Latest / Bloomberg Intelligence / Bloomberg's Regan on Winners, Losers, Stock of the Day (Audio)

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Bloomberg's Regan on Winners, Losers, Stock of the Day (Audio) · Bloomberg Intelligence

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  Speaker 1: Global business news twenty four hours a day at Bloomberg
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  Speaker 1: This is a Bloomberg Business Flash. Blam Bloomberg World Headquarters.
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  Speaker 1: Signed Charlie Pablito, Move lower for stocks on this Jobs Friday,
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  Speaker 1: Folks from Ksey Family Programs ringing the closing delble of
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  Speaker 1: New York Stock Exchange, and we are brought to you
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  Speaker 1: Visit carbonite dot com today to get two three months
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  Speaker 1: with offer code. Broadcast. Stocks paired losses, the dollar fell,
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  Speaker 1: treasuries and gold gained after US employers added the fewest
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  Speaker 1: number of jobs in almost six years during the month
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  Speaker 1: of May, bolstering the case for the Fed to leave
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  Speaker 1: interest rates lower for longer. Scott Wren his senior equity
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  Speaker 1: strategist at Wells Fargo Advisers. He was interviewed moments ago
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  Speaker 1: right here on taking stock. You know, hey, two and
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  Speaker 1: a half percent year over year uh average hourly earning change,
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  Speaker 1: which I believe is the most important number in that
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  Speaker 1: report UM and has been for the last six or
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  Speaker 1: seven months. Um, you know, there's nothing to get excited about.
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  Speaker 1: But I don't think it's the end of the world either,
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  Speaker 1: and I don't want to say it's a one off,
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  Speaker 1: but I don't think this is the start of a trend. Well,
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  Speaker 1: what are the implications then, in the jobs data for
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  Speaker 1: the next FED meeting and the July meeting. Carl Rickadona
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  Speaker 1: is chief US economist of Bloomberg Intelligence, also our guest
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  Speaker 1: today right here on taking Stock. I think this drove
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  Speaker 1: a stake through the heart of the June meeting. UH
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  Speaker 1: and UH. The markets reflected that very abruptly after the report.
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  Speaker 1: June rate high gods slipped to about four percent following
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  Speaker 1: the disappointing news. I still think July is a realistic possibility,
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  Speaker 1: but we need to see a pronounced rebound in a
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  Speaker 1: range of economic data series, especially the June jobs report,
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  Speaker 1: which is out in early July ahead of that July meeting.
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  Speaker 1: Gold up today by thirty four dollars, the Ounce up
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  Speaker 1: two point eight percent, the Tenure up twenty thirty seconds,
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  Speaker 1: Zeal there one point six nine percent, and Crewed down
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  Speaker 1: eight tenths of one percent. And now we'll look at
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  Speaker 1: some of the other stories making news. Charlie. Thank you
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  Speaker 1: from the Bloomberg news Room by Mark Crumpton. A day
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  Speaker 1: after delivering a blistering attack on rival Donald Trump, Hillary
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  Speaker 1: Clinton is campaigning in California. She addressed a rally in
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  Speaker 1: Culver City. I the end of working on that speech,
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  Speaker 1: even I was saying, did he really say all of this? Well,
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  Speaker 1: indeed he did. Mrs Clinton's just seventy delegates away from
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  Speaker 1: clinting the Democratic nomination. At ford Hood, Texas, that search
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  Speaker 1: for missing soldiers continues following yesterday's deadly accident. Officials say
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  Speaker 1: a heavy vehicle overturned in a rain swollen creek at
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  Speaker 1: the base, leaving five soldiers dead and four others missing.
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  Speaker 1: At this point, we're just, you know, deeply saddened by
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  Speaker 1: the by the loss of trooper. That's ford Hood spokeswoman
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  Speaker 1: Lieutenant Colonel Sunset Blinsky, Defense secretary asked. Carter says the
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  Speaker 1: military will attempt to learn from the ford Hood incident,
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  Speaker 1: as well as the fatal crash yesterday of a Blue
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  Speaker 1: Angels fighter jet near Nashville. Muhammad Ali's reported to be
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  Speaker 1: in fair condition at a Phoenix area hospital, but the
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  Speaker 1: associated Press, citing two people familiar with the matter, reports
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  Speaker 1: his condition may be more serious than his previous hospital stays.
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  Speaker 1: The seventy four year old boxing legend is said to
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  Speaker 1: be fighting respiratory issues that are complicated by the Parkinson's
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  Speaker 1: he was diagnosed with in the nineteen eighties. The m
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  Speaker 1: t A is conducting a first test of technology that
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  Speaker 1: could one day bring WiFi to cars in the city
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  Speaker 1: subway system. The technology is being tested on four cars
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  Speaker 1: along the E line Global News twenty four hours a day,
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  Speaker 1: powered by our two hundred journalists in more than one
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  Speaker 1: hundred fifty news arose from around the world from the
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  Speaker 1: Bloomberg Newsroom by Mark Crumpton, Charlie and we thank you.
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  Speaker 1: In this headline to pass along to you from Alphabet,
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  Speaker 1: the parent of Google, it says the head of Nest Labs,
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  Speaker 1: Tony Fidel, is stepping down. He will advise Alphabet and
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  Speaker 1: a CEO, Larry Page after leaving the company. Stocks lor
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  Speaker 1: SMP five hundred index ending the week heading into the
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  Speaker 1: weekend of two thousand ninety nine downs six points, a
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  Speaker 1: drop today of three tenths of one percent down. Industrials
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  Speaker 1: down thirty one points, pairing losses a dropped there of
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  Speaker 1: two tenths of one percent. I'm Charlie Pellett, and that's
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  Speaker 1: a Bloomberg business slash move around most great emotions. The
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  Speaker 1: elite T move they do. I've never seen anyone move
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  Speaker 1: that back card Peoplet's move like to get a purpose.
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  Speaker 1: That he was called movers and shakers. They cost a
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  Speaker 1: little more. That name cracked me up. Bloomberg taking stock
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  Speaker 1: movers and shakers with Pim Fox and Kathleen As on
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  Speaker 1: Bloomberg Radio. Movers and Shakers. Well, the big mover today
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  Speaker 1: for the market, of course, was a week jobs report,
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  Speaker 1: and as a result of the close, we see that
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  Speaker 1: only a hundred and sixty four companies saw their share
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  Speaker 1: price clothes higher today, three at thirty nine lower, two unchanged.
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  Speaker 1: We're going to be joined now by our Stocks editor
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  Speaker 1: Mike Reagan. As we look at movers and shakers, I
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  Speaker 1: think we should just say a quick look though, at
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  Speaker 1: Tony Fadell. You know this kind of the star of
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  Speaker 1: the show, UH in the Internet of Things, Fear, the
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  Speaker 1: founder of Nest acquired by Google. Now he's leaving Uh,
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  Speaker 1: and of course he says he Uh was a guy
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  Speaker 1: who's at the beginning of things. I don't like to
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  Speaker 1: do maintenance mode. It's not what gets me out of bed.
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  Speaker 1: That's a quote in New York Times story. But there
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  Speaker 1: have been many articles lately describing a harsh corporate culture
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  Speaker 1: at NESTS and embraces nous on his part that led
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  Speaker 1: to resignations at NEST, I mean product development and led
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  Speaker 1: to disappointing revenue growth. Interesting timing on that Friday afternoon
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  Speaker 1: in the summer, after the market closes, it's always a
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  Speaker 1: crazy time to release days. So what's moving to shaking
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  Speaker 1: for you today? Mike Reagan, I wanted to tell you
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  Speaker 1: about a really big move in a small stock. But
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  Speaker 1: it's a very interesting story. Global Star. They're down about
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  Speaker 1: fifty five to ninety four cents. They provide a mobile
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  Speaker 1: phone and data service over satellite, and there was a
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  Speaker 1: proposal made by the chairman of the FEC to allow
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  Speaker 1: them to switch what they're providing over their spectrum to
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  Speaker 1: more traditional mobile broadband servants services. And now there's questions
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  Speaker 1: of whether the rest of the f SEC will actually
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  Speaker 1: approve this. One of the commissioners is said to be
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  Speaker 1: voting against it. And interesting story because some of the opponents,
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  Speaker 1: as are companies like micros Off and Google again, who
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  Speaker 1: have said in their filings that they're afraid it will
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  Speaker 1: interfere with other mobile devices. So, uh, really major drop
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  Speaker 1: for Global Start today. Of all right, you stole my
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  Speaker 1: thunder a little bit because I've been following Global Star, Mike.
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  Speaker 1: But I'm gonna tell you about Go Go sort of
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  Speaker 1: in the same the same system. Here A Telecommunications shares
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  Speaker 1: of a Go Go not a Go Go today down
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  Speaker 1: more than sixteen percent. Uh. This is the biggest decline
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  Speaker 1: in more than three months. American Airlines split an order
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  Speaker 1: between Go Go and Viasat for in flights satellite based
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  Speaker 1: internet service. The carrier selected bias has to provide service
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  Speaker 1: on its new Boeing seven three seven Max fleet of
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  Speaker 1: about a hundred jets, while choosing Go goes for the
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  Speaker 1: new uh what they call two KU service that will
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  Speaker 1: be for about a hundred and forty planes. Once again,
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  Speaker 1: shares a Go Go down. Well. One that you can't
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  Speaker 1: miss today, of course, is the drop in uh Banks.
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  Speaker 1: We've Baga America and City Group just as a couple
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  Speaker 1: of examples, down about three and a half percent each.
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  Speaker 1: And it's a real easy story to tell. The Fed's
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  Speaker 1: not going to raise rates because we've got a labor
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  Speaker 1: marketing economy. This is as strong as they thought. You
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  Speaker 1: aren't going to be able to get the benefit of
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  Speaker 1: a boost in your net interest margins. But I want
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  Speaker 1: to point something else out because you Mike Reagan wrote
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  Speaker 1: one of the Gadflight columns yesterday about the FED getting
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  Speaker 1: ready to get tougher on big banks when it comes
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  Speaker 1: to stress tests. When it comes to capital requirements, FED
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  Speaker 1: governors through a new a new known unknown. So I
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  Speaker 1: think I recommend the story, but I think it's it's
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  Speaker 1: you know, it's not just this week job support. If
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  Speaker 1: the banks are gonna have to even more hold more capital,
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  Speaker 1: that's not gonna be so hot for them either. Yeah,
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  Speaker 1: especially that's mainly for the big eight, you know, the
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  Speaker 1: globally significant banks, too big to fail banks. In other words,
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  Speaker 1: looks like they're going to have to include these extra
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  Speaker 1: capital buffers that the FED requires, are going to have
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  Speaker 1: to include them in their stress tests, and that may
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  Speaker 1: result of them actually having to raise even more capital
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  Speaker 1: past the stress tests. So stressful. Time to be doing
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  Speaker 1: stress tests on Wall Street small cap to look at. Yeah,
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  Speaker 1: this is an interesting company line, Biotechnologies um, and there's
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  Speaker 1: been an issue. My colleague on Gadfly, Max Needson, has
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  Speaker 1: been writing about how some biotex have been having trouble
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  Speaker 1: raising money in secondary stock offerings and line Biotet comes
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  Speaker 1: out today and it's a small company working on various
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  Speaker 1: cancer drugs. Uh. It comes out today and says they
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  Speaker 1: were able to place a hundred million dollars in a
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  Speaker 1: private placement. Stock goes crazy jumps. Alright, Well, time I'm
• 9:34
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  Speaker 1: point two pc. It's down point three oh, settling at
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  Speaker 1: thirteen point three four and uh. Really every time in
• 9:59
  Speaker 1: the last four and a half years that the VIX
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  Speaker 1: has touched what they describe as a rounded bottom, which
• 10:04
  Speaker 1: you've seen is a significant move to the upside. So
• 10:07
  Speaker 1: experience may say that the odds now favor a reversion
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  Speaker 1: to the zero line, which means a rising VIX and
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  Speaker 1: perhaps a falling stock market. I wanted to tell you
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  Speaker 1: talk a little bit more about Signet Jewelers. Uh, this
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  Speaker 1: is a really fascinating story. Uh these days the stocks
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  Speaker 1: lost about eleven percent in two days. That's its biggest
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  Speaker 1: drop in five years. This is the company that owns
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  Speaker 1: some of the biggest jewelry chains out there, so K Jewelers, Zales,
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  Speaker 1: Jared and one of the it's basically having two separate
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  Speaker 1: problems that it's dealing with. One or started in April
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  Speaker 1: with a report in BuzzFeed that basically said some customers
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  Speaker 1: were complaining that when they would take their diamond in
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  Speaker 1: to get serviced at one of these jewelry stores, it
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  Speaker 1: would actually get swapped out for a lower quality diamond.
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  Speaker 1: UM and the company's denying that, saying, you know, that's
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  Speaker 1: not a systematic problem them. They're they're out with a
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  Speaker 1: statement saying we're not you know, we're looking into that,
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  Speaker 1: but of our service. Uh, customers have gotten their jewelry
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  Speaker 1: back without a problem. But there's a bigger issue going on,
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  Speaker 1: and it really started in February. Bloomberg's Greg Farrell started
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  Speaker 1: reporting about this way back then, quoting a short seller
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  Speaker 1: named Mark co Hodes, and what's going on. Is there
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  Speaker 1: really questioning signets business model here there? These stores are
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  Speaker 1: getting a lot of their sales through in store credit facilities.
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  Speaker 1: In other words, they're extending credit to customers um and
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  Speaker 1: people are questioning whether that's wise move. It makes them
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  Speaker 1: a lot more risky. Uh, it makes them less of
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  Speaker 1: retailer and more a finance company, especially at a time
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  Speaker 1: when a lot of people are worried that the credit
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  Speaker 1: cycle is turning. So two big problems for Signal right now.
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  Speaker 1: Thanks very much, Pike Reagon. Always a pleasure. I have
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  Speaker 1: a great weekend. Bloomberg Gadfly columnist Mike Regan, you're listening
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  Speaker 1: to taking Stock. I'm pim Fox my co host Kathleen Hayes.
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  Speaker 1: This day is Bloomberg Radio. Yeah, Bloomberg. Taking Stock is
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