from we are moments away the closing bell. this is bloomberg market day. i am alix steel. [bell clangs] stocksou are looking at closing lower for a second day in a row. the dow off by 70 points. s&p down by 5. a slow grind lower. you had energy leading the decline. the cyclical sectors like industrials, including the transportation damage, -- average all down as well.

all moving lower as we yet have no resolution from greece. joining me now is joe weisenthal. and joe, we do have one potential headline just as we went into the close. the dow jones is reporting that a valiant will make a preliminary approach -- up by 11%. joe: another pharmaceutical play. i'm shocked to hear it. alix: also, we see a lot of the acquirers see their shares rally. joe: it is bullish what feels like the kind of thing that happens when people are starting to lose their heads. alix: that is not the only m&a we had. and that is perhaps in talks to acquire humana. one potential tie up. second-biggest insurer in the country. possible deal for humana. a deal could come as soon as this week compared perfect timing with the obamacare news today. massive day for health care. alix: the one sector that held

up the best with health care. on the supreme court ruling on the afford health care act. up.theless, holding it was the hospital stocks that were kicking some butt here. of their% to 5% earnings were riding on this case. so, this is a really big cloud clearing for them. me: you saw them is to shoot up on the first headline. more people having insurance, more people going to hospitals, getting medicare. other big story today that i was excited about -- consumer spending growth hitting its fastest pace in six years. again, we were talking about this yesterday with the gdb revisions. -- gdp revisions. why isn't consumer spending completely disappear? the consumer is doing pretty well. alix: i was like, what about payback? december to april was not that great. is this a one-time payback? joe: who knows?

it may be one time. but it is payback. then that would suggest the q1 weakness was about whether anything fundamentally grew in the economy. an analyst fair, said the personal spending is strong enough for the fomc. joe: it is getting hard to imagine that there will not be a hike. again, another huge day for greece. a fun day.lots of exciting headlines. but another day without a deal. greek officials say it is all open on tsipras, to schedule after the summit. there could be another summit this weekend which could make for a very exciting weekend. alix: yeah, we had some tweets coming out. donald tusk saying that greece, work is underway. can still take many hours, but i have a hunch that unlike many of sophocles tragedies this story will have a happy end." antigone, by the way.

eurogroup twitter is than my new favorite twitter. new favorite twitter. you had the finance minister of slovakia tweeting. me not to be optimistic anymore, but i would like to be proven wrong." alix: so many double negatives. i do not know what that means. we talk about what it means for the market. i want to look at the chart of the s&p. it perhaps reflect volatility of these greek headlines. if you see that dip off the open. that is around the time that angela merkel said that greece isn't there yet. at 10:00, you had the french president saying the deal was possible. then 2:00 p.m. is really when things went sour. we had the maltese prime minister telling bloomberg e.u. leaders turned down alexis tsipras's request.

and pointed out that some countries made it clear to two alexis tsipras they are ready to pull the plug. he made the point, that look, there is volatility. maybe this is not priced in. pretty smalle moves. so none of these headlines dramatically change the way the market views things overall. but it is fine tun watching thee headlines hit. and trying to decipher them instantly. alix: volume's pretty thin. let's get some expert take. we have anthony valerio joining us from san diego as well as lisa abramowicz on set. guys, thanks for joining us. let us start with you, anthony. do you care about greece? anthony: we do. to be honest, we think it is short-term noise. when you look at what drives stocks higher over the long-term, it is the economy, the fed, what is happening domestically. on that front, you talked about the personal income growth. great story. the consumer is definitely back.

makes you wonder if they went anywhere to begin with. but the data has been improving throughout june. worried about a week second-quarter growth. now expectations are up to almost three. overink we get 3% growth the remainder of the year. the fundamental economic story is very much intact over the remainder of the year. that should fuel some additional stock gains, earnings gains and power the stock market. we are optimistic. >> there was a great story on the terminal that just came out on why the european finance ministers are not going to let greece default. at a certain point, why don't they let it go? here is this country that is smaller than the size of ohio, right? 2% of the gdp in your. why do they hang on? union2, the ecb said, the was promising this european union during the height of the

sovereign debt crisis, they said, we will not let any of our members go away. we are going to remain a union. of they have got a lot political capital locked up in this. which explains why markets are not reacting with that much french as city -- franticity. alix: if something does happen with greece, the european union will be forced to cement itself with closer economic ties. joe: the one thing that americans often do not understand about europe is the political -- project. multi-decade the eurozone is one aspect of something they have been working on since world war ii. they are not about to just start shrinking what they built, even as tough as it gets. i want to turn attention to some american stocks today. bring it back home. we got some interesting weakness from some highfliers. netflix was down. there was a downgrade of netflix and amazon. citi came out negative, downgrading netflix one day after carl icahn was negative.

we are uncomfortable with the valuation, but it still might go up. it is very, like, slow down a little bit. out isnthony, what stood what happens when you have these momentum players take a break. they have been leading stocks higher. what happens? y on whatwe did a stud happens when you get to an all-time high, when the markets slowly making those new highs. the result for most of us are pretty good. the odds of making another high within a month or 91%. over the next six months, it is 98%. that momentum tends to continue. it is a reflection of the economy, but we sense a lot of pessimism on the part of investors. we think that is misplaced. there is a fundamental drive, positive drive for these equity markets. and we think investors should put aside that risk about the all-time highs. we think we will see even more. for those that are scared, dollar cost average in.

do not get scared of investing at all-time highs. alix: this is the time to call what we saw from barclays today, barclays is seeing only a 4% gain in global equities from now till the end of the year. and the u.s. market relatively flat. some emerging markets in japan will perform better because of earnings revisions. what do you think of that? 5%hony: our forecast is for to 9% gains for the equity market, probably the lower end of that. but yes, it is a slower return environment. do not dispute that. it is a reflection of what is happening in the entergy texas -- the energy sector. when you compare to look at what we see in the bond market, very limited opportunity, we think stocks are still the best place to be. overseas, we are not entirely convinced europe is on better footing. we think the basque risk-reward is in the u.s. japan has a better case.

our focus is still on domestic equities. alix: right now i think that isce greece is the -- exiting stage left, people are refocusing on policy diversions. the u.s., given consumer spending increases, given the u.s. economy is gaining steam, people are saying, ok, the fed is going to hike. let's go back to this diversions play with respect to stocks, which could've been the reason why stocks also took a leg lower, because given all the positive data, it bolsters the case for the fed to take away the punch bowl. nuggetother fascinating from that barclays report. they showed this chart suggesting that cyclical stocks may be underperforming. what we have in this chart is 10-year bond yields in g-4 countries have picked up. but you we have not seen that equivalent jump in the

cyclically sensitive sector basket. i wonder if you think there is a trade here? snthony: i think e.m. i probably one of our undervalued sectors of the market. that is what we are looking at to add to. with regards to bond yields, u.s. yields still higher among the g-7. the one reason we do not think rates will rise to fast, and in reference to the fed, i think that is the case for volatility. that is why we expect lower returns. there is hesitation in the market ahead of first rate hike. we think we get through that because it is the economy, and the growth prospect as to why the fed hikes rates. yes, getting back to -- some opportunity in e.m. alix: more optimistic. i like it. thanks so much. good to see. lisa, thanks for joining us. anthony valerio joining us from san diego. on bloomberg market day, former treasury secretary

larry summers weighing in on greece, all challenges ahead. you not miss it. we will be right back. ♪

alix: welcome back to bloomberg market day. we want to get right to the top stories this afternoon. a third quarter miss from micron technology. posting adjusted earnings per-share of 54 cents. short of estimates. the company posted revenue of $3.9 billion. the company attributed the headwinds to weakness in the chip sector. ulemmon is recalling the drawstrings used in 300,000 women's hoodies. 7 consumers have reported injuries to their eyes so far. customers can remove the court and they'll provide a

replacement. aetna is close to buying humana. we could reach a deal this weekend according to people with knowledge of the matter. and it is the second-largest u.s. health insurer. discussions between the companies have intensified after it emerged that anthem and cigna had talks of their own. aetna made a formal bid in cash and stocks. the offer details were not available. any proposal would likely be above humana's market k. those are your top stories. we are awaiting liking earnings -- nike earnings. we want to get to julie hyman for more on a potential merger between the wettest and -- zoe test and valiant. wait ai want to second. those nike numbers are coming out. earnings-per-share of 98 cents, about anticipated. analyst not missed

estimates in terms of earnings-per-share number since the fourth quarter of 2012. it has been a consistent performer here. the only question this earnings report is how much it will be affected by currencies. the company says its futures orders were up by 2%. below analysts anticipated. orders, as the company's calls them, our orders that have not yet been filled. it is a measure of, a forward-looking measure for demand. currencytures orders ex- are up by 13%. that does look little better than what analysts have anticipated it is the company try to manage expectations and talk about what would be happening in terms of the currency effect. 2%, including the currency, 13% excluding that affect. gross margins expanding, coming in at 46.2 percent. that is above what analysts had anticipated. and they are coming up with

revenue for various segments and north america. sales of 3.7 billion dollars. north america is the largest geographical segment for the company. japan$230 million. million.9 shares move up by 1.5% after hours. in reaction to all of this. alix, earlier you were talking analyst over at bloomberg intelligence who covers it. he says as long as we see this trend, which has legs, you will see a company like nike, which is a market leader continue to do well. and that appears to be the case when you're looking at this quarter. alix: i should point out, too, north american futures orders, 13%.ding fx, are that is better than the estimate of 11%. i highlight north america in particular because nike had been hit by that west coast port

strike. playing catch-up with that. it was a one-off issue. futurese are getting orders, excluding currencies, for the various geographic areas as well. in japan, up 20%. excluding the effect of currency. in china, up 22%. global demand is strong for this company. i want to get back to zoetus. a report in dow jones that valley and is said to have made up a preliminary approach. which is a $26 billion animal health company. rom pfizer inf f 2013. the shares have more than doubled. the largest shareholder is ill ackman. -- bill ackman. he pushed for changes at the company. , up to 25%job cuts of the workforce in response to pressure from ackman. thirdn is also the 3

largest shareholder and valiant. -- in valiant. so, interesting situation here, that he may be once again is playing both sides of a potential deal for zoetis. alix: that is a good point. valid stocks rallied into the close as this news broke. trading up in after hours, meaning we are seeing the acquirers continue to rise m&a news. overall, we are looking at $2.6 trillion just this year in m&a. julie: it has been very busy in and health care. the segment of health care that has been left out has been managed care. we got news on that front, that aetna and humana might be close to a deal. but that is why we are seeing that group have a little bit of catch-up activity. alix: good stuff. all earnings on nike and

potential deal between zoetis and valiant. coming up, 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 to bloomberg market day. i am alix steel. historic day for universal health care. supreme court upholding the president affordable care act. names across entities wait -- across industries weighed in. after more than 50 votes to repeal this law, after a presidential election based in part on preserving or repealing this law, after multiple challenges to this law before this up in court, the afford care act is here to stay. >> so jubilant about this. it is a victory for common sense. >> the problem with obamacare still fundamentally the same. the law is broken.

>> the supreme court has twisted and somersaulted on traditional rules of statutory interpretation, and allow the irs to write the statute congress enacted. minoray's decision has mental significance. it means the afford will care act is not just the law of the land, it will remain of the law of the land. is raisingr: it costs for american families. raising costs for small businesses. resident obama: what -- business obama: what owners pay out in salaries is finally growing faster on what they spent in health care insurance. john boehner: it is fundamentally broken. president obama: the law is working exactly is it is supposed to. john boehner: we will do everything we can to put the american people back in charge of their health care, not the government. work withobama: i can

republicans and democrats to move forward. let's join together. make health care in america even better. john boehner: it is very difficult to do with it when have a president and 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 application of this ruling are vast. here is mt. sinai health systems ceo. this continues business as usual because in new york state we had our own state exchange heard so we were not going to be affected. this does not change what we are going to do from day to day, but as a nation, this is terribly important, because as we just talked about, the end of these subsidies would have the death spiral for the exchanges in the majority of states in the country. we would've lost between 6 and 8 million people currently insured with subsidies who would've left the exchanges. and that has a catastrophic

effect on the health care of those individuals. >> obamacare has been the law of the land for five years now. how would you describe its impact and what if anything needs to be changed? reallyobamacare was not about fundamental health care reform. obamacare was about enhancing access, getting more people insurance. and it was able to do that. there are enough 15 million more people insured today than were previously insured. but what we have to deal with going forward is how are we going to bend the cost curve and health care? what are we going to do to make health care affordable? and that means looking at where we are spending a lot of money now and in the future. that means things like end-of-life care, you recall, death panels was the death of the discussion on what we are going to do about end-of-life care. we have some diseases that are costing the nation of fortune and will cost even more in the future, like alzheimer's disease and type two diabetes. we have to figure out how to bring drugs that are effective and innovative to market faster.

and we are not dealing with those questions right now. biglly, we have got his problem of what are we going to do about the cost of some of the new drugs coming on the market? we cannot afford those drugs. with medicare, medicaid, and commercial insurers really not having adequate resources to pay for all our health-care expenses, we have got to bend the cost curve very to do that, we have to start addressing issues that have been tough until now. alix: that was the mt. sinai ceo dr. kenneth davis. thanks so much for watching bloomberg market day. i'm alix steel. have a wonderful afternoon. see you back here tomorrow. ♪

>> from our studios in new york city, this is "charlie rose." charlie: we begin this evening with the latest revelations of overseas -- by the national security agencies, documents published by wikileaks show that the n.s.a. eavesdropped on the presidents and senior leaders of france. the white house released a statement saying there was currently no surveillance on the french presidents conversations. hollande summoned the country's ambassador to the united states and called two emergency meetings. the white house says that president obama spoke to his counterpart on the phone today. earlier, the president announced a