>> where moments away from the closing bell. this is the bloomberg market day. i'm scarlet fu. i'm joined once again by bloomberg markets managing editor joe weisenthal. you can hear the closing bell ringing right now. all three industry groups in the s&p 500 finishing down. dupont the only member of the dow industrials not to fall. only up by .001%.

it still counts. the dow suffering its worst decline in months. the s&p 500 and nasdaq seeing there was days since may 5. at session lows, the dow lost 242 points, so that streak we have seen of the doubt not swinging at least 100 points comes to an end. now that we have come back from memorial day, everyone has responded by selling off on stocks, and it comes on the heels of data that was fairly encouraging, right? .urable goods new home sales? joe: the story has been dated disappointment. the first quarter was a massive disappointment. everything with exception of labor data came in really bad. scarlet: we ignored all of that. joe: today felt like the opposite. strongmen of data in the morning. solid on housing, manufacturing, confidence, capital goods

orders, and yet, here we are, market down. it's sort of felt like good news and bad news. maybe this brings back some of the discussion about the fed rate hikes and stuff like that. today is not dramatic, not a huge selloff. it's a different flavor and a little bit of conviction compared to the last couple of days. one thing that is noticeable that is very distinct today is the move in the dollar. of course, that was a armored dollar today, resuming that dollar rally. a lot of what we saw today was just digesting with the federal reserve has done and ed. the fed chair set a rate increase is likely this year if the economy continues to improve as she expects. she actually said that, "epic it will be appropriate at some point this year to take the initial step to raise the federal funds rate target and begin normalizing monetary policy." we'll be back to the idea that zero interest rate is not

eternal. joe: the dollar strengthening combined with the selloff helped put some of these puzzle pieces together. the market, along with those commons, is a bit more concerned about a rate hike then perhaps it was before, but again, these we should not overstate these moves. they are not dramatic. i don't think the narrative has shifted dramatically. scarlet: the fed vice chair also everything will be very data-dependent. he said tightening of u.s. policy will begin only when the u.s. expansion has advanced far enough. he said again if the economy is doing better, then he will adjust, and if it's not doing as well, we will adjust accordingly. joe: they've been saying that for a while. they want to just keep reiterating. scarlet: certainly, the data helped lift the dollar, but there was concern in europe as well because greece and its eurozone creditors were supposed to hold talks tomorrow. from what i've read some traders notes, they called that off without giving annexed nation.

it revisits the idea that greece is coming to -- joe: it's coming to something. it's known there will be a big imf payment coming up, and it will be difficult for greece to make that payment, so something has to give soon. something has to give soon. i want to interrupt for a moment because cory johnson has an earnings release. the release just crossed, but i saw some headlines earlier. showing fantastic topline growth. 250 $1 million in revenues for the quarter. compare that to a year ago when the company had $160 million in revenues. spectacular wrote to the tune of about 55%, i think. earnings per share, company lost two cents per share. their adjusted just a number probably matters more than the actual gaap number at least in terms of what's going on a business. analysts got it wrong again -- i know it's a shocker, but analysts expected eight cents a

share. when you take out stock compensation, i think that's a fair widow look at how this business works. growing fantastically, getting closer and closer to profitability. of course, there's no area in the market hot and and software as a service, and workday is seen as one of the pioneers, particularly focused on the human resources aspect of things. 50% year-over-year growth, earnings-per-share adjusted at numeral two cents, compared to analysts who got it wrong or casting eight tens, so the company is doing well. joe: thank you, cory johnson. meanwhile, the m&a barrage continues with today's charter/time warner deal to $59 million or $195 a share. let's take a quick look. scarlet: of course, that is interesting because time warner has in some volatile movement after the comcast deal could not

go through. you wonder if this is the last burst of m&a activity before everything comes -- you know, the air gets let out of the bubble. i always think of 2007 when there's this frenzy of dealmaking and the indexes were reaching high after high after every single day. joe: when you see him in a kick into higher gear and it seems like there's deals all the time these days, that seems like a signal of perhaps the bullishness in the market reaching higher levels, but i think it's also dangerous to try to draw too bright lines between this and other historical periods. 2007, we sought a deteriorating economy. so much more leverage in the system. we saw this insane speculation in oil at that time. very different. but as you point out, you sort of want to look for these things to see when enthusiasm is

getting euphoric. when enthusiasm gets you for, i think of only one place now, and that would be china. about how equity prices keep moving higher and higher as chinese individual investors keep plowing money into the stock market. they have nowhere else to go. joe: the chinese story is incredible. in the last six days -- first of all, starting late last year, the chinese markets have been on a phenomenal ride. a bubble, itit's cannot be sustained, and not only is it being sustained, but it's getting faster and asked her. today saw one of the fastest rallies since 2008 in the chinese market. like 20 stocks yesterday were limit up. scarlet: there's a great story on the bloomberg terminal where if you were trying to make any kind of deal on the chinese stock market you are wrong or more wrong. joe: even the most bullish analysts and china have been massively incorrect on the downside because of how much it

has gone up. scarlet: we now have breaking earnings from tivo and cory johnson of those numbers. cory? cory: yes, that is significantly faster, big growth in subsections as well, 27%. but profits went down on a year-over-year basis because of higher costs and worse gross margins. higher costs across the board. ebitda adjusted $29 million, and again, profit well in line with guidance less than a year ago, profits of a net income of $7.9 million. but again, adding a lot of subscribers for tivo, also seeing 7% year-over-year sales growth, analysts trading up quite a bit. or reasonably in after-hours

trading as a result of those results for the quarter. scarlet: all right, cory johnson. thank you for that first read on tivo. we're looking at the earnings scorecards. we are basically done with earnings season. joe: how did we do? scarlet: earnings-per-share, growth barely there. sales dropped 3.5%, and this is what -- with 98% of the s&p reporting earnings, so i think we can close the book on this one. joe: it's interesting. there is a talk before this court about in earnings recession. a lot of people thought that earnings would be negative because of energy -- scarlet: more negative -- joe: on a revenue basis. scarlet: a lot of people see that as a truer reflection of what is going on in the economy. earnings-per-share can always be manipulated through buybacks. joe: they always find a way to wring more profits out of the revenue. scarlet: and the buyback some companies -- joe: true. scarlet: companies continue to pile money into their own shares. joe: and they continue to borrow money to buy back their own

shares. you have to wonder how long that will be sustained, especially as the fed starts to raise rates. scarlet: do you think there will be a huge rush to sell that while they can? if they do not do that, they could follow apple's lead and they could start selling debt in euros, currencies? joe: it does seem like that and i think we will continue to see bond offerings in europe. bond offerings in japan, places where rates are low, i think companies will be taking advantage of this for a while. scarlet: and you do have the declines in commodities priced in u.s. dollars. oil prices have made an incredible recovery from their lows in march, but even then, they have kind of topped out. they are stuck at this $59 a barrel level. right now, we are below that $58.25, but we have had real

difficulty building off that recovery. joe: oil -- the oil story this year is a great example of how the story always like the price. so, after there is the crash and oil, people are rushing to slash their forecast. some people go to $30, maybe even $20, and then oil stabilizes and bounces back and suddenly you saw after the run up all of these upgrades of energy stocks. and now right after oil has bounced back, we are starting to see it fade. it's very amusing to watch the herd follow the price on this one. scarlet: i know opec has made really clear its position as pressured by saudi arabia, but still the oil markets tracked very carefully. joe: exactly. and will they continue to squeeze producers is the question. scarlet: joe weisenthal. bloomberg markets managing editor. thanks so much for keeping the company. your insight is greatly appreciated. we have much more coming up. we will speak with a leading investor. we will be back.

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scarlet: welcome back to the bloomberg market day. here are the top stories. a deal that will reshape the cable television industry. charter with a bid to buy time warner cable for $55 billion in cash and stock. it represents a 14% premium. the company made a bid for time warner cable last year. that was rejected and time warner cable accepted a bid from comcast. that deal, as you know, fell apart last month. new details about verizon's purchase of aol.

aol held talks with three other parties leading into that deal. aol was also contacted by a private equity firm in march of this year. these new details are according to a filing out this afternoon. the vice chairman of the federal reserve's is that the policy makers will consider data as they prepare to raise interest rates. stanley fischer acknowledged raising rates could lead to volatility. he says the fed has done everything it can to prepare markets for what lies ahead. home prices in 20 big cities rose faster than it did in the last year. the case-shiller housing index rose 5% faster than in march. that represents a limited number of properties on the market. 30 people are missing in texas after floodwaters raged in most of the state.

in houston, authorities recovered three more bodies from the water, bringing the total number of people killed to 11. firefighters carried out more than 500 rescues and 2500 vehicles were abandon on the street. and it is a graduation of a different kind. bloomberg news says reports that universities are shelling out massive amounts to get executive leaders. that means the president getting a pay increase to $30.6 million and yale's former president richard levin getting a bonus when he retired. other ivy league leaders make up to $1 million a year. those are our top stories. we have breaking news. i want to bring in julie hyman. what do you have? julie: apparently the irs -- thieves have used the irs online system to steal information about taxpayers.

this is according to a commission of official speaking on a conference call with reporters. obviously this encompassed the tax filing season. there was access to 104,000 returns from taxpayers. that includes the tax returns and other tax information on file with the irs, and this was some kind of service called gett ranscript. they had the required information of the taxpayer. it sounds like they may have had information already and used it to gain more access. we will bring you more as we get more headlines from that call. scarlet: thanks so much, julie hyman. and the $55 billion deal for time warner cable, certainly the headline of the day.

here to discuss, a partner in senior -- and senior portfolio manager at skye bridge. i guess it was not that big a surprise charter would make a bid for time warner cable. we knew because they made an offer before. guest: the price it sure was nice. from our perspective, this is a great location of many managers that stuck with this strategy through the tough times in late september and october. of course, when the doj and the sec deep-sixed to be comcast acquisition there were fears that time warner would selloff significantly, but it improved its operating performance. people did expect a bid from charter. and of course, also of interest is what caused the higher bid. if you bet on it, you are very, very happy. if not, you're not us enthusiastic. scarlet: so, what happens with comcast? what would its next move the?

they have the firepower in they want to do more. guest: t-mobile, cablevision. you saw there stock rally just on the news that other consolidation was taking place. if you held a gun to most people's heads, they would say sprint, t-mobile. scarlet: wouldn't that bring in problems with the fcc again and regulators? guest: the issue with time warner and comcast was the massive overlap of the wireless industry. when you look at a matchup of wireless internet and hartline -- hardline cable internet, there's very overlap between t-mobile, say, and comcast. that is why people think it is more logical place to go. you avoid fcc issues and doj issues, but it still makes good business sense. and back to your previous question -- most of these deals are creative, which is a good sign it well.

scarlet: we will have much more with troy from sky bridge p keep it right here on the bloomberg market day. ♪

scarlet: we've got breaking news. more m&a. let's go to julie hyman at the breaking news desk. julie: a deal to buy applegate farms forest 75 million dollars. this will add to shares in 2015 and at eight cents per share to its profit in fiscal 2016. it will be neutral to some extent, it says, this year. it will add to its growth target. they are perhaps it known for spam buying a company best known for organic and natural products. "natural products" in some cases. 100 employees. it is based primarily in bridgewater, new jersey.

i did not realize it was a local company. it is known for its lunch meats and it's hot dogs that are either organic or natural. applegate, privately held. hormel shares are trading higher, as you can see from the 5.5%, but scarlet, this is part of a trend we are seeing with large established food or personal care companies snapping up these smaller, natural, either natural personal care or natural foods companies, because they want that growth. many of these larger food companies, particularly the packaged food companies, their growth is stagnant and they want to acquire where the growth is. scarlet: julie hyman with the very latest on hormel foods buying applegate. thank you very much. and troy gayeski, my guest right now, i'm looking at the m&a -- $97.7 billion of deals in the u.s. are we going to see m&a in

europe take off this year? troy: our view is you will see it take off. the u.s. went through a long hated us in deal activity. get a crisis. just as we started to get going, the euro crisis started to flareup. but in 2014, we started to see it come back. that is the point with her mouth. many a creed of transactions building up, building up, building up. -- that is the point with hormel. and then you have the tax law advantages as well. so, it made a lot of sense for

the u.s. reichel to come back and europe has been lagging. europe typically lags. they have the euro zone crisis, which is far more acute. what you have seen this year is a confluence of better growth expectations, better earnings expectations, qe, and better market performance. we see management teams start to stick their heads out of the hand and say, this is a deal where you are rewarded or punished. it looks like the chinese are going to buy -- lucent, nokia, and the french finance minister basically blessed that deal. that's an important transformation. scarlet: an important point to make it. what about the euro and the exchange rate? does that mean in european m&a, this transnational m&a, we are to see european companies as targets as opposed to acquire or's? troy: both. you will see intro europe consolidation. it makes them a very rich target, again, back to fedex. you can't ignore the regulatory kind of support that is taking place.

managers have been focused on a tiny bank consolidation for 10 years. it's a very fragmented banking system. they have recently will asked those roles and allowed for consolidation to spur economic growth through non-fractured banking. so, whether you are looking at across the board acquisitions -- the trend is for hire deal flow and it will be important for managers to focus on that space to make a 6%, 10% return. julie: right -- scarlet: right, right. troy: not depending on whether greece has a bad day. scarlet: troy gayeski. that does it for me for the bloomberg market day. troy, are you a rangers fan? troy: not a hockey fan. scarlet: oh, my god. good luck to the rangers, everyone.

have a good day. ♪

♪ >> from our studios in new york city, this is "charlie rose." charlie: you're depressed tyson is here. help bring the universe down to earth. i'm pleased to have him back at this table. welcome. n