>> welcome. >> and welcome you as well. let's get a quick check on what is going on in the markets right now. we have the s&p 500 down about 4/10 of one --.4%. you do not see the fallout shining through in the broader index. you do have investors selling 10 year yields. it pushes it.

you are not seeing safety seeking behavior there. we see it coming down right now. off just a quarter percent, trying to recover from some of the losses that we saw yesterday, dipping down as investors fear that demand is not going to materialize out of china. >> pretty incredible. it was 80 bucks last month. a quick update. we are watching the no deal situation they have been working towards getting the acquisition done, but they are walking away. this is a deal that had been put together before the recent turmoil. down more than 30%.

let's take a look at some of the broader weakness that we see. both of those between 20 and 40%. >> it seems to be fairly contained within the banking stocks. explaining the red flags that she is watching. >> in order for things to get really concerning, we need to see it flowing way it should be. it is usually consistent with big freezes. the bond market issued zero bonds, which was unnerving. we thought it was on the sidelines. we can wait it out.

they were super active last year, even amid the market volatility, issuing a lot of bonds. it is still pretty indicative of credit conditions. and not necessarily over at this point. >> linzie, great to have you back with us. given the fact that we see that uncertainty with the regionals, your takeaways from the fed decision yesterday active eyesight had a comment saying maybe we are in a pause and assess tuition as opposed to raising the. >> each decision will be meeting by meeting. what was different is that the fed is increasingly uncertain about the need for any

additional tightening. really opening the door for a lot of wiggle room for the next policy move. >> do we see a rate cut if this spins out of control? how many more banks can collapse before the fed has to do something about it? >> i think it is a possibility that the fed could cut rates. if we see ongoing turmoil, they would step up with other initiatives. additional liquidity initiatives . i think the fed is looking at this in a bifurcated manner. they will continue to keep the fed funds target rate and raise a higher, depending on the

incoming data but the fed offered very little, if any guidance, suggesting they are willing to take a pause and assess, if we see a meaningful uptick in the markets. >> in canada, the governor said he is ready to act, if needed. inflation is still something that they have to watch very loosely. we have a u.s. jobs report to be watching as we go into the end of the week. >> it is a little bit tongue-in-cheek. they are willing to take a pause . we are still seeing extremely elevated doubles of inflation but we are still more than double what the fed would like to see. this comes off a backdrop of a

stronger-than-expected showing. gdp fell short, but if we strip out that volatile component, we saw momentum increase, the labor market in the u.s. still very tight. it has slowed somewhat. that being said, the unemployment rate is still at a multi-decade low. labor demand is far outpacing labor supply in the market. >> what does that mean for your outlook on inflation? is it possible to come closer to two to be, if the market remains is tight? >> businesses will have to curtail.

millions of americans are still sitting on the sideline. either of those factors could help stabilize the disconnect, but without that, it will be very difficult to get inflation back down to 2%, which is why this lack of guidance is a bit muddled against the reality of the data. >> peaked that data tomorrow. coming up, the brand behind band-aids and tylenol is now trading with a nearly $50 billion market cap. we will hear from the ceo, next.

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>> this is bloomberg markets. i am john oakland. a unit of johnson & johnson is going public in the biggest offering in years. abigail doolittle has been tracking the story i guess if we do not know where the account -- where the economy is going, it is a good bet that people will still be buying tylenol or band-aids. >> this has been a good one to watch this morning. they do own tylenol, avena -- aveeno and band-aids. raising $3.8 billion, but it opened well above that. i was watching for a couple

hours come in terms of the range tightening. it opened right at 25 53. i think that is the number evaluation. it has gotten bigger. this is great news for johnson & johnson. the reason i say that is they still own more than 90% of the companies. it would basically be your tylenol and band-aids, skincare, other products. very balance between those products. i will send it back to you. >> abigail doolittle and at the stock exchange, david westin is standing by.

>> we're here with a happy ceo. it is above 20 six right now. it looks pretty good. where are you going to fly into? >> it is a great day, indeed. a great day for all the team members around the world. today, millions of consumers around the world. once we grew up with. there are so many others. we have a excited about what lies ahead. >> let me ask you, what can you do that you could not do as part of johnson & johnson? what does it for you up to do?

>> it is a very strong company. we are focused on serving consumers better. in terms of capital allocation, we will be able to use the consistent cash flow in our business. we are excited about that as well. >> you are looking at managing it. or you are looking to grow. >> there is no limit to take care of your health. you can find new products and new solutions take care of your health, feel better and better. we have focused on how to find better ways for you to take better care of your health.

algae season is here, unfortunately. digital campaigns --this allows us to bring new ways to take care of yourself. >> if you look at market share versus new products versus geographic areas, where will your priorities? question want to make sure that more people have access. that is what we are focused on. many americans do not use

skincare on a regular basis. we want to 10 -- we want to change that at can view -- ken vue. it will remove a barrier for many americans. this is a type of innovation that we are looking at. >> what about organic versus inorganic growth? ? ralph pleased with the portfolio that we have. >> if we see opportunities for growth, we certainly move. >> many companies elsewhere have had problems with the supply chain. where are you in that? do you have all that you need?

>> you are right. we saw unprecedented demand for our products. i am proud to see that the supply chain stepped up, and we are now in a position that if you go to your favorite store and look for kenvue brands, they will be on the shelf. >> are you getting pressed by inflation? >> we want to stay close to our consumers and make sure that we to take care of your health. we are focused on making sure that we have access to the best health care. >> in you worked it out, but how

are you dividing it up so that it does not hang over your head? >> we are focused on what we do best, which is building trusted blank --building trusted brands through innovation through a better understanding of how we can help them the most. question will probably get a good night sleep tonight. what is the first thing that you will do sit-down? >> thinking about the team members that made this day possible and looking at the next chapter. >> bacteria. david westin there with the ceo. it is unit that owns band-aid and tylenol, started trading at

$22 a share and right now they are trading at 20 6.50. out with the latest result. we will get insight on the state of the auto industry and sales on the internet. this is bloomberg. ♪

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>> this is bloomberg markets and i am matt miller. first quarter results revenue up 6% year over year with earnings 17 per share. it did weighing on the stock. down 14%. joining us is alex. he is the ceo of cars.com.

tell us about your earnings. what is wall street or investors getting wrong about the stock? >> we thought we would break the various today, but we took a hit. based on the data that we see, it could not be further than the truth. --further from the truth. they are pricing up four percent. we had a headwind of digital dealerships scaling back their operation, but if you look at the core fundamentals, traditional brick-and-mortar dealerships are up, as is pricing. roughly 20,000 dealers and consumer demand persisting. we feel really good about the year ahead. >> demand for sure, but this is a pretty fragmented industry

space. i spend a lot of time on all of those sites as well. >> the one secret about this category is you are only in the market every six to seven years. the advantage is one of the most recognized brands in the category. we do not have to spend what other people do. we have the largest concentration. >> i want to talk about the manufacturers themselves because he talked about this in your conference call. you can make enough vehicles to meet it. what are you seeing?

>> we certainly follow our customers and earnings statements about better matching supply and demand. really to protect today's environment a year in advance. what you are also seeing is that they are taking market share. you are seeing a strong demand for cars. remote work has made people rely on their car are more than. kids are coming out of school. people underestimate how central cars are to the u.s. economy. even though it is admirable to say we are balanced, there are things that are hard to predict.

they are going to take market share over the course of the year. >> you referenced some car consumers. a push of the button on the your smartphone, you can -- how much of the decision-making process was taken place on one's phone? >> so much of the experience was mobile. 70% of traffic coming to us through mobile devices and people are wanting to take transparency. we are looking at what the market demand is we are bringing

that energy to zoomers, so they can feel more confident in selling their car and buying their . we build websites and we are growing. we are help --hoping to move towards more digital operations. we have building websites through ai and hopefully bring markets down. we in the year with marketing options approaching 30%. we think it can help us accelerate towards greater profit.

>> i am matt miller. this is bloomberg. ♪

>> so goes the nation. welcome to markets close. a focus on challenges and america's largest economy. today is about stepping back and taking a closer look at the underpinnings of the economy. but accounts for about 15% of total gdp. no other state comes close.