>> it's coming up to 4:00 in the afternoon here in new york. this is"bloomberg market day." i am alix steel. and we did it. another record on the s&p by one point. second day in a row that we're looking at another record for stocks. the s&p unable to hit its interday record yet. 21235. but another record for stocks. i got to say it's a pretty yucky record. t's my technical term.

we keep getting this lumpy data but still grinding higher, yucky records? >> yes. people think the economy is generally recovering but it's not so great and certainly not so great that it would spur the fed to do any sort of imminent rate hike. i'm trying to avoid stay -- saying it. but some would say it. alix: i have to point out one area that was a little bit weaker. the dow transportation index. 6 kers -- 6% below its record high. 7% off its interday lie. >> it's interesting because sometimes people see the transplants and indicators of

the market overall -- over 8 there are economically sensitive areas, airlines, rail, certainly a yellow flag of caution. alix: it does raise a really good question of the broader implications for the fed. hsbc had a note out, very drarks saying the world economy is like an ocean liner without life boats. if another recession hits it sco be a truly titanic struggle for policy makers. >> that's definitely one of the big worries in central bank developed countries around the world. interest rates can't really go any lower. fiscal stimulus is out of the question for political reasons. if we did hit another speed bump or downturn i don't know if people think we have the ability to respond like we did

last time. alix: you hear rumors that swap e might be able to out local government bonds for cash. you heart argument that this, all the stimulus is not providing a lift, it's providing a floor. >> right. the numbers have just been really bad, so china keeps trying new things. people expect a lot more. i think the view is as you say, the floor is not going to fall out but it's not clear that they can hit their growth targets that easily. alix: it raises the bubble question. >> that's the thing hank paulson warned. he speck -- spoke to guy johnson earlier this week about bubbles. >> until we get back to where interest rates are determined by real economic forces, there are going to be asset bubbles.

alix: first time. he's not the only one. janet yellen -- >> right. there was there great note from citi where they talked about it, said it's bubble time and gave four basic drivers of the bubble. they talked about this new paradigm story with convincing fundamentals. it makes me a little nervous hen i see the word paradigm. alix: new normal is what they're talking about? >> yes. a surplus liquidity. there say shortage of investments. not as much high quality triple-a material as there was. so as we saw with the painting earlier this week, people are just bidding up everything the alix:right, the black -- big

guys, black rock and pimco, it's distarting -- distorting the markets because there is not enough to go around. >> right. and eau fascinating point, the financial industry it elve is a -- is fundamentally a bubble creating machine the all the managers have their bench marks they have to hit and to hit that you have to hit best performing stocks, apple or whatever, and that drives the stock prices higher and that pace -- claces them to hit their bench marks -- alix: they mentioned sectors like retailing, consumer durables, services, food and beverage. one of the top five was consumer additioncretionary. 736 million worth of inflow year to date. the leader are the energy sector. the energy e.t.f., $2 billion

worth of not- -- in flows. >> the money keeps rushing in. the hundred -- funny thing about citigroup, they said all these bubble factors, yet you have to keep buying. they said it's still too early to fight this bull plarket. the bubbly sector is like health care and discretionary. the fed isn't going to hike until later so keep buying. alix clone clone right, whatever, keep buying. retail sales were out this week. sales not great. this week we get home depot, wal-mart, target and in the middle, we get the fed minute. we get a read on how they were thinking about the weaker data. >> right. what we do have left at the end of earnings season is very retail focused the is the big

th that we saw on michigan consumer sentiment today indicative of a major slowdown? maybe we'll get more insight. alix: yeah, looking forward to it. joe, good stuff, thanks for joining me. have a good weekend. well, going to politics, ken language one -- la flmplet gone spoke with bloomberg earlier today. ken: put this conversation on hold until our president is back in private life and can i then see how much money he gives to charity? joe biden last year, will -- 400 and some grand in flk and about $2,500 chairtdable donations. very nice. let me tell you something. i'm going to be very honest. the great hedge fund guys are standouts. druckenmiller, julia

robertson,, steve mandel, david tepper. there's many more that i can't take the time or think about them. these guys are great. they have unique talent. why the hell did somebody pay $178 million for an art painting -- admittedly the guy that made it is dead so he's not making any more. but that's more than supply-demand. i submit to you in the realm of managing money, these guys, the icassos and van goghs, pizarros, they're bad. look at their records. the problem i have with the president, he's engaging in something that cannot be good for america. the rich versus the poor. that is brong. that's destructive. the thing that boggers me, everyone knows about the gift my wife and i made to the

medical center. what we'll -- people don't know are the days and nights, the hours she gives to the animal is it, the ronald mcdonald -- guess what -- i make more money every day -- let me finish this point -- i can make more money every day but the clock is running on the time i got left and when i spend that time on charity. i'm not getting it back. i want to see what this guy does in the private sector then have a level playing field match about who really cares about the poor the >> well, bill clinton is no longer president. the clinton global initiative is a massive organization the do you think they're philanthropic people? >> i don't think so. he said he as has to pay his bills. $500,000 a speesh.

hell, my wife and i can't spend that type of money. >> when the president was talking about in the remarks was -- we exsperptd was about closing a tax loophole, favorable treatment for carried interest. it would afly hedge fund managers and private capital -- did you >> but they're abiding by the law the >> i don't think the president is accusing they will of breaking the law. he's accusing them of resiffletting a sensible, what he sees as a sensible decision. close the loophole. >> he sees it as sensible. >> well, lots of other people do. >> guess who -- what? we have a representative government. let these people make sure they vote for people who will vote to change the law. >> i think that's what eyes trying to do. >> all he's doing with that demagoguery is saying rich people are taking advantage of it. guess what? he set the stages.

these are the best times in my life. i can go to certain banks and they'll pay me money to borrow money from them. go to germany. guess what? i didn't set the stage. they did. he did. al rix: watch that complete, firely interview with ken langeno at bloomberg.com. catch up d, will they to wall street? that conversation next. ♪?

here is a look at the top stories -- a federal jury says convicted boston marathon bomber dzhokhar tsarnaev will face the death penalty. they deliberated a total of 14 hours before making the decision. the defense attorney try to get an sentenced to life in prison, arguing he was under the sway of his older brother. the 2013 attacks left three people dead and more than 260 wounded. the fao schwarz toy store in manhattan is closing its doors in july. the reason -- rising rent. the store's current location is the high rent district in fifth avenue across the plaza hotel.

the closure will leave the 150-year-old brand without a retail outlet. toys "r" us owns the store and says it is looking for another manhattan location. wow, that's like a staple gone from new york! chinese hackers have forced penn state to unplug their computers in their engineering school. hackers have been sifting through computers for about two years there. the university developed sensitive technology for the navy and the research is being developed for commercial application. they could be using the university as a backdoor to commercial and defense technology. the wealthiest university on the planet is spreading the wealth. harvard pays the top six managers of its endowment more than $49 million back in 2013. that is a 50% increase from the year before. harvard has a $36 billion endowments, and last year if returned 15%, the second worst performance in the ivy league investor carl icahn has raised the stakes in the battle between uber and lyft, putting money into lyft accounting for

the round of funding. one of the managing directors at icahn's firm will join the lyft board. and silver lake's bet on alibaba pays off big time. they sold 25 million alibaba sales for $2 billion. that's nearly half its stake in the chinese e commerce company. alibaba debuted in new york last year with the largest ever ipo. netflix shares traded about 600 for the first time today. that's on word that the online video service could get their foot in the door in china. the "wall street journal" reports china could beef up the netflix subscriber base for it is folks for us and says they plan to be nearly global by the end of next year. those are some of your top stories. the s&p 500 closing at yet another record today. i want to bring in john manley, chief equity strategist at wells fargo fund management. john, so good to see you.

john clone loan great to be leer, thank you. alix:what do you make of this rally that seems dispassionate, that we have to keep making these record highs? john: you mentioned it before, when the fed pushes money for the economy, that money encroaches the capital markets. unless the earnings are awful or the valuations are extremely high, it tends to levitate docs -- stocks. and i think that is what is at work right now. alix: how do we find a value? the datapoint is not great, the economy is not great. john: i'm not sure you can find a lot of value. you can go to europe. they merging markets i think represent pretty good value. if you're looking in the united states, you not buying for value, you are buying for growth. it may be the first and second quarter, the worst quarters with seen for the s&p 500, and they get a sense of the earnings are about as bad as they're going to be pure and they tend to look down the road a little bit. i saw that happen a few times in my career. and maybe happening now. alix: s&p is now on track to deliver income growth of .1% in the first quarter.

doesn't sound that great. but we were looking for a decline of are 5.8%. how would companies over the economy do a lot better? john: that is a great question during what have they been doing for the last three years, four years? earnings excitations were growing for the s&p 500, and i think it is, number one, lower interest rates, number two, lower tax rates overseas. also i think it is technology. i think technology not only makes -- technology made all the workers in america more efficient, and corporations sort of kept all of the difference to themselves, but corporate managers know they are right or wrong, and that has got to result in higher costs. you justify don't make as many istakes as you used to, or you make as many but they're not as dear to you as they were in the past. alix: you mentioned more value in emerging markets in europe, but what about international exposure, shunned the stronger dollar? john: currencies go up and down. dollars are a commodity, and commodities go up and down.

the dollar has been strong for a number of reasons, one of the reasons that we are stronger than europe. the weak euro tends to help european exports, tends to help the european economy, european banks are starting to lend. at some point in time, we get the currency back and get it back to the states because now we have stronger trading partners down the road. it is not only the dollar going up forever. the dollar is a medium of exchange, and i think the market clearing, i think we can transfuse some of our strength into europe, and that may come back. alix: john, always great to have you, john manley. julie hyman at our breaking news desk. jules? julie: thank you, alix. we had a listeria outbreak in lue bell ice creams. they will fire or furlough almost 3000 workers after it shut down production. 1400 employees will be furloughed, and additional 1450 will be laid off.

that is according to the texas-based company. the company is also cutting salaries in the meantime. "bloomberg market day" will be right back. ♪

alix: welcome back to the "bloomberg market day." i am alix steel. 13f filings came flooding out today. our senior markets correspondent is next to me in person. i can touch her arm. you are real! julie: as opposed to a torso sitting at the debt secured one of the things that emerged after david einhorn called the -- pie on reer natural "the mother fracker" and making the case against fracking, we've seen a bunch of investors come out and make the opposite side of that trade.

stan druckenmiller, each of them taking on a case, empire natural resources specifically, taking stakes and the one that einhorn specifically targeted, druckenmiller also took a stake in eog resources, also some of the other fracking companies. pioneer valued at $518 million. so it's also a pretty sizeable stake. dan loeb reduced some of his phillips 66 holdings, he bought into a company called clayton, so it's sort of a mixed bag, as it tends to be as we learn from the filings. alix: in terms of philip 66, that is a refiner, so as oil prices rise, that gets squeezed. to make a distinction between that and the shale, that will be a different beneficiary. julie: right, talking about the whole energy complex not just the fracking. druckenmiller had already made some of the other comments.

some of the other fund managers have been sort of vocal that they disagree with einhorn. just to be clear on what the filings do for us because i feel like we always need this disclaimer, right? they come out, they give us a snapshot of where the holdings were at the end of last quarter. they could have tweaked them to some degree since then. you don't know. alix: and they don't just disclose short positions, either. julie: or options positions. there is a bit of wiggle room for these guys. nonetheless, when you are talking about someone like druckenmiller or someone like a berkshire hathaway, whose filings are starting to come out, they tend to be more buy and hold stocks. and dan loeb has a reputation of being a trader. if you are one of these people who try to follow and mimic what these investors are doing, there are a lot of caveats that you have to take into account. these are some of them.

you have to know the stock worth investing. the particular person involved. you have to, you know, sort of track them quarter after quarter. alix: to your point, i looking at pioneer resources. the stock is down almost 10% in all of me. -- may. you have to wonder for a trader like a dab -- lan -- dan loeb, really comes down hard on this company, calls it a "mother fracker." you might like the company, but hey, you will trade out of it. julie: or the opposite, maybe you see an opportunity because it has been pushed down by all of the talk. he also look to the outlook of oil prices, which would factor into how some of these trades, a lot of them do trade in tandem with oil prices. speaking of oil prices, it was n interesting day as we were watching what unfolded and how these stocks were trading because you look at the energy group,

it finished the day up, but really we saw some volatility there, just as we did during the week. for the week, it was a pretty volatile week overall across asset classes, whether looking at stocks, bonds, oil prices. as investors are waiting a lot -- weighing a lot of different elements to the economy, what is going on europe, trying to extrapolate what it means for the federal reserve -- alix: the federal reserve has applications overseas as well, which is perhaps why we have volatility over there because it will depend on a stronger euro, weaker overall demand globally. what will you do for the ecb in their policy? a lot of implications ringing it out. julie: exactly. we are still getting out some of the 13f's. we will try to update you on what is important and what is not because a lot of it involves a little tweaking of long-held positions. berkshire hathaway -- soros, david temperatureler drs alix: they have a stake in

aol. interesting. julie hyman, thank you so much. we appreciate all of the details. that wraps it up for the "bloomberg market day." have a great weekend, everybody. i will see you on monday. ♪

♪ >> from our studios in new york city, this "charlie rose. brian is here. he has an hosting late-night television since 1993, when david letterman steps down next week conan will be the longest-serving host of late-night. it is a landscape undergoing dramatic changes both in terms of its host and how it is being consumed. it was the first time a late-night host taped show in cuba since 1959.