carol: good afternoon. here is what we are watching at this hour. --. stocks gains as crude 3.5 rally. can the dow and the s&p extend their 25th dean high. -- 2015 hi? gh? is the fed on the right track? tim reid discusses his career beginnings and where it all went wrong in malaysia. we are one hour away from the close of trading this wednesday. let's head to the markets desk where julie hyman have the latest. we had a big rally and now we have lost some of it. >> look slick we are hanging onto these gains and are

relatively steady. a two of janet yellen reaction in what were right -- widely reviewed before the economic club of new york, which she emphasized would be cautious and measured in raising interest rates. especially in large cast, we are taking a look at 3m, ubs raised $190 based ont, what analysts see as product innovation. shares are rising as well trading on a record today. a big year thus far. after they were upgraded, they say apple is undervalued in a large cap tech peers. financials, one of the few groups to not perform well

yesterday. they are bouncing back. shares are rising and contributing to gains. energy, a top performer today. that was a laggard. >> it has been unusual session for oil prices here today. if you take a look, we are seeing them up a little bit. earlier in the day, rose. got an oil inventory report, a smaller than estimated bills which should not be bullish for oil. it was briefly. what is the issue? it appears to be the u.s. gainingwhich had been some strength, bouncing from the lows of the session. be hurting theo oil price. you look at what we have seen quarter today or year to date, for the various dollar commodity relationships, its worst quarter since 2010 if you look at the year to date performance as measured by the bloomberg dollar

index. oil is set to have an up year to date snapping the down quarter. all the way back to 1986. todayare trading lower like the strong performance recently. mark: the paris prosecutor says a french citizen arrested last week has been charged with plotting an imminent terror attack or the suspect identified -- for dissipated in a terrorist group with plans for at least one attack and is also accused of possessing and transporting arms and explosives and holding fake documents. the united nations secretary-general is very

conference inews stockholder. the secretary-general -- general discussed a recent deal between the u.n. in turkey that allows for greek authorities of newly arrived refugees who will then be set back while the eu recitals more refugees. beit is clear we need to solutions. i have been calling for countries to work forever in a spirit of shared responsibility. chief to visit his implementation. mark: the bond: governments around -- around the world to counter what he called fear mongering about refugees. $86 million trucks surveillance , has neverfghanistan

taken flight. it has been sitting in delaware for seven years according to an audit released today by the justices from department. they say it has been played by new steps, costing four times the initial estimate. to fbi used the help of this access data on the iphone use in san bernardino's shootings. people familiar said the fbi was before thea client project. a unit of japan's sun corporation. that company's shares are up almost 40% since authorities -- ed global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. back to you, carol. carol: stocks continuing to rally following dovish statements. fed shared data -- janet yellen yesterday. edging closer to 2100, a tipping

point for previous rallies. there are skeptics out there of the gradual approach to raising interest rates. mom and rising concerns about the on intended const x of the fed's only game in town status, including what it implies for futures financial stability. for the $100 billion in assets under supervision, he joins us from california. we had roughly under 24 hours. >> i was a janet yellen's comments were more or less in line, perceived as dovish. we still have a labor market gradually healing. we have got another strong 80

and a solid jobs number friday third we have core inflation a continues to firm with rage -- wage pressure rising. two more rate hikes in the back of the year. >> are you worried about how we ?et to another side >> we have not had a meaningful fed rate hiking cycle in nearly a decade. it has been a little different and i think it will be interesting to watch how the world evolves and how the economy progresses in rate hikes. carol: the labor market is

certainly much better than where .e were in the financial crisis you talk about other factors improving, but we were not getting great economic growth at this point. that is subpar. what will it take to get the economy back to normal, if you will? is an excellent question and if you look at what has been economy,down the strengthening dollar has an impact on foreign sales. we are seeing these things stabilizing a bit in the first quarter of the year. we saw the dollar give back to the gains. time to get some through that. the last thing i would mention, if you take a look at regional manufacturing surveys, the u.s.

aonomy has been staggering little bit. i did the first half of the year will still be muted to we are optimistic that growth in the second half of the year will pick up. you think growth in the united states will pick up. what about what is going on in the emerging world. emerging economies, these are much more important than the overall global health and economic health. though gross made some comments about this. about emerging economies flying at stalled speeds. what do we do in terms of emerging economies to get them on track? the problems there are more lasting and not so easy to fix. it is also important to remember emerging markets are not necessarily one and this

name. you have asked orders and the commodity of orders. to the extent, we do not necessarily see commodity prices rebounding anytime soon. i think those economies can continue to struggle. you look at manufacturing exporters and the u.s. economy continues to wreak celebrate, we continue to get positive economic data out of europe, you cannot get a lift their just from the developed nations. again earlier this year. overall, oil prices have stabilized. we cannot forget the fact that valuations in the emerging markets are probably some of the best around the world. carol: you have an mba in the columbia's -- columbus business goal. for those not teaching finance and economics going forward, what do they have to teach the student body?

based on the knowledge of the last few years? wow was in columbia, it was in interesting time. one of the things i loved about the school was a combination of academics and practicality. we have adjunct professors that come in. what they're doing is fantastic and to continue to move on and not direction. >> the strange scenario we have lived with since the crisis. >> we are studying it as we kind of go along. looking back to the financial crisis, understanding the impact and the role it should play in the financial markets moving forward, i suspect it is a huge topic of discussion across several different schools and it is a huge focus for columbia. >> we cannot quite right the ending until we see global central banks doing these things. thank you. i appreciate your time this afternoon.

joining us from irvine, california. anddo goldman sachs executive tim wright -- tim what rise to the ranks and led to the downfall? a fascinating story. rally for lululemon. we will find out that story. fed sure yellen's dovish comments yesterday, a short-term bump or the next leg of the market? ♪

carol: you are watching bloomberg markets. let's check in with the markets stand right now. of the overall market, the highest level since

mid-december. up .6%.500 17,740, up 16 -- up .6%. .7%, the nasdaq at 4880. it is time for a look at some of the biggest is the stories in the news right now. blackrock plans to cut about 400 jobs or about 3% of the workforce. this is according to people with knowledge of the matter. the biggest in money manager january larry said in -- the cuts will be announced in the next few weeks. the merger of pfizer and allergan is a subject of an in-depth probe by antitrust officials. issuing a so-called second request to companies. for more information related to the review.

allergan,e maker of which produces botox, the deal at $160 billion. apple says it has hit a milestone in supply chain transparency. 100% of suppliers are audited for use of minerals. apple is not declaring its products totally free, also subject to third party review. that is your business flash update. over $2 billion is missing, a $3 billion deal struck over a handshake for a real estate project that never happened. this is an in debt, cliff notes version rocking malaysia. story andnbelievable it is true. that banker, tim weisner is now a former goldman banker. we are joined now.

i'm not sure where to start but you talked about imdb. malaysia development. a fine thing is you should sort of think about it as a well-funded but it is not quite. it is a big pool of money that started as a state in malaysia and in the malaysian federal government can over. the idea was they would borrow a lot of money. $6.5 million was goldman sachs here they were going to use this money, they were going to start a financial district. on one hand, those projects have not really gotten off the ground and on the other hand, goldman sachs got $500 billion in fees and a prime minister who helps endede the fund suddenly up with something like $500 million if not more in the bank account. a messy story. carol: they say the money came from the saudi royal family.

quite the new attorney general, because the last one was fired. he said nothing to worry about here, everything is fine, the money came from the saudi royal family. some of it was returned. carol: you have got to talk about tim weisner, and in some -- interesting fellow. who is this guy? about him aalking couple of months ago. the guy is a goldman sachs star. firm thatchs is a more than a week -- more than any other bank on wall street mastered money and power. in a way his critics still like. in the united states, critics get upset when is the another has become a lawmaker or a governor or secretary of the treasury. but it is a lucrative

combination. if you go to a country like malaysia or indonesia nearby, then those become, kidded. tim weisner is clearly a friend of the prime minister. what are the specific charges against weisner? >> to be clear, no thing has been charged. subpoenaed, but apparently, he has been told he is not the target. i think they're clearly seem to who investigators are interested in, in switzerland and malaysia and the united states. does the malaysian government say and what does goldman sachs say? a goldman sachs banker is here right now, she or he would

say, what happens to the money concern.cessarily our i could imagine them saying that. on the other hand, they have into animate -- a messy issue. what would happen if obama would have $500 million in his account and worked with goldman, people would be upset. the prime minister said i am not a thief. also things are in order everything is fine. weisner we think is in a mansion in los angeles. i tried and failed. carol: always a good story. thank you. you can check out that story in this week's edition of bloomberg businessweek. we are 40 minutes away from the closing bell. off the session, still up .6%

off the s&p dow jones industrial average, 7% at the nasdaq. the dow gaining more than 100 points at its highest level since december. you are watching bloomberg market. ♪

julie: day two of janet yellen reaction. we not seeing a huge reaction. use a ba returned to the sentiment investors were feeling to his ago, right? indecision on the fes part on whether to raise or not indecision our really, whether to take this thing to new highs or not, or whether to sell back

down. an indecisive, go nowhere kind of market here over the past couple of days. we have been watching those that track volatility and the vix itself. all that is falling to nothing. we saw it touch its slowest of the year today. people are seeing the opportunity of cheap redaction ad it was like we are seeing lot of buying of the exchange knows because people are guarding against a spike in volatility again. >> absolutely. it is a prescient time given the market not too far off. to say the price of protection in the lowest it has been at in .bout a year now -- given the 14% rally, i

think that is a good place to be as well. julie: this is something interesting you pointed out in your notes to me. exxon is trading at a substantial premium. bloomberg fort on a historical spread between the two. it was trading at a discount. you're looking at a historical spread to come back out of line. spreadsice thing about is the normally converge back toward the norms here. as early november had dropped about only 3% whereas oil back in early november has dropped almost 20% from the 46 level. , exxone referred back

trading at a discount. we are trading at the biggest at a very long time. i'm looking at the spread to re-converge. also, the reaction we'll head, less than evie went, i'm looking for oil if it breaks that support level that used to be a major resistance, we used to see oil hit hard as well. bearish stancea in exxon. julie: what is your trade here? a simple trade. a spread, 85 puts selling 80 , pay one point $.5. 1.25 dollars. julie: we will be right back. ♪

carol: a quick correction, we segmentnner in the last

investigated in the labor funds scandal. he was subpoenaed but not the target of an investigation. crumpton is over at the news desk. mark: good afternoon. merrick garland, president obama's choice for the supreme court, met with a pair of senators. al franken spoke with supporters. >> this is the danger of this. precedent of making this, of making the supreme court political, more political. that is very dangerous. mark: judge garland also met --h a new york junior center senator. leadership refuses to consider

the nomination, saying the next president should choose the successor. they will not be charged in the fatal shooting of a black man next december. one officer is white and the officers hasn't been released. mark was recent -- reaching for officer's gun when you were shot. clark was handcuffed. his death led to massive protests and an 18 day and kamman outside police headquarters. governor perry the total legislation aimed at protecting opponents of maine -- same-sex marriage. he says this would hurt the state's economy. the measure would stop the state from punishing religious groups that would refuse services. texas senator ted cruz leads donald trump by ted points in wisconsin's republican primary according to a new law school poll.

trump.z leads john kasich's third at 21%. 39 to 49%. more than 150 news bureaus around the world. i am mark crumpton. carol: thank you. markets are closing in just about 30 minutes from now. chipotle mexican grill, they are apparently getting into the burger business. the company's filing a trademark application according to the website. keep in mind, they are known for their mexican line. they of course also have

chophouse house, devoted to asian cuisine, if you will. as we mentioned, markets are closing at 28 minutes from now. the nasdaq is gaining. lannett the nasdaq with the latest, we are seeing some gains. still holding onto a lot of momentum today. >> it has been a roller coaster. the nasdaq is higher by about 1%. significantly early this afternoon. now hire again, all this being held -- helped by tech, especially apple. iphone estimates have bottomed and he believes year-over-year compares are more favorable and that the stock could get a boost from the upcoming launch of the iphone seven later this year. applengraded shares of ahead of the big drop, saying at that time, it appeared to be too

high purity was right there. a new upside to his price target. creating a little bit of that saysr coaster, an analyst nothing specific here. we have biotech slagging overall. one pressure ongoing is an ginseng regeneron's drug restricts upon his own. could cause the stop to go down. one that already slid by about 40% from last year's peak. >> you mentioned apple and regeneron obviously having an impact. any week percentage movers that caught your attention? >> lululemon shares are soaring top estimates in a strong holiday season despite a mixed outlook going forward. worth noting a

stock -- carol: thank you, abigail. , wiped out any gains for the week. janet yellen's comments yesterday. the chief investment officer of fixed income was on bloomberg tv earlier today. he claimed why this was so crucial for the -- for the fed as well as central banks. fed butust the everybody, first of all, get your currencies weaker. that is basically what they're trying to do and so far what we have seen in the recent time frames, the ecb and the boj have not been successful in doing that. yesterday's announcement

and the previous more dovish fed, the dollar has weakened off the highs. that is a positive because i do not think the fed wants the dollar to be the strongest currency in the world even though it probably should be given economic outlook in the u.s. >> looking at the treasury curve in the moment, just with the data that came out this morning, the longer it is off, the front end gets pretty anchored. far as it relates to the high-yield market, i hope so. it is a good signal that things are getting better for the economy as a whole. the curve has been right around 100 basis points for a while. you are right that steve and a couple of basis points. i am surprised to did not stephen moore after the dovish comments by chair yellen. basically recommending

high-yield you are also taking .n the debt >> a selloff further in the year. to our calculations, we had a standard deviation selloff in the high-yield market in the it's weeks. that sounds shocking. how about this? . rally in last six weeks i fully believe we're in that style of the market. quickness with which the pendulum swings back and forth is astonishing. high-yield looks attractive to us now and high-yield had a pretty big selloff for the last 18 months. to us, from a valuation particularly against

s&p 500, he looked very cheap. i am curious about the quickness. are there structural changes because either now we have funds that are in the trillions of dollars, large funds, or algorithmic training -- trading? what is called the rapid trade? classes dependent on the central bankers. the markets thought the fed would tighten. the market was scared about that. the market had essentially been shared. that created an environment of risk off particularly in high-yield. seen the fed become more dovish. the ecb increased their qe. the boj increased interest rates. there is a thrust of monetary help here the real question would be, are we going to go back to where this monetary

thrust helps the real economies? so far it has not worked. >> investment in has gone down. >> that is exactly right. a lot of debt issuance. very shareholder -- increase their dividends. finally, myself included, hold on second there. we are all for higher stock prices but not necessarily they are generated by financial engineering and not backed up by stronger engine growth and stronger earnings. >> maybe one of the only things not benefiting from the dovish remarks, the dollar index

sinking to 8.5 month low. the currency benefiting heading to their best month since 1998. for everything else, a weaker dollar, better for global financial markets at a time when he's the be in the boj -- .> i think there is no doubt the real question is what would theean for economies financial markets and the real economy. getink the whole idea is to if fed asset prices higher we get the real economy going,

we have had financial market increases in certain areas strong gains on the financial markets. carol: that was the chief investment officer over at bernstein. just another look at shares of to pull a pair they are rising. getting into the burger business. for theling a trademark better burger name. the food safety crisis hit the stock really hard. as lost over one third of its value over the last six months. stocks are still down and lost 30% on -- in 2016. they have talked about extending the model. pizza anddone it in asian food and maybe burgers as well. stick around. ♪

carol: as u.s. stocks continue to rally and are set to close at the highest level since mid-december, we offer the best level of the session but still up about .5%, on each of those major averages. is time for a look at some of .he biggest business stories batman versus superman, donna justice. the film is made $5,000,200 100 56.1 million in north american theaters. it is the first of 10 superhero movies planned by warner. trader joe's is settling a law farmsawsuit pepperidge

over cookies. trader joe's chris beake okies to closely resemble their well-known milano brand. companies reached a mutually satisfactory resolution to end the cookie war. major league baseball has reached a deal with apple that allows ipad pros for scouting and analytics. along with fed chair janet yellen's apology yesterday, she addressed the versioned use of the markets and the fed when it comes to measures of inflation. michael hansen, bank of america merrill lynch: economist abated .f janet yellen is targeting >> -- i think it might be a little more than what the fed

thinks it is doing. they have to knowledge when the data are a bit soft in the markets think the fed will react to that, it is hard for the fed not to do so. catch 22. a monetary policy works and portly through expectations channel. that is really the highlight. >> we have that chart and we take a look at what happened all the way through yesterday. down the fed meeting and during her speech, does that translate into the defect a rate cut? >> in some sense, high frequency variation probably does not have as much of an impact on the economy has done -- as does the underlying trend. there is a question the market where the fed stands in terms of rate hikes. been skeptical of

the fed for some time. it is kind of on the road to zero. if i look at other fed officials , even if i look at janet yellen carefully, i'm not sure that is the right interpretation. track inhe fed is on june if data continues. we had the chicago fed president this morning who thought ava was unlikely even those few fed officials last week kind of raised the issue. i've a she did a good job of trying to corral the discussion away from april. i think it is very much alive given the committee wants to be gradual and this thank you very much about doing to rate hikes. nine of the 17 participants giving. in march for two rate hikes. june seems to be a real possibility. look on theake a

bloomberg w.a.r. p, only a 24% junee of a rate hike in and only 34 -- only 34% in july. we continually see the fed reraise it's expectations to the market. why are you holding on to that? tothe fed went from four two. the market went from one half to one quarter. the market continues to run ahead of the fed. given the inflation data has been a little better, i realize janet yellen has been uncertain, the unemployment rate continues to come down, unless there is a global shock with her is something that fundamentally changes inflation in employment, on the one or two is not move. they themselves are looking for rate hikes. carol: you mentioned employment but it hinges also on inflation. how much do you think they will tolerate?

is a great question. it is not obvious. think above 2%, no problem for them at all. once you get above 2.5 or close to 3%, the fed is probably a .ittle more concerned it depends on what causes the overshoot. i don't think they would be too concerned. carol: it seems to be a good news for jobs. it does not matter. what do you think? >> the fed is looking for the unemployment rate to come down a little further overtime. i think it could go down faster than a think and that is something that could potentially force them to go a little quickly than the market things. i think broadly speaking, the challenge for the fed is that the labor market looks very good. inflation numbers are looking better but they're not certain.

the growth numbers are not so high and that is a challenge for the and still. carol: michael hansen joining us there. market,p on bloomberg trading just moments away. let's take a look at the major averages are off the highs of the session and off the lows of the session. about half a percent above the dow in the s&p 500. .6% gain for the nasdaq the are date is up about 1.7% so far this year. the s&p is a 1% gain. that market close is just 10 minutes away. ♪

carroll: we have been outcome we have been down, higher across the board. julie: still reaching new heights for the year. over the pastains

two days. nasdaq gaining about half a percent as well, still down a little bit on the year as you have seen it be the lacking of the three major averages but as we have been talking mark, if we look at the s&p over the course of the day, we have seen a little bit of bouncing around. some of that is oil induced as energy stocks have lost steam. once again we are seeing relatively low volume. look at bloomberg. we have seen this rally in stocks. this is the s&p 500. , volume has down come down as well. we have had this rebound in the s&p that has taken us to the new highs for the year. it is really not very heavy volume, volatility you would expect to be down, but there is this calm in the markets as we have seen this surge in the price of stocks. speaking of individual stocks, let's look at what is going on today. these are the biggest

contributors to the s&p 500 valley by way. microsoft is gaining as it holding its conference today. ge and wells fargo. our couple more movers bit metlife winning in its court case against the u.s. government and is no longer going to because of ynez too big to fail, so to speak. carnival came out with earning. both of those stocks are trading higher. carol: got it, jules. let's look at what is in the markets a little bit deeper. oliver renick is with us on set. julie was talking about the relative calm we are seeing in the market and it has kind of settled down, hasn't it? oliver: and not just from the not going down perspective, but we have gone out. if you look at the s&p 500 it is date outside moves starting the year, whether it is up, down, moving the s&p in either direction -- carol: lack of news or a good

sign according to traders and investors? oliver: hard to say. this was on a lot of low volume and there were questions about whether or not it was just shorts and all that stuff but what is telling in terms of the move, couple days here, as compared to previous weeks, if you look at from march 16, when the last fed meeting was come up to yesterday, the market move but inpercent upwards, the past two days we have seen a move of triple that, 1.5%. think the not you entire regard as people waiting on the dovish as an waiting on the fed, that is up for debate. definitely the past couple of days the market feels good about what is happening in terms of yellen's pretty extreme dovish miss. carol: i know you watch what we are seeing in terms of shortcomings. what does that say about the moves we are seeing? energy had a related types of names and i look to the average of short interest on the

s&p before i came and it has definitely come down since about mid-to-late february. it has gone down from about 2.6% on average, 3%, closer to levels earlier in january, and what is more interesting is if you look at the short positioning, speculative positioning on oil, interesting, the data has come way down and people have gone long on that and you have to wonder whether or not that is playing in equities, energy-related stocks, and whether or not shorts have done there covering here perhaps maybe that is not going to be this integral voice it has been for stocks. carol: we will see what happens with the jobs report on friday. oliver renick, thank you so much. that will do it for "bloomberg markets." "what'd you miss?" coming your way in just a moment.

alix: we are moments away from the closing bell. i'm alix steel. could i'm tracy alloway joe weisenthal on scarlet fu are

off today. alix: u.s. stocks closing higher today. the question is, what'd you miss? why emerging-market currencies and high-yield that are the ring in investors. tracy: plus, how much further can emerging markets rally? our guest says we may be reliving 1999 where the risky asset selloff now but rally later. we are going to discuss what this means for the markets and how the euro may be the best hedge. minute. with our market the janet yellen of rally definitely continued into the day. the s&p and the dow extending the 2016 highs. the s&p higher for a 30 day. i should point out that we are off the highs of the session. the dow at