from bloomberg world headquarters in new york, good afternoon. i'm betty liu. markets are moving right now with all three major averages flirting with positive territory after opening down this morning. the dow leading the way thanks to energy and materials. bearing the brunt of a negative stint in the market, the financial firm in the s&p down 12% so far this year. hank greenberg says the markets don't make any sense to him right now and it feels like they are rolling the dice. the former chairman and ceo of aig. are about an hour away from the close of trade and it has been a wild day so far. the bulls have the markets.

>> this is where we stand with about an hour to go left in trading. the dow is up by 1.1% but it had been down by as much as 195 points. take a look at the dow intraday right now. you can see the volatility that has been happening over the course of today. we fell down 195 points. only toed the flat line rise right now. oil has been rising in tandem. more than 500 million barrels.

you would think that oil would be falling. this is really puzzling. there is also talked that there might be some currency impacts that are affecting crude right now. this is down the most in seven years against other major currencies. new data showed the service industries. betty: indeed, the service is so big in our economy. the nasdaq is the laggard here among the averages. part of ato do in cutting thehey are

pc estimates for all of 2016. they said there would be a contraction year. they were revising that. some of the impact is happening here. hp down the most by 2.2%. new products, in convertible products, notebooks really getting buyers to open up their pocketbooks. let's take a look over comcast. going the other way. this is the u.s. largest cable provider. they added more video subscribers in the fourth quarter than in the last eight years. since octobermost 22. a quick checket of the headlines in the bloomberg first review this afternoon. mark: the field of presidential

candidates is getting smaller. rick santorum says his schedule is on hold. cnn reports he will drop out tonight. kentucky senator rand paul is suspending his campaign. this up for reelection year. ohio governor john kasich says he is ready to drop out if he d inhis words, gets smoke the hampshire primary. >> it is a band of minstrels that can't beg people to come to our shows. we will make a hard choice. i think we're going to do very well. but we are not going to drag this out. >> after finishing in eighth place, he said he thinks the

race resets in new hampshire where voters are not swayed by what happens in the hawkeye state. the envoy for syria has announced a temporary pause in peace talks and the findings intensifies. talks got after the underway. former president jimmy carter says a scan conducted last week found no signs of the cancer doctors discovered last summer. despite the good news, he will go ahead with treatment set for next week. still helping to feed one in seven americans. what he 5 million people received food stamps last october. the program cost less than half of what the government paid out last year. day.l news 24 hours a

the s&p has fought 11% from the high and may but the stock guru says that this is the time to buy. the chairman and ceo told me that the markets are a gift in the sense that there are prices out there that make no sense. almost everything is a buy in my opinion. >> if you look at the valuations, you have to say he is right. unfortunately, you have a situation where the backdrop is becoming more and more questionable. valuations, if they are right, he will make a lot of money for shareholders. here is the rationale in

a very simplified form. the oil industry doesn't really affect whether or not home builders will go ahead. might be beneficial if lower gas prices put more money and they have more money to spend. wire home builders down so much? >> he might make a lot of money if the labor numbers over the next couple of years aren't as good as we hoped they would be. the stocks are down a lot. the margin of safety is enough that even if numbers are not quite what they would be, they would make money. heads i win, tails i don't lose very much. the markets have had a disconnect for the u.s. and the

rest of the world. morearkets have been much scared than what the numbers would justify. the world is not coming to an end. thesey after day, we have moves in the downward direction. how are you making money? >> companies that have been beaten down so much. you have a potpourri of things. take, if you knew something about it, on oil.

>> i think we are closer to the bottom than the top. at this point, people who know a lot more about it than i do are saying we are probably approaching the bottom. betty: huge mega-billion-dollar deal. >> may have 20% of the world's population and less than 10% of the arable land. they need to feed the people. they are running out of room. it is a very smart move. dupont have this kind of property. i don't think there should be

any regulatory problems. >> would you be in a sonnet they started to chip away at their dividend? >> got no. thatare the only major covers the dividend the way they do. they areno question committed to retaining the dividend. in the face of a possible downgrade by s&p? >> i don't think there's a chance. not worried at all. betty: what is your production -- projection for oil prices? is is mine. yours i don't think it's something that you can predict. if you look at the companies, these will be 500 coming on with iran.

listening to people know something about it. we could have a reduction, a huge reduction. , you have to give me a number. we will be at or above where we are right now. that prediction from chairman of holland and company. giving a hit to biotech stocks today? it felt deep in a bear market. what can we do to recover and how big will this market be? financial shares also in a bear market. all down more than 20% this year. , was adman sachs favorite trait is falling apart.

a quick check at how the markets are trading. it has been a wild day today with stocks ending in the green. ♪

betty: welcome back to bloomberg markets. it let's check in with where the markets are trading right now. higher by 0.6% and the dow is also gaining. of nasdaq itself is kind flirting right now, struggling to get to positive territory. you can see it is marginally lower. pretty much unchanged at this moment. materials leading the way in the market.

news that six opec and non-opec have agreed to an emergency meeting including iran and russia. that is according to the ministry news service. most members don't support holding an emergency meeting before the regularly scheduled gathering. to hold an emergency meeting of the 13 member group. they must support the bid for an emergency meeting to take place. member, saudiant arabia. the nasdaq biotech index decreasing 30% in the last six months. not to say there are not some bright spots. sales that beat earnings so finally some

bright news for this company? >> it has been absolute turmoil. we had some very strong earnings. really surprised the markets. it comes in from japan. it is unexpected and on top of is containingany costs and hopefully down to the bottom line. is this a brief respite from the selling? >> it is hard to say.

in a bear market like this, no news is bad news and marginally good news is bad news. i think the sentiment still these to change. getting more risk. , it ise can remind them still there from the last time we've spoken. betty: why did investors get so spooked? >> one of the things was pricing. it's always been a big issue. the profitability is so high. political.ts are it is religious saber rattling. looking forward in

biotech, are these companies that have been beaten down with >> with this kind of lookingkets, they are at some of these. it is hard for them to raise capital. there were a lot of cash in the and a very nice share buyback program. another three by the end of the year. betty: what are people saying about how deep and how wide this is going to be?

>> we have had so many fluctuations. very wide bear markets have been very acute. positive news to come through. the fundamental story hasn't changed. thank you so much. bloomberg intelligence analyst for us on biotech. look at the options market as we had to break. here's a look at apple and alphabet. of the worlds biggest company already over after one day. that company back on top.

it will be a two horse race here. the broader markets are positive. most of them still kind of swimming in the red here. ♪

betty: welcome back to "bloomberg markets." i'm betty liu. .he stocks are clawing back it surging more than 1%. the nasdaq is also climbing back into almost positive territory. ending by with how the actions market is trading all today's action. >> joining me is taught warwick of bubba trading. it has been a seesaw day. we are at session highs with the rising price of oil. we saw the wrigley -- the weekly inventory come in at the highest barrel since 1930.

what do you make of that? >> i don't think oil and the markets are really correlated. a level thatached was a good spot to buy and i think when you saw the s&p downgrade yesterday, it was a sign that the bottom was in. i think you are getting what you call a dead cat bounce. we were pretty oversold this morning so you get a natural bounce. i think oil will work its way liar -- higher. >> you are quite bearish on the markets, hovering around 22 or 23. but you think the correction will be much deeper? you say not to look at the fed. as soon as the financial engineering stops and the manipulation from the central bank stops, i am looking for 1586 as a final target. we not going straight down there.

there will be some vicious rallies. take a look at the overall s&p underneath the hood. there are many stocks that are already down. >> you're looking at conoco phillips that reports its earnings before the bell on thursday. what are you looking at for them? they are down even though they are up because of oil. this goes with my overall. . the stocks have really been beaten down. correct that the theyrades are incorrect, have been priced into the market. i want to buy conoco phillips because there is an 8% dividend and i am trying to bottom picture a little bit. with unlimited

upside potential. >> let's get into that. the next reward is unlimited. it me about that. >> i am going to sell some premiums. i'm going to sell the 36, 35 put spread five times for $.50. it will give me a risk of $.50 or 250 dollars. i will take those proceeds on collecting and will go to march about the 37 call for $2.40. mem buying a call that gives a reward to the upside. that's only if we don't rally between now and march. if we stay above 36, guess what? eye on those walls.

it drops to $50. much.nk you so todd horwitz, we appreciate it. it back to you. having anking shares rough go this year. the s&p financial down about or team percent. exactly why are financials getting pummeled? still getting pummeled today. even in a market that is now rising and we are still close to our highs of the session. the dow up 160 points. ♪

the conference call. the ultimate arena for business. hour after hour of diving deep, touching base, and putting ducks in rows. the only problem with conference calls: eventually they have to end. unless you have the comcast business voice mobile app. it lets you switch seamlessly from your desk phone to your mobile with no interruptions. i've never felt so alive. make your business phone mobile with voice mobility. comcast business. built for business. ♪ betty: my from bloomberg press world headquarters, you are watching "bloomberg markets." let's get a check on the bloomberg first word news with

mark crumpton. with the latest on the zika virus. rick scott is declaring a public health emergency for four counties. officials say that there are nine travel associated counties. miami-dade, hillsboro, and santa rosa. argentina is in the meantime reporting a second case of zika virus. martinique is facing an epidemic for the virus, along with french guiana. they are repairing extra medical staff to combat it. let your finger pointing the lead contaminated water crisis in flint, michigan. the chairman of the house oversight committee says that a failure at every level of government led to the crisis. an official at the epa says that the crisis was avoidable and that state officials resisted calls to deal with it. meantime, state officials are blaming federal regulators.

donald trump tsonga he was robbed, that ted cruz stole the iowa republican presidential caucuses. among his complaints, what ted cruz says about trump's positions on obamacare. he's calling for a new vote for the win of ted cruz to be nullified. raising funds has been profitable for hillary clinton's campaign coffers. she has raised nearly $27 million by locking in alliances with 33 state hearties, based on a bloomberg analysis of federal election commission filings. bernie sanders has just one such deal. angela merkel is changing her tone on refugees. she is turning away from the inviting rhetoric that critics say encouraged more than one million people to arrive last year. today her cabinet approved a legislative package to restrict the flow of refugees.

news, 24 hours per day, powered by our 2400 journalists in 115 or -- news bureaus around the world. back to you. markets are closing and in about 30 minutes we have seen a major turnaround rebound in trade, the dow jones and s&p in positive territory, but the is still lagging, struggling in the red. abigail doolittle has more on this. abigail: i huge day of volatility here at the nasdaq. down just a little bit now, but as you mentioned, still in the red. the big drag coming from big tech. some of the top points come from both classes of the alphabet stock, along with amazon, microsoft, and facebook. three out of those four companies reported great fourth decent twod offered great outlooks for 2016, so it looks like you have another day here of one the fundamentals are

trumped by a risk off contact, now just a cashing in on the winner's mentality. when we dig deeper to take a look at output that, it has a deep top point drag giving up all the gains made yesterday on the lack of real news. it seems to be a complete reversal on investor assessment. marketis back in a bear from its record peak as investors continue to sell the week fourth quarter reported last week. the stock is well below its moving average in what has been a bearish technical setup in the past. helping out the nasdaq today is gilead sciences, with a bit of a break on the biotech side, the stock is up sharply after they beat fourth-quarter estimates by double digits. was light, but a bloomberg analyst said that that may prove that the stock is a value name, can tutoring that it

made nearly $12 in profits per share last year. today, stunning to some degree, the stock is back above this order last year's lows. it will be interesting to see what is ahead. thank you, abigail doolittle at the nasdaq. let's focus on banking shares. so far this year the banking sector has fallen twice as much as the overall s&p. earlier today we spoke with michael scholl about the state of banking. michael: i have no concerns around the general banking crisis. betty: exactly. michael: if your money is in bank of america stock, perhaps you don't sleep quite as well. betty: joining us for more is the bloomberg stock reporter, anna louise jackson, who helps to cover the banks for us here. as you heard from michael, he's not worried about another financial crisis. anna: right. betty: why are these banks

getting hit so hard? fed: into the december meeting, a lot of people were betting that bank stocks would do well. because those expectations have come down now, that it long trade has become a big short trade with people getting out of bank stocks. betty: who is getting hit the most? anna: it's pretty broad-based, but a couple of big names. bank of america, citigroup, even stocks like wells fargo, which have been perceived to be healthier at times, they are down 13%. goldman is down like 15%. it's really a lot of these big names and companies. it is broad-based selling and as you say, goldman, the jpmorgan people of the world are getting pummeled. is anyone talking about their bank balance sheet? loan losses? particularly from

the decline in oil prices, that might be a reason why? that's definitely a possibility. a lot of what's going on right now is this interest rate environment, but the bigger longer-term concern is what's on the alan sheets and is that going to be something that's like the next big problem for these companies betty:. betty:how about china? anna: china is affecting the market overall. that's not really the big problem right now, it's more these domestic issues and worries about any sort of global slowdown. if you look at european bank stocks, some of them are trading at levels that are financial crisis levels area deutsche bank is one of those. you are obviously seeing these growth concerns trickling in as well. thank you so much, anna louise jackson, a bloomberg news on the banking industry. , spoke with hank been berg

former chairman and ceo of aig. he says that there are a number of overhangs in the market keeping stocks down. >> there has been an overhang on the markets. the political situation around the world, we have new events that are taking place. fairness it all appears to me that the u.s. walked off stage. a result, we sparked other problems. betty: you mean in the middle east? >> where you have a vacuum, it's filled. filled by other countries. that makes the world even more dangerous. and that's a concern. so, the markets reflect all of that. one, it's a trading market. buy stock in the morning and sell it in the afternoon. or vice versa. betty: do the markets make sense

to you anymore? >> no. betty: really? >> no. [indiscernible] businesses.uild >> we make investments. we are investing in china. last time you mentioned argentina two. >> i'm very impressed with the new leadership. did've unraveled what they for the last 12 years, devaluing the currency, which was overvalued. they took off and export tax. that was the dumbest thing anybody could do. until they got no foreign-currency coming in. it was blank. things like that going on. -- all the a great

ministers i met were first-class. they are full of experience and run their own businesses. it's a very wealthy country. betty: are you looking to put investment dollars in there? >> absolutely. also spoke about the presidential race. his super pac backing jeb bush. i asked him if he is still backing bush, even though the candidate got just 2.8% of the vote in iowa. >> am sorry that jeb bush didn't do better. i think he's probably the most credible and capable. i know you are a big supporter of his. >> he's a great man who did a good job as a governor. he doesn't do things half cocked. shooting from the hip. he's thoughtful.

he's surrounded himself, like his father did, with good people. greenberg told me that he would probably put his support and money behind marco rubio next. up next, how many interest rate hikes will we see this year? just watch the bond market, they will tell you. zero.ders are saying no rate hikes this year. we will discuss that next. plus, earnings after the bell. yum! brands, buffalo wild wings, two major insurance companies with tech earnings. go pro and take interactive. ♪

betty: good afternoon. welcome back to bloomberg

markets. i'm betty liu. a quick check on the markets right now, this rally is losing just a little bit of steam. energy materials are still leading, with financials the third worst performing right now. up i 3/10 of 1%. the dow still has gains in the triple digits with the nasdaq heading lower. time for a look at some of the biggest business stories in the news right now. toyota is killing a brand after years of slumping sales. model year vehicles will be rebadged as toyotas. psion, excuse me, was formed in 2003 to attract -- scion, excuse me, was formed in 2003 to attract younger buyers with no haggle pricing. of the newction apple headquarters in cupertino, california, is still taking

shape. new drone footage taken by a videographer is offering a birds eye view. the $5 million project has quickly emerged since work began in 2012 from a large, ring-shaped slab of concrete. some 2.8ity will cover million square feet and how is some 12,000 workers and is due to be finished next year. looks out of sight. ben & jerry's now has ice cream. they have created for flavors using certified vegan almond milk ace. they are chunky monkey, my favorite. chocolate fudge brownie. plus a couple of new ones. coffee caramel fudge and pb with cookies. hungry yet? all right, that is your bloomberg business update. traders now see a 47% chance of a rate hike on or before their december meeting. compared to 93% at the end of last year. they really have taken down

their expectations. the bond market is showing signs of similar sentiment. alexandra, what are bond traders saying? alexandra: they have gotten really flexible about the capability of raising rates this year. a lot of things are driving it. people are worried about inflation and the prospect for economic growth globally. betty: they are. why are they so concerned? why is it so bearish? alexandra: i've been surprised by just how bearish it has been. but people seem to just be getting really worried about the outlook in general. people are starting to worry about what the broader effects are that it might have on the u.s. economy. betty: is any of this signaling a recession? not just alexandra:

yet. that inverted yield curve has not shown up, but people are starting to your worried. mean, it's starting. the inverted yield curve has not shown up, but it is trending that way, isn't it? what's interesting is that it has been flattening for months today deepened a little bit. but even with all of that, traders still cut back their expectations for a hike. part of thaty: reason that is that inflation is nowhere to be seen. stan bishop said exactly -- talked about the conundrum with inflation. let's listen to what he said. -- stan fisher: once it flattens out, the effect will dissipate. that is why we it expect it will rise over the medium-term, supported by further strengthen labor market

conditions. betty: the bond traders that you talk to say what? alexandra: they haven't seen any sign of it. betty: they don't buy it. right, a lot of different metrics read differently. if you look at energy and food prices, things are running ather, but we are still not 2% using their go to metrics. alexandra, thank you so much. much more ahead on "bloomberg markets." the close of trade is moments away. imagine, energy with oil prices on the rebound today. they are meeting the rebound of the energy stocks in the s&p market. ♪

betty: welcome back to "bloomberg markets." one stock

that we have been watching today is yahoo!. shares are of worse falling after marissa mayer unveiled her latest turnaround strategy, including cutting 15% of the workforce. she also left open the door to selling assets. earlier she joined bloomberg television. management awards are very aligned. i will say that the yahoo! situation is complicated. i think that that's obvious to everyone, as particularly with the trend on the assets that we have in the yahoo! japan and alibaba. that one of think the reasons you can see that we need to have a somewhat complicated solution and a somewhat complicated path forward. betty: she says that her goal is to make the core business as profitable as it can be. has her market check on what's been a pretty volatile day. pretty volatile, but it

looks like we are looking to lock in gains for the s&p in the dow in the last few minutes of trade. it's up by little more than 1% here. the nasdaq, still not able to get out of negative territory, where it has been for pretty much the whole entire day, down by one third of 1%. we are on track to break a two day losing streak. let's take a look at what's been happening with the dow intraday. we will also take a look at this roller coaster ride here. we can see that we hit session lows at around the 10:30 a.m. mark. this was after weekly oil inventories showed a huge gain of 500 million barrels. that was the first time that it hit that mark since 1930. after that we did manage to climb into the green a little bit. no less than 10 times. you can see, rising with oil, we are now on track to close 1.1%

higher. with that said, crude oil inventories did come in way more than we expected. interestingly, nymex crude oil, you would think it would be falling but it is not, it's going the other way. at its session highs right here. one thing that could possibly be happening here is that analyst are expecting oil prices to rise by $15 by the end of the year. there are also some currency movements. the u.s. dollar is near its session low, falling the most in seven years or so. let's go ahead and take a look at what's happening with some of the oil majors. chevron and exxon rising in the biggestng it sector gainer on the s&p. with chevron right here we are seeing it breaking its four-day losing streak there. taking a look at some other specific stocks not related to down,onda leas and tesla,

missing earnings estimates because of the strong u.s. dollar and weaken global economy . they get most of the united states. 5%, they arewn saying it's best to avoid the stock because of demand. we have some breaking news on the media front. lions gate here, said to be focused on possibly a starz acquisition. they are focused on earnings that come out on thursday, but according to bloomberg news they held a board meeting and discuss the possibility of coming back .o a higher starz they try to do that in 2014. is controlled by billionaire john malone. a time there was valuation concern, but it appears now that valuations are better and the tax reasons may be better for him to sell to lions gate. we will keep our eye on that story. we are just moments away from the close of trading and as we

haven't saying, it's been a thetile day in the markets. chairman and ceo of mason funds told me that the u.s. economy remains strong, with a low likelihood of recession unless stocks false or far that they cause a collapse in the wealth effect. joining me now for more is mike from our gadfly section. he was saying -- look, if we see another 20% fall in stocks, that might cause a recession? quite see knows that they are having a rough stretch now. but his past track record is so good, it was a great interview to get. betty: thanks. mike: we propped him up. [laughter] big.wealth effect, that's a lot of people are talking about it. we are talking about trillions in raw stockmarket wealth. you can already see the ramifications for that.

barrens was out over the weekend with a very bullish call on banks, saying to buy them all. then they promptly kept falling for three days in a row. if you are bill miller, the value, you have got to be salivating at the value in these stocks. all of them. the problem is, people were doing the same thing last year. if you look at some of the famous value investors out there, like david einhorn, they had rough years. or warren buffett even. being a value investor is tough when the market is sort of not necessarily following the same playbook that it used to. momentum, highflying stocks are doing well, values recovering the way that they thought it would. it makes sense, the ideas behind it, it's just that sentiment can get --

betty: -- mike: and it obviously depends on your time horizon. the exxon dividend is high. there are all sorts of opportunities there. if you are a guy like ill miller , you've got to worry about those yearly, monthly, quarterly numbers and it's a tricky thing to do. betty: it is. mike, good to see you. for more fast commentary from gadfly, type it in on the bloomberg gadfly on the web. that is it for "bloomberg markets." it looks like we are going to finally close in the green for the dow and the s&p for the first time in two trading days. ♪

scarlett: we are moments away from the closing bell. steel, joealix weisenthal is on assignment. ♪ [applause]

[closing bell] u.s. stocks rebounding into the close, oil surging against major currencies. scarlet: the question is, "what'd you miss?" we speak to the analysts who made a call. betty: plus a race for first place, apple and alphabet go head-to-head to be the most valuable content and he in the u.s. social mood and lower confidence is giving rise to trump and sanders. -- scarlet: ofe course, the s&p 500 is launching its first advance this month. energy and materials, commodity sectors leading the gains. the weaker dollar certainly the focus. for so long it has been oil moving in locks