you are looking at stocks closing lower for a second day in a row. the dow off by 70 points. grindl it was a slow lower. energy leading the decline, the sectors down as well as well. the average off by 1.5% for the week. moving lower as we have no resolution from greece. joining me now is joe weisenthal. we do have one potential headline. valiant is making an approach zoetis.hat is -- guest: another pharmaceutical. i'm shocked. alix: it is a bullish signal.

guest: or it feels like the thing that happens when people are losing their heads. alix: that's not the only in men day we had today. acquires in talks to humana. that: a possible deal could come as soon as this weekend. perfect timing with the obamacare news. alix: even though we had a down day and stocks, the one sector that held up was health care due to the supreme court ruling. the hospital stocks kicking some but here. they were writing on this case according to bloomberg intelligence. them instantly shoot up on the first headline.

more people getting medicare. other big story that i was excited about, consumer spending growth hitting its fastest pace in six years. story, why isn't the consumer spending completely vanishing, consumers are doing pretty well. guest: what about paid back? waiting for the low gas price to kick in. guest: it may be one time. it is payback, that suggests the q1 weakness was about whether. that counts. personal spending clearly strong enough to do what they want. guest: it is getting hard to imagine there will not be a hike. another huge day for greece, lots of exciting headlines. ultimately no deal. greek officials say it is all on

citrus -- cyprus. it could make for a very exciting weekend. alix: we had some tweets coming out. the eu president saying greece work is underway and could take many hours but i have a hunch tragedies thisy has a happy end. guest: eurogroup twitter is my new favorite. all these finance ministers tweeting market with the headlines in addition to the tough tweak me you had the finance minister of slovakia tweeting. allow me not to be optimistic anymore. i would like to be proven wrong. about what it means for the market. i want to talk about the intraday chart. it reflects volatility of the

headlines we saw. if you see that debt off the open that was around the time angela merkel said greece is not there yet. hollande saying it is possible. 2:00 things went sour. we had the maltese prime minister singh leaders turned talk.he mean is volatility, the that it isn't priced in. guest: these are small moves. none of these headlines dramatically change the way the market views things overall. headlineswatching the hit and then they try to decipher them instantly causing the lines to move. let's get some experts here. we have anthony joining us from

san diego and lisa onset. thank you for joining us. let me start with you anthony. do you care about greece? anthony: we do care about greece. we think it is short-term noise. when you talk about long-term it is the economy, the fed, domestically. on that front you talk about the personal income growth. consumers definitely back. the data has been improving steadily throughout june. we were worried about week second-quarter growth. expectations are up. the fundamental economic story is intact over the remainder of the year. that should fuel additional stock gains and power the stock market higher. we are optimistic on the economy going forward. onthere was a great story

why the european finance ministers are just going to let greece default. why don't they just let it go? they put into perspective. this country is smaller than ohio. 2% of the gdp. this12 the ecb said european union during the height of the debt crisis that we will not let any members go away. we are going to remain a union. they have political capital which explains why markets are not reacting with that much for .ntensity -- franticity forced to moree economic ties. guest: the one thing americans don't understand about europe is the political will. this is a multi-decade project.

the euro zone is one aspect of something they have been working on since world war ii. they are not point to shrink what they built even as tough as it gets. i want to turn attention to some american stocks today. interesting weakness from highfliers. netflix was down. things, one day after carl icahn was negative. it was one of these things where we are uncomfortable with the valuations but it still might go out. slow down a little bit. alix: what happens when you have these momentum players take a break? they have been leading stocks higher. what happens? >> we did a study this year on what happens when you get to an all-time high, when the market is making those new highs. the results are pretty good.

the odds of making another high are 91%. that momentum tends to continue. it is a reflection of the economy. .e sense pessimism there is a fundamental drive for the equity market. we think investor should put aside risk about the all-time highs. we think we will see even more. don't get scared of investing in all-time highs. to barclays.ntrary barclays is seeing only a 4% gain in global equity from now until the end of the year. seeing the market flat is going to be europe and japan that is going to perform better because of earnings revisions. our forecast is for 5-9% gains for equity market, the

lower end of that due to the lesser earnings trajectory. it is a lower return environment. it is the reflection of what is happening in the energy sector. there is a possibility for additional gains. we think stocks are still the best place to be. we are not entirely convinced europe is on better footing. the best risk reward is in the u.s. japan is a better case. our focus is still on domestic equities. exitingnce greece is stage left people are renewing their focus on policy divergence. since the u.s. economy is gaining steam, people are saying the fed is going to hike, let's go back to this to virgins play with respect to stocks which could have been the reason why stocks took a leg lower. given the positive data it

bolstered the case of for the fed to take away the punch bowl. another fascinating nugget they show this chart suggesting cyclical stocks may be under performing. what we have here is 10 year bond yields, which you have expected, you haven't seen that equivalent jump in the cyclically sensitive sector basket. i'm wondering if you think there is a trade here. anthony: it is one of our undervalued segments of the market. ith regards to bond yields, is still higher. the one reason we don't think rates will rise to fast, in reference to the fed, i think that is a case for volatility. we expect lower returns. a first rate hike.

alix: more optimistic. i like it. we keep getting optimism. thank you. good to see you. stage left. coming up, larry summers weighing in on greece. all the challenges ahead. don't miss it. ♪

alix: welcome back. we want to get to the top stories. a third quarter miss for micron technology. earnings per

share. the company posted revenue of $3.9 million -- $3.9 billion. men is recalling the drawstrings use in 300 thousand women's hoodie is. seven consumers have reported injuries to eisen faces. customers can remove the core ds. aetna is close to buying humana. they are the second-largest u.s. health insurer by market value. sessions.intensified made a formal bid in cash and stock. any proposal would likely be above humana's market cap.

those are your top stories. we are awaiting nike earnings. you want to get to julie hyman. julie: we are waiting for nike earnings. i want to wait to get there. the numbers are coming out. earnings per share of $.98. has not missed analyst estimates in terms of earnings per share. it has been a consistent performer. the only question is how much it is going to be affected by currency. the worldwide futures orders were of what analysts had been anticipating. these orders are orders that have not been filled. it is a measure of forward-looking measure for demand for the company.

they are up by 13%. that does look better than what analysts had been anticipating. the company try to manage expectations in terms of the currency effect. 2% included in the currency effect. that is above what analysts have been anticipating. they are coming out for revenue for the various segments. north america is the largest geographical segment. japan, $230 million. i'm seeing shares move up by 1.5% in the after our. bouncing between one and 1.5 percent in reaction to this. you were talking to the analyst at bloomberg intelligence who covers this and he says as long as we see this at leisure trend,

which a lot of researchers say has likes, you're going to see a company like nike continue to do well. that appears to be the case. they are 13%, that is better than the estimate. the westbeen hit by coast ports strike. it is playing some catch up with that. it was the first two quarters. julie: japan up 20%. china up 22%. global demand is strong for this company. , a report in back dow jones that valiant is said approach for an

animal held company which are spun off from pfizer. the largest shareholder is bill ackman. he has push for changes at the company. it has announced job comments up to 25%. company toed that merge with allergan. it looked at profits as the shares did rise. interesting situation that he may be once again is playing both sides of a potential deal. alix: valiant stocks are rallied movethe close as the breaks.

at $2.6we are looking trillion. -- ar just this year the segment of health care that has been left out is managed care. that is why we are seeing catch up activity. pharma has been so busy. alix: thank you for the earnings on nike and valiant pharmaceuticals. the supreme court rules in favor of president obama's health care law. we discussed the implications for the industry coming up next. ♪

alix: welcome back. the story day for universal health care. the supreme court upholding the affordable care act, names

weighed in on the decision. president obama: after 50 votes to repeal or weaken the law, after a presidential election based on preserving or repealing this law, after multiple challenges to this law before the supreme court, the affordable is here tuesday. >> it is a victory for common sense and american families. >> the problem for obamacare is the same. the law is broken. >> the supreme court has twisted rulesonal -- traditional and allow the irs to rewrite the statute that congress enacted. >> the decision has monumental significance. it means the affordable care act is not just the law of the land. it will remain the law of the land. >> it is raising costs for american families. it is raising costs for small

business owners. nowident obama: it is growing faster than what they spend on health insurance. it hasn't happened in 17 years. >> it is fundamentally broken. president obama: the law is acting exactly as it is supposed to. >> we are going to continue our efforts to put the american people back in charge of their own health care and not the federal government. president obama: i can work to move forward. let's join together. make health care in america better. >> it is difficult to deal with it when you have a president that fundamentally disagrees with us. the struggle will continue. president obama: this was a good day for america. let's get back to work. alix: the business implications for this are vast. on what it davis means for his company.

>> it is business as usual. we had our own state exchange. we were not going to be affected . this doesn't change what we are going to do from day to day. as a nation this is terribly important. as we just talked about, the end of the subsidies would have been the death spiral for the exchanges and the majority of states in the country. we would have lost between 6-8,000,000 people insured with subsidies and would have left the exchanges. >> how would you describe the impact and what needs to be changed? >> obamacare was not really about fundamental health care reform. access,bout enhancing getting more people insurance. it was able to do that. there are 15 more million -- 15 million more people insured. what we have to deal with going forward is how we are going to

bend the cost curve. what do them do to make health care more affordable? looking at where we are spending money now and in the future. panelslife care, death was the death of the discussion on what we will do about end-of-life care. we have some diseases cost in the nation of fortune and will cost more in the future' like alzheimer's and diabetes. faster to bring drugs market. we are not dealing with those questions. we have this big problem, what do we do with the cost of the new drugs on the market? we can't afford those drugs. medicare, medicaid, commercial insurers, not having adequate resources to pay for our health care expenses, we have to bend the cost curve. we have to start addressing some issues that have been tough until now. thank you for watching

bloomberg market day. i'm alix steel. have a wonderful afternoon. ♪ we live in a pick and choose world.

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cory: netflix is poised to abcpse fox, cbs, nbc, and as soon as next year. i'm cory johnson. this is bloomberg west. coming up, plans to make match.com public. taylor swift shakes off her beef with apple. that is ahead on bloomberg west. now to our lead. netflix may be on the