stay with us. we will get back right before this announcement, we are seeing the markets are down. let's go to peter cook with the fed decision and statement. continues.r 25 billion dollars in monthly bond buys reduced as we expected. which on the economy. looks like an improvement in the economy, a take up in the inflation, but they still seek slack in the labor market and still maintain that a highly accommodative stance remains appropriate. "growth in economic activity rebounded in the second quarter. labor market editions improved. the unemployment rate declining further. however, a range of market remainors suggest there significant underutilization of labor resources. household thinning appears to be rising moderately, and business

investment is advancing, while the recovery in the housing sector remains slow. they go on to say the committee sees the risk of the outlook for economic activity in the labor market is nearly balanced and judges that the likelihood of inflation running persistently below 2% has diminished somewhat." they having knowledge -- they havee-up acknowledged again the take-up in inflation. with regard to the taper, they are committed again to reducing bond buying with measured steps over the next few meetings, but they do not commit explicitly to october in this statement, and they will continue to reinvest row seats of the bond buying. no stop to that. in terms of forward guidance, no real change. they maintain that it likely will be appropriate to maintain the current target rate for a considerable time after the asset purchase program ends, and that's the basis for the 1% --

, charles foster indicating that it likely will be appropriate to maintain the current target range for that considerable time because such language is time-dependent and does not reflect the considerable economic progress that has been made towards the committee's goal. perhaps something in here for everyone. certainly some notice for inflation, but the fed still seeing slack right now in the labor market despite the new recent improvements. >> our chief washington correspondent teeter cook joining us. thank you. let's get a quick check of how the markets are reacting. -- our chief washington correspondent peter cook joining us. the nasdaq showing green, but the dow industrials still down about 32 point. let's rejoin our roundtable. economics editor michael mckee, lisa abramowicz of bloomberg news, our chief washington

correspondent peter cook is at chicago, diane swamp. thank you so much for joining us. that labor slack still a concern. >> that is the interesting part of this. they upgraded their forecast -- not their forecast, but their assessment of the economy, changing some of the tenses and adding a few additives, but all in all, a little bit brighter view, but they do not want to give the impression that all is well, so they throw in the lines about excess labor market slack. in other words," we are not, despite what we say about the labor market inflation indicator , ready to do anything." we were expecting the possibility of a dissent, but everybody was asked -- everybody was betting on richard fisher from the dallas fed. for some reason today, charles foster decided that the statement language, even though there is no press conference for janet yellen to win a change, so nobody expected it, it should have on today.

>> were you, as michael mckee was, taken by some of the language that we heard in that statement? >> actually, that is what we expected. we expected to see an upgrade on employment inflation. we have been saying that the hawks are nipping at the bit. they're going to end the tapering in october, and then there will be debate about the reinvestment program, and the defense will heat up before the end of the year. the important thing to remember is the core of the fed is gradual, good, but not good enough, and more importantly, although we will see a lot of noise from the hawks before the end of the year, it is important to remember the voting committee next year is significantly more dovish and leans toward raising rates later rather than earlier, and that is important context to keep in mind right now. >> we are watching the bond market. 10-year now at 2.54%.

>> they are trying to walk this fine line. they want rates to keep rising and bond yields to keep rising so that the market is not shocked when they do alter their guidance. at the same time, they do not want to depress or stymie some of the growth they have already seen, so i think that is what they want to feel here. do not get too complacent. rates will rise at some point, and we are getting more healthy, but keep borrowing -- or keep lending. >> peter cook is at the fed. as we are looking at scenes at -- as we are looking, it seems that the market is taking this in stride. >> looking at the language and how everything is spaced out, the significant underutilization of labor resources, the suggestion that there are still slack out there, how highly placed it is when the statement the winkhey still put and the knot, if you will, the

acknowledgment about inflation later on. they know the charlie fosters are making their voice heard around the table, but the majority of the fomc still believe there is work to be done, and it is not yet mission accomplished. i think the statement reflects that. not a huge change here, but you can see the language, particularly on the economy, acknowledging even the most recent development. janet yellen most likely getting that gdp number as soon as last night and sharing it with all of her colleagues, wondering how that might have shaped, if at all, the course of discussion this morning. >> that brings up a discussion -- a question i would like to pose. 4% gdp. you have inflation moving up a little bit, and there's no reason to think we do not get 200,000 more jobs created. how much of this message is crafted for the markets? how nervous are the markets that the fed will be behind the curve? >>

markets should note that the fed has decided it will be behind the curve in the sense that it is willing to allow a little inflation if it allows a lot more labor market healing. seen inflation yet. inflation hawks have been wrong. they have riveted a little bit to say that inflation is coming back to target but is still not at target. and some of that they think is noise and will actually dissipate as we go on through the year. i think that context is important. we are not behind the curve yet, and this is not a fed willing to pull the trigger until it see the whites of the eyes of both inflation and an actual healthy labor market, which we are still very far from. the housing issue is also important, something janet yellen really went into with regard to her testimony on the economy. housing has been perplexing to the fed. last year's taper tantrum in the rise in rates and the rise in moreng was him much

important and shows the fragility in the economy. >> in the bond market, i think there's a lot of distressed about the economic data, frankly. people say the less marquee data points, the more anecdotal data points, more growth than maybe some of the benchmark measures people are looking at, so they are saying the fed is getting perhaps behind the curve, and they are getting concerned about it, especially because if the bears are getting squeezed out , any unexpectedly positive data could really cause a shock or any premature kind of hiking could cause a shock to the bond market right now. numbers surprised a lot of people today. what will that do in terms of the debate on when to raise interest rates? >> you've got to imagine it certainly brought the debate to the four over the last couple of days. there already was discussion about win is the appropriate

time. when -- when is the appropriate time. the fedes the case for to at least consider it, but you got to remember, it is janet yellen at the head of that table, and as we have already heard from the other panelists, the message she sent is that she needs to see not only that inflation is moving up him up but she is satisfied that the labor market is once again healthy again, and this statement reflects the view that she is certainly not there yet and that a majority of the fomc are not there yet as well. the statementee playing out is that it does get kind of overlooked until august footie. that will be the next data point everybody looks to because that is the fed minutes. we will find out why charlie foster was so worried, and we will find out what they discussed in terms of that exit strategy if there was in discussion of timing, and what kind of methodology they are yellen cane so janet talk about it at that press conference. the minutes will probably be

much more important than today's statement. >> michael mckee just talked about timing. in terms of the timing, at this point, it seems. ahead. there will not be anything unless there is some -- i guess, more geopolitical tensions around the world. the headwinds that we do not see. but it seems this taper is on path to and precisely when they thought it would in october. >> absolutely, and i think they really want to keep to that. the next debate, like i said, though, will be that reinvestment program. how much they continue to buy, and what they buy. they are talking about keeping their balance sheet elevated at that high level that they hit in october well after they raise interest rates. that is a very interesting conundrum, especially when you think about how many chinese are buying bonds at the moment and until recently and still at the moment, we are seeing the issuances of treasury fall short .f what people thought

this confluence of events, holding rates down at the moment is i think very interesting, and that will cause real tension with the fed as we get into the latter part of the year. the other issue is that gdp number -- i agree. we know the economy did not flatline, and we know it did not go as low as it did, given the employment we got. there is measurement issues, but 1.7% was in inventories. that is not something i want to bet my money on. >> what i'm curious to hear is how concerned the federal th in thes about fros markets and potential excesses and how much they are .alibrating globally >> thank you also much. appreciate it. next, russian resident vladimir

putin is responding to the latest round of tough economic sanctions from the u.s. and european union. stay with us. "bottom line" on bloomberg television continues in just a moment. ♪

>> a reminder there are multiple ways to watch bloomberg television. we are on the web at your mobilem, on device, on apple tv, and on amazon fire tv. russia is pushing back against the latest round of sanctions imposed by the united states and the european union. ryan chilcote joins me. what is russia's response? >> we saw the central bank today say that they would do essentially whatever it takes to protect their banks, and we have seen that. last week, defending the ruble, hiking interest rates when nobody thought they would do time in athe third

surprising way this year. the banks sort of did surprisingly well. the second-biggest bank in the the sizea country half of the u.s. -- the banks get sanctioned by the u.s. yesterday, and shares were down -- what? 1.3%. not a huge deal, but the market was up. i think people were reassured by they actuallynd thought sanctions would be worse. >> we are actually hearing about fallout in the energy industry. one of france's largest oil companies is taking action. what are they doing? >> these companies are reporting earnings, and what's more bigresting is first companies we have heard from. they have a big ownership in russia with a company which was the united states, and one of its shareholders was

sanctioned, and we heard from the cfo saying that the day mh17 was down, they stopped increasing their stake in the russian partner. the downing of that lane just created too many uncertainties. watch this space. the sanctions just came yesterday. >> what has the kremlin's response ben? >> the kremlin saying that the united states is acting in a pretentious and prosecutorial manner, saying it will not get the u.s. anywhere. relations will get worse, and the russians said that u.s. sanctions were basically cover for what is a bloody operation the ukrainians were carrying out .n the east of the country >> thank you. withie rose spoke president obama's national security council from 2010 through 2013. among the issues they discussed -- germany's role in sustaining

sanctions against russia. vladimir putin has had a number of opportunities here to engage in a political settlement. that is what was the precipitating set of events for the current offensive are the ukrainian army. >> you can watch charlie rose's full interview tonight at 8:00 in 10:00 p.m. new york time only on bloomberg television. also ahead, i will be speaking with israel's ambassador to the united states on the escalation of the jewish state's campaign in gaza. ,ext, the latest results are in and it looks like all companies are profiting from obamacare.

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>> welcome back. " on is "bottom line bloomberg television and streaming on your tablet, phone, and bloomberg.com. big health companies are posting earnings this week, and companies -- like companies are seeing revenue growth thanks in part to the affordable care act. >> these 8 million people who signed up for insurance through the obamacare exchanges -- a lot of that -- almost all of it was managed through private companies like wellpoint, aetna, humana, so we are seeing wellpoint having a nearly additional one million customers through these exchanges, and so far, these patients do not seem to be a lot sicker or more

expensive, so they are getting a boost from these new paying customers. >> is that not what the administration had been saying at the beginning? they'd basically decent -- they'd basically be opening up a pool of new customers. >> the irony is that the insurance industry was one of the main opponents to the law early on, and you still hear executives and the lobbying organizations grumbling, even though they did end up reaching a compromise in the end. the case all along that the obama administration made was that this would be good for business. there would be more people in the health insurance market buying insurance, going to hospitals, using those services, buying prescription drugs from pharmaceutical companies, so a lot of companies are now starting to benefit, hospitals as well as insurers because hospitals have people coming in who before had no insurance, could not pay their bills who now have coverage and are able to make them -- able to make payments. a lot of people who were doubters of this law are able to come out ahead. >> the question of what happens

down the road, insurance companies will have to start paying out more for sicker patients who have signed up -- what does that look like? >> the whole risk and fear has been that all you are going to get are a bunch of sick people who show up, and the insurers will have to cover them, and what they are charging for the premiums will not cover their medical costs, but so far, we are not seeing any sign of that. >> he healthier younger people were the ones who were supposed to balance -- >> offset it. it looked like there was a late surge of younger people who did come into the market and did sign up. wellpoint is one of the biggest layers in this market, and they were saying that it looks like they actually have gotten a pretty good balance of this risk rule -- risk pool. we only have six months' worth of data and we will know more as time goes on, but so far, that your prediction has not come true.

wall street is a town without pity. today reported earnings that meet expectations, but they did not raise their guidance. they did not have a big wall street beat, so analysts started getting jittery that maybe we are seeing higher costs, maybe not so much from obamacare, but because more people will start using the hospital and prescription drugs because work. are going back to th >> what happens to the overall now? >> theth care obama administration likes to attribute it to the law and maybe i and part it is, but a big part of it has to do with lag over from the recession. while the economy is growing, and people are adding jobs, and a lot of people still are not feeling confident, and they had these big deductibles and co-pays now that are $2000, $5,000, and if you are not feeling financially secure or do not have a job, you will put off a lot of medical expenses.

expecting that will be your new login on the bloomberg -- wall street, town without pity. thank you so much. 26 minutes past the hour. bloomberg is on the markets. matt miller is standing by with details. however markets moving after the statement? >> i had to give our producer credit because she was exactly right about the move. we see a gain of just about .5% in the indexes. the s&p 500 had been down about .3%. point, and nowne up .2%. the nasdaq gaining .5% after the fed, of course, said it will continue to trim monthly asset purchases. a couple of individual stocks we are watching. microsoft has announced it will be bringing the xbox one to

china in two months, currently taking orders for the gaming console, which will be first in the market in the end of a 10-year ban. those poor chinese people. microsoft faces an antitrust probe in the world's most populous country, the one that the state newspaper says his routine. we hope they will all enjoy playing. ♪

>> welcome back to the second half-hour of "bottom line." the israeli military is pushing deeper into gaza. air strikes and shelling killed more than 90 palestinians throughout the day including 20 people who had taken shelter at a crowded united nations school. the israeli military also said to allowstop attacks for humanitarian relief. to "bottom line."

thank you for your time today. united nations secretary-general ban ki-moon this week accused the israeli prime minister, benjamin netanyahu, and the leader of hamas of being irresponsible and "morally wrong" for leading their people get killed in the gaza conflict. the palestinian ambassador to the region also discussed the situation in gaza this week. here is what he had to say. >> the whole gaza strip in total which thousands of homes have been destroyed or severely damaged, and hundreds of thousands of people are or not having the basic elements of life. that is the reality of gaza today. >> mr. ambassador, what is the sentiment in israel? are the israeli people in favor of a cease-fire? >> no, they are

largely opposed to it, and i will explain why in a minute. i don't know if the secretary-general said that or not, but the only thing morally wrong is any kind of comparison to the leader of a terror organization of different than al qaeda, and the prime minister of the jewish and democratic state of israel. it is completely unacceptable rhetoric to actually say something like that. i don't know if the united nations secretary-general did. if he did, he should retract his comments on that issue. >> sir, prime minister benjamin netanyahu said he is aware of the international criticism of the proportionality of israel's military response, but he also added that no country on earth would allow its people to be terrorized by daily rocket fire. what is israel's objective at this point -- to stop rocket attacks and destroy tunnels used to smuggle weapons and militants, or to crush hamas? >> no, we are doing three things basically, trying to end the rocket attacks against our city,

and the prime minister of israel is completely right -- no country would tolerate 2/3 of its people living in bunkers, having to go the multiple times a day. you can imagine what would happen if the united dates, if over 2 million americans had to flee to find shelter every few minutes during the course of the day. it's unacceptable. we have to stop the rocket attacks. the second thing is we have to destroy this tunnel network, this vast labyrinth of underground tunnels hamas has built in order to tunnel under on theder, come out other side, and kill our soldiers and civilians. we were fortunate to avoid a mass casualty attack by them penetrating into israel, going into a small jewish community and killing hundreds of people and maybe kidnapping others. we have to take action to remove these tunnels. the third inning is we have to make sure that after a cease-fire is in place that a mechanism is built to ensure that we are not in another round of fighting six months or a year

or yen a half from now and hamas simply rearm zen becomes an even greater force than it is today. we have hit hamas very hard integrated capabilities. we have to ensure that we have a sustainable cease-fire and that and we do notnd face a fourth round in a year or year and a half. >> i'm sure you are aware of some of the rhetoric that has been coming out of the gaza strip. a lot of officials of hamas are saying that there will be retaliatory action for this. they are saying that the international community is outraged by the video and pictures that it is seeing in that israel should be prepared for some sort of retaliatory action. how do you respond to that? >> i want to repeat again -- thomas is a genocidal terror organization. their charter calls for the murder of jews worldwide. hamas was elevating on 9/11 when thousands of americans were killed. the unitedmned states for the killing of osama bin laden. that is the enemy we are dealing

with. obviously, we do not target in any way civilians in gaza, but we are fighting against an enemy who not only deliberately fires rockets at our civilians but united nationsin schools that places their military centers under hospitals. they are using their own civilians as human shields in the hope that we will hit them and then everybody who's ease those pictures -- obviously, they are heart-wrenching. i am a father. whenever you see a picture like that of a child was killed, an innocent civilian who was killed, that should affect any decent person. the question is -- where is the outrage of the world going to be directed? at israel for ? >>nding its people lawmakers, congress trying to the 220 million dollar missile defense package for israel. what are you hearing about when or if that deal will be

completed? >> i do not know what will happen in congress. we came to the u.s. administration -- i was in the white house last week -- we asked for additional assistance were iron dome, which has saved countless israeli lives. that is a joint u.s. israel system where it is israeli technology. a lot of it is financed i the united dates. we deeply appreciate that this system has broad, bipartisan support, and we deeply appreciate the fact that president obama has a seated to israel's request, and we hope it will move through congress as soon as possible. we just have to wait and see how that will happen. a minute left.t a late israeli prime minister one set of israelis and palestinians, "we are destined to live together on the same soil in the same land." do you believe that is the destiny of both sides? >> of course. we have to find a way to achieve a lasting peace with palestinians. the policy of the government of israel is that the solution is two states regina peeples.

where a demilitarized palestinian state recognizes the jewish people of israel. i hope people understand because of what they have seen, how israel withdrew only to face the militarization of gaza and to turn it into a terror base against israel why we need demilitarization both in gaza and in the west bank if we are ever going to have a stable peace between israelis and palestinians. let's hope the violence ends and we can get back to peacemaking as soon as possible. >> the israeli ambassador to the united states joining us from washington. mr. ambassador, it has been a privilege to have you on the broadcast. thanks or your time. coming up, argentina is on the verge of default. we look at the efforts being taken to help its government avoid its second default since 2001. "ou are watching "bottom line on bloomberg television. ♪

>> welcome back.

it's time for today's latin america report. argentina needs to reach an agreement with bondholders by midnight tonight new york time to avoid its second default in 13 years. reporter has been covering that story. today of all days, thanks for your time. i know it has been a little crazed today. unlike in 2001, argentina is now solvent. can they afford to default? >> it depends on what actually they end up having to pay, if anything. if this is a default that is very short-lived, perhaps they reach a settlement in the coming there's verys say little incentive for bondholders to demand acceleration, which is when you demand full repayment immediately of the principle of your debt, which would be about $30 billion, which is all of the cash that this country has. there is a small chance that that is actually going to happen. >> the argentine economic minister had his first

face-to-face meetings last night with lawyers for u.s. hedge funds. is it a little bit too late in the game to be holding last-minute face-to-face talks? >> that is what most evil feel, but at the same time, i think that's what most people expected . their leverage was to have this mutual level of brinkmanship. nobody expected that they would get something beforehand, but it is cutting it very close. 6:00? why coming at not bother coming earlier if the plan the whole time was to show up? >> the reason for them being here, even if it is at the last minute -- you are not going back home empty-handed. you would not come all this way even if it was the last minute the to call back and tell president there's no deal. >> you would think so, but there's also a question of what

is the urgency right now to meet ? it's not deadline like the government pays for those. it's not like there is a deadline for them that they feel anything in to meet coming days perhaps they can also resolve. >> the judge in this case is quoted by the associated press as saying real people will be hurt by a default, and the argentine cabinet chief told "there is no link to economic activity. it is independent to the evolution of these restructuring processes. will argentine citizens be affected by these defaults? >> must say it is a function of how long it would be a default. if this is perhaps resolved tomorrow, then perhaps know, but if this is something that is long-standing, if this goes on for months or until the end of the administration's term, then

economists say you would have a lot of demand for dollars because the argentines always flew to the dollar when there is a time of crisis, even if it was not something that direct the affected them. there would be demand for the dollar comedy the black-market peso will perhaps explode, they will weaken, and the official market, maybe a devaluation may be in order. interest rates might rise. there might be a number of things happening. it's just a function of how the government proceeds. >> speaking of markets, the argentine bonds raising to a three-year high today -- to investors think a deal will be reached? do they know something we do not? >> it sure seems that way. ons are up a record amount. $.10 on the dollar, which is a sign of a great degree of optimism for a fairly shady amount of information that we have gotten. >> i am looking at the charts everybody else is looking at. that is going up pretty high right now.

>> they are trading in the mid-90's today, and considering it is a bond on the brink of default, it is pretty interesting. people are pretty confident that they may not go home and be handed in terms of a deal, but in terms of what we are actually learning from these talks, not much. yesterday, they came out at midnight and basically said they had not resolved anything. >> there is this stigma of argentina not having been able to access the international credit markets for 13 years. would a deal that could avoid default at this point mean the international markets would welcome argentina back with open arms? >> that's what a lot of people say, yes. if they were to actually use this, which has a very binary outcome -- either you fail miserably or you win a tremendous amount of love and -- if theymarkets take advantage of this and actually do this the right way

and go through this and deal not with all elliott, but their holdouts, which hold a tremendous amount of debt, to about $15 billion if you include principal and interest -- if they really deal with this and put this behind them, then they would be able to reenter, people say. >> again, the deadline, midnight tonight new york time. thanks so much. coming up, we look at the politics of california's drought. ♪

>> welcome back. " on is "bottom line bloomberg television, streaming on your tablet, your phone, and bloomberg.com. 80% of california continues to suffer from extreme drought. our reporter has been traveling

to cities and towns throughout and he joins us now from our san francisco bureau. what variations are you seeing in different regions? >> i've been traveling across california all week. what you see in the central valley in the fresno area -- you actually see farmers having to old those some of their citrus trees. i spoke with a farmer yesterday -- a third of his orange trees had been just loud and the ground, and those are not trees coming back quickly. in other parts of the state, you have other situations. further south in the riverside area, for example, bakersfield. you have dryness affecting crops across the north. further north, you see some districts making money because their situation is a little more stable, and they are selling water to the south, having to alleviate some of the surface water shortages you are seeing in the area. >> you are in our san francisco bureau, as i mentioned. talk to me about rural concerns.

are they getting through to the city's? >> there's real concern. it is striking -- last night, when i was driving from the modesto area to hear, you see the temperature drop from 98 to 62 in san francisco. these are cultures living in different world but as part of the same state and aimed ecosystem, they have different interest that have to be brought together on the table. >> what sort of solutions are being offered to the crisis, and as any action seemed imminent from sacramento? >> it seems calls for's a lot of more storage capacity. farmers can better weather the drought of they have more water and reserve. governor jerry brown has acknowledged that surface water and more storage is part of the solution, but again, farmers have a mixed bag of opinions on climate change. some think that it is here and man-made, and others think that it may simply be a weather

cycle, but they all say that the population strains are going to make water shortages more acute regardless of what happens with the weather and we need to be making plans going forward. >> we have about 30 seconds left. some weather forecasts are expecting this drought to last into next year. what happens then? >> if you look at a drought of -- as an act of god, god has given california time to work is out because the drought will not be going away according to a lot of forecasts, which means policymakers need to get serious and get at the table. it seems that serious is not quite there yet. as the groundwater gets depleted, this is going to become more acute, and then you are going to see people at the table. traveling the state of california and taking those pictures as well. thank you. stay with us. another check of the market movers is on the other side of this break. "bottom line" continues. ♪

>> get the latest headlines at the top of the hour on bloomberg radio, streaming on your tablet, and on bloomberg.com. that does it for this edition of " on bloomberg television. "on the markets" with matt miller is next. i'll see you tomorrow. 56 minutes past the hour, which means bloomberg is on the markets. let's look at where stocks are trading an hour after we got the fed decision. the s&p 500 actually unchanged, though it had been down .4%. a little bit of a seesaw day in markets, but no change right now. the dow jones industrial average down about 36 points.

there, soe level coming down well below the we reached that yesterday. the nasdaq actually gaining .4%. this morning, betty liu asked former fed chairman alan greenspan what he thought about the market valuations. he did not really want to talk about current fed policy, but she did ask where he thinks the market is headed from here. >> the stock market has recovered so sharply for so long , you have to assume somewhere along the line we are going to get a significant correction. where that is, i do not know, but i would not say that we are grossly overpriced at this point in the historical context. >> joining me with reaction to the former fed chair's comments is bloomberg news stocks editor mike green. i'm going to put you on the spot

a little bit. i remember and i'm sure you do, too, when we clung to alan greenspan's every word in his congressional testimony and everybody thought he was the biggest genius on the face of the planet. is that still the case? do people still listen to every word? >> they still listen to him. the numbers,t people reading it and definitely interested. basically what he looks at is what they call the fed model. you sort of take the opposite of the price to earnings ratio and look at the earnings yield. how much s&p 500 companies are earning competitive price, and it gets you about 5.5%. what the fed then does is compare that to treasury yields. stocks are still earning a lot more than treasuries are yielding. by that model, stocks are not overpriced. it begs the question -- our bonds overpriced -- are bonds o verpriced? you saw today how quickly bond yields can correct themselves.

can move a lot quicker than earning yields can, so that is the danger with the model he is looking up. >> equity bounced around a little bit today as well. what is the problem with this market and fed announcements? are there not enough people trading? it's very volatile and the computers are trading a may misunderstand the statement? >> there's typically a lot of head after these announcements, and you are right, computer models have a difficult time reading these the millisecond they come out here you will see the market go up and come back down. he big story, like i was saying, was rates today. going into the fed announcement, we had dividend-paying stocks doing the worst. when treasury yields go up, they asome much more competitive far as what will your fixed income the from these securities. what we have seen since 2:00 is a pretty good recovery and dividend-paying stocks. on top of that, you had really

strong rally in some of the type of stocks that janet yellen called eventually stretched valuations -- potentially stretched valuations. twitter -- who could ignore twitter? >> what a knockout home run that was. "street" is up next. ♪ ♪ important to the most hour of the session. we have a strong gdp report and the fed continues to trim its monthly on fine program. i am trish regan. " starts next. coming up today on the