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

Transcript

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

• 0:03
  Speaker 1: Global business news twenty four hours a day at Bloomberg
• 0:06
  Speaker 1: dot Com, the Radio plus mobile last, and on your radio.
• 0:10
  Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.
• 0:14
  Speaker 1: I'm Charlie Pellett. Stocks of paired losses. The Dow and
• 0:18
  Speaker 1: the SMP five hundred index both declining today. The NESTA
• 0:21
  Speaker 1: Compositive Index up twelve points. And we are brought to
• 0:24
  Speaker 1: you by National Realty thirty percent returns on cash in
• 0:28
  Speaker 1: rented real estate. Find them at n r I. A
• 0:32
  Speaker 1: dot net stock slipped after strong consumer spending data boosted
• 0:37
  Speaker 1: a bolster the case that the Federal Reserve will raise
• 0:40
  Speaker 1: interest rates as early as this summer. Oil had its
• 0:43
  Speaker 1: longest run of monthly gains in five years, four in
• 0:47
  Speaker 1: a row for crude oil. Today, West Texas Intermediate down
• 0:50
  Speaker 1: seven tenths of one percent, falling thirty seven cents to
• 0:53
  Speaker 1: forty eight dollars and ninety seven cents. Consumer spending up
• 0:57
  Speaker 1: one percent in April as confidence falls amid concerns about
• 1:01
  Speaker 1: the job market. Lynn Franco is Director of Economic Indicators
• 1:04
  Speaker 1: at the Conference Board. She was our guests this afternoon.
• 1:07
  Speaker 1: Right here on taking stock could take a look at
• 1:09
  Speaker 1: the expectations. Um, you know, six months down the road,
• 1:13
  Speaker 1: there was an increase in NOSE saying that they expect
• 1:15
  Speaker 1: fewer jobs to be available. And I think this really
• 1:18
  Speaker 1: translates into what we're sort of seeing a little bit
• 1:20
  Speaker 1: in the labor market is that job growth may be slowing.
• 1:24
  Speaker 1: I think the expectations are for about a hundred and
• 1:26
  Speaker 1: sixty thousand jobs, perhaps less because the Verizon strike at
• 1:30
  Speaker 1: the end of this week, but clearly a little bit
• 1:33
  Speaker 1: slower than the two hundred plus that we had averaged
• 1:37
  Speaker 1: earlier months. And spending UH climbed in April by the
• 1:41
  Speaker 1: most in almost seven years. The signed US households are
• 1:45
  Speaker 1: ready to help jumps jump start growth after a first
• 1:47
  Speaker 1: quarter slowdown. The one percent increase was the most since
• 1:51
  Speaker 1: August of two thousand nine. SMP five hundred index down
• 1:55
  Speaker 1: two points to two thousand ninety seven, to decline there
• 1:58
  Speaker 1: of point one percent down, Industrials down eighty seven points
• 2:02
  Speaker 1: to drop of five tenths of one percent, Stack up fourteen,
• 2:06
  Speaker 1: a gain of three tenths of one percent, Gold up
• 2:09
  Speaker 1: a dollar twenty ounce to twelve fifteen, a gain there
• 2:12
  Speaker 1: of point one percent four oh two on Wall Street. Now,
• 2:15
  Speaker 1: let's take a look at other news from around the
• 2:17
  Speaker 1: world on Bloomberg Radio. Thank you Charlie from the Bloomberg
• 2:21
  Speaker 1: News Room. I'm Ramie. In essentio. Donald Trump is breaking
• 2:24
  Speaker 1: down how much money he raised for veterans charities in
• 2:27
  Speaker 1: recent months. The presumptive Republican presidential nominee gave details to
• 2:30
  Speaker 1: reporters during a news conference today. I raised close to
• 2:34
  Speaker 1: six million dollars. It'll probably be over that amount when
• 2:39
  Speaker 1: it's all said and done, but as at this moment,
• 2:41
  Speaker 1: it's five point six million dollars. Trump is edging closer
• 2:45
  Speaker 1: to Hillary Clinton. In a new national poll, Clinton leads
• 2:49
  Speaker 1: Trump forty seven to forty five percent, and the latest
• 2:51
  Speaker 1: NBC News survey Monkey weekly poll that's a two point
• 2:55
  Speaker 1: gain for Trump from the previous week. Clinton's rival Bernie
• 2:58
  Speaker 1: Sanders leads Trump by twelve points fifty two in a
• 3:02
  Speaker 1: hypothetical general election matchup. Scientists say municipal water in Flint, Michigan,
• 3:07
  Speaker 1: has gotten much better in recent months and is safe
• 3:09
  Speaker 1: for handwashing, showering, and bathing, but a filter should still
• 3:13
  Speaker 1: be used for drinking and food preparation. A team provided
• 3:17
  Speaker 1: an update today on results of sampling from homes and
• 3:19
  Speaker 1: buildings in the city where the water became tainted with
• 3:22
  Speaker 1: lead and other pollutants. And jurors have found former suburban
• 3:26
  Speaker 1: Chicago police officer Drew Peterson guilty of trying to hire
• 3:29
  Speaker 1: someone to kill the prosecutor who helped convict him in
• 3:32
  Speaker 1: his third wife's death. Peterson had been accused of trying
• 3:36
  Speaker 1: to hire a fellow inmates uncle to commit that alleged murder.
• 3:39
  Speaker 1: The former officer is already serving a thirty eight year
• 3:42
  Speaker 1: sentence for that crime. He's now facing another sixty more
• 3:45
  Speaker 1: years in prison and a role reversal for suffolg d A.
• 3:49
  Speaker 1: Daniel Conley. He's a witness in court defending himself in
• 3:53
  Speaker 1: a lawsuit by a former prosecutor. Global News twenty four
• 3:56
  Speaker 1: hours a day, powered by our journalists in more than
• 3:59
  Speaker 1: one news bureaus around the world. From the Bloomberg Newsroom,
• 4:02
  Speaker 1: I'm Rainy. Innocents you, Charlie, and we thank you so.
• 4:07
  Speaker 1: The monthly gain for stocks SMP five hundred, indecks falling
• 4:11
  Speaker 1: two points today to end the month at two thousand,
• 4:15
  Speaker 1: ninety six down point. I'm Charlie Pellett. That's a Bloomberg
• 4:19
  Speaker 1: business flash. Move around most and create promotion. I move,
• 4:26
  Speaker 1: you move like they do. I've never seen anyone move that.
• 4:29
  Speaker 1: The five peoplet's move like you've got a purpose. That
• 4:40
  Speaker 1: was called movers cross A little more about that name
• 4:42
  Speaker 1: cracked me up. Bloomberg taking stock Movers and Shakers with
• 4:53
  Speaker 1: Pimp Box and Kathleen As on Bloomberg Radio. Movers and
• 4:57
  Speaker 1: Shakers for Tuesday, May thirty one, went a sixteen taking
• 5:01
  Speaker 1: a look at the constituents of the SMP five hundred,
• 5:06
  Speaker 1: two hundred and fifty advance, two hundred and fifty one decline,
• 5:10
  Speaker 1: and four remain unchanged. Dave Wilson, Bloomberg Stocks Commas joins
• 5:15
  Speaker 1: us now to begin our movers and Shakers, and Dave
• 5:17
  Speaker 1: just a footnote when we say SMP five hundred, and
• 5:20
  Speaker 1: why are they're more constituented is because there are multiple
• 5:24
  Speaker 1: classes of stock for companies such as Alphabet, the parent
• 5:26
  Speaker 1: of Google correct And as it turns out, there are
• 5:31
  Speaker 1: SMP five hundred earnings reports this week, three of them
• 5:34
  Speaker 1: to be exact, but none of them from companies that
• 5:37
  Speaker 1: actually have their legal homes here in the US. So
• 5:40
  Speaker 1: I just wanted to clarify that point and then point
• 5:43
  Speaker 1: out that today's report came from Metronic, medical device maker
• 5:48
  Speaker 1: with their legal home in Ireland. UH. Profit margins at
• 5:52
  Speaker 1: Metronic for the fiscal fourth quarter were lower than analysts
• 5:55
  Speaker 1: expected based on the Bloomberg survey. Metronics outlook for this
• 6:00
  Speaker 1: a school year showed profit may do no better than
• 6:02
  Speaker 1: match the average estimate. So you had Metronics shares for
• 6:06
  Speaker 1: one and a half percent in today's trading. And I'll
• 6:08
  Speaker 1: point out Michael Course Holdings, the luxury goods maker as
• 6:12
  Speaker 1: results due out tomorrow. And then the chip maker broad Calm,
• 6:16
  Speaker 1: which was a Vago Technologies before some deal making. UH,
• 6:20
  Speaker 1: their results are due on Thursday. Well, let's take a
• 6:23
  Speaker 1: look at a utility company merger. There is a boom
• 6:28
  Speaker 1: in these kinds of deals. More than fifty two billion
• 6:31
  Speaker 1: dollars worth of utility bill deals pending or completed across
• 6:34
  Speaker 1: the United States last year. That's the most since And
• 6:37
  Speaker 1: this is our data compiled right here at Bloomberg. Great
• 6:42
  Speaker 1: Planes Energy is agreeing to buy west Star Energy, it's
• 6:44
  Speaker 1: the biggest utility in Kansas, for eight points six billion dollars.
• 6:49
  Speaker 1: Great Planes will pay fifty one dollars per share in
• 6:52
  Speaker 1: cash nine dollars per share in stock. UH. The CEO
• 6:55
  Speaker 1: saying the combination of our two company is the best
• 6:57
  Speaker 1: fit for meeting our region's energy needs. Investors taking a
• 7:01
  Speaker 1: look at this and buying Western Energy shares. The stock
• 7:04
  Speaker 1: closing up six point four percent today at fifty six
• 7:07
  Speaker 1: dollars in change, while Great Plane stock prices down nearly
• 7:11
  Speaker 1: five point nine percent at twenty nine dollars in eighteen cents.
• 7:14
  Speaker 1: Shares a Bowing today down about two point three percent.
• 7:18
  Speaker 1: This comes after an investment report from Howard Rubell of
• 7:21
  Speaker 1: Jeffreys speaking about persistent delays in the k C of
• 7:25
  Speaker 1: forty six contract. This is the production of the new
• 7:29
  Speaker 1: aerial refueling tanker. Howard Rubell calls it unsatisfactory in spite
• 7:33
  Speaker 1: of the program's long term potential, and he and Boeing
• 7:37
  Speaker 1: had said earlier that the Air Force had moved the
• 7:39
  Speaker 1: k C forty six production decision to August from this
• 7:44
  Speaker 1: June and will implement a solution for that refueling boom
• 7:49
  Speaker 1: that has been identified in flight testing is needing even
• 7:52
  Speaker 1: more work contract awards previously expected in the spring Morth
• 7:55
  Speaker 1: post bowments he describes as being a drag on Bowing
• 7:58
  Speaker 1: cash flow. Shares down two point for Boeing tell you.
• 8:02
  Speaker 1: It was a busy day on the deal front. West
• 8:04
  Speaker 1: Star and Great Plains just the biggest at eight point
• 8:08
  Speaker 1: seven billion dollars. But there are a couple of deals
• 8:11
  Speaker 1: that kind of went off the rails a bit. Uh,
• 8:14
  Speaker 1: one of them. I want to focus on Fidelity and Guarantee. Now,
• 8:17
  Speaker 1: this isn't Ensure that it agreed to take over by
• 8:21
  Speaker 1: China's and Bang Insurance Group. And if that name sounds familiar,
• 8:24
  Speaker 1: it is because they have, among other things, about the
• 8:26
  Speaker 1: Waldorf historia here in New York. Well, as it turns out,
• 8:31
  Speaker 1: and Bank withdrew a request with New York state regulators
• 8:35
  Speaker 1: to go ahead and buy Fidelity and Guarantee. The regulators
• 8:40
  Speaker 1: question and Bank's ownership structure and reserve funding for the
• 8:43
  Speaker 1: deal that at one point six billion dollars. Now, this
• 8:46
  Speaker 1: has already received approval from US regulators, specifically the Committee
• 8:52
  Speaker 1: on Foreign Investment in the US, which has to rule
• 8:54
  Speaker 1: whenever you can get a company from China or a
• 8:57
  Speaker 1: whole lot of other places, Uh, making an offer like this,
• 9:01
  Speaker 1: and Banks says it plans to really refile in the
• 9:03
  Speaker 1: near future. Nonetheless, the shares of Fidelity and Guarantee falling
• 9:07
  Speaker 1: three point three in today's quick look at Office Depot.
• 9:10
  Speaker 1: You know that deal that Mergery wanted to make with
• 9:13
  Speaker 1: Staples fell through less than a month ago and its
• 9:15
  Speaker 1: stock has uh fallen forty percent over the past a month.
• 9:20
  Speaker 1: But today they got their stock price moving higher today
• 9:23
  Speaker 1: announcing a one hundred million dollar stock buyback plan. We
• 9:27
  Speaker 1: now see shares of Office Depot closing up one point
• 9:31
  Speaker 1: four percent. It's time now for the Volatility Index report,
• 9:36
  Speaker 1: and it's brought to you by cbo E VIS Options
• 9:38
  Speaker 1: and Futures. Volatility can be harnessed with CBOA Vicks Options
• 9:41
  Speaker 1: and Futures c disclosures. Learn more at CBUE dot com.
• 9:44
  Speaker 1: Slash Powerful outcomes VIX Well. The VIX up more than
• 9:48
  Speaker 1: ten percent today, closing at fourteen point three three. That's
• 9:52
  Speaker 1: up one point two points. That was probably its biggest
• 9:56
  Speaker 1: jump since early April. However, even with Vis remains on
• 10:01
  Speaker 1: pace for a May decline. This is the last day
• 10:04
  Speaker 1: of the month after rising last month. All right, Dave,
• 10:08
  Speaker 1: you're hi, My name is Dave. Just what do you
• 10:14
  Speaker 1: think you're doing? We're going for the price on Dave
• 10:19
  Speaker 1: Dave Hey, Mr Wilson Bloomberg Stocks commas tell us about
• 10:25
  Speaker 1: an industrial services provider that may be benefiting from the
• 10:29
  Speaker 1: index effect. I did look it up. Go ahead, all right,
• 10:32
  Speaker 1: we're talking about Team Incorporated. Sounds like it should be
• 10:35
  Speaker 1: in the sports equipment business. Nonetheless, the company inspects and
• 10:39
  Speaker 1: maintains refineries, petrochemical and power plants, pipelines and other industrial facilities.
• 10:46
  Speaker 1: Now you might think a company named Team would have
• 10:49
  Speaker 1: that as its ticker symbol as well. No, it doesn't
• 10:52
  Speaker 1: work like that. Another company has that ticker. So Teams
• 10:55
  Speaker 1: is t I s I. Team has been publicly trains
• 10:59
  Speaker 1: this nineteen eighty nine. As of today's close, it's going
• 11:02
  Speaker 1: into SNPs US indexes for the first time. Team is
• 11:05
  Speaker 1: joining the SMP small cap six hundred to replace beauty
• 11:09
  Speaker 1: products maker Hello of Troy, which is moving up to
• 11:11
  Speaker 1: the SMP MidCap four hundred. Now. SMPS indexes are tracked
• 11:15
  Speaker 1: by number of mutual funds and exchange traded funds. So
• 11:18
  Speaker 1: when the stocks which his Teams added, the funds and
• 11:20
  Speaker 1: ets have to buy shares. Now we talk about the
• 11:24
  Speaker 1: index effect as a rule with the SMP five hundred,
• 11:27
  Speaker 1: it also operates for the small cap six hundred. You
• 11:30
  Speaker 1: can see that in a performance of Team Incorporated shares
• 11:34
  Speaker 1: today they climb sixtent It was the biggest one day
• 11:38
  Speaker 1: game since October eleven, and four point nine million shares
• 11:42
  Speaker 1: changed hands. That's thirty three times the average for this
• 11:45
  Speaker 1: stock over the past twelve months. That's quite a move.
• 11:49
  Speaker 1: That's why they're called movers and shakers. Dave Wilson, thank
• 11:52
  Speaker 1: you so very much. He is our stocks editor. I'm
• 11:56
  Speaker 1: Kathleen Hayes. Along with pim Fox. We're taking stock on
• 11:59
  Speaker 1: Bloomberg rad Yeah yeah, coming upon taking stock global bond markets.
• 12:08
  Speaker 1: Qatar has had nine billion dollar bond sale. Couldn't be
• 12:12
  Speaker 1: boosting Saudi Arabius appetite for selling bonds. We'll find out
• 12:16
  Speaker 1: next y