olivia: good afternoon, everybody. i am olivia sterns. look atnting to get a the markets. a little bit of a roller coaster ride -- right for the markets. we are in positive territory, but we definitely rolled over, is ashley after european markets closed. olivia: we thought we were going to get a little bit of a reprieve. -- especially after european markets closed. the chinese markets are closed. earlier the dow was up over 100 points. the idea is do you want to be long going into jobs friday when u.s. seen so much volatility in the market? a super sweaty hot thursday before job state. i do not know of traders are heading to the beach or biting their nails. alix: part of the reason has

been the lack of breath in the market. i am looking at the number of new york talk exchange that are , so theew 52-week lows stocks are not doing well. you saw the big spike up basically just last week. it has come down significantly, but how can you rally when you do not have a lot of the stocks moving together? olivia: indeed. we did see oil swing upwards. looking at the euro. looking at fx. same catalyst. the move in the middle of the screen is when we started hearing from the european central bank. the draghi sledgehammer. mario draghi came out at the ecb press conference in frankfurt and clearly talking down the euro. he revised down his forecast for european growth, but said he was ready, willing, and able to do

everything he can undertake his mandate in july 2012. that talk down the value of the euro. it shows central-bank action in relation to the market tour mile -- turmoil we have seen. if you look at the all aussie-dollar, you can see the damage that has been done. around the lows we saw in 2009 and 2010. 30% of exports go to china. stocks are selling off. then a developed markets and direct relation to what is happening in china. topia: now for about that stories making headlines at this hour. the 21-year-olds who shot and killed nine african-americans during the bible that he will face the death penalty. that is according to church documents filed today. prosecutors want the death penalty because more than two people were killed and other lights were put at risk. he faces nine murder counts in

manuale 17 church at the african methodist church. olivia: a judge has ordered a defiant kentucky to jail. u.s. district judge david funny told rowan county clerk kim davis she would be jailed until she complied with his orders to issue a license. davis has refused to issue licenses for two months since the supreme court legalized gay marriage. she argues her christian faith should exempt her from signing the licenses. dead and 11rine others heard during a training exercise. they were riding in a helicopter in north carolina. -- and 11 others hurt during a training exercise. the cause of the accident is under investigation. refugees have been pouring into the main budapest trains patient

. when police left one of 3000 migrants are currently camped outside this asian. many of them from war-torn syria. germany is doing nothing about the migrants problem according to immigrants. >> we do not have difficulties with those that would like to estonia.ungary, nor all of them would like to go to germany. froma: westbound trains the capital, budapest, are currently not running. companytries railroad says it has suspended them for security reasons. the nflm brady defeated if the deflategate court case. a judge nullified the league's four game suspension and can suit up next week. the surprise ruling came after more than a month of failed settlement talks to train the nfl and the players union. in judge came out forcefully

his favor criticizing the nfl for the handling of the scandal that erupted after the afc championship game in germany. that is when they discovered in the first half brady use underinflated football. brady says he will appeal. this is the only story people were talking about in the newsroom after mario draghi anish talking. believe that. cheers went up because in fact tom brady will play next week. of a revamped stimulus program helped to rally u.s. equities earlier today, but that advance has now faded. as investors look ahead to tomorrow's jobs report for the month of august. alix: joining us is the chief market strategist at oppenheimer. thank you for being here. it has been right a ride. you still see 2311 at the end of this year. >> we still think it is very much possible. we have to say we think a lot of the selling has been overdone

related to china. the united dates is not altered -- australia in terms of x rozier. they need us a lot more than we need them. we all need each other economically. we have to think the markets -- theyd off much oversold much harder than they should have. and likely when people come back a free life they have built a pretty good platform built on improving fundamentals. the economic data remains very good. it is not robust or strong, but moderate. in consideration of all the challenges around the world, you have to consider the u.s. economy is in good stead. the topping i can't help but think -- top saying i can't help but think of is everyone thought it would be bad and now we're looking at 3.7 gdp from year to and working our way through a tough earnings season.

the dowe we today that 9% from the peak. at worst down all percent. we have not been down this low, sound like a blues song, i've recalled 2012 the market down 9.6%. gets information it is not familiar with, it tends to extrapolate negatively. it is vacation time. a lot of people say why don't we sell? the bears thrilled. they thought this good opportunity. i have seen people who i watch a lot of bloomberg tv and the media outlet, and what amazes me is how many bearish guests will deny economic numbers. they don't take them on one-on-one. things are bad. things are getting better.

challenges never cease to exist. olivia: true. the s&p does not exactly map on to gdp. recovery is not robust, it is moderate. earnings came in pretty disappointing. pretty lackluster we could say. ? 2311.you get up 15% you would have to see a big improvement and corporate profit. --in corporate profit. >> we would have to see that and the fed raising rates moderately. confirmation the economy is in a sustainable economic expansion. probably greater multiple expansion been earnings and we had foreseen when we set the target last november. the thought is sweet has seen the market make substantial

rallies before from declines that were fairly significant. harder to get a draw down. 2014 fairly modest. here it is is improvement. economically, while gdp may not be immediately correlated to the s&p 500, gdp generally is good for earnings. what drives stock prices is expectations of earnings ahead. --think looking at 2013 2016, people will sit down in october and say this like the time. do i want cash, bonds, jp morgans? alix: came out with a note today. they are estimating another $100 billion of selling will take

face and the next 1-3 weeks as this shakes out after the volatility we have seen. they are always problematic, whether they are replacing people in business or use of quantitative analysis. the problem will be, we will just have to get through it. it is an effect of the challenge faced in this type of markets environment where we have seen trends change radically and quickly. the markets will be able to digest it. alix: white knuckle it i guess. >> seatbelts fastened. just does not necessarily mean the plane is going to crash. don't sell. olivia: much more ahead here on the bloomberg "market day." we are going to be talking donald trump. don't go away. ♪

olivia: welcome back to the bloomberg "market day." i am olivia sterns here with alix steel. alix: going to matt miller with a look at the markets. is down, indirect. the dow jones down as well within the past 30-40 minutes. most of the major averages have come down significantly. points on the dow end up over 1% on the nasdaq. not the case anymore. look at the map on the terminal. it was all green. now we're seeing points of bread, information technology,

health care. some of the big i.t. stocks are down, including apple, which is almost 4% of the s&p 500. , and you aretock seeing that down. first, let's look at health care stocks. the only sector really losing across the board. percentage biggest losers of the health care stock, but they do not take as many points away as tech stocks. now we go to apple, google. of the top five point losses on the us and five -- s&p 500, these are among them. apple is the biggest. starting to worry as we get closer and closer to the september 9 date that the has toations tim cook

get will not satisfy us the way we need it too because what will he give us? problem -- a new iwatch? probably not. it is not going to be flexible. disappointment, and that is why it is down. as far as the companies with real business stories, netflix has been one of them. it has more than doubled over the past year. it has come down every day for the past five days on concerns apple will create original programming and bite into house of cards style. one of the chips that makes -- one of the companies that makes chips for gopro has had about quarter, and people have interpreted that data to gopro and wearable cameras in general will have a tough third quarter. has lost 20%, and netflix down about 14.

doubled year to date but netflix has lost 14% in the past week. at the top a look stories crossing the bloomberg terminal at this hour. french farmers are driving tractors -- this is a serious story, french farmers are driving tractors to paris to protest following prices and higher taxes. they are it acted to make the journey to the french capital. ministers meet in bristol -- brussels next week to discuss the crisis. here in the u.s. congress expected to start debating the iran nuclear deal next week. profits -- president obama has 34 votes in the senate, enough to sustain a presidential veto if they vote to reject the deal. theia: jeb bush calling for elimination of worldwide taxation of income.

speaking at a town hall in new hampshire he says he wants to rewrite that would put a stop to corporate inversion. he says he will outline the attack land for the country september 9 in north carolina. those are some of their top stories at this hour. alix: donald has finally submitted to the grand old hardy, agreeing to sign up republican loyalty pledge, the one he famously refused at the first debate. olivia: will this help him or her 10th? -- or hurt him? part of his appeal is the independent image he has portrayed. >> the first thing i want to know is whether he is a frustrated and furious french farmer? i think it is good for him. everything that is bad for him turns out to be good for him. he gets -- he is getting to be called a closet liberal and being attacked for his old democratic stances.

it takes away an argument that rivalsembers of his would have used against them on his debate stage in california in a few weeks. on top of that, he now gets everyone to support him if if he is the nominee. i think it is all good. olivia: and it is nonbinding. it is a piece of paper. olivia: a contract is binding. >> this is on a contract in a formal sense. it is appease of paper written by the republican national tomittee that says i'm going do this. i have seen a lot of politicians who have said i will turn on my governorer my term as of arkansas. then when the time comes i say the country needs me. when the time comes if he wants to get out of the pledge, he can get out of the pledge. olivia: what does this do for the relationship between he and the rnc? does notpublican party

want to see donald trump be the nominee. on the other hand, what they want even more is to not have donald trump run as an independent and destroy the chances of their eventual nominee. it is a win-win for both sides at the moment. olivia: what are you hearing from the karl rove's and rush limbaugh? are they going to get behind trump? >> very different people. the establishment things donald trump is a disaster and would be certain to lose almost every eighth if he were the republican nominee that has read a race -- rhetoric on the party and hurting the whole party. they would like to see him go away. rush limbaugh is a different kind of character. he is part of a different establishment. for the ratings, just like he is good for all of our ratings. alix: fair enough. does this do anything for the

democratic side for how they are positioning against 10th? >> the democratic side wants as much trouble as possible. they look at the spectacle and think anything that keeps him alive longer, breathing, speaking, making a mess in their view is a good thing. i will note donald trump did say he is all good with kanye west. he said the reason is because s trump.st love i look kanye west has kanye west lovestruck. -- loves trump. alix: i want to refer myself in the third person. >> you guys should do that for the rest of the day. so much.hank you tune in tonight at 5:00 eastern due " all do

respect." ahead, apple expected to release another version of the iphone in next week's product event. is the company to dependent on the iphone? surprising that's next. -- stats next. ♪

>> apple has been in the news a lot this year for the new smart watch and apple radio, even rumors about a potential apple car. it is the good old iphone that is raking in most of the dough. alix: last quarter 63% of the revenue was from the iphone. the check giant becoming onreasingly more dependent the product. here to discuss this is tom giles. this is no surprise. what happens when the replacement cycle is over for what people are

talking about is the manufacturers might come out with a leasing program likely lease cars. they will find a way to keep it relevant. they will find a way to keep jampacked effect. think about it, these are like $700. the phone companies are no longer subsidizing, so you are paying full price. a little bit every month but it adds up. too dependent.ay this is $150 billion in revenue they rake in from that. the luxury car market, that is $200 billion. you have a product that you are essentially able to replicate in some areas. hard to argue with the strategy behind that. idea thatgue with the are overly dependent on this.

they need to get up the stick in terms of the product. new hardware. a couple of new features. as we reported, they are not going to come out of the top service where they are out there providing the entertainment over the internet. and, we also understand they will consider getting into their own programming. they are trying to move into these new areas. it is not happening that quickly. it is out. very popular, but still a small percentage of the revenue. still wins in that category. it is not like they had taken over that category. >> there is a lot of demand for it. still very small. olivia: july fraction of the iphone. the new apple tv product. a newexpecting to see

iphone. any rumors on how different the phone will be? >> we do not know what it will be called. design-wise i do not think it will look different. it will have new features. basically how hard you press down will determine what you do, the function. people are pretty excited about that. faster processor will keep the faster.ing design-wise, not going to be a big leap forward. thank you. olivia, you are leaving me. verizon, aol ceo will be talking. ♪

great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. alix: welcome back to the bloomberg "market day." i am alix steel. first-time claims for unemployment benefits rose more than x active last week. the labor department says start

of this new school year may lead to volatility in the jobs data. the number of claims was below 3000 -- 300,000. the august jobs report comes out tomorrow. the u.s. trade deficit shrank by more than 7% last month, more than forecast. imports of mobile phones and pharmaceuticals fell and exports little changed. screen supplier japan displays at the biggest client is increasing orders ahead of the big launch of the new iphone this month according to a reuters interview with the ceo. he says the economic slowdown in china is not affecting orders from the top client. isong orders could mean it more bullish about the prospect of the new iphone. apple expected to unveil the new iphone september 9. the new list of equipment makers and energy and equipment materials struggling along.

shares of the company make heavy mining machinery were down 17% after posting much lower result than expected. they also cut full-year or cast after falling quarter -- falling quarterly profit. general mills says people are not buying frozen and canned vegetables anymore so it is selling the green giant brand of vegetables for $765 million. general mills said they are working to shed the mature brands in favor of items that appeal to modern taste. verizon a low making another mobile moves agreeing to buy millennial media for $250 million. olivia sterns spoke with tim armstrong on the announcement and asked him what the acquisition adds to the business. adds a big leg to the stool, which is real focus and purity around mobile

advertising. millennials have a very talented team of people, and a very robust system was put on this tale. you will see much different numbers come out. we are putting our scale on top of the technology overall. and alone millennial buildup a lot of talent and technology. it will be able to game change the ability to be an impact player across entire global. olivia: you lit -- use the language this adds another leg to the stool. do you feel you have the scale you need to compete with facebook or could we see a lot if youher target? >> look at where the marketplace is with google and facebook, both companies have done a good job of holding up platforms. i would say we are the third platform company. if you look at what we have accomplished and googles and

techcrunch and in the advertising platforms, programmaticaround advertising and now we add millennial to it, as a customer around the world interest it in marketing and marketing to digital consumers, i think aol has to be on the list with google and facebook, and they think we are the third player in the game and will aggressively pursue that in the years to come. it is a very large growth marketplace. olivia: we are all excited to see what you're going on with goat 90. his is a pared down video service aimed at a younger audience. att else are you finding out -- finding about this product you go back they are set to release more information coming this fall.

verizon doing the deal. verizon a very smart company that has transition to a wireless business. this has gone directly to mobile and global scale. if you look at viewership in the future, you will have roughly 80% of viewership in the next five years for video with transition toill mobile. verizon probably the best transition company to take advantage of that. they are breaking that scale and strategic thought process to our mobile is going. we are bringing essentially the platforms to monetize and content lands and the combination of verizon's plans plus the otc service and ability and content is a really powerful combination. i think you will see a lot from verizon this fall. i think the start of this week

the verizonng brand, which looks great, and you will see basically, me being a part of verizon, you will see exciting things. real slow -- mentioned on verizon's part. showmanship on part when.we first started hearing olivia: about the product, we reported maybe it would be a full olivia: description based tv platform and now look like a more pared down platform. we also thought it we -- we thought we would get it out this summer. what has been the holdup? conditions onhe what verizon has been focused on first and foremost, making sure everything is coming together. aol was part of that announcement that just got done this summer. we just got through integration for them.

they have been a sickly methodically building out what looks -- methodically building out what looks to be powerful media technology company and in play for verizon. i think this service is part of that. i was not mistake timing with the methodical strategy they have had in terms of moving the product forward and thinking about the future. i will let the larger verizon entity to showcase a very powerful product in the future. will do the right thing in terms of making sure the ducks are strategically in a row. we're very happy to be a part of that process. tim armstrongat was speaking with olivia sterns

earlier today. the pressure on for twitter and the search for a new ceo. what the insiders are singing. ♪ -- saying.

alix: welcome back to the bloomberg "market day." i am alix steel. we want to take a look at the markets before the closing bell. we head over to matt miller. volume is really falling off. weak and theis markets do not look healthy at all as we get toward the close. take a look at the indexes. read across the board. point one. down

the dow was up 160 points, and the nasdaq was up 1%, now down half a percent. let me show you the imap, the map of the sectors of the s&p. it was all green and has now turned already. green oning up this the s&p. it breaks down the index into 10 different sectors, and then shows you if they are down on volume or up on volume in relation to the average of the past 20 days. as you can see, almost every single sector trading weaker volumes that i was over the past 20 days. the same thing yesterday. yesterday light and today even lighter. i want to bring up a chart bloomberg users will know, the chart.

the laggards and gainers as far as what is going on in the s&p index. myill put the change here -- point is i was going to change over and show you the percentage losers versus the point losers, but i'm having trouble navigating my screen, severing of the tech stocks that are really lacking. apple, facebook, and google are sucking away the most points of any stock out there, with the exception of maybe gilead. apple is a big weight on the s&p. almost 9% of the nasdaq. loses 2%, which is a pretty substantial amount to begin with, it really hit the indexes hard. the same is true of facebook and google. when they lose 2.4%, they hit the index hard. it is tough to put up any kind

of gain when you see that. i am sure you have been watching all day. a big spike early in the morning and then came down. i am sure if you did progression of analysis, usc they travel close week together. oil up a little bit. don the ecb said we will what we can to boost asset prices because we are terrified of inflation, we had affixed by kent came back down. we recovered a little bit on the day, and that is impressive because the apple is up. and again on a day like this is pretty impressive. y thatllar is the dx is a basket of 16 currencies against the dollar. gaining today. gold falling today because it is priced in dollars. in fact you do see gold futures,

and they are down even though mario draghi's as we will rev up the printing dresses and run them a little bit longer. you do not see the gold bugs getting in on the action because it is priced in dollars and everyone waiting on the sidelines for the jobs number tomorrow. i think that is basically going to be the reason you do not see very much volume. waiting to see what the jobs numbers are going to look like. 18.are expecting 200 artists would prefer they don't. it could be the kind of thing where you get a boost if the number of mrs. the street estimates. -- misses the street estimates. alix: saudi arabia cut the official selling price to some areas in asia, which signifies low down. fundamental things percolating

in the commodity world. now look at the top stories making headlines. formula one leader lewis hamilton seriously consider most talked it for the singleseat open wheel race car cart. this after justin wilson died after being hit in the head from debris from another car. his death came a month after another driver died following nine months in a, from a massive head injury. hamilton says he sees closed, it's in the future but a tough decision to make. a prosecutor in paris says a wing part that washed up on a malaysian island did come from flight 370 according to a french news agency. the debris was found on reunion island in july, the first trace to believe -- believed to have been found since it vanished. $470 million settlement involving apple and google. plaintiffs have claimed they have conspired to avoid hiring

from each other. the judge awarded $40 million in legal fees, half of what had been requested. those are some of your top stories. one stock we are watching today is twitter, shares rising ahead of a board meeting where they will discuss the ceo search, but investors are getting and the. getting antsy. joining us now from san francisco is emily chang. wespoke yesterday about what might here today. has any new been trickling out? mily: nothing coming out just yet. i just saw a tweet with a picture of the twitter headquarters saying is that a white puff of moke coming back -- coming out of the building cap though not quite the same thing, but a lot of people here in silicon valley anxious for the decision. according to our reporting, jack dorsey emerging as the front

runner. the board has spoken to a few candidates but it seems jack dorsey is the only real name that seems to be a real option at this point. the huge complicating factor is the fact that he is still the ceo of square and square has filed to go public, and there is no indication he believe square any time soon and the search committee has said they want someone who can make this a full-time job. we still don't know how they will get around that, if in fact he is the front runner for the job. alix: we did see twitter restructured today for the product team. what does that mean and what will he bring? emily: twitter has not been immune to changes at the top. we have seen turnover after turnover in the product division. he is responsible for building up the developer product, which is called fabric.

he will run the consumer product, which jack dorsey has already said needs a lot of work . that means the current senior vice president for all of product can take a bit of a step back from day to day and work on seeing the big picture and hallowed the different products can work together. last ofthink it is the the changes we are going to see. i think we can do to see if it more shuffling going on at the top. alix: at twitter, irrespective of leadership changes. that would be on the docket as well. emily: right, and i think product will be the primary place we will the change. on the product side they have the supersecret project called project lightning, and the goal is to help service the most influential and important tweets

more easily whether you are logged in or log out a twitter. it will make it easier for people who do not understand twitter to use. we have not seen what it really looks like. itremains to be seen whether will be that revolutionary or lightning in a bottle so tuesday. a bottlehtning in pretty revolutionary. i get what you are saying in. more on the twitter ceo search coming up. still ahead, investors anxiously awaiting tomorrow's jobs report. the stakes could not be higher. we will tell you what sectors matter most and potential market reaction. ♪

alix: it is jobs day friday. according to the latest bloomberg we are looking at estimates of, and unemployment

rate dropping .1%. at 218yment rate thousand jobs. joining me for a preview, the chief economist at bloomberg intelligence and michael regan who has all of the stock angle covered for us. what is most important in the jobs report tomorrow? >> normally we look at different components of the report. now we have to focus on the concurrent and leading indicators. things like the unemployment rate are very close. we're at the top end of the year and range. labor market participation certainly matters over the long run. not tomorrow. near-term activity is what will dictate if the inflation trends deviates in the direction the fed is hope -- hoping it will. we look at aggregate income growth, because that will tell us if the consumers have the

wherewithal to keep up the pace of spending in the second half of the year. alix: we usually get this awesome note the day before that sense when a job number is above expectation, this is what jobs will do -- stocks will do. what kind of correlation between the jobs report and gold in on jobs>> last year employment data days, the stock markets rose 11 of 12 times. missed estimates, beat estimates, did not matter. it is not uncommon to see this fade the day before were people pull back waiting for it. it is indicative of last year. it was a goldilocks thing where most of the reports were not robust enough to push the rate hikes forward. of thear it is kind

opposite. five of the seven report so far are the markets falling on the day. to me, it signals people are getting a little bit nervous the closer we get. >> tomorrow could throw a monkey wrench into that because august payrolls tend to be weaker going into the month and tend to be weaker than expectations. 218, normally august comes in 25,000-30,000 below that. givenreates real doubts the developments in the financial markets. alix: the fed is looking at the one report that cannot read anything. like the one report that tends to have a bias to the downside. are missing the most growth in the economy, and what does that say about the domestic economy? trying tos a critical

be watching. policymakers are focused on the feedback mechanism into the domestic economy from the foreign exchange and the turmoil in the international financial market. a transition has occurred, and it is really domestic's pending driving the economy. consumer spending, housing, business investment. in some respects this insulates us from international development. especially if we narrowed down to the labor market, if we look at the job market creation it is mostly in the private service sector. these are fields like health --e, restaurants, lodging sectors that tend to be fairly immune to the fluctuations in international demand, and that gives us hope and important job demand will hold up in the back half of the year, and the u.s. economy can mostly shrug off volatility coming from abroad.

alix: do you feel those sectors have reflected that kind of insulation in the market? >> every report is like health care, restaurant, service sector type of job. what i keep hearing from people probablyd's minded made up already and this report would have to be a big miss. i think if we get a stronger than expected report, the ,arkets will say that is great but a lot of stuff has happened. naked developments have trained fired since the survey period was calculated. on the other hand, we report you are ready have concerns the economy was struggling prior to the international developments, and you know things have only gotten worse. alix: interesting. what is your job call? >> i think it is below 200,000.

however, i think the risk is the unemployment rate could decline by .2%. 5.1 unemployment rate. participation is a big part of the trend. , theng at the model leading indicators that the -- of the on the planet rate suggests a slightly bigger move will work. certainly by year and we break to 5%. alix: cold calls. we will see what happens tomorrow, just hours away. a lot more coming up. we will get the last call on the jobs market. stay with us. ♪ . .

alix: we are moments away from the closing bell. david: and i'm in for joe weisenthal.

[closing bell ringing] u.s. stocks closing mixed after the erasing an earlier rally. investors are looking to tomorrow morning's jobs report. david: the question is "what'd you miss?" could september be the best time to raise rates? why one top economist inks this month is the charm. jobs. plus jobs, jobs, we will have the top charts you must see before the numbers cross. and with chinese markets still close after so much turmoil, fear grows about what will happen when they reopened. but we begin with stocks. another whiplash feeling in the market. the dow was up almost 200 points, now ending up 21 points. the nasdaq negative and now negative on the year again. david: