from bloomberg world headquarters in new york, good afternoon. i am betty liu. stocks are headed for a second straight down day. u.s. economic numbers -- earnings failed to impress investors. can we call this a good one? john kasich will reportedly suspend his presidential campaign in just two hours, leaving donald trump as though l -- the lone gop presidential candidate. trump already setting his sights on the fall presidential campaign. mr. trump: we are going after hillary clinton. she will not be a good president. she will be a poor president. betty: and is tesla steering into trouble? two of the company's top production executives have left the company just as production is starting to ramp up on the model 3. scherzer falling on that news.

-- shares are falling on that news. speaking about falling, we are one hour away from the close of trade. stocks are heading for a second straight day of losses. let's head straight to the markets desk. julie: that today decline is -- that two-day decline is the worst we have seen since february. it seems as though it is really on global growth concerns coming back to the fore. we had mixed economic data in the u.s. today from the adp jobs report coming in a little below estimates. the services industry report beating estimates. factory orders, as well. a little bit of a mixed picture. friday is the monthly jobs report. what's also interesting here is that we've seen a failure yet again of the s&p 500 to rally back to its record levels. it is now only up about 2/10 of 1% on the year. we've had these couple of attempts here. the most recent was about a

month ago. it did not get quite as close as it has on other attempts and, since then, has been falling back. in today's session, in terms of what's moving, it does not look quite as negative as yesterday in terms of breadth. today, utilities and consumer staples and telecom just trading barely higher. industrials, energy, health care, all down in the neighborhood of 1%, dragging on the overall averages. in terms of individual movers we have been watching, there are still some earnings-related movers. priceline coming out with a forecast for the current quarter that was below estimates, certainly because of the timing of the easter holiday, partly because of concerns about international growth. on the flipside, ice coming out with numbers that beat estimates, also saying it will not be making a bid for the london stock exchange. that's probably the biggest gain and loss in terms of the s&p 500 related to earnings.

in terms of priceline and the effect it is having, it's casting a pall over the entire travel industry. ual, delta, american airlines -- all lower. betty: and energy, which was once the leader, now becoming a big drag. julie: oil really turned around. you were with me this morning when we got the inventory numbers. sharplyil come down after that. it looks like it's making a little bit of a late recovery today. the dollar and gold -- people have a risk-off mentality today. the dollar has been catching up. gold has not. even asill waning, people are also selling stocks, which is not something that has happened much this year. betty: thank you so much. let's get a quick check of the headlines. mark crumpton has more from our newsroom. says he a federal judge

may order hillary clinton to testify under oath about whether she used a private e-mail server as secretary of state to evade public records disclosures. the judge signed an order granting a request from the conservative group judicial watch. it wants to question six current and former state department staffers. more than three dozen lawsuits have been filed seeking copies of government records related to time at the state department from 2009 22013. john kasich, the last man standing in donald trump's path to the republican presidential nomination, will end his campaign today, making mr. trump a party's -- the party's presumptive nominee. the ohio governor will suspend his campaign at a speech at 5:00 p.m. local time in columbus, ohio. kasich held on to become the last candidate battling mr. trump, if for only a few hours since ted cruz dropped out last night.

president obama is getting a firsthand look at flint, michigan, and it's tainted water supply -- and its tainted water supply. he said, "the water is drinkable," but "that does not r eplace -- negate the need to replace some of these pipes." michigan declared a state of emergency in flint because of widespread lead contamination in the water. city officials and one state official have been charged in the case. there is a good chance that the inmi marlins kate -- games puerto rico won't go ahead because of concerns about the zika virus. marlins players attended a seminar on zika that heightened concerns about playing the games in san juan on may 30 and 31. an announcement about the games

is expected by the end of the week. global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i'm mark crumpton. back to you. betty: ok. let's start this hour with -- we are about three quarters of the way through the reporting season. 76% have beaten estimates. past&p cannot seem to push 2100. course, noweversing off for a second straight day. let's bring in jonathan golub. do you make of the earnings season so far? jonathan: it's a good, but kind of strange earnings season. we went in where the estimates were collapsing going into reporting season. you're having a beat of something less than 5%, but you had a couple of really big headline misses.

microsoft, apple, and google missed. if you took those out, you are looking at misses that are well over 6% overall. good, but off of much lower numbers starting off. betty: does it make sense to you? jonathan: the markets are not stressed. if you look at where we are right now, if you invested $100 when the market was at its peak about a year ago, you are something like 2% off of that number now. for all practical purposes, we are at an all-time high for the market. the story in earnings, as you look forward to the rest of the year, is that the drive we had from energy -- the reason we had negative earnings is because energy has been such a drag. that goes away starting at the third and fourth quarter. the market is expecting -- wall street analysts have said you have high double digits in the third quarter, low double digits in the fourth quarter. if we get something like that, people are going to excuse a weak earnings season this

current quarter. betty: we had a weaker dollar. it has not filtered through in earnings. is that going to start having an impact going forward? jonathan: there's no question about it. there are two parts to that. one is the translation effect. the other is, it is really big for u.s. -- really good for u.s. trade when the dollar is weak or. u.s. companies are more competitive and you see it on the sales line. betty: we have a chart here that shows -- it is actually citigroup earnings revision index. that's the white line. you can see that continues to move higher. so, we are seeing more and more -- seeing revisions go up here in terms of the world index. -- seeing revisions go up here. in terms of the world index, that's not happening. jonathan: remember, the market was 12% lower in mid-february.

it has run like crazy. then you're looking at a tiny bit of rollover in the last couple of trading days. betty: so much ado about nothing? jonathan: i think so. if you look at the chart with the earnings up, you can look at the high-yield mark, and what you see, in the last month, credit spreads have come down. there is a default risk on risky assets. that has gone down. the multiple of stocks has increased. the likely earnings potential with the dollar -- are we in a fast-growing economic environment? absolutely not. are we in a robust earnings environment? no. what are we in one that is likely to support stocks going higher because things are so much less bad than we feared months ago? absolutely. betty: so, a lot of active managers are doing better here. jonathan: we just put this note out looking at this. betty: i know. jonathan: there are a couple of things that active managers want

to see in the environment that favors what they do. if you have a market where a very small number of stocks dominate the market, it's much more challenging for active managers. that's exactly what happened in 2015. active managers think more globally. big, global companies, when they do less well than more local companies, that also is harder for active managers. both of those things have reversed this year. you have had more breadth in the markets earnings. small-cap stocks are doing better. there may be a little bit of a shift. managers may get some of their mojo back compared to last year. betty: i know you have been underweight materials and industrials. are you ready to change your tune at all there? jonathan: no, i think what we are in is a growth environment that really started maybe two or three years ago, and this is a value run in a growth

environment. so, i think the winners of 2015, stable growth companies. some of these are boring companies that continue to just generate cash, companies that are in business services or defense contractors or consumer staples or big pharma. i think those lower, but stable growth companies are going to continue to lead the market. health care, in general, is looking very cheap. betty: thank you so much. we will end on that, "health care looking cheap." jonathan golub. much more ahead in the next 20 minutes. cbs chairman and ceo lessons -- les moonves says the money is coming back to tv and that all digital is not created equal. are stumblingares today ahead of the company's are earnings -- company's earnings.

two production executives are leaving. a we had -- head to break, look at tesla and the big three american automakers. all lower with the broader market. ♪

betty: this is "bloomberg markets." i am betty liu. a quick check of how the markets are trading right now. second day of losses. the dow down about 111 points, but we are climbing back from our lows of the session. s&p lowered by about 6/10 of 1%. a time for a look at some of the biggest stories in the news right now. saudi arabia has listed a couple of banks that could be used

for its ipo. the official decision could come as soon as this week. the ipo could raise as much as $500 million. delta airlines is expanding wi-fi technology to at least 350 more of its airplanes. that will bring the number of aircraft committed to using the internet service to 600 in deltas mainline fleet -- delta's mainline fleet. the 500-euro bill is being discontinued after criticism the bank note had become a handy aid for money laundering. the ecb's governing council made the decision today. now ink notes circulation will still be legal, but they will no longer be issued in 2018. they are rarely seen in day-to-day circulation. that's your bloomberg business flash update. profitsed first-quarter forting the grammy awards

the reason -- as the reason for the increase. broadcast is not dead in the digital age. moonves joined us earlier. les: a lot of money that had potentially moved to digital -- suddenly, people are realizing that not all digital is that great, that there is a lot of false viewing on digital, and i think a lot of money has returned to network television. in addition, network television has proven it is doing better than most of the basic cable networks. we are seeing a return right now to the broadcast. there is no better bang for your buck. helped by the big events like super bowl and grammy, but the underlying growth without them was 12%, so we are pretty excited going into the upfronts. like from at numbers, facebook, and they seem to be growing to the sky. les: there are certain digital places, facebook, google, doing

extraordinarily well. we have a number of digital assets that are doing well. i think overall people are is broadcastst buy along with digital. the facebook's of the world are doing extremely well, but not all digital is created equal. >> you mentioned your digital assets. i would like you to tell us about those. you have cbs all access. you have showtime. which are doing the best right now? which have the greatest potential? les: i'm not going to pick among my children. i'm extremely pleased. all three of them have only been in operation for less than a year or a little more than a year, and we could not be more pleased with the results on all of them. cbsn is a nonsense gretchen base base, butscription the numbers are growing every day. access ared cbs all beating projections. we look for to adding "star trek" to cbs all access in

january. that's going to provide a bump, plus, the continued strength of the showtime lineup. in all honesty, i'm extraordinarily pleased with all three of them. >> at what point do you expect they will become material to the revenue line of cbs? happeningalready right now. in the quarters to come, i think you will see some more numbers, more transparency into what we are doing there, but the revenue is now beginning to make a difference. in 2017, i think it's going to be a very, very large number. >> staying with the fee structure, you're expecting $1 billion and retransmission consent this year -- $1 billion in retransmission consent this year. is that going to continue to grow? les: by 2020, we expect to have -- those numbers continue to go up. people are paying more for our content.

in addition, you will have the addition of the skinny bundle, plus all access. what we are saying to everybody is, we provide cbs no matter how you want to get it. for sure, the re-trans and reverse comp fees are growing substantially. >> has you talk about things you the skinny bundle -- as talk about things like the skinny bundle, what are your concerns about cannibalization? les: we've said we are willing to put our content everywhere as long as we get paid for it. there's a lot of noise in the market place about the skinny bundle becoming much more important. we live in a 180-channel universe which a lot of people don't want to pay for. the skinny bundles could become more and more important at a lower price point, and people are only going to get those channels that they want. however you want it, if you want to be in the 180-channel universe, we are fine with that. if you want to go to a 15-channel universe, we are fine

with that. if you want cbs à la carte with all access, we are fine with that as well. betty: that was cbs chairman and ceo les moonves. still ahead, stocks are lower. we are going to look at how the options market is handling all that action. here is a check on some of the sectors, including some of the worst sectors today, including energy shares. ♪

betty: this is "bloomberg markets." i am betty liu. stocks are falling for a second straight day, led lower by energy and industrials. the s&p now on pace to close at a fresh three-week low. julie hyman is standing by with how the options market is handling this. --ie: here with us is

he is joining me from the cboe. nice to see you on this day when we are seeing the second straight daily selloff. a little bit of an uptick in volatility here. when you look at the options activity in the market today, does it look like people are betting this is going to continue? sessions,t couple of actually, we have not seen extreme volume in the vix. the vix is above 16. that's the halfway point. we are right at that midpoint right now. there have not been a lot of call buyers. typically, there are about 70% of call buyers in the vix. a lot of the action last week was 50%/50%. julie: it sounds like people are not convinced we are going to continue to see the selloff and continue to see volatility. alan: and we did not -- we are not above the highs of last friday. the 17 is about the highest we have gotten in the last couple

of weeks. we are below that now. you have not gotten that spike of fear, even though the market is moving lower. julie: the week is not done. we have a rather big event on friday in the jobs report. do you think this positioning has anything to do with that, that that could be a bullish report, or are people positioning for the jobs report in other ways? alan: there's always a nervous tone in the market. there's always potentially prices that could shake things up again, especially because we have moved so far. the markets have bounced 15% off of their lows. it does not mean they cannot go lower. we were at 1250 just a couple weeks ago. price is relative. we always must remember that. we have the unemployment numbers coming out, but typically they don't seem to have that long-term effect on the markets. he just have the market move for that morning -- they just have the market move for that morning, and then that's it. betty: be -- julie: bp reported earnings.

refining operations did pretty well. bp has notted out, kept pace with other energy stocks, let alone oil, this year. alan: right, that's idea. oil is at $44. this level is pretty important. we could see if push -- it push to $48 and $50 with one more squeeze of the market. bp is essentially unchanged. the stock is actually down 25% the last five years compared to the s&p up 50%. what it has worked to do on the upside, the risk-reward is skewed to the bull side. julie: how do you play that? alan: i'm using a very basic substitution strategy. 30 is the midpoint. a breakout above $32 was temporary.

now it has come back down to that breakout point, as markets often do. you could gain about 50% if we get to $36. it is a leveraged play for january, 2017. give yourself nine months for things to happen. bettyjulie: a long horizon play. i really appreciate it. bulls-eyerchart options from the cboe. betty: still ahead, tesla reports earnings after the bell. two of the company's production chiefs leaving at a critical time. we will speak to colin langan. ♪

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betty: from bloomberg world headquarters here in midtown manhattan, you're watching bloomberg markets. i am betty liu.

let's check the headlines with first word news. mark crumpton has more from the newsroom. mark: thank you. it is the end of the line for ohio governor john kasich. he will and his run for the white house today, just a day after the resignation of ted the sets donald trump as party mayor. mr. trump says he is planning to accept more political donations now that he is the not -- likely nominee. he tells abc news he will probably take "small donations up to the legal limits." willurkish prime minister take the ruling partner to an extraordinary congress amid a widening rift with the president according to a person familiar with the matter this has they

thetoday to ask that president respect the prime minister's authority, and allow him to do his job. a minneapolis a 30 said today --ce arranged to meet attorney said today parents arranged to meet with a california doctor who specialized in addiction treatment. the doctor had never met or spoken to prince before the singers representatives reached out to him on april 20. he was not able to travel to minnesota, so he arranged for his son to go instead. ,he attorney says it was andrew along with three others, who found prince's body, and called 911. global news 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. back to you. betty:, thank you. markets are closing in about a

half-hour. abigail doolittle, some big stocks falling, including tesla. abigail: lots of stocks falling. a bearish streak matched at the beginning of generator that almost turned into an official bear market. surging -- zillow. shares up sharply after they beat first-quarter estimates and offered a revenue guide above consensus by 5%. the ceo says the first-quarter result supports the company expectation that growth will accelerate while a bloomberg intelligence analyst said he is impressed by the double-digit growth in traffic. lots of good stuff here, betty, that there is a 21% shortage risk -- pretty high -- a bearish bet there, as they could prove to be a short squeeze and perhaps short-lived as well. getting to tesla, one of the worst performers today. consensus called for tesla to

report a loss of $.60 and revenues of $1.6 billion. one concern according to a bloomberg intelligence analyst is the fact that analysts are modeling tesla to turn profitable in the second quarter, quite a leap from the current situation of being in a loss. while today, two production headfs at tesla have left a --the model three leaving model three. betty: there are strong opinions, a high short interest in the stock, but there are plenty of fans of tesla, too. abigail: true. when you look at the chart, it is volatile -- logic -- lots of swings up and down. this is a line in the sand -- middle ground between the extremes, the buyers, and the sellers. the last few times tesla has

dipped below the 200 day moving average it has led to some downside ahead. it'll be interesting to see what the company does report after the close. betty: abigail, thank you. abigail doolittle at the nasdaq. let's dig more into tesla, including the report that two are leaving the country. jonas is colin langan -- joining us is colin langan. he is quite down on tesla as well. so, colin, let's first talk about these two production chiefs, one of them being one of the highest earning executives at tesla leaving as they are wrapping up the model three. how bad of a sign is this? mr. langan: i mean, it is somewhat surprising. it is a large move. we have seen other management changes, so it is bit a bit concerning ahead of the report. we have seen deliveries of the model s wrapping slowly. somebody is being held

accountable. it is a somewhat cautious sign for how it will go into q2. betty: there will be several points of focus. rating, to have a sell on tesla, how do you support that? mr. langan: if you look the last quarter, heading into the model three reveal, there is a lot of hype. this is a stock that has a lot of momentum, and we are shifting back to the fundamentals that meaning challenging. one of the big risks is we're going to depend for the next year and a half on model s and model s demand. s deliveries were down sequentially, and there's a big question -- are people going to delay orders in anticipation of what is coming in a year-and-a-half. it is a challenging environment. they burned $1.6 billion in cash last year. they are still a cash flow risk to be considered going forward as well.

are you worried about diminishing demand, or tesla being able to even meet the demand? near term itn the is a question about how much diminishing demand there is for the model s. with the 3 coming in a year and a half, there will be demand for the product of the $35,000 price point. we have seen orders come in. when that comes, i am cautious about what kind of profitability they will have. betty: are you worried they will be able to meet the demand -- that is a huge number of orders they got for that model 3. mr. langan: 400,000 is not an annualized pace. they probably barely could do that at their current facility, but i think over many years they will be able to deliver that 400,000. it will take him a while to do that. betty: colin, what is your biggest question on the call -- what do you want to ask and management today? -- elon musk and management

today? questions: i have about how quickly they can get battery prices bound to make the model 3 competitive. betty: what about international concerns -- you have any? mr. langan: i think, near term, we'll continue to see them grow globally. it is not a big focus right now. betty: the short interest -- the amount of short interest that is in this stock -- is that a red flag to you? mr. langan: i mean, i think it obviously shows there are a lot of people that have the same questions i probably have. it does cause some volatility, and that is something investors should be aware of. ,etty: and what would, colin change your rating on tesla question mark what would you have to hear to change her rating on the stock? mr. langan: valuations are a key metric and you are pricing in bullish long-term forecast. i have questions about getting the costs down to it before they

could be profitable. at this point, i just don't see that happening given the cross -- cost structure we have today. betty: before we go, what he think is the problem with the model s? why are they having a hard time wrapping up? mr. langan: i am not behind the scenes. i am hearing from me to reports the doors are a challenge. some engineers say it is a tough thing to do, almost making the car a convertible, because you're losing the structure in the roof. i assume that may be the problem, but nothing has officially been announced. betty: colin, thank you so much. colin langan, analyst at ubs on tesla. much more ahead -- we are diving into the 2016 presidential race as donald trump becomes the last man standing in the gop field. politicsare monitoring in another part of the world. the lire is rapidly diminishing after turkey's prime minister

planned stepping down from leadership this month. ♪

betty: this is bloomberg markets. i am betty liu. a quick check on how the markets are trading right now, as we are just about 20 minutes away from the closing bell. we are coming off of our lows of the session, but as we have been talking about all day long, earnings have been weighing on stocks. we are seeing a second day of losses here. it is time for the bloomberg lash.ess f sanford energy says the massive cost -- the cost of a massive gas leak in l.a. has ballooned to $650 million. the figure does not include potential costs from dozens of losses or really tory fines. the massive gas leak fueled

uncontrollably for nearly four months. 30u says it will surpass million subscribers, and unveiled plans for a beatles documentary from director ron howard. "eight days a week" will be the first documentary to debut. they also said they are partnering with livenation entertainment to show concerts by virtual reality applications. sotheby says a diamond the size of a tennis ball could sell for more than $70 million. they will offer the diamond in london on june 29. the diamond was under in a mine in botswana. it measures just over 1100 carets. that is the beauty. that is your bloomberg business flash update. a lot of developments in the 2016 presidential race in the

last one for hours, especially on the republican side, after donald trump's indiana primary when. ted cruz, and now john kasich, are out, with kasich's official announcement coming in a little over one hour's time. people are showing surprise for trouble. jeff gun lock says he will likely be the next president. we are joined by michael bender to discuss what is looking like trump versus clinton in the fall. you have people open the saying i think is a possibility, it looks like he will be -- what does that tell you? michael: it is the hope for a lot of republicans, and for a lot of republicans, they are putting a lot of stock in trump's upside. he is obviously a divisive figure. he has turned off a lot of minorities, women, folks he's going to have to appeal to in the general election, but to this point, he has had a lot of success within the republican

party, and he has done that by bringing new voters to the polls. a lot of republicans are looking at those numbers and saying if you did it in the primary -- now, these are different voters he will have to appeal to, but of course, if he had to success, maybe he can figure out a way to do that again in the general, which is really -- again, recovery content lost the popular vote in five of the last six presidential elections. they need someone to bring new voters into the party, and whether trump can do that or not is still a big question. betty: it is a big question. what you think happened that made cruz and now kasich fall? michael: it was indiana last night. pushed all of his chips into indiana. he wanted to take this all the way to the convention. he came off of a strong when in wisconsin, the between wisconsin and indiana, trump had a huge victory in new york.

he swept the northeast and mid-atlantic states. it was too much momentum to overcome in indiana. kasich and cruise tried to get a little cute, started dividing up states here in betty: it fell apart. michael: very quickly. it backlash against them. they looked at the numbers, and said there was no viable path forward. and clearly they decided to fall away on the presidential trails, but what about for the vice president post now, which is what people are wondering. who is trump going to pick? cases, nowm like that he is announcing the suspension of his campaign, he might be a candidate? michael: it is an interesting question -- john kasich, ted cruz -- any of these other rivals -- it has been such a bitter primary. it is hard to imagine at this point in time how they will come together to make that happen. john kasich is a popular governor in ohio. the party needs to win ohio to

win in november. that is a possibility. another name that has been thrown around a lot is newt gingrich. he is been a supporter of trump early on, and donald trump has said he wants somebody that understands the washington process to help him navigate through congress. betty: right. he said he wants somebody who is political -- a politician. michael: and a former speaker would check that box, and kasich was in congress for a long time. betty: how does a trump-clinton match look? michael: initially it is looking like a big gender war. trump has been so dismissive -- he has had such caustic remarks and it comes to women minorities, and clinton has wrapped her campaign around the notion of being the first female nominee. so, it is like, sort of, a throwback here to an earlier

time. i'm in, we could be discussing what the proper role for women is, which is kind of amazing to think about. betty: right, that we are still discussing that in 2016. michael: exactly. betty: where is trump strongest among women, and we sort of said it already with clinton, but where is she the strongest? betty: in states? -- michael: in states? betty: in demographics. does trump play at all well with women question mark -- women? primary states, he won all the republican women. some primaries show three in four women do not approve of donald trump. it does not mean they will will not vote for him, but it is a good indication. on the campaign trail with

hillary clinton, in her match against bernie sanders, hillary clinton has fared that she has won older women, while sanders has won younger women. that is not necessarily predictive, but it is something to watch moving forward. betty: what do we know about what the clinton camp is doing right now to try to focus more on trumpet, and vice versa? campaign is clinton out with a web video using the divisive comments trump has made in recent months and years, and just letting trump and his public and critics talk for him. trump goes back onto the campaign trail tonight. night victory speech last he basically promised to go on the attack immediately against clinton. it is something he has been looking forward to for quite a while. betty: michael, thank you. michael bender, or bloomberg politics senior reporter on this

crazy election season so far. much more ahead on bloomberg markets. the close of trade is moments way. the major averages are headed for another down day, though we are off our lows of the session. ♪

betty: this is bloomberg markets. i am betty liu. markets are closing in about 10 minutes time. we are down, but we are off of our lows of a -- of the session. we are down for the second day in a row. julie hyman has more. you have more of what is going on at the conference. julie: a lot of provocative comments, and you were just gundlach.bout jeff talking about preparing for a trump presidency. i was e-mailing with some of the reporters there, and it was not clear if it was in a good way or a bad way. he just said prepare for it.

on the investment front, he criticized the negative interest rate regime and method and said low and negative interest rates have not been effective. -- effective. he is talking about the utilities -- the sl you -- the utilities etf. he says you should short this etf and look at mortgage rates instead. if you look at that mortgage up. etf, it saw a it is up number 1% today. why is he making these calls? these are groups that benefit when our low interest rates, and he says normally they are correlated. here is a similar chart what he brought up at the conference. these are the same etf's. the mortgage one is down here. the utility one is down -- up here. usually, the correlation is closer, but because utilities pay higher dividends, for example, they have been

preference over the mortgage reits, but he says you should buy the mortgage reit and short the slu. in terms of the other commentary, jim chanos is not scheduled to give his presentation until after the close of trading in about an hour, but he did give a preview in comments to cnbc, and these are the sexiest shorting. -- stocks he is shorting. he did reiterate shorts of tesla, solar city, alibaba, and valiant. we did see some reaction. tesla under pressure on bloomberg news'reports that a couple of executives are leaving the company. there was also the broader market comment from stan druckenmiller talked about how he thinks the fed is not data dependent, is not doing a good job. he likes gold, and decent said people want a stock recommendation -- "i just want people to get out of stocks"

seems to be his main message here today. betty: interesting. that is one strong message. thank you. julie hyman at the markets desk. let's dig into the broader market, messages and themes. joe, let's start with this chart. we have a chart on the bloomberg. let's show it. it demonstrates the gap between one-monthd the s&p realized volatility index -- they are both now -- the gap is widening. what does that actually tell you? joe: that tells me we have not had a lot of price swings in the last month or so, the people are still expecting a spike in volatility, which 80% of the time the vix goes in verse with the s&p. if the vix spikes, that could mean a seleka necklace. people are bracing themselves for a sharp selloff. the toronto when it is going to

come. betty: they are -- they do not know when it is going to come. betty: but they are bracing. joe: it hasn't happened yet, but people are doubling down. that somethingce is on the horizon. people are bracing for what that might be. betty: what you think has been happening -- why are people selling off? joe: economic data coming in under expectations. yesterday it was factory data from china and europe fueling the fire about how economic growth globally is slowing down. people have been worried about that. today we got a fresh batch of adp employment that came in under expectations and with nonfarm payrolls coming up on friday, it is possible people are bracing for a miss there as well. there is not been a lot to get excited about. trading is near record high on the s&p. without an open calais, people are content to take profits and

consolidate. betty: i didn't hear you mention earnings. joe: earnings are about 75% of the way done. people are looking past that, looking at one of the big companies are doing on a forecasted basis for later in the year. the big earnings miss we saw in the tech sector definitely hanging over the market. people have moved on to a more data-dependent seem right now. betty: joe, thank you. that is it for bloomberg markets. "what'd you miss?" and the market close is next. here are the major averages. less than four minutes away until the closing bell. ♪ . .

alix: we are moments away from the closing bell. joe: i'm joe weisenthal. scarlet fu is off today.

[closing bell ringing] stocks extending their losses today with fears of slowing mobile growth and equities lower everywhere from europe to developing nations. joe: the question is "what'd you miss?" alix: the dollar held on to gains for a second day after falling joe: to its lowest in almost a year. joe:and we are about three quarters of the way through earnings seasons. tesla and whole foods due to report earnings in this hour. alix: what does the u.s. economy look like in the shape of a trump presidency? guest have a very special joining us, all of her run it is our cohost for the hour. we are going to begin with the market minutes. another selloff for stocks. it was kind of across the board. you had energ