you are looking at markets closing. the dow is up by 1750. the nasdaq is the weaker index of the day. they are waiting on the s&p. and you have oil prices sliding. material prices weighing on the s&p as well. what gives with these bargains today? i'm going to bring in lisa abramowicz, jeremy hill. it seems like the big data that permanentoday was housing starts, 20% unemployment 10%.%, unemployment at

it seemed like the market interpreted that as the rates going up later. do you agree? i think september is reasonable. september or later. smallusing sector is too to save the economy from the larger downdraft we're seeing elsewhere with consumer spending, investments, and the that is moving into contraction due to be stronger dollar. i do not think we will really change. the treasury at market today, what happened there? lisa: the data basically has bush people's expectations. actually did see a meaningful increase in the expected rate in december.

they bring forward their expectation for when the fed would hike rates. should beod data perceived as non-in their portfolio as things to look at. alix: we do have breaking news about yahoo!. we're watching that stock temple. julie? answer for whyn those shares are diving in the final 15. there was a report in what some call the economic information daily. they were considering whether to raise the import tax on so-called e-commerce companies to ensure their trade. this is coming from an unidentified industry per to submit. this is economic information daily. currently looking at the 10% tax rate on imported goods. you see those yahoo! shares really taking a sharp hit. on the flip side, if you look at

alibaba shares, they actually spiked on the same headline. the magnitude is not the same. we did see a big gain in alibaba. beertheless, china might raising the import tax on e-commerce companies crossing the border. we definitely saw that reaction. jeremy, we were just talking with lisa about the bond markets and the rate hike. ?hat is the danger jeremy: i think a june read hike .s unlikely one thing to consider is everyone is focused on the fact that the velocity of the hiking will be very, very low. it will still be very gradual.

caresnd market actually about that. i am not convinced that people will automatically shoot out and the rates will rise as fast as people fear they will. alix: it is an interesting point. home depot talked about the rate hike on their call today. this is what they said -- it is suggested that interest rates could rise to hundred basis points and the affordable -- the affordability index will be 200 points -- would still be north of 100%. but we do not sunni long-term pressure on our near-term business. lisa: tunic said they are right. it will not make or break your decision to buy a home. alix: at the end of the day.

earnings just crossed. jules, what have you got? julie: $.84 -- it is not clear if those estimates are for a newly traded company. you do not tend to have all of these. to eight and a half million dollars. the company is also talking about active sellers and buyers. the year over year active fire. it looks like -- active buyer. the shares at how are trading, you can see behind sea shares.at -- etsy shares. ipo at 16 bucks a

share. they have declined a little since then, but they have more or less maintained that gain. we do not see them decline from this level. has some questioning whether counter fight -- counterfeit merchandise is being sold. thank you so much, julie. active buyersning and that brings us to numbers we have seen in retail. some numbers have been good. some have not, like in walmart. what gives, guys? prices.ower oil you're going to have payback with the gas tax. jeremy: i think it is still too early to declare the -- : i think it is still too

early to declare the death now. i think the consumers have to have the opportunity to spend the money. we haven't unanticipated increase in savings, and probably that will soon be liquidated, but that me have just happened -- that may have just happened. with the walmart -- excuse me, think thatstory, i they are getting to the point where they can call the bank and say, hey, can i get that loan to remodel my kitchen or expand the house, and they are finally tapping into equity. alix: as long as house prices are expensive, i guess home depot made the point that is long is your house is worth more than $200,000 you are still doing well. jpmorgan did make a lot spending on different stuff. jeremy: i think people are

spending more for experiences. alix: then home depot? what? [laughter] germany: that's not an experience? anyway, what i mean by that is it goes into what is an immediate purchase for the consumer. the technology transitions, and as we have these additional opportunities, people are buying more with netflix rather than going to a retailer. really, part of that is it is wage pressures. for six years, we've had this interest rate policy. eventually we will have wage pressures, and consumers will benefit more now than ever. he just really want to get out there. autodesk earnings. jules? julie: autodesk really the most

important thing. they came out with earnings that beat estimates. they are also cutting their forecast for the full year, seeing second quarter earnings that are sharply below what analysts had been anticipating. the forecast had been a gain of 3% to 5%. sharejusted earnings per are at most $1.10. analysts had been looking at one dollar $.17. they are cutting their forecast in the shares are falling as a result of that. keep hearing about how companies are doing better, but these results are not echoing it. : retail sales or goods. thesis will be the summer driving season, vacation season, airlines, all of these categories. we will have to see what that looks like in the first half of this year. alix: it will be just fine.

ok, if you look at the market action -- the euro is tumbling versus the dollar. i was kind of puzzled with this. it's the same amount of money for the whole program. what is the difference? jeremy: i think what markets paid attention to is -- by the way, the one who has come close to these -- he came out and said, all right. they are going to be more flexible with their program. at the same time, you had a little bit of a ringer. french bank president came out and said if we do not hit our inflation targets, we're going to go all into this qe.

i think that out to was very important. also two weeks ago people were questioning when the ecb would step away from their quantitative easing program. all of these questions are way out of the water. this u.k. data came out. inflation dropped really low. the european markets are moving the exact opposite direction. alix: right. the grease bumper. carl, lisa, thanks a much. jeremy, you are staying with me. ♪

alix: welcome back to the bloomberg market day. i'm alix steel. let's look at the top stories this afternoon. has reached an agreement

with regulators. the transportation company is looking at possible causes for the failure of airbags. they have expanded their recall that extends to 11 manufacturers. sales soared in april. the increase, 20%, was the greatest in years. senator elizabeth warren wants release to demand the of a draft of president obama from trade deal with european nations. she expressed concern on capitol hill. warren: for me, this is about protecting american workers, protecting american ability to write environmental regulations, and health and safety. any tradeand says

deal would not be considered under fast-track. the presidentows to submit deals to congress without the threat of an amendment or filibuster. candidate hillary clinton also weighed in on the partnership agreement. hillary clinton: i have been for trade agreements, i have been against trade agreements. i have tried to make the evaluation depending on what i thought they would produce and that's what i'm waiting to see. meanwhile, they recommended it be made available in a really basis. and the forces with star wars creator george lucas. he made a $2.2 billion paper profit on disney stock that he received in exchange for the rest of the star wars franchise. those are your top stories. annualington, the sixth

peterson foundation summit. market day anchor betty liu ande with richard fisher former fed chairman alan greenspan. here's what they had to say. >> we have been taking money out of the market. it is closer to the 10-year level. treasuries -- as some point, you have to pay the piper. the real issue is what happens when interest rates go up? they would be increasing gradually. but we have been suppressing yield for -- they have been suppressing the yield curve. i think this is a ticking time bomb. i will let alan answer. ok, alan. by the way, are you going to let

him rip you like that? greenspan: [indiscernible] it might send him to the hospital. [laughter] first of all, there's a certain on realism. markets will anticipate well in advance. we are looking at this critical issue. and fixed interest rates. once you start down this path, percent,t get the 4.5 five percent rates. you get much higher rates. when you have this system, which -- we are waythis underestimating the debt as of now. we are not including what i would call contingent levels,

what is is the issue -- the probability that in today's --ironment that you could and default? the answer is zero or less. alix: we're back with our guest. what is it you're take -- your take? to be honest, richard fisher knows a lot more about rates than i do. he has been hawkish. obviously, i think that would have been a mistake. i think we are in a sweet spot right now. my guess is the fed really wants to raise interest rates, and i think taking june off the table as an exercise in abstract thinking is the wrong place to be for markets. there is a risk, and we have a great jobs number coming up. wayave cpi data that is

under consensus, .1% right now. obviously these things can change. but they are not priced into the markets. alix: thank you so much, jeremy hill. thnaging partner, old blackhea companies. jewels? julie: computer science -- one -- public-sector clients -- this is the same time the company came out with estimates, atbeat least earnings per share numbers. there was a consumer report this would happen last week. we will give you other details after the break. ♪

weie: i am julie hyman and have an update on the breaking news from computer sciences. the company splitting into two.

one will be a global commercial company. the other will be a u.s. public service sector company. this is after they came out with earnings. also it will pay a special cash dividend to shareholders. that will be following the split. way, the potential reported by reuters late last week. on shares we're watching. hares, a loss of $.84 per share last quarter, revenue of 58.5 million dollars. they rose a lot in their first day. down inen it has traded the shares are trading lower at the moment as well as a result of these earnings. they are down, you can see, by

almost 11%. finally, i wanted to bring you an update on yahoo! sharplyhose shares fall before the close of regular trading. we told her there was a report in a chinese newspaper that the company was considering some sort of increase in import taxes on global commerce companies that do cross-border business. it seems there might have been another reason actually for yahoo! to be falling. the irs considering changing its ruling practice for spinoffs of trade businesses that are small compared to other assets in a corporation. this is something that could affect yahoo!, according to someone making a comment at a d.c. bar association of it today. it is unclear exactly what was affecting younger shares, but now there are a couple of choices. it may have been the irs story that was more the culprit than

the chinese tax story. alix? julie, thank you for the insight on those companies. elizabeth warren has become the democratic party's most dominant critic of trade legislation, pitting her against president obama. to our chief spoke washington correspondent peter cook. elizabeth warren: [indiscernible] they have said basically the same thing. this is going to be a great deal for american workers. this is going to be a trade deal that is going to work for american families. , presidents, both democrats and republicans, have turned around and refused to enforce the provisions in the trade deal they said would be so great. the consequence of that is american workers -- punch right

after another right to the gut. the president says, senator warren, i hear you, but this deal will be different. he has called you a politician like everyone else, that your arguments do not stand the test of scrutiny. has he crossed the line in his criticism of you? me, it's alln: for about what is best for this country. we talk about transparency. there has not been enforcement of these trade positions. wherek about these panels big corporations can go and have corporate lawyers decide whether or not we get judgments against taxpayers at home. but there are 13 in history that have reached judgment in the united states. for 50 yearsn:

they really were not a big deal. they have taken off, peter. in 2012 alone, there were more than 60 in that year. alix: our thanks to chief washington correspondent peter -- ass willis senator well as senator lugar with one. that wraps up the bloomberg market day. have a good day, everyone and we will see you back here tomorrow. ♪

>> tech companies including apple and google joint forces urging president obama to protect your data. we will take you to the front lines to ensure your safety while also protecting your privacy. emily: i'm emily chang and this is "bloomberg west". google and twitter make up. google can now see your tweets. we will tell you what the partnership means. mark zuckerberg facing backlash. i will introduce you to the accusing facebook of being misleading.