that's putting more demand on gasoline valero, largest refiner out there, vlo, they are buying 10,000 of the june 80 calls. so both of these trades are in june, so plenty of time. june 80s, but the stock was only 71.44 this morning that's a lot of upside, scott. so i'll buy something a little lower and sell that higher strike, but i love that they're projecting great things into the 4 it 4th of july which is normally when we see driving peak in the united states. >> yeah. given the amount of traffic back on the road already in this area and probably in the big city where you live, jon, i can only imagine what it will be like this summer as we really get out and about. >> yeah. >> you are already getting a flavor of that, so it is a very interesting trade you bring us thank you for that we will do ask halftime next send your questions by video, we'll put th oemn the air. e-mail us, askhalftime@cnbc.com. we're back after this. (vo) nobody dreams in conventional thinking. it didn't get us to the moon. it doesn't ring the bell on wall street. or disrupt the status quo. t-mobile for busine

told "the new york times" that the social media toer operator is working toward that goal, naming drew valero to that post he previously ran financial operations for mattel and snap huffman told the paper that reddit did not have a specific time line for going public what if it got -- what if it goes public and gets heavily shorted, andrew? that's two incestuous, could it happen could it become a meme stock they got to get public fast. they got to get public fast. >> well, you're saying if it gets shorted then the reddit guys are going to put a short squeeze on it, we'll see >> yeah, that would be fun that would be fun. >> it's hard to know talk about a person who's become a hero of reddit, cathie woods, ark innovation etf now in the red for 2021 the flagship fund has dropped 24% from its all time high, including a 5% drop yesterday, wiping out the $23 billion in gains it had seen since the start of the year. some of the firm's biggest holdings have been declining, including tesla which has fallen 14% over the last three days square and roku have fallen amid the broader selloff. my bet, and i

the overall portfolio, and where you want to be and as i said limited energy exposure like eog and valero, but i wouldn't be adding significantly, because i do think there will be cross pressure on oil prices later this year. >> we are watching the xle push to sessions highs at this point with brent up by 2% and we're watching it tick higher. >> wrapped up in jim's modestly provocative statements is the notion of inflation and we saw that highlighted in the ubs report where you say you ride the spike train and you saw stimulus come in the hospitalizations and rise in covid cases and that stimulus heats up the economy and that heating up of the economy leads to inflation and while it may be in pockets of the economy there will be inflation. i'm wondering if that is part of your investment thesis because it looks like oil falls squarely into that. >> right so with respect to inflation and our investment thesis, we are always long term what i'm thinking about inflation and the impacts of that are as we invest, what we can look to is in 2020 when the ten year went from 1.6 and dropped to half

that is valero energy. there are three main drivers. as they are coming back in the market that is not so much in demand demand is coming back and sort of the peak height in demachbd at least not in the near term. some companies are betting the peak demand has already occurred and will decline over the next decade it goes to the fundamental problem that there is not enough investment going in. that's how this rally can continue >> investment from who from the buy side or the actual companies? the actual company at the low end of their spending in 2021 could be $16 billion that is half of what they are doing last year. so, this under investment could lead to limited supplies outside of opec and demand as we have seen is coming back. it is not all the way back that is the encouraging thing as prices have recovered. the demand still isn't back to 2019 levels like we've seen in other industries that have quickly snapped back, oil hasn't done that just yet >>peter, when you look at the write downs of the past several months, the slashing of

valero, 60%, and occidental petroleum up the most soaring 85%. joining us with his energy picks for 2021 is rob zemel, a portfolio manager at tortoise. these moves were from pretty depressed levels but we have definitely seen a pickup in activity over the past couple of months, rob. your favorites aren't maybe the most widely held, but have you picked them with the notion that they haven't made as big a move or as much of a rebound as some of the others we just mentioned? >> yeah, joe, good morning at tortoise, we look at the energy sector, and see a revolution going on over the next several days. our focus is on where can investors win in the energy revolution there are two megatrends that are going to happen. ele decarbonization. our companies will focus on the two mega trends that will happen over the next several years. >> so nextera is leading in some of the renewable areas. >> yeah, so joe, that's a good example. nextera is a classic example of one of the companies leading the way in the energy revolution, and these two mega trends, and so

valero company all up more than 20% in today's session. one of the etfs that tracks that spider, etf up double digit. these stocks are helped along by a surge. under pressure in recent weeks amid concerns and the negative impact among demand. the news could eleviate concerns sending those prices above $40 a barrel from the highest level from october "sqwawk on the street" comes back after this. >>> what a wild morning. note the change at 6:45 a.m. we were up as much as 16 dot 10 for the morning. still record territory but now just below the 4% mark this is a time line of how things shook out this morning. it of news. >> it sure has, carl pfizer and biontech that the vaccine were 90% effective now the challenges come in how to make and distribute this vaccine quickly and at scale joining us now is the senior fellow at the global center for global development and lecturer at harvard also with us is associate professor the professor at johns hopkins university business school i'll start with you. where the infrastructure at this moment in tim

v valero also agreed to install pollution controls at its texas facility you are up to date ty, back to you. >>> thank you very much, sue stocks right now at session lows the dow and s&p and -- that would be all three of the major market that we follow, folks there you see them in the red, t the dow down by about 1%, s&p down by more than 1%, the nasdaq composite off. >>> the transports have been outperforming the broader markets over the past three months our next guest is bullish on the group, especially the railroad stocks is all this optimism a good sign for the economy? jason seidel is managing direct o director at cowan. welcome. >> thanks for having me. >> let's start with where we saw. is it trucking first and rails first or vice versa? we started seeing a pick up in the summer we were talking to steve leaseman earlier this hour on how economists are all over the map going into the year. what is the trucking volume telling you? >> you're right. we first started seeing the trucking volumes start edging up in late june and then july was unusually strong it was actually above ju

you have hotels like hilton, valero, charles schwab, schwab,i what do you make of the list freeport >> yeah. i think the theme among them that they look like a really dispratt list of companies the theme just as life gets back to normal, their businesses will return to normal and they are underpriced i think as we broaden, the valuation gap narrows. so as that valuation gap narrows, the companies should -- these are the ones that have the most impact and they should start to improve they should just start to resum normal life. one interesting thing is when march and april came, right, all of these facts, all of the financial that's we always depended on to be so true were thrown out the wund yoe. and stories stock surged st but facts and financials will start to matter again and we have seen that happen. i think we'll see that happen more and more as q-3 earnings come the list of stocks own that wall, they're going to be the direct beneficiaries of fact, financials, and dependability just returning to the normal process of investment and analyzing their companies. >> wise, you're buyi

and hal burton, occidental pet troll, valero energy and early in the pandemic, we saw a gap between energy and the s&p 500, it's only gotten bigger. it still a trade we're watching. the s&p energy sector is down 50% so far in 2020 back over to you >> dom, thank you very we appreciate it covid-19 infections are rising across the world paris closing bars, madrid starting a partial lockdown and new york city's mayor is trying to target neighborhoods where cases are spiking. is this all the beginning of a second wave? ste steve liesman is looking at that steve? >> reporter: they are trying to figure out how a second wave will affect the u.s. economics oxford economics expects a 15% probability of a renewed outbreak and shutdown from premature easing and a 25% probability of a second wave by itself so it's a 40% chance one way or another, which could lead to renewed shutdowns. but there may not be the political will for widespread government-ordered shutdowns even in new york city mayor bill de blasio tried to hold the line in response to an outbreak, imposing shut downs by zip code. when cases

. >> what are you waiting for eog down 29, valero is down and chevron is down 19 you love these and they konand y continue to kill you giuys. >> absolutely. we think the refiners are well positioned we are anticipating that through next year. >> i don't know if i heard you laughing or not pete but energy has been punching you around >> turn me around too. >> you have chevron. we know what's going on with energy you also have u.p.s. up 50 what's the name that stands out to you are they best or worst if you're making any moves forward i love both draft kings and cr yorks port because bauz ecause of that, i n the name has plenty of upside. i met the ceo at one event >> these guys are outstanding. when you look at what they are in terms of the annual potential of the online betsing world, we're talking about 50 plus billion dollars. it's almost a new 50-week. good stuff we he avpete's latest trades in unusual activitactivity we'll do that next >>> virgin galatic is up >> this one is pretty gr interesting. it's performed nicely. some are expecting a great performance this month they are going

check out what's happening with apache, valero all of these guys, oil services, refi refining all of these in the red and the one stock in the s&p 500 positive for the energy sector, 2.5% gains for one oak we'll if that trend continues. all these stocks have been beaten up really badly over the course of the last year. back over to you >> certainly have. thank you very much. >>> the first of three presidential debates taking place in cleveland tonight recent polls from the battleground state show joe biden leading. what should investors be watching ahead of the event? stephanie, it's good to have you. i read that 84 million people tuned into the first debate between trump and clinton last time around. sfrn it's much lower than that, we're still talking about a lot of the public what wants to see how they answer these six big topics that are being laid out what do you think will be most important for investors to listen for >> it's not a catalyst for a huge swing one way or the other and how voters will cast their ballots. there's been a bun mp of research that shows it's not to be de

cross heave reference -- by about 65% so far this year on the refining sign, you have an 8% year for valero, baker hues on the with a 5% yield. what makes is so interest is exxon nobel is xauld what is known as a different aristocrat. for more on the safest -- let's bring in sam marg lynn i bring up the different, because it's the price and joy for many, can exxon maintain that different? paid to noor-term movements in oil. after announcing spending cuts and more expense cuts. but you'll probably see doubt expressed in exat any time stock, but we think it is, but you know, we can't convince everyone >> sam, i'm curious there's been a long trail even from the -- the trend we have seen is operators are typically able to sell assets to local companies, so, for example, they -- more evenen company, so normal companies at the nation of produces are incentivize the differently, so there's typically an appear tide at any given production country to take over assets. price and valuation come into play, too, but that's the party we have seen from where that protection is located. >> where exactly, t

in a second companies, exxonmobil shutting down at least two refineries, biggest refinery shut down, valero, shell, they are all there. that beaumont area lake charles, that's going to be the center of the storm. kind of where the m in beaumont would be, thais the direct path. you can see there, that's the really hard hit area there is a few reason why gasoline is down right now one, gasoline inventories are higher than last year and can absorb some hit to production for a while. number two, you've got refineries that are staying open only running at 80% capacity they can make up some of the slack, guys. of course, demand will drop as people stay home because of the storms first, all the ports are closed, galveston, port arthur, et cetera, so all the ships are stuck. check out this from marine.com that is amazing. the dots, red, blue, green, those are ships. if you are not in port, you have scurried over to corpus christi or the coast of mexico because laura is coming right through. hundreds or thousands of ships all running away i think that, kayla, and sara, is an in verse map of that sto

with that said, you saw a big move in valero today. if you are looking at technically, valero has been level and supported at 54, but tim probably agrees with halliburton, because goldman sachs added it to the conviction buy list, and this stock has a slow steady climb over the last couple of weeks, and that a name that could continue to rally and not necessarily on this news, but in the environment that we are in. >> tim, you are long halliburton? >> i am long schlumberger of the two that is the underperformer, but looking at coming out of the earning cycle, both of the guys cut dibs in the balance sheet and rationalize mode, and free cash flow is part of the story. so it is a slow rerating, and as we are following the brent prices, too, jammed between $42 and $43 in the last few weeks and this is a spark to take you above what is a technical consolidation, but i agree with everybody here, supply disruption has not been the trade here, and certainly not a trade to buy in the energy space in a bear market. it was in katrina, because i

well as lake charles these are just the areas to keep track of marathon, exxonmobil in bay town texas, valero has four across texas and louisiana. total and citgo and more bp, shell, and chevron removed workers from off shore rigs. the about 15% to 20% off shore production is currently off line actually not that bad b 300,000 barrels we are day on 10.8 million barrels thats why oil is not moving much right now. >> yeah. energy stocks tell will you are up nicely. to your point on oil, brian, i wonder if if, you know, what's different about this time is that the pandemic is still raging we're seeing rising prices in europe and asia. i wonder how you think about the demand picture which is starting to pick up a bit does it make this sort of supply issue that we could see in the gulf less serious or less of an impact on the price of oil >> i have to think of a clean word about demand. it is terrible jet fuel demand down still 40%, 50%. here's the other thing too h with the storms now, you have millions of people on a new lockdown, not covid-19 related, storm lockdowns. that has a subsequent hit o

valero is scattered equally between houston and northerly as well it's actually been not that bad. the reason oil is not going up is very simple these supply disruptions that are expected aren't enough to counter the sub squents drop in demand because everybody will be locked down. not because of covid but because of these twin storms rolling through. you have fires out west. everything else is going on. luckily marco has weakened let's hope laura does the same >> one follow up, it's not clear. maybe you can telldated informa comes close, that city, especially since they were so late to get hit with covid they are just trying to come out of that. >> houston is close to my heart. they are tough i was there during harvey. i was shocked at how quickly the city came back they said the city drains fast i said what do you mean by that. they said just watch six feet of water on a road one day. the next day it was gone they're tough. they're texans it's been 102 degrees. now you have these twin storms coming through they are back to back. this will be some of the fastest hits of twin storm

long term >> simon, when you're buying energy right now, look at discipline around cap ex, chevron and valero have shown they can do that >> energy stocks we're buying some of those >>> jon is tracking the action in the options market. stay tuned for his latest trades in unusual activity. a very popular segment with some of our viewers halftime is back in two minutes. [indistinct radio chatter] (mom) come on, hurry up! all systems go? (mission control) 5 4 3 2... ignition and liftoff. (vo) audi e-tron. the next frontier of electric. try nature's bounty sleep3, a unique tri-layer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. only from nature's bounty. (music) anncr: give customers access to precisely what they want, when they need it the most. with adyen, the payments platform that delivers convenience for all. adyen. business. not boundaries. save without even leaving your house. just keep your phone and switch to xfinity mobile. you can get it by ordering a free sim card online. once you activate, you only have to pay

valero is in that camp >> weiss, you couldn't stay away from moderna, could you? >> no. it really got crushed yesterday. i said, let me go back in. the wild card here is when the next set of data comes out there's no timetable while dr. fauci talked about july remember july is not that far away, but you will be getting results of the remaining 37 patients or trial subjects that were in there. i think it's going to be positive based upon the initial data i don't want to be out of it completely i think it pays to have a bookmark position in there and just cause you never know when it's going to work. we don't know how it will turn out and having litigated against chinese companies based in the cayman's, it's not fun thing to do i'd still sale >> shannon, you want to take the other side of baba >> absolutely. we just bought the stock i want to give steve credit. he has a lot of experience many this space i don't discount his caution to any extent we feel like with the e-commerce platform and with crowd up 58% year over year, these are great results for baba i think there wi

the refiners now, the phillips petroleums and valeros really have outstanding management. we think they make a lot of money as we see preprices under pressure you have the good management and the good business models all these guys have very good management >> finally, anywhere else in the energy space you would look. we spoke a while ago when i ask asked, what about the exxon and chevrons the biggest of the big >> chevron out performed exxon for ten years now. they have been a forced to address that you could begin to think about exxon as a play here but chemicals do remain under considerable pressure. that's a problem for exxon in combination with its very high exposure to asia gdp we're still pro-chevron. >> chesting. maybe thinking about whether that's coming to an end. >> especially with exxon with the handle it's not the trade that it was >> right, absolutely paul, appreciate all your thoughts thanks for joining us today. tyler. >>> all right. still ahead. moderna, sorrento and novavax. surging on solution to treatments and testing we'll tell you how traders are play

like conocophillips, phillips 66, valero, rather than betting on the actual futures market >> good point. when you buy an etf, you are buying a bundle of companies that has been a positive some of these companies may go away you are saying if anybody out there wants to bet on oil, buy a couple of big cap individual oil stocks and maybe avoid the etfs? >> yes avoid the etfs that track futures or commodities if i'm going to bet on an etf, something like xle look as track tiff to me that's something i might dip into today that has had a nice uptrend moving on. trading above its support line that's an etf i might own. that has the big cap names i'm talking about. those top holdings in something likethat have those big megaca names. i'm either looking at those big cap names or individual names like you mentioned >> from a macro market perspective, what a bounce this market has had nobody is saying it has been a good year. with err still down for the year look at the last two weeks, we've done about 60% retracement. not to quote 15th century mathematicians, they have failed in the past. is thi

keep its new york stock exchange listing exxon mobil mobile borrowing another $9 billion in debt and valero warning it might report a first quarter loss as demand for gas plunges with people off the roads energy and financials, the two sectors in the red right now >> wells fargo shares lower after reporting quarterly results. the bank setting aside nearly $4 billion in loan loss provisions. the cfo, john shrewsberry, joinings us now. very good afternoon to you thanks for joining us. >> thanks for having me. >> i feel like there's a sense on the calls that provisions are going to get much worse in the quarter ahead. the stock opened higher. it's now down by about 4.75% similar theme comeing from jpmorgan is that fair do you think provisions for bad loans in q2 could be bigger than they have been this past quarter? >> hard the say. i think that the economic forecasts are changing rapidly at least over the last several weeks they've been generally been getting more steadier ra rather than softer those are meaningful inputs into how people are calculating future expense the big question is when

valero and phillips 66 have already lower their lights -- rates. an industry expert points out you do not just turn down -- turn off a switch to shut down these refineries. it is complicated. so they are waiting until they need to shut down to do that, so capacity continues to come down. it's interesting as we see the g20 nations meet, we know some additional oil producers may roll in with production cuts. and also for the first time, a u.s. president, president trump, is being pushed to push for higher oil prices more in line with saudi arabia because this will mean stability for oil markets. youi: all right su, thank so much for that with the latest on oil going into the opec-plus meeting. plenty more to come. this is bloomberg. ♪ global cases of the coronavirus infection have topped 1.5 million just one week after passing the one million mark. new york, the u.k., and belgium reported the deadliest day so far. cases are rising again and governments continue to hammer out support programs. the world health organization continues to caution again

that includes majors like exxon, higher by 3%, but also services companies like schlumberger, valero. it is really the e&p's outperforming. some rx is up by about nine rx -- cimarex is up by about 9% today. these are leading the s&p. vonnie: kailey leinz, thank you for that. it is time for your latest bloomberg business flash, a look at some of the biggest business stories in the news right now. boeing will offer voluntary buyouts to its entire staff. it is a bid to adapt to coronavirus crisis that could depress the aircraft market for years. in a note to employees, boeing's ceo david calhoun says it is important the company start adjusting to its new reality. southwest will become the second u.s. airline to apply for federal aid. in a filing today, southwest says it is looking for possible grants that could boost liquidity and provide job security for its employees. merrick and airlines is already said -- american airlines has already said it will have to up billion in aid. jamie dimon back to work today after heart surgery. , he is, like so many working remotely today. he underwent

valero is 28% there is no place to put your money. looking at crude, 42 could 43. on a chart where it bottomed in 2016, 2017, 2018 so it must hold that level, 42.50 up to 43.5 for three years prior. the problem is it doesn't show any signs of having that ability to what lori said with esg investing -- you would think the stocks cause cancer. the way people are treating them. >> well, you know, some people might say they do. all right. listen generally when oil stocks fall and prices fall airlines do well not today. airlines because of koerchds, travel worries hit hard on the sell off to phil low bow with that side. >> fresh news for you a few minutes ago. american airlines out with its own travel waiver now joining united and delta in terms of saying if you have a trip that was booked for northern italy -- talking about millin, venice, well they are going to waive it. now you have united through june 30th to millin. blowing that and venice. delta through march 15th all of italy the big concern brian, we talked about it, the big concern is that you see pockets of co

cisco also down after metrics in earnings disappointed and valero among the energy prices lower on that oil dropping. guy: let's get back to jordan rochester joining us from number -- joining us from nemura. if bernie wins tonight, by were sell the dollar? jordan: it depends. the japanese yen would strengthen if you saw strong showing from bernie sanders. it is a slim win, then the market will keep in mind that joe biden could do well when it comes to super tuesday. however, the models are saying bernie should get around 30% of the vote tonight. if he gets 40% or higher than that, that will then lead to a big change in the models, big surprise in the polling, and we will see the bernie sanders risk premium go up. you will see the s&p supper. it is unclear what this means for emerging markets are high beta economies because you will see health care under pressure. when you see financial stock selloff you see safe havens go up. the dollar against the yen, against the suisse will weaken. against other places like emerging markets it is less clear. vonnie: where is the best action in forwar

we like names that are somewhat more insulated our highest conviction name in the energy space is valero we also like chevron we think there are opportunities to own some energy names in smaller percent ans. i think there is going to overall be a cap on the price of oil. i would limit your exposure to natural gas through the end of the year european prices continue to fall and we are not nearly as optimistic about that portion of the energy market. >> these stocks joe have stunk i am looking a of the the returns over a year. there is no other way to say it right. >> uh-huh. >> everything is ugly. >> et cetera impacting high kbreeld refirst and foremost i am with jenny. i have one oak marathon, capital efficiency when you are speaking that language in the energy space shareholders will pay attention. they did so in the case of chevron. that's one of the reasons why chevron has the ownership that it does. but a company that is ahead of where marathon wants to be is apache, apa. take a look at that. but you need to gemmy's point a recovery in oil provides and natural gas prices. >> okay. le

. >> i'm not going to disagree i hike valero more than hfc but i understand why you want to buy a stock down and out jeff in california jeff you're up jeff. >> caller: hi, jim yeah, this is jeff from l.a. jim, i got a stock better than any stock that i think statistically. it is up 466% last year. it is up 129% the last three months, it is up 35% and it went up 25% today it is called cdlx, a marketing company and there is no dips no pullbacks so can i get in it or wait for a pull back. >> and when i hear that and it is fin tech, i have to come back and do homework and then ben and i are going to have a noodle this one this is the hardest rock i've seen it is too sizzling for this guy. i worry about -- bruce. >> caller: jim, good evening and booyah from the land of enchantment. >> i loveland of enchantment. >> caller: i'm over weight in energy and i'm in chevron. >> that is the one to be in other than bp. this has a 4% yield. mike worth is a thinking person and doing a good job but he is fighting the tide of one the great bear markets in history. sean in new york sean >> caller: booyah j

we've got them bank of america, amgen, valero, maybe more in two minutes. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me. it is already working in cities like tokyo. looking to get your business off to a fast start in the new year? it's go time! switch to comcast business and get fast internet on the nation's largest gig-speed network. plus, complete reliability with 4g lte backup. and, cloud-based security to help protect the devices on your network. greenlight your business in 2020 with fast internet and voice for $64.90 per month. switch now and get a $100 prepaid card when you add comcast business securityedge. call today. comcast business. beyond fast. >>> the dow transport it's are set to end the year above 18%. according to our partners at kens kensho that tends to bode well for stocks a year later. the s&p gains an average 10.10% trading 75% of the time. f

valero which has had a strong year and pulled back from its november high and phillips 66 psx, which has done a similar type of price pattern and a bit of a correction since november i think that is where a potential opportunity is looking forward. >> and so phillips is the one name that we own in energy and it has been a way for us to play the sector without being in the enp business they don't have drilling, they don't look for drilling. they are not in the shale business they are one of the few refiners left sells for undermarket multiple it is up 34% year to date. we think that it has more room to run the question is whether we add another energy name and i think that the question for many -- >> are you getting out of it >> it is something that you have to consider. the truth is, in has beaen thern divestment by so many institutions and that creative this sort of x factor there may be less demand than we think even if we think that the stocks start to move higher. but if you have a group that has gone down consistently for a decade, there is definitely -- >> to your room, we talk

this would affect shares of renewable energy, even valero according to some analysts. would you retroactively extend the one dollar per gallon credit for 2018 and 2019 but also looking to extend that into 2020 and then it drops by $.20 a gallon for every year between 2021 and 2023. analysts at piper jaffray and roth are saying that is more ambitious than they thought. very good news for some of those companies. notably, it does not include solar. it does look like right now it could extend some of the wind credit. a lot of debate still going on. vonnie: i want to break a headline. rick gatesign aide sentenced to 45 days in jail. we have a decision in the rick gates case. he was the star u.s. witness against paul manafort and roger stone. prosecutors had asked for him to only be given probation but he got 45 days in jail. we do have an answer on the rick gates sentencing. 45 days in jail. back to taylor riggs in san francisco. wind energy is included in these tax credits, solar energy not so much. why is that? taylor: i want to take a look at some of the companies we kn

was unaware of when the doj had agreed to a deal, and stated ags had come after one but there was a valero deal years ago. >> california blocked. >> yeah. >> pretty good. >> in this case, jim, i think people in the courtroom and i have not yet been able to attend, but people tell me they went in with the expectation that the judge would be perhaps sympathetic, certainly stto the states it could be an easy case 4 goes to 3, typical metrics to measure competition all in favor of saying you can't allow that but he has certainly taken his time in wanting to hear -- while the states made an adequate go of making their case, i'm told, listen, the judge seemed open to -- as he should, of course, listening to the arguments from t-mobile and sprint that rebut the case that 4 to 3 will be anti-competitive and is going to cost consumers more money. you did have sprint interestingly talking about their plan b, saying if this deal doesn't happen, plan b is really to become a regional carrier, focusing on 41 dense urban markets that cover 78% of the u.s. population. and it is still being studied, but th

look at the biggest movers in that sector, exxonmobil and marathon down the better part of 3%, and valero and conocophillips down by about 1.5%. vonnie: thank you for that. remember the function gtv on the bloomberg allows you to browse all of the charts featured on bloomberg tv. analysiswith key and savior have her it's for future reference -- and save your favorites for future reference. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is the european close on "bloomberg markets." let's check in on the bloomberg first word news. here's courtney donohoe. courtney: there may be a pitch in negotiations for an interim trade deal between the u.s. and china. donald trump says the u.s. hasn't agreed to a rollback on tariffs with china. in fact, he said he hadn't agreed to anything. president trump won't impose tariffs on european cars next week as threatened, according to european commission president jump on juncker. -- president jean-claude juncker. eu has threatened to impose its own tariffs on american goods if president

that -- that should really do a lot to help -- to help boost refining margins name like valero or holly frontier especially should do well holly frontier inland refiners or excuse me inland refineries. >> okay. all right. stewart glickman, thanks for joining us today. >> thank you. >> as we hit a break, let's take a look at apple. another all-time high today the company streaming service officially launches today. stocks up 60% for the year for "squawk on the street" continues in just a moment dow is up 234. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places. (vo) the flock blindly flying south for the winter. they never stray from their predetermined path. but this season, a more thrilling journey is calling. defy the laws of human nature. at the season of audi sales event. >>> that october

lending support to the energy sector, which is among today's best performers, up around 1%, let by valero, hess and phillips 66, up nearly 2.5% mike, i'll send it back down to you at the new york stock exchange. >> seema, thank you very much. now let's get out to the cme group and rick santelli with the santelli exchange. >> hi, mike, thank you i'd like to welcome my guest, mark summerlan i know that you recently interviewed with cnbc and my buddy, larry kudlow, about an advisory role in the administration on the economic side, so i think you're just the person with china's talks coming around tomorrow, one question nobody asks, if you look at the talks as circular, when do we start moving now to a place where china becomes less important and we recalibrate around china? it's been 19 months now. >> right you know the tariffs when they go in have a negative reeseffect right at the beginning so if we can get to the point where we have a time-out, then the economy can start to get better. i think actually the other important thing going on in china has been their tightening of shadow financi

analysts were looking for in terms of build that drop in oil prices is weighing on phillips 66, chevron, valero and marathon petroleum all down by 2% so far. i will send it back down to you guys at the new york stock exchange >> thank you dominic chu as we watch the selloff. dow down almost 500. mike santoli is here you know things are getting serious when we say hello, you still there? >> 1.75% is the threshold to get on the desk. >> what do we make of this >> a continuation of yesterday's story. the s&p, we're back in august's range. i think we should have found the limit of how resilient the market could be in this kind of pile up of, you know, seeming one-off reminders that we're in a slowdown environment i think we never fully escaped that idea that some of the sands are falling through the hourglass of the cycle can we say it will lead to recession or not i don't think we have a determination on that in the least. i think the markets are on edge. what's interesting today, the bond market is not having a huge move the long end of the bond market, still 1.6 on a ten-year. short end is getti

we have valero down five or 6%. if this continues, it will have an impact on the consumer. kevin: our thesis going into this is there was global economic deceleration. we just got numbers out of china. there industrial activity continues to decline. we are putting oil prices lower they are today. the macro events will overwhelm the commodity prices. that said, what you tend to see is the supply response to this. that is more of a longer-term thing. we are not changing our longer-term macro views. the economy is growing worldwide. we are seeing deceleration outside the u.s. that is a bojo for a flat commodity price. vonnie: is the market under appreciating the potential for escalation and war? kevin: we have an industry that is going out to the line and pulled back. we will three if that is carried out or not. because of the infrastructure that is put into place, investors are looking for entry points. some of the more value centric investors have had this overweight energy. that is benefiting. on the cash flow forecasting, i think the where probability is way down in the si

so some people were arguing how about domestic energy stocks, how about some valero and refiners they got clobbered in may. all of the big exploration production companies, hess, pioneer, all -- domestic oriented, the global markets dr dropped, demand for oil dropped, the companies all went down. this is not -- just because they're domestic, let's buy them didn't work in may that's for sure. how about other things there was arguments out there, let's buy home builders. the home builders dropped in may. it was down about 5% how about aerospace defense? turned out that was -- that dropped too. sold the overall market. people said let's buy some select areas of the overall technology area like cybersecurity, for example, many companies have most of the revenues in the united states. and they dropped as well so what's the point of all this? there are some areas of safety, some healthcare, some telecom, some utilities, but overall, the market is expensive right now. even consumer staples that are considered to be defensive are very expensive so there is not a lot of places to hide when the

valero missing on second-quarter earnings. sincet plunging the worst 2007 as china is taking a bite into their business. q2 for four down 7%. down.tlook -- for ford , the worst day since january. ,acebook down, despite beating their sales growth is disappointing. after the bell, amazon and alphabet, it will be interesting to see what the rest of the faang trade does put up. david: we will come back to that trade with senator marsha blackburn of tennessee. up, the british government has a new direction. we talked to the british consul to new york anthony phillipson about what to expect. that is next. this is bloomberg. ♪ david: this is "balance of power" on bloomberg television. i'm david westin. we turn to mark crumpton for first word news. mark: boris johnson is hitting the ground running, speaking to parliament for the first time since becoming prime minister. he urged the european union to rethink renegotiating a brexit deal and reiterated his onmitment to leaving the eu october 31. the eu rejected johnson's demand that t

valero cracks it crack spreads are great right now. they'll get better you want to know why all nice turmoil in the middle east, venezuela, libya, russia, it favors big refiners like valero great place to be right now. >> thank you for your questions. coming up, the euro is hitting a new two-month low ahead of the ecb meeting tomorrow we'll give you your trades, straight ahead ng the future. so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more e-commerce deliveries to homes than anyone else in the country. e-commerce deliveries to homes - stand up if you are first stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. i will tell you this, southern new hampshire university can change the whole trajectory of your life. i'm seema mody and this is futures now. the euro currency hitting a two-month low ahead of tomorrow's anticipated ecb meeting. our traders, bob, let's start with you plenty of speculation about a

meanwhile reuters reporting that pbf energy and valero do not currently plan on idling their refineries on the gulf crude oil production has already been cut by 53% due to the tropical storm in total, 191 production platforms have been evacuated. oil prices as you can see flat, but closing above $60 a barrel kelly, back to you >> seema, thank you very much. >>> the global battle over trade is front and center again today. the u.s. is holding a strategic alliance with india in washington comes on the heels of the president's tweet earlier today. joining us now is john chambers. he is chair of the u.s./india strategic partnership forum. and former ceo of cisco systems. >> john, welcome >> it's a pleasure to be with you and tyler again. and for us, we look forward to digging into all of this can i first, if you'll indulge me, just ask you about the china trade issues, which are of course related to all of this. list listen, lately it seems like we came away from the g-20 with the good faith that china were going to buy more offer ag products and we would be easier and now there's reports t

all the big refiners like marathon and valero also to the up side. the other big story is interest rates. stabilization, ten-years stabilizing. that's moving some of the interest rate-sensitive stocks for example, banks which have done nothing are rallies other groups that have had great rather and reits are trading to the down side. >>> jon fortt spoke with the company's ceo earlier, and joins us with more. >> yes, you can see it's up nearly 13% i talked to the ceo earlier this morning about a couple things that they mentioned on the call that probably got the stock moving one was a reduction in the expectation of capital expenditures, cap ex for fiscal to 20. another was huawei apparently a couple weeks ago they figured out how to start selling against into huawei while still keeping with the regulatory rules that the administration has put in place. i specifically asked him whether he feels confident he is adhering to the letter of the regulation here's what he said. >> in this particular case, with respect to huawei, we have absolutely studied th

, which is a new jersey-based company is expected to fill much if not all of that demand along with valero and phillips 66, those three companies will be in play on this news. >>> will today be the day we get a new record high on the dow jones industrial average we've been saying it for a couple of days now but futures have not been in the green like this dow futures up 124 points right now. s&p and nasdaq futures are up as well we are halfway through the 5:00 a.m. hour here in new york the benchmark ten-year yield at 2.02%. we have about $13 trillion in negative yielding debt all around the world there's a lot going on today let's move on now to our guest with stocks sitting near record highs, many investors are still wondering if there are hidden opportunities out there. your next guests have a couple of names for your consideration. joining us is linda vaxian and michael bappis linda, first to you, with a pretty solid market run and a good june. do you still see value out there? if so where? >> sure. we are cautiously optimistic longer term. we expect some volatility in the shorter term

the big winners pbf, phillips, valero trying to make up the loss from this facility. >> brian, thank you for that reporting. we will get more as we go ang long here. brian sullivan out in philadelphia for us. >>> still to come on the hoe, hoda kotb home depot's ceo crai men ear. the dow is up 64 points. smart t. but is that enough? i need tech that understands my business. i need tech that works at scale. dear tech, dear tech, dear tech, we're using ibm blockchain to help make sure food stays fresh. we're exploring quantum to develop next generation energy. we're using ai to help create more accessible health care. we're using iot to create new kinds of digital wallets. let's see some more headlines about that. let's expect more from technology. let's put smart to work. >>> shares of home depot under pressure this morning, but they have been a big winner this year up 21% helping the dow, which by the way we are on record high watch. we are about 40 points away from a record closing high. we will speak with the home depot's ceo craig menear san joaquin san joaquin wi ♪ >>> good morn

public traded refiners like valero 345marath petroleum 2% and and 1.5% holly frontier big day for the energy complex back over to you >> thayou. charli there names you >> as opposed to defense, the year this has been a really, really oil is up and gas is up from 30% more than five years ago things are a little out of i can't get excite >> we do some people call t vendo no other vendor has a great positi but as people spend more monoland, there is less >> shares of growth under close. >> shares are down under 7% from a big bottom line miss that pouring a lot of first. increa production capacity also marketing and development then the push into the hemp they are ramping up medical that is causing operating to >> thank you very much we 51 minutes left of the s&p remains higher on pace only fractionall high. the nasdaq down 1/10 of 1% over 2% higher for the week and let's markets. the ceo of etn database joins us for discussion i start with you you said at the top, people are recess time closing high, up 7 to 8% >> that's why we have gone up. people have been s are pessimistic and the mar

they're all underwater if it is gasoline, of course, you go buy bp and go by valero if it is butane, you sell everything you just bought that is one supply -- that's probably the worst, that's probably the one we have the most of that we can't use is butane >> i didn't know that. >> yeah. we have too much. >> use for it typically? >> heating oil rural areas. if that gentleman is right, and it is butane, stop buying the refineries you're going to end up owning a refinery, shares in refinery for no particular reason whatsoever. i know that facility, used to be a sunoco facility, it is so gigantic that one part is butane marcus hook on the other side is almost -- a huge amount of butane we have to find that out we need someone from that company to talk to us. they really have a -- they have been quiet >> it is important to make distinctions because we're coming on the heels of record implied gasoline demand, but demand for distillates has not been as strong. >> natural gas liquids are just a disaster, way too much of them we don't know where to put them. we're producing way too much of

valero is not part of this process, but you can see here some traders perhaps looking at shares of valero as being a competitor to this privately held facility for, you know, philadelphia energy solutions. so we'll keep an eye on the movements around this, andrew. but for right now, that's what we're seeing, the immediate impact being felt in the commodity markets certainly with gasoline futures and tied to the east coast markets andrew, back over to you. >> thank you, dom. we'll keep our eyes on this. we're about an hour away from the market opening it was only wednesday when many were convinced that the market needed a rate cut from the fed and then the stocks set a new all time high. have they ever cut rates when the stocks were this close to records? that conversation next when "squawk" returns ♪ >>> there is a freely traded market for equity securities and slack. really it will open at something, it will close at something. same thing will happen tomorrow, monday there's a big opportunity that that's got to be where our focus is. >> that was slack ceo stewart butterfield yesterday

imports the most oil from, you guessed it, mexico some of the top names include shell, valero and chevron. in total about 9% of daily imports, which works out to 680,000 barrels a day. i spoke to john kilgoff of again capital earlier today, who said the biggest concern is softening demand because of the impact to the global economy and taking a look at prices right now, chevron at one point was down this morning. it looked like the energy sector in general was down. we'll get an update on those prices and get back to you guys. sara, i'll send over to you. and all right, rahel, thank you very much. we've got 27 minutes to go excuse me, 17 minutes to go before the closing bell. here's where we stand in the markets. good probably for the best >> yeah, really. wrapping up the month here on a sour note. appropriate for a month in which the market is down more than 5%. down 334 right now on the dow. not too far off from session lows s&p down 1.3%. losses picking up here we'll see what happens in the final moments of trade >> you know what else is falling sharply as well this week have been bond

eog resources rising after outperforming in the first quarter and valero energy gaining an upgrade from jpmorgan. i also mentioned tech doing much better. microsoft and apple leading the way. apple was the biggest laggard on the s&p 500 yesterday. it is now the second-best performer on the s&p 500. also let's look at chips because they were struggling yesterday. this was the philadelphia semiconductor index up 2.2%. also advanced micro devices rising close to 3%. let's take a look at bitcoin. not something we've talked about for a while, rising for the 12th straight day. this is year to date, up 113% since the beginning of the year, trading above 8000. doing pretty well. that 12 day winning streak the longest since 2017. david: what a difference a day makes. thank you so much for all of that green. sticking with the trade war, is tit with chinar about economics or security? that is coming up and this is bloomberg. ♪ david: this is balance of power on bloomberg television. we turn to mark crumpton for bloomberg first word news. mark: at least four people are dead after midair collision

more specifically valero recently hit $92.67 it pulled back 4.5% from that high it's up 90% on the year. can we expect this $90 stock to follow through to $100 and pass through the 20-day moving average? >> they've raised their dividends to the point where they have a 4% yield and i think this refinery cycle has been very, very tricky, and right now, it is -- if it didn't have that yield, i would say it's too dicey. i think you're going to be fine. it's a well run company and be sure that you know that i love it when families watch together. it is how many families can communicate, younger, you know, people in college with the parents, whatever, younger people, because it's a commonality, particularly if you have, like, say, political leanings that clash, it's a nice place to be, doesn't clash let's go to robert in florida. robert >> caller: hello, jim. >> robert, what's up >> caller: i'm a big fan of you, appreciate all that you do for private investors. >> thank you. >> caller: my question to you is about a company in the oil service industry, mcdermott international. the stock for th

. >> so, quickly, is it an exxon-specific thing because you heard valero numbers the other day, which were pretty good, if i remember. >> and we get chevron in about 25 minutes. >> that stock was up i think 3% yesterday. so, exxon can say whatever they want now it makes you wonder if it's exxon-specific or do you broaden this out to the energy sector? just looking through this, it appears to be more exxon-specific than anything else. >> i think it is to a degree, guy. they obviously have a big exposure to the chemical sector -- >> that's what i mean, how much of it is management and how much -- >> there's another major that had awful numbers, and it was because of some of the -- >> i think shell's had problems. i think you'll see a similar story, guy, out of chevron, too. valero benefits from having exposure to cheap, you know, permian-type oil in the gulf of mexico. >> right. >> so they're centered down there, whereas exxon's more exposed internationally to the higher brent price and the weaker, again, international gasoline market. i mean, there are cars just going begging in the at