data's day to shine. she is going to speak in a few moments. we will find out what she has to say about the economy while in today's report that showed inflation is rising more than expected. another round of talks on the greek crisis ends with no deals. greek finance minister may see a parallel currency. at the boxer sequel office. we will tell you why more studios are turning to the and remakes instead of being creative. ♪ betty: this is "bloomberg markets pick up the up breaking news on fed chair janet yellen. i want to get to peter cook, our chief washington correspondence with highlights of her speech. peter. headlines is that it is most likely that

the fed will be raising interest rates is year. she is not move her timetable to 2016. the reason for that is that she thinks the economy is improving. she will say specifically in the speech that it will be appropriate in this year to ande the funds rate target begin the process of normalizing monetary policy. to do that, she needs to see continued improvement in the labor market. and she needs to be reasonably thatl and -- confident inflation is moving toward its target. she makes it clear in the faint starts to read -- fed starts to raise rates that it is a normalized process. maximum price facility -- stability it would be achieved cautiously which would mean several years before the federal fun rate would be back to its normal longer run level. , betty.aise its rates it may sit on its hands to

decide when to move next. as to why she is so confident in the fed can raise rates this that she is convinced still but the slowdown and this corridor was due to temporary factors. she specifically says again that my guess of this apparent slowdown was a variety of transitory factors that occurred at the same time. she mentioned the west coast ports, the what, statistical .oise i therefore expect economic data to strengthen. janet yellen has confidence in the u.s. economy, but she makes it clear that we are not at full employment there. she said that exquisitely. one thing to continue to watch is improving labor markets. inflation moving which iowa is starting to do. -- is stilln convinced that there is a liftoff based on the current state of the economy. betty: it sounds as if you say that she is sticking with what she has noted before. she is takings

questions that the speech that some of the questions might revolve around how this gradual pace of tightening is going to be executed. what is it going to look like? peter: i think she has made clear in the past and i think she will again in the speech that it will not be like previous tightening cycles, where we saw quarter-point moves every single meeting. we are going to look at what is happening with the economy and adjust as needed. we could take a couple meetings off. that is basically the message here. she has said this before, betty, and she has delivered messages to press conferences as well. public form it in at a time right now where she says, listen, we are going to start to raise rates, but we are not going to raise rates at a measured rate in the past. torealize there is risk tightening at this moment in time when there are questions still of the u.s. economy. betty: peter, standby. i know we are going to be

listening for her remarks. he got the highlights from peter cook. a quick check on how the markets are reacting to this. it is not divergent at all from what she said before. matt: want to look at the bond market right away. we were at 222 before. now we are at 221. the cd yields coming off a little bit. the concern is that investors create something like a temper attention in the bond market. you don't really see that going on here. not a lot of movement obviously. it will be interesting to see the q and a session, more interesting the statement. we have a couple of experts here. it is the total lack of reaction. tell us if we're going to see any more later. betty: lisa abramowicz is our bond guru here. heare just waiting to

janet yellen actually speak. as matt says, it does not look like a big reaction right now. it's pretty much what she said before. we did see big reaction to the inflation number though. higher-than-expected core rate today. it reaffirms the idea that the fed is making progress and making progress toward inflation goals. she makes it clear that we are not there yet and only just beginning. it ratifies the market view that they are going to do something here. he saw the reaction already president gave you don't get as much on top of it with her speech. lisa: i would say shia, circle in the speech. we will see if she can continue and let that carried through in the q&a. if she had said something that was truly market moving, can you imagine gekko a? at 1:00, when it is a long before thee hour bond market is closed, really slow volume.

and crazyf volatility spikes that we could see would be pretty dramatic. yellenyou think janet picks and chooses her words on what she expects the market reaction to the? be? mike: they clearly are watching the markets. matt: are the markets play puppet master to janet yellen? china to do isis deliver a message without causing a lot volatility. she was to get the message across without hurting the reason for a major trade. we are talking earlier -- imagine the nightmare scenario. you are a major trader with a reservation to the hamptons and she is late. she also made her comments with the least reaction or the most logical reaction from the market. she should really do it like early saturday morning. interest markets are closed. mike: you're going to have a light trading this afternoon. you're going to get more

volatility than the ordinarily would. betty: here's my question. is she ever going to be able to um when theyer tantr start to raise rates? lisa: they're hopeless the economic data will be so supportive that people will have priced in that rate hike before it happens. will basically say, look, we know what your intention is. you will not follow this up with a dramatic rate hike next month. i think the biggest issue for them is how do they communicate more clearly a time frame without saying two months after sometime. betty: hang on one second because janet yellen is approaching the petroleum -- podium in providence, rhode island. : the city i see today is different from the one i see in the 1960's. many of those differences reflect the economic changes in rhode island over those years.

especially since the financial crisis and the great recession. as for providence to face these challenges, i am impressed by the revival and renewal evident in downtown, encouraged by at traction flight water fire, which brings visitors and newcomers and builds civic pride. today i would like to speak with you about the outlook for the u.s. economy. i should note at the outset that my remarks reflect my own views and not necessarily those of others in the federal reserve system. as you all know, the economy is still recovering from the great recession. the worst downturn since the terrible episode of the 1930's that inspired its name. the recession began more than seven years ago, the result of the collapse in the housing market and the financial crisis that it's part. -- it's part.

rhode islanders are well aware of the great toll of the recession. the unemployment rate hit 10% nationally and reached 11.2% here in rhode island. nationally, payroll shrank by some 8.5 million, about 6%. in the 41,000 jobs lost in rhode island represented close to 8% of the state's employment. u.s. economic output fell more than 4% nationally, the most since the great depression. many of the hardest hit industries, including housing, construction, and manufacturing, are important to the rhode island economy. actioneral reserve took to help stabilize the financial system during the crisis. and we have supported the economic recovery with monetary policy actions designed to hold down longer-term interest rates. with this help, the economy has made significant strides.

the pace of job gains has gradually strengthened and payroll has expanded by more than $3 million in 20 14 alone. -- employment rate unemployment rate has come down steadily to 5.4% in april. one sign of a stronger labor market is that the number of job openings has risen and presently. -- and presently. the other is that more workers are quitting their jobs, singling -- signaling more confidence in their ability to find a new job. rhode island shares in this recovery, but i'm well aware that economic conditions remain difficult here. rhode island's unemployment rate improved a slowly during the recovery. and for a time, it was the highest of any state. the jobless rate has come down a lot over the past year or so, but unemployment here remains above the national average. in payroll, employment has yet

to regain its prerecession peak. in recent months, some economic data has suggested that the pace of improvement in the economy may have slowed. the topic i will adjust in a moment. -- address in a moment. even with the significant gains in the past couple of years, it is only now, six years after the recession ended, that the labor market is approaching its full strength. because in mying judgment, we are not yet. the unemployment rate has come down close to levels that many economists believe is sustainable in the long run without generating inflation. the unemployment rate today probably does not fully capture the extent of slack in the labor market. to be classified as unemployed, people must report that they are actively seeking work. people without jobs say they are not doing so.

that is, they are classified as being out of the labor force. most people out of the labor force are there voluntarily. including retirees, teenagers, young adults in schools, and people staying home to care for children. but i also believe that a significant number who are not seeking work still perceive a lack of good job opportunities. tooddition to those discouraged to seek work, an unusually large number of people report that they are working part time because they cannot find full-time jobs. and i suspect that much of this also represents labor market slack that could be absorbed in a stronger economy. finally, the generally disappointing pace of wage growth also suggest that the labor market is not fully healed. costs fores reduce

employers cost, but they also boost the spending and confidence of consumers. al the strength of recovery that would ultimately be good for business. the main measures of fair compensation rose to the rate of only around 2% through most of the recovery. in rhode island, average hourly earnings have not risen at all in the past year. that are at least some encouraging signs of a few pickups so far this year. some large companies such as walmart and target have announced wage increases for their employees also might be a sign that larger wage gains on the horizon. this improvement in the labor market has brought the economy closer to one of the two goals of monetary policy assigned to the fed by the congress --

maximum employment. this progress has been made to priceder goal -- ability. consumer price inflation remains below defense stated objective of 2%. fed's stated objective of 2%. the notion that inflation can be too low may sound on, but over time, low inflation means wages as wallace prices will rise by less. and very low inflation can impair the functioning of the economy. for example, by making it more difficult for households and firms to pay off their debts. overall, consumer price inflation has been especially low, close to zero over the past year. fall in oil prices lower prices for gasoline, heating oil, and other energy products. but inflation excluding food and energy, which is often a better indicator of where overall

inflation will be in the future, has also been low, below the now and objective for for almost all the economic recovery. inflation has been held down by the continued economic weakness during the slow recovery and more recently by lower prices of imported goods as well fall in oil prices. with oil prices no longer declining and with the public's expectations of future inflation apparently stable, my colleagues on the federal open market committee and i believe that consumer price inflation will move up to 2% as the economy strengthens further and as other temporary factors weighing on inflation receipt. a number of economic headwinds have slowed the recovery and to some extent they continue to influence the outlook. these headwinds include first

the fact that the housing crash left many households with less wealth and higher debt weighing on consumer spending. many homeowners lost their homes and many more ended up underwater, owing more on their mortgages than their homes are worth. economists have noted that areas of the country that saw a larger boom and bust in housing have subsequently fared worse economically than other areas of the country. rhode island is one such place. while the housing bust was not as large here is in florida, nevada, and parts of california, it was larger than average in the largest in new england. this factor is likely contributed to the fact that the overall recovery here in rhode island has lagged. in some respects, this headwind has diminished. home prices have moved up

appreciably in many areas of the country, alleviating the burden for many homeowners. both the improvement in some areas, including rhode island, has lagged. nationally, the share of mortgages that are underwater, filled by about half between 2011 and 2014. forcredit availability mortgages has improved as well. although mortgages are still very hard to obtain for would-be homeowners without pristine credit records. so i would score this headwind still a concern, and one that is likely to fade. the second headwind, also quite important here in rhode island, has come from changes in fiscal policy to reduce budget deficits. at the federal level, the fiscal stimulus of 2008-2009 supported

economic output. but the effects of that stimulus fated. aded/ . by 20 11, that outlook became week. states and municipalities faced with budget problems due to the recession and required by law to bouncer budgets were forced to cut spending and raise taxes. now boosted tax revenues in most states. is among island i know those areas still facing budget strain. overall, fiscal policy action in and feet federal and state local levels look like they are no longer as significant a drag on economic growth. this headwind i hope is mostly

behind us. headwind has been the restraining influences on the united states from the global economy. i won't say as much about this factor today, but i will make just a few observations. initially, the euro area crisis was the biggest headwind coming from the rest of the world. supported by monetary stimulus, reduced fiscal drag, and significant institutional reforms, the recovery in the euro area now appears to be on a firmer footing. however, growth and many other parts of the global economy, including china and some other emerging market economies, has slowed. abroad together with implications for exchange rates has dented u.s. exports and weighed on our

economy. this headwind should abate as growth in the global economy firms, supported by monetary policies that generally remain highly accommodative. with the waning of the headwinds that i have discussed, the u.s. economy seems well-positioned for continued growth. households are seeing the benefits of the improving job situation and consumer confidence has been solid. in addition, the drop in oil prices amounts to a sizable boost in household purchasing power. the annual savings in gasoline costs has been estimated at about $700 per household on average. costs,ngs on heating especially here in the northeast where it was sort so cold this winter, are also large.

you these energy savings on top of the job gains, growth in disposal income has risen almost 4% nationally over the past four quarters. and businesses are also benefiting from favorable financial conditions. borrowing costs are low. supported by the feds accommodative monetary policies and credit availability to both households and small businesses has improved. months, as i noted earlier, there has been some softness in the economic data. recent indicators of both household spending and business investment have slowed and industrial output has declined. the commerce department's initial estimate was that the real gross domestic product was nearly flat in the first quarter of 2015. if confirmed by further estimates, my guess is that this

apparent slowdown was largely the result of the variety of transitory factors that occurred at the same time, including the unusually cold and snow we winter and the labor disputes at ports on the west coast, both of which lightly disrupted -- likely disrupted some economic activity. to some, this apparent weakness may be due to statistical noise. i therefore expect the economic data to strengthen. all that said, the headwinds facing our economy have not fully updated and as such, i expect a continued growth in employment output will be moderate over the remainder of the year and beyond. despite the recovery i noted in home prices and a greater number of home sales, residential construction activity remains quite low. i mentioned the ongoing issues

with mortgage credit, but more generally, many years of a weak job market and slow wage gains seem to have induced many people to double up on housing. and many young adults continue to live with their parents. population growth is creating any of for more housing whether to rent or to own. the continuing job and wage gains will encourage more people to form new households. in theless, activity housing sector is likely to improve only gradually. the pace of business investments has also been only modest during this recovery. and some of the reasons might persist it will -- and while longer. businesses seem not to have had confidence in the strength and durability of the recovery to undertake substantial capital expenditures.

moreover, some analysts have suggested that uncertainty, not only about the strength of the recovery but also about economic policy could be a significant factor. and the fact that many businesses seem to be holding large amounts of cash may suggest that risk aversion is playing a role. weak investment in the energy sector is also likely to persist. this represents the negative side to the fall in oil prices and is one being felt by the oil-producing regions of the country. drilling hasoil plunged over the past few months and we have also seen the slowdown in activity and sectors that supply oil production companies, including steel and certain types of machinery. that onadd though balance the pluses for energy consumers from the falling oil

prices almost surely outweigh the minuses. a neter that we are still importer of oil. putting it all together, the economic projections of most members of the fomc call for growth in real gross domestic yearct to roughly 2.5% per over the next couple of years. it little faster than the pace of recovery thus far. with the unemployment rate continuing to move down to near 5% by the end of this year. and for inflation, as i noted earlier, my colleagues and i expect inflation to move up toward our objectives of 2% as the economy strengthens further and its has -- transitory influences wane. the economy is always highly uncertain. i describe the outlook i see as most likely. based on many years of making economic projections, i can

assure you that any specific projections i write down will turn out to be wrong. [laughter] perhaps markedly so. for many reasons, outlook in job growth could prove stronger and inflation higher than i expect. or correspondingly, employment could grow more slowly and inflation could remain undesirably low. andn this economic outlook the attendant uncertainty, how's monetary policy likely to evolve over the next years? because of the substantial lags and the effects of monetary policy on the economy, we must make policy in a forward-looking manner. delaying action to tighten monetary policy until employment and inflation are already back

to our objectives would risk overheating. the economy. for this reason, if the economy continues to improve as i expect, i think it will be appropriate at some point this year to take the initial steps to raise the federal funds rate target and begin the process of normalizing monetary policy. to support taking this step though, i will need to see continued improvement in labor market conditions and i will need to be reasonably confident that inflation will move back to 2% over the medium term. after we begin raising the federal funds rate, i anticipate that the pace of normalization is likely to be gradual. that areadwinds still restraining the economy, as i said, will likely take some

time to fully abate. and the pace of that improvement is highly uncertain. if conditions develop, as my colleagues and i expect, then the fomc's objectives of maximum employment and price stability would best be achieved by proceeding cautiously. mean thatpect would it would be several years before the federal funds rate would be back to its normal, longer run level. having said that, i should stress that the actual course of policy will be determined by incoming data and what that reveals about the economy. we have no intention of embarking on a preset course of increases in the federal funds rate after the initial increase. adjustwe will monetary policy in response to developments and economic activity and inflation as they occur. if conditions improve more

rapidly than expected, it may be appropriate to raise interest rates more quickly. conversely, the pace of normalization may be slower if conditions turn out to be less favorable. , let me putclude this discussion into a longer-term context. reserve's objectives of maximum employment and price stability do not buy themselves ensure a strong pace of economic growth or an improvement in living standards. the most important factor in determining living standards is productivity growth, defined as increases in how much can be produced in an hour of work. increases sustained in productivity are necessary to support rising incomes. here, the recent data has been disappointing. the growth rate of output per hour worked in the business sector has averaged 1.25% in the

year since the recession began in late 2007. this is down from gains averaging two point 75% over the previous decade. i mentioned the pace of wage gains in recent years. this is evidence of slack in the labor market and a reflection of relatively weak productivity growth. productivity depends on many factors including the workforce and skills and the quantity and quality of capital, technology, and infrastructure that they have to work with. economistsbate -- debate about the productivity prospects. some argue that the deck is starting in the 1990's was exceptional with unusually large advances in information technologies and that the more perio provides a better

guy to the future. others ared more optimistic suggesting that technological innovation remains as impressive as ever and history shows it might take some years to fully reap the economic than if it's innovations. i don't know who is right, but i do believe that as a nation we should be pursuing policies to support longer run growth and productivity. policies to strengthen education , to encourage entrepreneurship and innovation and to promote capital investments, both public of private and can also be great benefit. it is also possible that a portion of the relatively weak productivity growth we have seen recently may be the result of the recession itself. as i noted earlier, the

increases in investment during the recovery have been modest. in particular, investment in research and development has been relatively weak. financinga lack of may have impaired the ability of people to start new businesses and implement new ideas and technologies. as the economy strengthens further, many of these processes could work in reverse, boosting our productivity prospects. to the extent that this is so, federal reserve actions to strengthen the recovery may not only help bring our economy back up to its productive potential but also it may support the growth of productivity in living standards over the longer run. net me stop there and again thank you for the chamber for andting me to providence

for the opportunity to speak to you this afternoon. thank you. betty: that is fed chair janet yellen wrapping up her speech to the greater private's chamber of commerce in rhode island and she is not taking questions. i want to get a quick take from our chief washington correspondent, peter cook. what do you make -- you know that you go into the highlights of her prepared remarks but what did you make of her delivery and also the market reaction as well which was really no reaction rubio moment, she needed a little water about halfway through there. be a fed chair. the reason we are not seen a huge market reaction is that she did not stray from the headline. i think it is fair to say that she has honed their deadline a little bit more precisely and

has basically taken june off the table entirely as we have seen from the most recent fed minutes. two things that they will move this year. in case wiggle room things, they can go for the worst. they would like to move them off that zero balance and see what happens. economy in thee first quarter. is doing better and maybe inflation is moving back up to their target. matt: -- set up a quick note, he is gone through the entire testimony and she says, nothing new and then i found very interesting the last line, the fed continues to express a blatant fear of raising rates. what do you think about that?

lisa: they don't want the first rate hike to indicate the market, they will quickly raise rates. they will take a very moderate approach. they are looking at the data is could pose a problem because frankly one of rate hikes does not tempt town volatility. -- damped down volatility. matt: they are clearly worried about the markets. betty: it doesn't seem like anybody is having a tantrum. while she was talking, we are approaching record highs. lisa: a looks like a lot of

traders already went to the beach. the s&p broke into positive territory. all of the benchmark indexes are little kinks. the nasdaq is trading above its all-time record close. as we hold onto these levels we will have a new record high close for the nasdaq. initially we saw the yield on as tenure move up by as much five basis points. it is up to basis points and trading at of 2.21%. but show you what is happening to the dollar. the dollar a little bit stronger after that report came out. the big move of the day was cpi. core inflation came out this morning. that is the short line vertical line. biggest month the over my increase since january, 2013. oil prices coming down a little bit today but still on track to

post a weekly gain. in fact, the longest stretch of weekly gains for wti since they started keeping records in 1982. baby: -- betty: olivia sterns on the markets. even though they're not doing anything. lisa: it was interesting that she did not raise financial .tability in the speech there were a lot of prominent points that struck market participants. there was a clear concern about asset bubbles, about what would happen if rates to rise, how liquidity and the structure of the bond market was a stand at the change. they were trying to know to congress to do something to foster long-term growth and development in education.

mike: there was a message buried in here, which she said before. andre going to be very slow gradual, we are not on a preset course, don't expect a big rate rise. we've got to get offs euro but we will not do it very quickly or very dramatically. it hasn't begun to sunken. that is something that they keep repeating. matt: a lot of market participants do not expect rate rises ever. why is it so hard to convince them that you will only raise 12 and half basis points and leave it? mike: probably because of past history. people assume it will continue. they start trading. 25 basis point moving will not affect the economy one way or the other but the idea that you have now shifted into tightening one changes the psychology

wall street. matt: why rhode island, why was she there? she even addressed that the rhode island economy was weak. mark: -- bye: she was asked to appear senator jack reed who is the number two democrat on the banking committee. the banking committee is marking up a bill that would roll back some of the fed's powers. she's carrying a little favor. a democrat says, hey, you can give me a favor, down the road, -- matt: i will give you a speech if you do this legislation for us. betty: peter gave us a good version. michael is giving us the cynical bad version. lisa: it does matter if they

hike rates first. i was talking to -- at bank of america and the policy would stay if they would raise once again. ever hike basically, it would show that the economy was not strong enough to handle a true rate hiking cycle. don't think they would do that. once they start, the economy would be strong enough. betty: thank you so much, mike mckee, and lee said. matt: are you leaving? betty: i am leaving. matt: she has an hour off and i'm excited for the rest of the program. it is a massive weekend for motorsports. the indy 500 is on and there has been a lot of crashes in this series lately, so we will talk about that. the monaco grand prix is on this weekend.

two of the three races in the triple round of motorsports happening in the next few days. that is probably why there is not so much market reaction to janet yellen's speech on the economy. stay with us. ♪

welcome back to the bloomberg market day. i want to get a check of the markets with julie hyman. has there been any reaction yet? julie: there hasn't been a lot of reaction. the janet yellen tell us

anything we didn't know? not so much. we are heading into the holiday weekend, i'm looking at volume right now that is running more than 20 said low that 30 day average or the 100 day average. a lot of folks have gotten out of dodge and that is reflecting what we are seeing in the session. take a look at what is going on in treasuries. much more of a factor than the yellen commentary was the cpi that we got earlier today. at ther inflation rising core level in the fastest pace in two years. that seemed to catch the market off guard. treasury yields move up. a similar situation with the dollar versus a basket of currencies. it is trading higher against all of the g 10 currencies and it has been since we got that data a little bit earlier. quest diagnostics, we had a spike after someone tweeted

about a takeover approach. speculationkeover in the market. quest diagnostics has stayed higher. those shares of the best performers in the s&p 500, they are up by about 8%. let cord which was mentioned in the speculation, though shares maintain their games, although not nearly as much as we have seen those shares up. matt: there's a lot of movement in the markets and kind of died off as everybody boarded the check to the hamptons. more details about the upcoming split into two separate companies. that separation is going to cost billions of dollars. hp losses -- launches another round of restructuring. cory johnson joins us from san francisco.

what is going on with the enterprise group? corey: it is like any other group in hp, it is sinking. it is stick it were slowly and that expected. the gains have sold off a little bit. they beat expectations and they have guided wall street two. they were bad. the company has 7% less sales. it is the worst decline they have seen in a year and a half in six quarters. hpry single product group at saw declines. , itin the enterprise growth is getting worse or worse at hp. gotten worse and worse and worse. enterprise again, down 1% year over year. no gains now in three quarters

in a row. that is a big deal because they want to split off the enterprise business, they want to focus on things like software. software is getting worse as well. so is free cash flow. the free cash flow for this company is also declining genetically over time, only $700 million in the last quarter. matt: wall street tends to look at the numbers, the profit numbers, can you still say x items mean like taking out restructuring costs and every single quarter? : if you go back to the year 2000, you were like seven years old. they have been restructuring every single year. they've done over $16 billion in

restructuring. wall street might look at a quarter in restructuring. as they had been doing since the year 2000. this is a business that has been in decline with the brief exception of what mark hurd. and what you see from this company is they are trying to find their way in a much smaller way. matt: i started here in bloomberg in the year 2000. i heard someone use the word google as a for. thank you so much for joining us. we will turn to sports, a big weekend in my favorite sport, car racing, the indy 500 in indianapolis and the monaco grand prix, monte carlo, both taking place this sunday.

sports team, scarlet fu, is in a different sport than i am. you are more of hockey, soccer. scarlet: of late, that is true. they do take a lot of dives. matt: never for any reason. two out of the three in the triple crown. scarlet: it is not really call the triple crown, isn't? matt: it is. you have monaco, lemans, and the indy 500. i thought the race at monte carlo was the most dangerous. that thereck and saw has only been one fatality of monaco. there has been seven realities at the indianapolis motor's way.

that was just in the 50's. ifindy car, what we will see the indy 500, there has been a lot of crashes lately. fortunately, it has not been a year where we have seen a lot of fatalities. we have seen a lot of near misses. scarlet: why is that? is that you can see that the cars flip over. scarlet: do they die when the car flips over? matt: not always, no. this year, no, because there are a lot of safety precautions in the car. there are some very serious injuries. they are slowing people down during qualifying and crashes happen more often because they can get was the by themselves. i will be on the air on sunday

because i'm flying to barcelona to test out the new lamborghini on the formula one track. do you always have a great weekend planned like that? matt: i am off to lamborghinis in barcelona and i will show all of our viewers this. i have a cameraman coming with me. started. scarlet: coming up, we will talk about what else is happening this weekend which is a lot of graduation ceremonies. a lot of new graduates. of course, they have a very interesting job market they are walking into. overall, the labor market is in better shape than it has been in years past. in terms of wages, is not quite there yet. matt: less than half of college graduates are confident that they will get a job. scarlet, thanks very much, thank you for joining me, i will see you in just about nine minutes. still ahead, this summer's box

office could be the biggest ever thanks to the return of dinosaurs, minions, and this lethal cyborg.

matt: you will not see many movies all are original stop it is about remakes and sequels just like it was last summer. david: this summer, studios are investing in franchise. why not make a sequel or prequel? movie season kicked off with "pitch perfect towo." it made more money over the weekend than the entire movie

made over its last domestic run. there will be more comedy sequels. >> we will have to do this into a court of law. >> what we are seeing is really a sequel to last summer's summer of sequels. if you look at the top grossing movies from 2014, there's a fourth transformers, another planet of the apes, another -- another teenage mutant ninja movie, a godzilla movie. producers and screenwriters seem to be spending a lot of time in the firstes goals "terminator" movie came out more than 30 years ago. the first jurassic park, more than 20 years ago. mad max, fury road is the fourth installment of the franchise

that is been around for decades. oldhey are not updating movies, studios are finding fodder in video games and old tv shows. all of this seems to be working out for the studios. they make $5 billion over the next few months. and that would be a summer box office record. i cannot overstate how important the summer movie season is for the studios. 40%e 18 weeks account for of what they will make at the box office. matt: and yet they're not going to take any risk. david: no, and the margins are thin. matt: i was almost forced to see tw io.erfect will take a quick break and be back into.

matt: it's 11:00 a.m. in san francisco, 2:00 p.m. in new york. off inanet yellen sounds a rhode island speech just moments ago. she sent a message about the

economy and markets. cost of's the shocking high fashion, and when i talking about the prices. we have the director of a shocking new film. anna: as the monaco grand prix hits this weekend, we look at formula one. ♪ matt: good afternoon. we're going to take a quick check -- scarlet: of the markets the last itr of trading, although feels like everyone has already taken off, given how little changed the indexes are. the dow industrials down .1%. matt: not a lot of movement