we are live from bloomberg world headquarters in new york. covering stories out of san francisco, washington, and tokyo. earnings extravaganza. seven members of the dow are reporting today, we will bring you the highlights and set you up for apple after the close. analog devices in advanced talks to inquire linear technology. linear spiking as much as 28% on the news. shares of both companies are now halted. we will have more on the bloomberg inclusive reporting in just a moment. noted short seller andrew left is weighing in on yahoo! and they spoke. can his forecast the as explosive as his on valeant? we are one hour from the close

of trading, let's go to the close of trading where julie hyman has more. people are awaiting central-bank action, or inaction, as the case may be this week. not much movement in stocks. on an intraday basis, we had a bigger pullback earlier this morning but then stocks have been bumping along in this range. if you feel that, look under the hood, you will see there is a lot of individual stock movement. it just has not been translating into much direction on the macro level. but of course it is earnings season. day in because earnings terms of total number of companies reporting. here are some of the winners we have seen. caterpillar turned around today, it had been lower, but the company is now saying the second quarter may have been the worst for mining operations. so they may have bottomed come in other words. texas instruments coming out with a positive forecast for the

current quarter saying demand for the automotive sector and pictures around the home, that coming in above estimates. of course, there are always winners and losers. on the downside, under armour earnings matching estimates, gross margins missing estimates. those shares are down 5%. aside $300ting million for underperformance in the states. analysts and investors are concerned they have not set aside enough. mcdonald's comparable sales coming in below what analysts were anticipating, so they are down. that is putting pressure on the down today. vonnie: staying in the food sector, stifel had a big call today. julie: they say there is a recession coming in the restaurant industry and downgrading 11 stocks. chipotle, cheesecake factory all affected by the call.

jeffries also saying we are looking at a cyclical top in restaurants and we see a downturn coming. a lot of negative sentiment on the restaurant industry today. now to that potential semiconductor deal. i have been watching to see if any news is crossing. both stocks are halted after it was reported that analog devices was in talks to acquire linear. market value is around $12 billion, before the spike today. so we are talking about a pretty sizable deal here. again, both of these stocks are halted, so the spike coming before we had the halt. we are watching to see if there is any news crossing because there is news pending. could it be a common on a potential deal, verification on a deal? we are waiting to see but it has been a very busy couple of years in a semi industry. vonnie: thank you.

let's get a check on the headlines. mark crumpton has more from our newsroom. mark: it is day two of the democratic national convention in philadelphia. former president bill clinton will address delegates tonight. the party is hoping he will help the hall move on from a tumultuous opening day when supporters of bernie sanders energized by the departure of dnc chairman debbie wasserman schultz and be a speech by their candidate made it clear they will not go quietly. as for senator sanders himself, delegates will get to show their support during a roll call vote. other notable speakers include virginia governor terry mcauliffe and house democratic nancy pelosi. donald trump receiving an enthusiastic response from veterans today as he criticized democrats and vowed to reform the department of veterans affairs.

trump told a gathering at the annual convention of the veterans of war and wars in charlotte, north carolina, "our politicians have totally failed you." he also criticized democrats for not mentioning islamic state during day one of the convention. a texas judge has dismissed the last remaining charge against two california antiabortion activists who made undercover videos of themselves trying to buy fetal tissue from planned parenthood. sandraelighted and minnert had faced felony charges of tampering with government records. each could've been sentenced to up to 20 years in prison. more than 100 athletes from the 387-strong russian olympic team have so far been barred from the rio games due to the country's doping scandal. the vast majority of the 105 athletes will miss out our interactive field, with 67 excluded when a ban on the russian team was upheld at the

court of arbitration for sport last two week -- last week. he was concerned about terrorism are staying away from turkey and france this summer and instead going to spain and portugal. both countries are forecasting a record number of taurus this year. -- tourists this year. overnight stays in portugal jumped 13%. france, the world most visited country, saw a 9% drop in tourists in the fourth quarter. global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. vonnie: earnings season is in high gear. caterpillar, mcdonald's, and verizon are among the con these that reported their results. apple and twitter will announce after the bill. joining us for more insight is mike regan.

mike, we are into the heart of earnings season now. we are looking for 70% of companies to beat. we are a third owned away into the season and we have fallen into a pattern that the expectation is most companies to beat expectations. 70% the is usually low earnings-per-share estimates, high 60% some quarters. quarter is looking to be even better than usual, about 80% have been estimates. of the 18 companies in the dow industrial, all 18 that have therted so far have estimates. compared to last quarter, in the s&p, a 75% beat rate. in aggregate, beating by more than 5%. are donet is when we that counts, so when energy companies are fully in,

financials, but there are sectors that are worrisome? energy is the most worrisome sector. only six of 37 energy companies that have reported so far, exxon and chevron will be friday. those are the most important energy companies. after bp reported that missed estimates by 20%, a lot of focus is going on to engineer companies. obviously, oil is playing a bigger role in stocks, down 18% since it's high in june. energy companies catching up to that now. some big losses in the last few days. the energy complex in the s&p 500 is down only 2%, as oil is down 18% from june. beene: the beat rate has high with blue chips, 8% aggregate beat rate. all of the 18 dow companies that have reported have beaten. can we draw any conclusions? mike: i don't remember when all dow companies beat.

halfway little than through. apple has had a rough time after earnings in the last few quarters. outink it has fallen four of the last five or six earnings reports. , analysts arer looking for a 25% drop in apple earnings. really, a lot more focus will probably be on the next iphone release later in the year, but obviously, apple is one of the most important stocks when it comes to earning. vonnie: michael regan, thank you. your column is always worth reading. let's get more insight on where the markets and interest-rate may be headed. joining us from boston is craig russ, director of the floating rate loan group. it is a fascinating idea, that somebody might be interested in investing in floating rate bonds

at the moment, when it does not seem like there is an increase in site. craig: it should be surprising, the yields are attractive, even with interest rates. we are looking at 5.5% yields on this asset class. floating rate loans to u.s. corporate primarily, they happen to be noninvestment grade, but the loans are senior and secure in the capital structure. typically underlined by the assets of the company. vonnie: what are the rates based on? if you look at my bloomberg, you will see the number since 2000, which used to be the measuring point, if you like. look along the end, talking about 73 basis points. is that what the rates are based

off of? craig: that is right, we are in a credit spread for the risk that we take, typically 3% over libor. that is the base rate that does float. to the extent that the fed increases rates, libor will go up, and the yields on our rates will go up. issuance is driven by m&a activity typically. m&a activity, for the last two years, has been robust. think warren buffett, when he bought heinz ketchup. that is an example of a senior secured loan. $10 billion to help effectuate that. that was a loan within our market until recently. vonnie: what about clo formation, isn't picking up, should we be concerned? formation has been robust. these are institutional, primarily structured products that buys loans.

that has been a very stable issuing product over the last several years. it did slow down this year but is on track to perform and create a nice, strong demand. vonnie: if you are in the market for some of these -- i did say, you are one of the largest bond buyers. if you're in the market for some of these floating rates, would you do it in the u.s. or europe? markets, are in both actually. the u.s. market is quite a bit larger than the european market. the u.s. market, the economy seems to be stronger than what we are seeing in europe. he was market is about $880 billion, the european market, about $150 billion. we would recommend the u.s. market. retail investors can purchase us through each funds, closed end funds. what, right now, is the rough default rate, and give us

a comparison, what was it during the crisis? craig: shortly after the financial crisis, the rates by two about 11%, at its peak. today it is about 2%. the expectation is about 2% to 3% over the next several years. that is the average for this asset class. but remember, we are secured. actual losses from defaults are quite modest, roughly half a percent a year over time. vonnie: craig russ, that was a great number. thank you. don't forget, tomorrow, a reminder to tune in to tune into bloomberg television and radio at 2:00 eastern for a special edition of "bloomberg markets." be sure to catch a round of great guest breaking down the fomc decision. still to come, a breaking deal in a semiconductor space.

the latest on analog devices and the prospects of it being near a deal to acquire linear technology. this is bloomberg. ♪

vonnie: welcome back to "bloomberg markets." i'm vonnie quinn. we have some breaking news. analog devices in advance talks to acquire linear technology, according to people familiar. linear has a market valuation of $12 billion, and it can be announced today. shares of both companies have been halted pending the news. analog devices rose immediately after the talks of a deal broke. up 5% before the halt. linear technology, before they .ere halted, up 30%

let's talk to the person who broke the story for bloomberg, and that is alex sherman. tell us why analog devices would want to buy linear. startedis a story that last year or even the year before, a were semiconductor companies realized that in order to grow they would need to gain scale. there were too many semiconductor companies out there. we saw a lot of consolidation last year. a record year be on record years, five times the volume you would see before in terms of m&a of semiconductors. we have not seen so much this year. there was a pause. part of that was digestion. companies, likely acquirers, were not buying anything. here we have two companies that have not done any major acquisitions, both companies probably looking for scale. we reported at the end of last year adi was in culinary talks

or kicking the tires on another company that is a $10 billion semiconductor company. this deal makes sense in the sense that these two companies -- analog devices makes analog chips. think about semiconductors that do your basic electronic work. you push a button and it makes a sound. linear provides to apple and other companies, similar things with amplifiers, controlling voltage. the basic plumbing for electronics, when it comes to semiconductors. vonnie: i want to show the viewers the semiconductor index from philadelphia. deals?is then augur more we have not seen too many deals this year. does this mean the second half of the year we will see more of ,hese deals, like we saw

really, in all of 2015? that is yes. look for more semiconductor deals to more the second half of the year. one that investors should be keeping their eye on is qualcomm. they told us last year they want to be a player in m&a, do a big deal, but have been working with jana partners, and activist investor, telling them to make sure you have your own house in order before you spend $10 billion on a semiconductor company that you need to integrate. it would not surprise me if qualcomm made a big deal toward the end of the year. vonnie: who else has cash? do we have a price range on the deal? alex: not yet. our story added about $3 billion in market cap value to linear. it was up more than 30%. it expects a big premium. i would imagine the deal would be cash and stock, but we don't have specifics on either the structure, or the exact price.

vonnie: analog up as well. that is not really a surprise if you look back to 2015. on many of these deals, you saw both the acquirer and the target go up. this continues that trend. investors like when even the inquirer stock can gain scale. vonnie: that is exclusive news here at bloomberg, brought to us by alex sherman. working very hard. alex: busy times. vonnie: those shares are still halted, by the way. still ahead, facebook posting after the bell. we will talk about how to trade the stock in our options insight. this is bloomberg. ♪

vonnie: welcome back to "bloomberg markets." i'm vonnie quinn. it is time for options insight with julie hyman. julie: joining me today is kevin kelly, chief investment officer at recon capital. kevin, you have been watching technology. apple reporting after the close and we are hearing from facebook. you are looking at trades on some of these stocks. you sent me your apple trade, which you walk me through the history, which is a little circuitous. talk to me about what you have done with apple, what to do now. talked aboute apple a lot because apple is one of the biggest constituency the nasdaq 100, different ways to trade it. when we first did it, we bought the stock and sold a call against it. then we covered that. was may 23. -- that back on july 5, we said cover

it, make a couple bucks. ,hen sell the 90 put against it still out to september. once we did that, we are here today before earnings, and you can buy that back and make $1.20. so we sold the $90 but for $2.20. if and when below $90, we would have to own the stock. now, what we can do is we can cover it, make one dollar $.20. overall, since we put on all the $3.50 him a we made about when the stock has really only moved about $.50 to a dollar. julie: so what happens now? if you are looking at a september put, you are not looking this is fairly and earnings-peg trade. one of the ways you can use apple to your advantage, if you own it, you can sell calls

further out. go out to september when they have better numbers and will release the new iphone. we saw the catalyst in time in our favor. now we see some negative news coming out and we can get out if we want. that is one way, if the stock is flat, or if you want to use the catalyst to your advantage. julie: on the flip, we are hearing from facebook. there you have not seen the sort news coming out, particularly from asia, in the case of apple. it has been more of a positive tone. kevin: facebook is a juggernaut. if you look at their earnings, they have beaten eight out of the last eight quarters and they still have not monetized all of their assets. they are increasing their user base on instagram, you are starting to see fortune 500 adopt more, including video ads. they had not monetized whatsapp.

and think about one of their most successful ipos, the japanese version of what's at. so they are doing a good job of monetizing. what they got from facebook. put right here in the $120 $43.20. by the 121 call. it cost you $.40, so you don't have to outlay a whole lot of capital. you get all of the participation to the upside. you are not spending a lot to make a lot on facebook. julie: we have to leave it there, thank you. vonnie: thank you, julie hyman. still ahead, short seller andrew left on citroen research. ♪

♪ from world headquarters in manhattan, you are watching "bloomberg markets." >> let's begin with a check on

the headlines from the first word news. we will check in with mark crumpton. mark: bernie sanders said today that he is hopeful his supporters. booing hillary clinton supporters. he stressed the importance of defeating donald trump in november. >> i think that donald trump is a danger to this country. i think he is a demagogue. talk to some of the conservative republican politics, they perceive he does not understand the constitution of the united states. mark: mr. trump highlighted -- and an attempt to litter -- lure bernie sanders voters, trying attention to the e-mails that showed favoritism to mrs. clinton during the nomination process.

and tim kaine's wife has resigned as the secretary of education for virginia, stepping down because her husband was selected as hillary clinton's running mate. the resignation was effective yesterday. and the islamic state claiming responsibility for a killing in a church in northwestern france. attackers took 2 a hostage, stopping a priest to death before they were shot and killed by police. another hostage was seriously injured. the president of france visited the scene. we are facing one of the biggest challenges, because the threat is very high and it remains high even after everything we have lived through in the last few days and years. we are facing a group that has declared war and we must face the war with all our means well respecting the law, that is what makes us our democracy. mark: the antiterrorism unit is

investigating. the united states, all skill you and japan urging china not to build military outposts and reclaim land in the south china sea. that is seen as a strong show of support for southeast asian nations that have territorial disputes with china. those countries failed to take a stand against china during a meeting on sunday, because they could not reach an agreement. ♪ mark: global news, 24 hours a day, powered by more than 2600 journalists in more than 120 countries. this is bloomberg. amanda: we are 30 minutes away from the close of markets in the west. going to the nasdaq. abigail: we are looking at a down to the wire day for the nasdaq, the index flipping between small gains and losses. interestingly, if it does finish higher committee will be the 11th session in a row where it alternates between gains and

losses. it finishes if down, it will be the first back-to-back losses june 27. as for what is helping the nasdaq today, it is all about the chip. most recently, the linear technology, stocks soaring. it is their best day on record. this is on the news that advanced analog devices -- excuse me, analog devices are in talks to acquire linear technology's. this is helping out texas instruments, even though they were the biggest news for the nasdaq before this news, higher on a second report. and biotech dragging. those are down, sharply having the worst day in three months after the second quarter hepatitis see drug sales missed --hepatitis c junk sales missed. -- drug sales missed. and yesterday, they said that

they thought they could miss on the drugs. they think -- could extend into the third quarter. amanda: that is the movers today, we are looking ahead also to tomorrow, apple reporting today. what are we expecting? >> it will be interesting to see. abigail: this is the crown earnings support, the biggest member, a high profile name. but there is uncertainty around the corner and investors are looking for $1.39 for adjusted earnings. and what makes this quarter unique, this will be the first back-to-back decline in both revenue and earnings in some time. on the one hand, it sets the bar low, but on the other hand it could show what we are looking at, a bearish trend. yesterday, they downgraded the stock to a cell -- sell, a bearish color into the earnings report. despite the uncertainty, volatility is relatively low.

when we take a look at the apple are lowck, these levels compared to last three years. after the earnings report, either up or down, the most wickedly is 4%. it is important to point out that the lows have -- especially true last july. to apple fix -- vix similar last year. it happened for reasons on specific to apple, but we could see volatility in the future. and for those viewers that would like to pull up the chart, you can do it through the bloomberg terminal. it is a great chart. amanda: thank you so much. meeting today policy kicked off today, looking at the rate decision and whether janet yellen will strike a more hawkish tone on the hike this

year. the cio of global credit and head of fixed income at a be -- ab, joining us now. what are you watching ahead of the decision tomorrow? guest: we will look to see if they price and -- in more when it comes to expectations. very little right now, next to nothing, when it comes to september. scarlet: looking at the bloomberg, the odds of the rate increase for september is 30.3%. go out further and it goes up to above 50%. you could trust that that would be july 13. nothing higher than 50% all the way through september 20, 2017. clearly, there is more hawkish tones in the market. our policymakers looking at this and is saying that they want to september rate hike to the editor -- september rate to be

at a certain level? guest: they want to create option audi. direction -- the reaction to the markets for brexit have been friendly. why not build in a cushion. >> what is chair yellen waiting for? guest: i think that she is looking at global growth as well as the u.s. growth. she has time. the reality is you do not have a lot of inflation out there and there is not a lot of risk. certainly, we one have a runaway of inflation for the upside, so she wants to make sure that whatever she does she does not impair the recovery that we have going. joe: you say that she has time, but we have economic data looking to improve and there are various measures that show that the fed is not very far from hitting the inflation target, so is there any risk that inflation could force the fed to go -- before anyone expects?

i do not mean runaway it -- runaway inflation like crazy. guest: hitting their target. i think that the market has a risk of underpricing what the fed could do, particularly if global growth develops in a better way than it has been developing. so far, there -- that has not been the case, but it is something that people should be wary of. scarlet: looking at the monetary policy around the globe, the fed looking at tightening and everybody else is in stimulus mode, so what are the long-term risks it will create for high -- credit? guest: one risk without question is that the qe has been inflating. high-yield is no different. within high-yield, one of the things we are very concerned about is we like high-yield, we think it is attractive and the energy sector year to date has done phenomenally. independent producers are up 30%

year to date. we think with a 20% decline in oil, it makes sense, and for an investor to do that maybe go into a high income fund, diversified -- diversify away the risk. of when theterms rally ends, more generally beyond the energy sector, what do you think? guest: we think the income you can get off of high-yield is still pretty attractive. it is not have to end, that is the vehicle thing. it can generate income and everything is fine. we think you have room and the risk return, we like it better than equities. scarlet: any kind of deterioration of quality? guest: we have within certain sectors, the energy sector, the basic materials sector, we have gone to the default cycle but part of that was priced in. deteriorate,il

whereas high-yield bonds have not been sold off at all. how much of a risk is that? guest: we do think it is a risk and that is a reason why we have been taking profits on the bonds we bought in january and february. we think it is time for investors to do the same. i made a: i was -- theda: i was looking at strategies, is there a signal in terms of ms. timing? guest: i think a lot of distress strategies are pulling money at the end of last year, they got very defensive. boom, the market turned and people have time to get back in. joe: ok, the cio of global credit, thank you very much. scarlet: analog devices will be purchasing linear technology, the price tag is about $60 a share because it is a cash and

stock deal. they will fund the purchase with new shares my 58 million new shares. and also $7.3 billion of long-term debt, so taking advantage of the low interest rates. report aftert to the close, so this comes in conjunction with a that. analog says that roads will be the ceo and president. again, to be the ceo and president of the combined company. it will be about $60 a share. amanda: the short seller taking on the titans of the hedge fund industry. and report published -- we will talk to him. this is bloomberg. ♪

♪ scarlet: this is bloomberg markets. time for the bloomberg business flash, looking at the biggest business stories right now. second quarter it -- quarter earnings jumping -- including erectile dysfunction pill. chair -- a.86 a share. climbing to $4.5 billion. united technologies is raising the low end of the 2015 profit forecast, coming as the aerospace giant gains confidence and getting a handle on the volatile global economy. the company says adjusted earnings this year will be about 650 a share, that is an increase of $.15 from the bottom of the range. verizon posting gains that missed estimates, the result putting adding pressure on verizon to outline their deal for yahoo! helps the company

augment their company. they signed up 15,000 monthly subscribers in the second quarter, trailing estimates. and eps two cents better than the consensus. and that is the business flash update. amanda: he is a short seller famous for bringing down valiant. who is in the crosshairs now? we will ask him, and you left from citroen research -- andrew left from citron. what is it about facebook that makes it a short? andrew: it is not on my list like others, what is amazing about facebook is groups are involved and they think they can even all and eu ball -- evolvea without any hurdles in the way. it is interesting, the rise in

snapchat and also most importantly what we saw with pokemon go. and i think that pokemon go will take business away from facebook. what it shows is how volatile and fragile facebook is. we are all addicted to our phones, but it shows that people that do different things with their phones are given a choice. anything you see anything positive on facebook, there is the asterisk, based upon engagement. they live and die on engagement. they say that in 1.5 years will be a $200 billion company, or $250 billion company, that is not such a bad thing. here is a social network that has grown into one of the top five companies in the world, so i think expectations and investor expectations are a little bit outpaced with the reality of what they will face in the next 24 months. joe: what would facebook have to do to meet the expectations that investors have for it? andrew: they will have to own

everything mobile going for that at all times. if it is hot and mobile, it will need to be on their platform. joe: that simple? andrew: this is, just like amazon going for, they need to dominate e-commerce and e-commerce must be amazon, mobile engagement must be facebook. amanda: you may need to do not think there is a fraudulent situation? you have it short? ever since linkedin? andrew: i said, it was long linkedin. and i am short facebook. scarlet: you said that linkedin had a monopoly, so doesn't facebook have a similar monopoly in their space, or is there a wealth of options and it is inevitable that somebody well encroach on facebook? andrew: if you think that facebook has a monopoly on social media, walk outside and

speak to anybody between the ages of eckstein-30 and you will see snapchat. scarlet: should it be broken up? andrew: i will give you an example. i saw the plane that facebook will fly and give everybody in the world internet. wonderful, where is the money right now? and they are obviously selling that parte -- ads in of the world. growing inebook is things like news, places the other news organizations are having problems getting engagement, this is fast-growing. could they not, they need to do it, but could they swiftly introduce new content that will get -- andrew: absolutely. there is a reason why the stock is where it is. and there is a reason that people want to own facebook. the doma before me talking about a -- the gentleman before me talk about a spread with the earnings.

the danger involved in that. yes theybeing said, are moving in and they will have to atone everything mobile, all the engagement. there is a good amount of advertising other, but that is another category for it. and speaking, for phase but to be the size it is now, i think that mark zuckerberg and his team can do wonderful things for the world and connect people and it can become intuitive $50 billion company. joe: the story is, incredibly bullish on facebook, these things do not change overnight. there is usually some catalyst or result that will cause people to rethink the story. when do you think that will happen and it was is it going to be? and earnings report -- something like an earnings report? andrew: probably like a conference call talk about deep lines of engagement. much like we see with people

discussing snapchat, with facebook, or other things that might go into it coming -- into it. it is not like amazon. the infrastructure, when it is set up, amazon is a lot more. but social networks, what they do, they can be lost. amanda: i want your thoughts on shorting overall. i think it would be easy to short facebook. what kind of challenge is a too short a stock in this kind of market environment where the index -- andrew: it is the worst. i was invited to career day at my kids school, i will probably miss it. being a short seller right now is the worst thing. i think i have stockholm syndrome, because two weeks ago i said nothing will let the market go down, then if i am thinking that have to be going down. it is very difficult. amanda: i was going to ask the same question. looking at the evaluations stressed the way they are, your job would get easier, but you

are fighting the momentum. andrew: the the stocks are the worst companies with no profit. i feel bad for apple, they need -- they actually show a profit and make money. it would be so much easier to run a company and say, i am forgoing by short-term profits for the long-term and show me a 2019 model and the secondary and let's go to wall street. scarlet: you are in a war of words with some heavy hitters, so what do you make of the completely opposing views on this? andrew: i wrote a story saying that the bankruptcy on kenmore's was waiting to happen. and david einhorn -- i guess, i know that it came out today in a letter, i said i do not properly understand how big the legal ramifications will be. i do not think either of us know exactly how big the war -- that dupont has been poisoning people for 30 years and they split it

off into a separate company. and -- and sold all of his stock most of poorly, other than that you talk about a rebound with oxide pricing. i think my guess would be as good as david's. his point and my point are not a war of words. this is why you are here and i am here. opposing viewpoints. joe: thank you. scarlet: we have two big tech earnings after the bell, well -- is it time to be optimistic on apple? next. this is bloomberg. ♪

♪ -- scarlet: this is "bloomberg markets." one of the 72 companies in the s&p 500 announcing results, including the biggest names, apple.

we will start there. if you look inside the bloomberg, you can see how the share prices stalled out. this comes as the earnings estimates for this current quarter have been coming down rapidly. so there is a re-rating going on among analysts and we just saw it downgraded to a cell. amanda: other analysts are negative as well. the day before the earnings, which is a big bowl of that to make -- bold bet to make. joe: another analyst said that apple had peaked, which is interesting as well. so a lot going into the earnings report. the stocks not doing well with iphone sales. report you will want to pay attention to, twitter. gets tove a chart that the essence of the problems, which is user growth. the bar represents total user growth, and the blue part is mobile, that is not a chart. there is no growth, as you can

see. amanda: growth should be" quotations marks. joe: it feels like all the excitement is everywhere else besides twitter right now. if it does not improve -- scarlet: we will see if they can do anything in this quarter to excite people. amanda: so far it is niche and it needs to be mainstream. scarlet: that does it for "bloomberg markets." take a look at the major averages, less than four minutes before the closed my the doubt is off by 29 points, the s&p 500 at 2168. this is bloomberg. ♪

>> we are moments away from the closing bell. i am scarlet fu. joe: i am joe weisenthal. "what'd you miss?" lang. i am amanda

scarlet: u.s. stocks closing next. joe: the question is "what'd you miss?" twitter may pose profits in just minutes. earnings, howorts much have quarterly sales dropped? >> data of the democratic national convention ahead of bill clinton's prime time speech. we begin with market minutes. the s&p and dow seeing volume, trading, 9% above the daily average, so some direction? not much. trading within a 13 point range. moving between gains and losses