Latest / Bloomberg Intelligence / Stephen Schork on Oil: Supply Glut, Sees Oil Under $40 (Audio)

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Stephen Schork on Oil: Supply Glut, Sees Oil Under $40 (Audio) · Bloomberg Intelligence

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  Speaker 1: Bloomber Business News twenty four hours a day at Bloomberg
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  Speaker 1: This is a Bloomberg Business Way shoon Bloomberg World back quarters.
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  Speaker 1: I'm Charlie Public folks from Diagio and Shawn Cones, ringing
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  Speaker 1: that closing battle to New York Stock Exchange on this
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  Speaker 1: Tuesday August. I'll move Laura for the noal. The SMP
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  Speaker 1: and NASTAC stocks closing well off their session loads, thin
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  Speaker 1: trading volume, Apple slumping ahead of Friday's jobs report, the
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  Speaker 1: dollar rose, oil fell. Jim Bianco was the president and
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  Speaker 1: founder of Bianco Research, and minutes ago right here on
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  Speaker 1: taking Stock, he had this to say about the Federal
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  Speaker 1: Reserve and its data dependency report is Friday. Is that
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  Speaker 1: it all comes down to Friday's number one number that
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  Speaker 1: gets revised many times over the next several months. Is
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  Speaker 1: that what's going to drive the Fed into deciding whether
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  Speaker 1: to raise rates or not raise raids. And that's not
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  Speaker 1: a very good way to do Paither the ten uere
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  Speaker 1: down to thirty seconds, yield one point five seven percent,
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  Speaker 1: SMP five hundred index down four to seventy six, and
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  Speaker 1: drop of two tents of one percent, the Dow down
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  Speaker 1: forty nine, a drop of three tents of one percent,
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  Speaker 1: and has stacked down two tenths of one percent. The
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  Speaker 1: Conference Board says consumer confidence increased to an almost one
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  Speaker 1: year high in August as Americans became more optimistic about
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  Speaker 1: the labor market. Conference confidence increased to one oh one
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  Speaker 1: point one, the highest in September. From that, he's six
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  Speaker 1: point seven. Lynn Franco is Director of Economic Indicators at
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  Speaker 1: the Conference Board. She was also our guest right here
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  Speaker 1: today on taking stock. Well, we've seen sort of a
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  Speaker 1: combination of factors. We had a nice increase in the
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  Speaker 1: present situation component, and that's now at back to pre
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  Speaker 1: recession levels, so it's been sort of a long climb.
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  Speaker 1: Expectations also gained some grounds, so I think overall consumers
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  Speaker 1: are feeling a lot more positive about business conditions and
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  Speaker 1: climate conditions. Uh, and the outlook ahead is a little
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  Speaker 1: bit improved as well. And today we had gold down
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  Speaker 1: thirteen dollars, the ounce declining one often again. Apple shares
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  Speaker 1: law today by eight tenths of one four oh two
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  Speaker 1: on Wall Street. Now, let's look at other news from
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  Speaker 1: around the world. A Bloomberg Radio Charlie. Thank you from
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  Speaker 1: the Bloomberg news room. I'm Mark Crumpton. At the Eye,
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  Speaker 1: Director James Comy is again warning about the bureau's inability
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  Speaker 1: to access digital devices because of encryption. He made his
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  Speaker 1: comments today at a symposium in Washington. As we make
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  Speaker 1: it harder and harder for them to get physically into
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  Speaker 1: this country to kill people, to do damage, surely they
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  Speaker 1: are going to turn to try to come in as
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  Speaker 1: a photon and doing damage through the Internet. Come also
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  Speaker 1: addressed concerns that Russian intelligence officials may be targeting the
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  Speaker 1: presidential election. Anonymous threats have forced the U. S. Department
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  Speaker 1: of Agriculture to close some offices. USDA spokesman Matt Herrick
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  Speaker 1: says they're working with the FBI, federal and local law
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  Speaker 1: enforcement to determine if the threats are credible, but for now,
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  Speaker 1: he says, workers at six locations in five states will
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  Speaker 1: not report to those offices until further notice. The closures
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  Speaker 1: come after several anonymous messages raised concerns about the safety
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  Speaker 1: of U. S. D A personnel and facilities. Those offices
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  Speaker 1: are in Colorado, Connecticut, North Carolina, Maryland, and two in
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  Speaker 1: West Virginia. Amy Moore as Bloomberg Radio, the New York
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  Speaker 1: Health Department is making substantial changes to its medical marijuana program,
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  Speaker 1: which has been criticized as being too restrictive. Those changes
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  Speaker 1: include expanding access to the drug, including allowing home delivery
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  Speaker 1: and enabling nurse practitioners to certify patients as medically qualified
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  Speaker 1: to use pot. Governor Andrew Cuomo's administration is expected to
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  Speaker 1: announce those changes today. Global News twenty four hours a day,
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  Speaker 1: powered by more than twenty d journalists and analysts in
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  Speaker 1: over one countries. I'm More Crumpton, this is Bloomberg, Charlie,
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  Speaker 1: and we thank you, and again recapping a move law
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  Speaker 1: for equities, the DAL, the SMP, nestak All declining, SMP
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  Speaker 1: down four to seventy six, a drop today of two
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  Speaker 1: tenths of one percent down, Industrials down forty eight, a
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  Speaker 1: decline of three tenths of one percent. I'm Charlie Pellett
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  Speaker 1: and that's a Bloomberg Business flash. Move around. Motion creates
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  Speaker 1: the motion. The elite move move like they do. I've
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  Speaker 1: never seen anyone move that back five people. Let's move
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  Speaker 1: like to get a purpose that he was called movers
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  Speaker 1: and shakers that costs a little moment. That name cracked
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  Speaker 1: me up. Bloomberg taking stock movers and shakers with Pim
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  Speaker 1: Fox and Kathleen as on bloom Radio Movers and Shakers.
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  Speaker 1: You know, if you look at the major market averages
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  Speaker 1: and those fractionally lower clothes which Charlie just read us
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  Speaker 1: the numbers on, it might mask the fact that there
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  Speaker 1: was actually some more of a definitive move lower. I
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  Speaker 1: think in stocks, if you look inside the SNP five
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  Speaker 1: hundred one eighty seven gainers but three hundred fourteen losers
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  Speaker 1: of four stocks closing unchanged. Joining me, now, our stocks are,
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  Speaker 1: Dave Wilson, what are you kicking off with when it
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  Speaker 1: comes to moving and shaking? Well, since it was a
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  Speaker 1: down day, we might as well start with the stock
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  Speaker 1: that fell the most in the SMP five hundred, and
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  Speaker 1: that would be hers. She And it was around this
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  Speaker 1: time yesterday we found out Models International abandoned its effort
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  Speaker 1: to buy the chocolate maker now her. She had rejected
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  Speaker 1: mondelies As in her initial offer about two months ago.
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  Speaker 1: Person familiar with the matter said Modeliese had proposed raising
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  Speaker 1: the offer by eleven dollars a share two hundred and
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  Speaker 1: eighteen dollars. Trouble is her she wanted at least a
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  Speaker 1: hundred and twenty five dollars, and we've seen this happen
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  Speaker 1: before over the past. That get in then half where
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  Speaker 1: the trust that controls her she on behalf of the
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  Speaker 1: Milton Hershey schools set up by the company's founder. Just
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  Speaker 1: doesn't go along with the potential suitor and the latest
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  Speaker 1: set back hers she shares down almost eleven on the day,
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  Speaker 1: and I'll point out models up about four. Well, uh,
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  Speaker 1: you know what, I'm just gonna rubbing my eyeballs to
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  Speaker 1: make sure I'm reading it correctly. When to look at
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  Speaker 1: Apricrombie and Fitch, the big teen retailer that is struggled
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  Speaker 1: with all kinds of things like dwindling mall traffic and
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  Speaker 1: a tourism slowdown that is hurt retailers that rely rely
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  Speaker 1: on the kind of large flag flagship locations in major
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  Speaker 1: cities that drives sales. Abercrombie and Fitch again, do tell
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  Speaker 1: me the most in three years. The loss of the
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  Speaker 1: second quarter was twenty five cents a share excluding some items,
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  Speaker 1: after analysts had projected a loss of twenty cents on average.
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  Speaker 1: The company also plans to close more stores, extending a
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  Speaker 1: push that is shrunk to change US store based by
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  Speaker 1: a third in the past six years. Stage. So maybe
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  Speaker 1: down the road that will help Abercrombie and Fitch, but
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  Speaker 1: not so much today. How about Potash Corporate Saskatchewan. Now
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  Speaker 1: that's not a name of here every day. It is, though,
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  Speaker 1: one of the biggest companies in the fertilizer business. And
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  Speaker 1: this is an industry that's been hurt by lower crop prices.
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  Speaker 1: Because farmers don't have as much money to spend, they
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  Speaker 1: don't need to buy as much fertilizer. Well, Potash Corp.
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  Speaker 1: Said today it's and talks with another Canadian fertilizer maker, Agrium,
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  Speaker 1: about what it called a potential merger of equals. People
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  Speaker 1: familiar with the matter set a deal maybe reached as
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  Speaker 1: soon as next week. Uh Potash Corps up twelve percent
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  Speaker 1: in US trade and Agrium of seven percent. A couple
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  Speaker 1: of US fertilizer makers hire as well, CF Industries Holdings
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  Speaker 1: up four percent and Mosaic with a gain of almost
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  Speaker 1: nine percent. Well, you know, sounds me like you can
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  Speaker 1: can entice away in the CEO of one of your competitors.
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  Speaker 1: Investors can like it at least for a day or so.
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  Speaker 1: I'm referring to UH, United Airlines. It's hiring Scott Kirby.
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  Speaker 1: He's going to be their new president. He's hiring Kirby
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  Speaker 1: away from American Airlines, and they're they're just all trying
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  Speaker 1: to increase the roster of executives who will have to
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  Speaker 1: contend with fair declines that are pushing industry to its
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  Speaker 1: worst returns in five years. Mr Kirby will join United
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  Speaker 1: Continental Holdings immediately. And this sudden move is filling a
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  Speaker 1: keyboid at United. It provides a potential successor who has
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  Speaker 1: deep airline roots to uh do the company. Uh. The
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  Speaker 1: stock price for United Airlines is up eight good day
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  Speaker 1: for the airline stocks overall to American up about two
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  Speaker 1: and a half percent, Dealta up one point seven percent,
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  Speaker 1: in Southwest up two percent. Since you mentioned Abercromby, we
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  Speaker 1: might as well go down another apparel road and look
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  Speaker 1: at G three. Now. They have a number of brands,
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  Speaker 1: uh Bass Shoes, for example, and unfortunately the news was
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  Speaker 1: about as bad for them as it was for Abercrombie
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  Speaker 1: when it came to earnings. G three with an unexpected
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  Speaker 1: loss for the fiscal second quarter revenue trailing. Analyst Savage
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  Speaker 1: esmates in Bloomberg survey G three's forecast for the third
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  Speaker 1: quarter in the year coming up shorter projections. You put
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  Speaker 1: that all together and the stock fell twenty point seven percent,
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  Speaker 1: just a bit more than just a quick comment on GAP.
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  Speaker 1: I feel kind of bad for them day because they
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  Speaker 1: had this big fire that destroyed their nine d square
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  Speaker 1: foot distribution facility in fish Kill. Was ravaged by flames
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  Speaker 1: Monday night. Employees escape safely, so that's the most important thing.
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  Speaker 1: But they announced they were investing nearly a hundred million
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  Speaker 1: dollars in this facility and adding jobs, so investor is
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  Speaker 1: concerned about being able to ship things out online. The
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  Speaker 1: price of the GAP stock down four point three percent today.
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  Speaker 1: Let's take a quick look now at our Volatility Index
• 9:46
  Speaker 1: report brought to bias cboe VIS Options and Futures. Volatility
• 9:50
  Speaker 1: can be harnessed with CBOVIS options in future associate disclosures
• 9:53
  Speaker 1: and learn more at cbo dot com. Slash Powerful Outcomes VIX.
• 9:57
  Speaker 1: Actually the VIC speaking out a small game that's at
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  Speaker 1: thirteen point oh four, up about a tenth of a percent,
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  Speaker 1: but still if you take a look at its long
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  Speaker 1: term average. It's well off the long term average of
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  Speaker 1: twenty and that makes people fret because quiet times like
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  Speaker 1: this can be accompanied by extremes. Alright, Dave, you're up. Hi,
• 10:18
  Speaker 1: My name is Dave. Just what do you think you're doing.
• 10:24
  Speaker 1: We're going for the price Dave drumlow roll please as
• 10:32
  Speaker 1: we're getting ready for his stock of the day from
• 10:35
  Speaker 1: Dave Wilson Tech Data. Right. You know, some stocks Kathleen
• 10:39
  Speaker 1: vance to arise even though they have little support from analysts,
• 10:42
  Speaker 1: and indeed the technology product distributor tech Data is one example.
• 10:46
  Speaker 1: Now tech Data, they've been public for thirty years. Company
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  Speaker 1: shares trained on the ticker t e c D. They
• 10:53
  Speaker 1: rose in each of the past three years and gained
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  Speaker 1: as much as percent this year. Yet data combined by
• 10:58
  Speaker 1: Bloomberg shows animal was Cell. Ratings on tech Data out
• 11:03
  Speaker 1: numbered buys three to two. As of yesterday, five other
• 11:06
  Speaker 1: analysts had some version of the hole rating. The balance
• 11:09
  Speaker 1: shifted in tech Data's favor today. Bank of America Merrill
• 11:12
  Speaker 1: Lynch raised its rating to neutral from the equivalent of Cell.
• 11:16
  Speaker 1: The firm sided week recent weakness and the shares, which
• 11:19
  Speaker 1: dropped as much as eighteen percent after sending a record
• 11:23
  Speaker 1: in June. Now tech data climbed as much as seven percent.
• 11:26
  Speaker 1: Today in the wake of Merrill's call, Stock closed with
• 11:29
  Speaker 1: a game of four point three percent. That was the
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  Speaker 1: biggest advance pro tech data in the past three months. Alright,
• 11:36
  Speaker 1: check data. Dave Wilson, Stocks Editor his chart of the day.
• 11:39
  Speaker 1: If you want to follow him Twitter, just check out
• 11:41
  Speaker 1: at the one Dave Hey. You can follow me at
• 11:43
  Speaker 1: Katheene Underscore Hayes Catheine with the k H A y s.
• 11:45
  Speaker 1: But the most important thing of all taking stock. On
• 11:48
  Speaker 1: Bloomberg Radio, We're gonna be looking at Core next. The
• 11:51
  Speaker 1: price of the cbot reached its lowest since two thousand nine. Boy,
• 11:56
  Speaker 1: what does that mean for farmers? We're gonna find out.
• 11:58
  Speaker 1: I'm Kathleen Hayes and this is Bloomberg. A look at corn,
• 12:06
  Speaker 1: a look at soybeans, a look at the agricultural commodities industry.
• 12:11
  Speaker 1: To find out where commodity prices are now and what
• 12:14
  Speaker 1: investors are thinking about where they go next. That's coming
• 12:17
  Speaker 1: up on Bloomberg Radio.