[closing bell ringing] at stocksoking deteriorating a little bit as we head into the close, the dow off i 82 points, the s&p off my 13. doware looking at the closing at a two-month low, the biggest three-day losing streak since march. the nasdaq also closing at the lowest level since mid-may. looking at stocks closing for the dow around the session low. joining me now is joe weisenthal. part of the story was those transports like airline stocks weighing on stocks that got a downgrade. as goes the transports, so goes the dow. joe: the biggest story was the most important companies of the world, the apple worldwide developer conference. it was kind of boring.

they down to something really big that captures peoples imaginations, watch or whatever. this time, there's some software stuff and a music streaming thing, which was kind of a big deal but the stock was down and ended flat. it is transitioning from a hardware to a software company and how exciting can software be when you are presenting it? i was looking at deutsche bank, the story of the whole weekend -- the stock was higher on reports of a ceo shuffle, but goldman sachs had a note out this morning that was pretty skeptical, saying this positive ,eaction could be short-lived saying he struggles with this rather are structural than management related. there's a real lack of return on equity on platforms. they don't have anything that's going to help them do that.

joe: people have been talking andt bond market liquidity you have huge players tipping their balance sheets. meanwhile, germany's main index was one of the hottest markets of the year, an awesome start to the year, but we are seeing this entered and the dax has correction territory. alix: bank of america had a note .alking about germany that's one we are not seeing an improvement in the pmi. they had explosions in the markets and in some ways, they are more disadvantaged. joe: suddenly, the story seems to be changing. alix: a story that's not

changing -- greece. the prime minister spoke earlier today at an event in berlin. agreement need is an quickly. an accident.ert history is not going to take it .own they are going to take it down as a figurative class of the european union. alix: if you think the greek crisis will end soon, that's the thing, he wants a deal. joe: we should revisit greece in a couple of weeks and see where things are. huge, momentous election and i was excited heading into it to see what was going to happen and it was quite a shocker. the party of the president did not do as well as expected. there are questions about how

the new turkish government will be formed and we saw a big selloff in the stock market. one minor interesting story i the companyy was that makes the riot trucks, the come -- the trucks used to control rights had it biggest crash ever. crash in the company that makes riot trucks -- i found that to be fascinating. alix: perhaps we will see more stability and democracy? joe: they say investors hate uncertainty. alix: they have said in the past this bodes well long-term and perhaps investment destinations will be more attractive. joe: here to talk to us about

turkey and other stuff is the wells fargo senior equities try coming to us from st. louis. and here in the studio is lisa abramowicz from bloomberg news. , is this something you are watching us chew mark what do you think when you see movies like this in a bigger market? guest: i think about the middle east and the number of fires going on over there. it's something to be concerned about but not something we are watching on a day-to-day basis when we are trying to make decisions on where we will be strategy wise. leeson -- lisa: people have actually said -- i think it was mohamed el-erian, he said it's not fair to paint it under one brush anymore, that there is a

bifurcation in markets with winners and losers and you have certainvenezuela, companies that have struggled. some outflows from emerging markets in a wild -- and perhaps this has to do with rising benchmark deals. this chart on screen, talking about bond volatility -- foreign exchange reserves starting to shrink, high about $12 trillion and they are shrinking. less moneyis there's from government to recycle into the bond market. what does that do for the liquidity issue or lack thereof? and: this is a huge concern has been one of the bright spots, the incredible surgeon reserves.

people are saying emerging markets will be that bad because they have a lot of hard currency reserves to pay back their debts. is as their currency weakens in response to a stronger dollar, there's a question of will they have sufficient reserves to bolster their currencies as well as repay the record volume of debt? joe: what is your take on this question mark do you worry about bond liquidity issues and exacerbated will be by the decline in excess reserves? scott: if you look at it from my saying that i'm large-cap stocks will outperform. when 2015 is over, developed markets and third place, one of the things that is out there that you have to keep in the

back of your mind is all the emerging-market debt that is owed in dollars and lisa is exactly why -- lisa is exactly right. the market is going to be worried if the market strengthens a lot from here but there is a lot of debt that needs to be paid back. that is where the market gets worried and worrisome markets generally selloff. we are going to see lots of uncertainty over will the dollar hurt these emerging markets? and also the bond market in , i don't think it's too much to say we had a collapsed there. rates were too low and we are getting back to somewhat of a more normal rate. alix: i was curious how you rank did.

we still need emerging markets, we need china to buy our stuff at the end of the day. we are interrelated there. scott: when you look at the puzzle, 45% of the s&p revenues come from overseas. we need china to buy our goods and we need emerging markets to do ok. we need the eurozone to grow and i think it will grow one point 3%. those are important parts of the earnings puzzle we try to put together to come up with the s&p 500 earnings number. we need the rest of the world to participate. . think they will it will be modest but they are slowly moving in the right direction. lisa: we had more data coming out of europe that was better and expected. there was an inflation survey and one thing that you saw in the bond market today with the 30 year yield was they

rose as shorter-term yields declined. areation expect haitians picking up and people are seeing the signs of inflation pickup around the world, not just here in the u.s. joe: we keep having this debate about stocks and are they overvalued? here is one from bob doll who says the first half when interest rates are falling and earnings are rising. what do you make of that? entering a phase that is not as good for stocks? scott: stocks were undervalued for a long time in the market has moved a long way in the course of the last five or six years. i would argue the bulk of the gains are behind us and we need to see earnings growth. shot that the s&p 500 this year and probably

to 12% 2017, we see 6% and our biases at the top end of that range. -- iarket still has a think we are going to see it but stocks right now are close to fair value and that's part of the reason we stalled out here. lots more questions and saying goodbye to joe and lisa. we will talk much more to scott who sounds like a bull looking at 6% to 10% total returns. more bloomberg market day after the break. ♪

alix: welcome back to the bloomberg market day. i'm alix steel. let's get you caught up with the

stories making headlines at this hour. a grand jury in south carolina indicted a former police officer on murder charges after the shooting of a black man was captured on camera. the north houston police department fired him several days after the video became public. group of seven liters and germany are in agreement on a tense situation up for -- tense situation in ukraine. angela merkel says she is willing to intensify sanctions. president obama there is strong consensus that we need to keep pushing russia to abide by the terms of the minsk agreement and continue to support ukraine to meet its obligations, that until that is completed, sanctions remain in place. alix: the g7 sanctions will stay

in place a -- unless vladimir putin honors a peace deal he helped broker in ukraine. cbs's adding partners over the internet -- the network has secured deals the a roku and playstation. the service begins in july and will cost $11 a month. they will let viewers watched signing up.t the company will produce "war machine" a satirical film loosely based on stanley mcchrystal. netflix will release it in selected cinemas. louis is me from st. the senior global equity strategist at wells fargo investment institute.

jones,u look at the dow it is negative on the year but you are still looking at between 6% and 10% total returns. where are we getting it? earnings growth will be what drives it. a better economy here is going to be what drives it and europe is also going to drive it. if i look at the earnings estimate coming into the year, the consensus estimate was too low. it was certainly too low in the first quarter. what i think you are going to see in coming months and quarters is virtually every quarter, we will see the consensus move up and the full year number is going to be higher. there's a lot of uncertainty out this bond market makes people nervous. the situation in greece is going

to be kicked down the road until a later date. given the fact that we are pretty much at fair lu, we are trying to find our way here. earnings and a better economy and the fed not doing a whole lot will be what takes the market higher. let me get your take on what leon cooperman said -- he says i think the market is ok but is not priced to perfection. is inre is a bubble, it the bond market and we have seen headlines crosslegged that as we have seen this bond route, but at what point does that trickle-down to stocks? scott: the european bond market was in an absolute bubble in my opinion. the u.s. domestic market, our 225-2 hundred 75.

we might lean toward the upper end of that range. the equity market is going to have two address this. 2.8%,are going to grow bond yields at the 10 year or even at 240 is too low. i think you would expect the bond market would trade a little lower, but as far as some kind sureg selloff, i'm not what would trigger that. liquidity, but we want our clients optimistic. not wildly optimistic, but we want them to stay invested in equities. alix: we are looking at a doubt

that hasn't had a negative year since 2008. the one thing that stresses you out? scott: usually there are all kinds of things that keep me up at night. chinese growth is what worries me. are we going to see growth drop off quickly and are we going to or bankingcial issue issue or bad loan issue in china? that's the thing to worry about. alix: thank you so much. good to have your perspective. from the, we will hear general electric cmo. don't miss it.

alix: welcome back to the bloomberg market day. general electric is getting into the business of storytelling.

savvyrailing and tech individuals the us social media and this fall, they will release a new documentary produced by ron howard. generalu spoke to the electric ceo beth comstock. : we really like social media because you are able to target your audience. we have had great luck with instagram. we were one of the first brands on instagram in 2011 and it is useful, the photography you can bring to life about how things are made. that's a great platform. we have been doing more with evenhat and micro-messaging platforms. is prettyia right now exciting and i'm particularly excited about where virtual reality is going. obviously it has not scaled yet

that to create an immersive experience for our customers, for a fan to see this is what happens inside a jet engine, this is what happens inside your brain, i think that is really exciting. those social media platforms, how do you assess success? beth: we have been doing a lot of this around the industrial internet. that is ge's effort to get into data and analytics and ge is becoming a software company around the industrial side of the world. for us to use social media to go after cios making buying decisions and software engineers that can develop new apps, to go after talent who want to write code and various ge businesses. you wills and often, look at one platform and see a

multitude of needs. betty: have you seen anything that has really moved the needle the way a 30 second ad would have moved the needle? have 360 surround sound with all of these platforms. theare looking at to create amplification and that amplification ability is so much better. 30 second spot and you are able to make that be even more effective using social media platforms. think of the way twitter has changed tv viewing. there is something very special when you are trying to do brand marketing. nbc andou worked at given how important content and

storytelling is, maybe ge should have cap nbc. at it, it islook advanced science, i think you will see us tell more about science going forward. betty: this documentary you will be airing in november on national geographic, ron howard and brian glaser are producing this with you. by which gew model is going to advertise? beth: it is new for us in recent memory. i could point to you back in the late 50's and 60's, we had ge theater. ron howard got his first acting stop -- acting start there. it is a great story. there are times in history when we have been part of stories and this is a new chapter.

they have brought together six amazing directors and the team best known for "3430" they are going to help us tell great science stories. and: that was betty liu chief marketing officer of ge, beth comstock. thank you for watching bloomberg market day. have a wonderful afternoon. we will see you back here tomorrow. ♪

music apple jumps into streaming. will it be a spotify killer question mark we have everything you need to know from the apple developers conference. i'm emily chang and this is a special "bloomberg west" life from outside apple's developers conference in san francisco. tim cook rolls out new features and innovations, but will it be enough to drive iphone momentum?