 5%, after we saw a dramatic decrease in the price target coming from morgan stanley. the new price target, the old was $62 bet you don't frequently see decreases of that magnitude. analysts are talking about price cuts for gopro products. finally, looking at a couple of the multilevel marketing companies, herbalife one of them, that is the company that has been regularly targeted by bill ackman. he says new information about the company -- he won't tell us what it is, but he has no information. from a personal beauty company. is that it was affected by
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currency and weaker demand in china. that seems to be the theme of the day, so between the ackerman commentary and new skin earnings, we are seeing both of those stocks tick ahead. betty: we were talking about earlier, jim bianco, earnings overall are not expected to be good at all this quarter. in fact, we have seen earnings estimates basically decimated. where is the driver for the markets here? you are not seeing any good indications right now. julie: there's two ways to look at diminished earnings estimates. on the one hand, it's a sign of pessimism, sentiment in the market. on the other hand, if you're diminished, does that leave more room for companies to beat the estimates? a lower bar to beat. ofwe know also, 2/3 companies tend to beat earnings-per-share estimates. the gap tends to be pretty wide, it's just a question of how wide the gap will be. speaking of the ipo you
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mentioned off the top, does that have implications for the broader market? julie: maybe it has applications for these other hot tech ipo's. this is a bit more of an obscure one, not a consumer facing one. generally they have performed better. betty: thank you so much. now i look at what is making news on the bloomberg terminal today, mark crumpton has more from our news desk. mark: good afternoon. near columbia, south carolina, the national guard believes a dam break has been averted. governor nikki haley said today more than 60 dams across the state are being monitored and 13 had already failed. she also said the state's pain isn't over yet. >> from the beginning i said, this is going to hurt. from the beginning i said, this is not going to be a process that was going to be fixed overnight. we are ai do know is strong state, this is a state that will get through it, we
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have a recovery mode we will have to go through, but i have no doubt in my mind that south carolina will come out of this stronger than what we started. mark: south carolina officials say the rainfall has been so heavy that caskets are popping out of cemetery grounds. there are at least 11 confirmed instances across six counties in south carolina. by sunset today the u.s. coast ford will end its search the remaining missing crewmembers aboard that u.s. cargo ship believed to have sunk near the bahamas. family members have been notified. the 790 foot el faro disappeared thursday as 140 mile per hour winds from hurricane joaquin better the bahamas. searchers found one body but could not retrieve it. the water there is 15,000 feet deep. it's getting even uglier. [indiscernible] lawyer says his contact has not been contacted.
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the suspension comes on the heels of demands from four major sponsors that he leaves immediately. criminal organizations in eastern europe have been shopping radioactive material used to make dirty bombs to extremists in the middle east that would turn moldova into a thriving black market according to the associated press. authorities working with the fbi have failed -- foiled four attempts over the past five years of gangs with russian connections. long-running has benghazi investigation, he suggested, into hillary clinton, is motivated by politics. mccarthy is considered the frontrunner to replace the house speaker john boehner. look at our top headlines right now.
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you can always find the latest news on bloomberg.com. betty: mark, thank you. fair" annual event concludes in san francisco. two cool people, actually three, arey chang, brad stone standing by at the vanity fair conference along with tim armstrong, the chairman and ceo of aol. guys? >> hey, betty. thanks so much. it has been an awesome conference. tim, so great to have you here. it has been six months since verizon announced buying aol. how is it going so far? >> really well. one of the things we got to spend almost aerial year with fries and before we did the deals -- almost a year before we did the deal. everyone knew what they were getting into. emily: what changed for you? of my time is back
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in the product and back into what we're doing as a business. i do a daily 8:00 a.m. call with the top 30 or 50 people at the company and we are moving things real-time trading was harder to do with a public up. verizon is a great mix. two, from a verizon standpoint, they have a massive opportunity to build businesses on top of their current network. i think it's a mix of strategy, culture, and people and it's going really well. >> the online advertising business has been in peril by ad blockers, which allow internet users to bypass the ads, and two, click fraud, "bloomberg businessweek" had a story about how a lot of the clicks are fake. what can aol do? a slightly contrary in
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view on this. i think there's a big problem here, consumers are blocking ads, that is a signal for us that you have to improve your ad quality. that will drive a lot of innovation. that is one of the things we're doing on our daily calls. everyone in the ecosystem will do that. the second piece is around -- i think the internet is probably the most transparent media type in general, anything that has to do with fraudulent things, you have massive benefits. everyone will be connecting through a machine, their phone, and that will help figure out who people are and what fraudulent traffic is. i feel good about it from our standpoint, i think the whole industry has to address -- when you look at where we are right now, what those two problems are the industry's biggest opportunities. everyone is using digital media and mobile media and everyone is trying to put ad dollars there.
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we have to have high class solutions for that problem. emily: there's a lot of talk about a tech bubble. i wonder about media specifically. bought the "huffington post." are we in a media bubble? >> valuations are not high enough. when you look at the consumer migration of products and at theseand you look valuations, when we bought the "huffington post two are stock dropped by 20%. the reality is there's probably --y a handful of companies people got out of content, we went into content. you have these traditional cubbies -- companies try to make the transition. there is no supply of companies
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to buy that are not the scale of "the having can post" or buzzfeed or "business insider." we look from now when back, people will say the biggest missed opportunity is everyone ran away from content during that time period and five or six companies went into content. there's an amazing amount of benefit now to having invested during that time. >> will we see apple and amazon with these over-the-top tv bundles? are we about to see the dismantling of the traditional cable model? >> first of all, the areas that are declining over time tend to decline slower than people expect. of twoink because things, one is the networks have gotten faster and more creative people are investing in high quality content overall, that high-quality drives the content will be better for consumers. i think you will see an acceleration of the tv issues. one set i always throw out is,
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some of the tv businesses are down more than aol's dial-up access has been down. when you look at those numbers, you say something is happening here, it looks like it is a systemic and it will be a big change. emily: what role is a well playing are going to play? >> we're doing the monetization for go 90. over time we are getting into deeper and deeper partnerships where as one company -- all those type of brands will go on go 90. you are helping fries and manage the -- verizon manage the advertising side. the people running that product have done a really good job of signing up what i think is tier a content. we are playing a massive support role. that's what we are doing right now. tim armstrong, great to have you with us. betty: thank you very much. live from the "vanity fair" conference. toing up, as we countdown
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the closing bell, google unveiling a new mobile to speed uptrying loading time on mobile pages. that leads to higher revenue. ♪
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betty: it afternoon and welcome back to the "bloomberg market day." -- good morning -- it's afternoon and welcome back to the "bloomberg market day."
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the platform aimed at publishing ing newsicles -- at mak articles load on mobile phones faster. shares of samsung are their biggest boost in six years today after the company's quarterly results. seoul rose nearly 9% in trade. it may be the summer of donald trump, but wall street financiers are shrugging their shoulders. bets on placing mainstream presidential hopefuls like jeb bush, marco rubio, and hillary clinton, and showing little enthusiasm for people like trump, ben carson, and bernie sanders. you can always get more business news at bloomberg.com. turnaround quite a for emerging markets, which have in theed in a big way
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past month with emerging-market stocks posting their biggest six-day rally in five years. the msci emerging markets index has gained nearly 10%. currencies are also rising. does that mean there are more gains to come? let's bring in joe weisenthal, cohost of "what'd you miss?" was part of the rally overnight having to do with the fed? joe: there are definitely several things seem to be going on at once. fed, ity you have the seems as though people have really pushed back expectations of when there's going to be a hike. even when this rally, it seems like people are convinced is not going to be this year. a lot of economists still see december. you have the bounceback in energy, that has really helped. crude oil coming close to $50. you have some signs out of emerging markets that to some people say stabilization, chinese quarterly affects reserves came out, they did not bleed as much as people expected and so perhaps that is a sign
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the situation is not quite as bad. malaysian trade data that came was its best in nine months. when you put those things together, you can see -- you don't really know what caused it and what is cause and what is effect. those are the things people are talking about. betty: what about the brazilian riyal? joe: that's another one. it's all of these. but after the fed non-in september, you would expect emerging markets right after that to rally. instead, they dove all risky, assets fell after that. there has been a huge comeback. it's just funny thinking about the immediate aftermath of that fed decision. they made a policy communication and everyone is upset and everyone is confused. it's like, calm down. a couple weeks later, volatilities dropped. this idea that the fed created
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this big problem for markets turned out, at least it seems for the moment, to have been overblown. chill out ae that, bit. thank you so much good joe weisenthal, cohost of "what'd you miss?" we will have the head of emerging markets at morgan stanley talking about this topic. much more ahead on the "bloomberg market day." we are watching the markets. the close just a few minutes away.
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betty: stocks rebounding from a midday slump. let's head back to our market desk. julie hyman has a check right before the closing bell. julie: it looks like we have gained some steam into the close. it looks like we will make that six of day in the past seven as the s&p 500 extends its rebound from the lows of the year.
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it does seem to be part of this snapback effect we have seen. take a look at my terminal because it illustrates where we are seeing the snapback. what could be more of a snapback than biotech and health care? well,al stocks doing industrials which have been gaining as the u.s. dollar has and energying, shares also doing well despite underlying weakness in oil prices. it's an interesting day here. in terms of individual best performers, they encapsulate some of those trends i was talking about. amgen and gilead have been rising today, the two begin to gains overall. rising even though oil has remained lower after we got that inventories report showing an unexpected building inventories last week. we do have some laggards to talk about as well that are notable, even though their not totally holding back gains in the s&p 500. still, yum! brands has been a
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big one we have been watching. those shares sharply lower, the biggest drop in at least 13 years for the company, down 19% right now. the lowforecast estimates, and also we have been watching apple shares which have been experiencing some weakness after there was an analyst report that drew into question how apple sales in china are going to be -- those china sales account for 17% of apple's overall sales. apple really has not participated in this recent rally for the s&p 500. they do so much, julie. julie hyman at the markets desk ahead of the markets close. for more on stocks, i want to bring in all of her renick. we're looking at this interesting rotation that has been out of health care into stocks like energy. things.a few
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the biggest one is fund managers need to get some kind of performance out of stock. coming off a tough year for them, almost upwards of 90% plus, fund managers underperforming the benchmark index, they have to try to look to find places where there might be some sort of value and for a long time, they were writing the biotech wave. what happens is when there's not a lot of stock moving in different directions across the market, when you have some of that subdued volatility, your dispersion in stock returns gets really low. it has picked up a bit this year because of the volatility but it is still depressed. in these companies where a lot of funds will get into a certain point, they can't get much more out of that. what they look at this to say, we have this other sector that has been beat up quite a bit. now health care has these sort of videos that we discussed at length and now it is peeling off a bit. they say, where else can i look?
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a lot of that has been in the energy space. the second part is closely related, which is energy companiesnow ha pretty decent values. they are trading4 times at the beginning of the year, health care was way astronomically beyond that. ,etty: what about hedge funds and whether this is a signal for hedge funds to get into energy? oliver: that is a big factor here. some of them that typically are in those growth things that have been high data stocks and some of them that typically don't do that, but you want them to get in the two that biotech wave. when you have low distortion rates -- there's an issue of hedge fund managers, they have their own strategy. a lot of times they point to the same stock. saying washen you that you have this low dispersion factor, where there are so many stocks in which you might get a potential return. there becomes this really sort
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of tight exit door when those funds want to get out of there. it becomes a bit of a liquidity problem and you see stocks in the biotech sector get whipped around, as some of those investors try to get out of that . that contributes to volatility. betty: you were at a charles schwab event today. did you learn anything new? basically they are trying to assess how the retail clients are trying to figure out the market right now. betty: how are they doing? oliver: this one interesting thing they talked about, last quarter there was a lot of volatility surrounding company earnings, companies that beat -- they did really well. companies that missed did very poorly, and the volatility surrounding this day after moves indo those stock prices was very high relative to industry. the fix at 20 instead of 13 or 14. -- vix at 20 instead of 13 or 14. an all-starve
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lineup tomorrow morning on bloomberg television. the imf had christine lagarde is joining us, and the former fed chairman ben bernanke will be on bloomberg television or you do not want to miss that. ♪
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scarlet: we are moments away from the closing bell. i am scarlet fu. joe: and i am joe weisenthal. the s&p nearing the high levels of a selloff. joe: but the question is, "what'd you miss?" scarlet: did the markets overreact? we dig into the charts. joe: we take a closer look at india and what it means for global markets. alix: and biotech stocks. rlet: but we begin, of course come with the markets, a late recovery. pushing us into the green, eight out of 10 sectors higher and only to the d's and telecom falling, but not by

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