free cash flow for conoco is, like, negative or $.2 billion. -- negative $4.2 billion.en i look at the group of independent peers, it is cash flow negative -- that is correct. so that would the a difficulty, but if i look at exxon or likely, chevron will throw off about $1 billion of free cash flow in 2016. that is to be expected. and they are expected to cover -- free cash flow expected to cover their dividend by 2017. alix: good stuff. i bugged this guy all the time, and by the way, vincent is by far my best run here on bloomberg television. we're talking about the close, and you're looking at the nasdaq at a record level. we will break down why and take a deep look at the housing market. ♪ alix: we are moments away from the closing bell. .oe: i am joe weisenthal you are looking at stocks closing now. ,he nasdaq at a record high nine out of 10 as of the sectors lower, not really keeping track with the nasdaq. joe: the question is "what'd you miss?". is the housing market getting mojo back? new home construction at second highest level. alix: one of biggest oil compani

conoco's free cash flow is currently a negative 4.2 million.r thing, german parliamentary vote on that greek bailout pretty much expected to pass. you still got to watch these things. alex: revolt. joe: that's all for "what'd you miss?." thanks for watching. alex: see you back here tomorrow, guys, have a great afternoon. emily: google shares are rising in after-hours trading. concernednvestors are that they won't be able to keep themselves in check. ♪ i'm emily chang and this is "bloomberg west." coming up, highlights from my studio 1.0 interview. new ceo is taking steps to define the site's policy. i willjo

. >> even for conoco phillips showing there, jpmorgan was out today saying conoco phillips could endtting its sacrosanct dividend. all these players obviously want to defend that dividend for as long as humanly possible in order to keep those investors in the stock. >> yeah, to keep the investors in is exactly right here. when you're looking at advisers out there or people that are in retirement, they use some of these dividend plays, they use oil companies and mlps and whatnot. they're in real danger with oil this low. certainly you saw some of those implied moves in the dividend. a 10% cut. most likely my experience has been when you're trading options they start making some implied moves on dividend cuts. it usually comes down the road. you have to be aware of that. if you're playing these for dividend yields, be careful here. certainly oil trading 234940s. at least we're getting a little more comfortable here. at least oil is starting to price things in a lot lower. we'll see if some of these big conglomerates can adjust to the new loer price in oil. >> and oil goes higher becaus

conoco phillips. take a look at this today chart.t had a big decline yesterday due to the its termination of a deepwater drilling contract in the gulf of mexico. they are paying $400 million to terminate. they would rather pay $400 million than pay for the cost of exploring and producing oil from that deepwater in the gulf of mexico. that is a staggering number for me. joe: something to watch for as earnings seasons come around? alix: in deepwater, one well is $350 million plus, and that kind of money is hard to bring in right now. especially when you look at the forward curve of oil, relatively weak. joe: this is a huge commitment ahead. another story people may have missed is the british pound. we talked about the euro and dollar last year, even the new zealand dollar. here is a chart of the euro against the british pound. the euro is falling sharply. they had a really strong wage growth number. that's the kind of number that will get a central bank nervous. wage growth is the kind of thing that causes a central bank to think about

second oil, conoco phillips and almost 5% yield and it's interesting and the little spike in oil hassed the airlines to have problems and then immediately we have a less of a use of oil, by the way, spirit air cuts forecasts and that's important because i said that the airlines can't be knocked out of the box. i like the oils and i am early and some people can say i am wrong, but they do represent value to me. >> don in florida, don! >> b-b-b-boo-yah! >> wow! >> caller: i want to thank you for all that you've done for your viewers, jim. >> oh thank you, man. sometimes i get a little heat. so it's great to hear. >> thank you. thank you. my question is this, given the run-up of starbucks over the past year is it time to sell my share --? no! no! >> my charitable stock, we made a mistake and let too much of the stock go and the company is doing a great job. it's taking share and it's taking names and making money. do not sell starbucks and it will get us going again. if we get some of it checked off this year if we don't get them all it will just be a draw between the bulls and the bear

schlumberger and conoco phillips do more than 20% of their business in asia. boeing logs a quarter of their sales there. abbott labs does more than 30% of its sales in asia. get the picture? it's hard to ignore. china, that is. and fed chair janet yellin has acknowledged in the careful phrasing of a central banker that developments overseas will affect the timing of any decision by the federal reserve to raise interest rates here at home. >> were we to judge that these developments did create substantial risks or weren't changing the outlook in some notable way. then a change in the outlook is something that would affect monetary policy. >> what she said. >> when will the fed begin to raise rates? few believe it's going to happen at the meeting this week since there's no post meeting press conference we won't know the tenor of the discussion until the minutes are released in three weeks. >> global growth concerns overshadowed positive economic data here. durable goods, toasters and jetliners that are expected to last three years or more jumped from a month ear

. >> reporter: and it's not just conoco. the layoffs initially focused on blue collar workers. 6500 jobs slashed at royal dutch shell after its profits fell. to add insult to injury, halliburton and baker hughes reiterating cautious outlooks for the second half of the year. tomorrow we'll get reports from two bellwether energy companies, shell and exxonmobil. how will they guide the market and what are they doing to weather the storm? >> it looks like we could go up a little bit but when you look at the long-term charts, it looks very much like it did in december and it looks like we could head to the downside once again. >> where oil goes from here is anyone's guess. oversupplied, the potential for iranian products to flood the market and dollars remain in downside pressure. but slight declines in u.s. production and saudi arabia's plan to make slight production costs after the summer could be the start of what could tip the scale the other way. for "nightly business report," i'm jacque deangeles. >>> oxidental petroleum fe

conoco philips. jpmorgan says the dividend is in jeopardy. what's the trade? >> you stay in things that win. tesoro and valero, the refiners. numbers you have to remember. 95 tso. 65 vlo. as long as they stay above that you stay long those names. exxonmobil making north of $100 billion last year. 74 billion now. you've seen a commensurate movement in the stock price. granted i hear what tim is saying but it doesn't feel like a bottom's been put in those names yet. >> i think it's too early to try to bottom fish here but over the next let's call it 6 to 18 months the trade's going to be you buy the big integrated oils, exxonmobil, chevron and you short the enps. they're going to be flushed out, go out of business, exxonmobil and chevron's going to come in and buy these assets for pennies on the dollar. that's the longer picture trade. the short term you stay short oil, stay short xlp. >> ari, you want to go back just quickly, are there stocks within this sector that look decent? >> i would go with the refiners, valero, tesoro, marathon petroleum. i understand t

bernstein also suggested chesapeake could sell it self to possible suitors like exxon or conoco phillips to ease that midstream burden. it reiterates and outperform as well as a price target of $19. becauseing, travelers bank of america and merrill lynch upgraded it. the bank says it's underperformance actually makes it a good by. walgreens alliance is rising today. this is a three month high. year to date is up more than 20%, and this is the largest u.s. drugstore chain q3 earnings. that was according to bloomberg analysts. its yearlyed forecast as high as three dollars and $.80 a share -- $3.80 a share. a very good day across the markets and these individual stocks. scarlet: we will see how long it lasts. pimm: still ahead on the bloomberg market day, we will be going out west to sun valley, idaho, where media and technology moguls are gathering. the latest will get on any potential deals that are brewing. ♪ ♪ welcome back to the bloomberg market day. with a shot of manhattan, all looking self toward the statue of liberty. scarlet: it is hazy. we have some breaking news in the world of

exxon mobil as well as chevron coming up, conoco phillips following along with them. chevron feeling the pinch of oil prices being lower. this is a company that has returned cash for shareholders. that is one of the things that is weighing on the shares in addition to the general results that were worse than estimated. a little bit of a switch. western digital which is an a expressedsiness confidence we would see recovery. seagate can met with results that -- came out with results that missed estimates. seagate is either up or down. let's take a look at the top stories we are following this hour. the next generation apple tv will be unveiled in september. buzz field news -- buzz feed news said it will have more storage and a touch and an operating system that will allow voice control. the first danger change in the apple tv box since 2012. 10 jumped out of the starting gate. it is on 14 million computers two days after the release. they are setting a lofty goal. one billion devices running windows 10 in three years. a free update for those who are updating. an aprilth

lowest sincets 2001 and conoco phillips plant -- canceled a planned contract.offshore drillers are doing poorly today. transocean and diamond offshore are falling once again, continuing views that there is a glut out there in addition to the recent agreement with iran that will bring more supply online, doing nothing to alleviate the recent downturn we have seen an oil. when you look at wti for the past three weeks straight, it has fallen to $57 per barrel. betty: thank you so much. shareholders gave the green might friday to a merger between two samsung affiliates that will help the chairman take control of the conglomerate and give it to his son. it was opposed by u.s. activist elliott and associates. shelly: this was the culmination of six weeks of a very public battle between billionaire activist investor paul elliott singer and samsung. the overwhelming approval of the merger underscored the resilience of the south korea corporate dynasty and boosted the country plus track record of repelling foreign influence. nearly 70% of shareholders voted in favor of

conoco just increased it a few cents a few day ago. that's their priority protecting the dividend.ove on to china. we are down in china, the shenzhen and the shanghai. 3700 on the shanghai. 3500 is where the government started buying. that's the line in the sand. we'll see if the government responds in some way. by the way baidu did something very few chinese companies do. they announced a $1 billion buyback, a $60 billion company. they haven't done that in a long time. not many chinese companies do. sg. >> you know how bad things are in brazil. bungee is very big in edible oils. they came out with a miss but said the oil company is way down. people were switching to cheaper products because of the recession environment. we are talking coconut oil. that's a major sign of problems. right now, the dow is down 85 points. carl back to you. >> bob, thank you very much. >>> big day for data. let's get to the bond pits. rick santelli at the c&e. good morning, rick. >> good morning, krafl. if we look at lineup after gdp, it pretty much tells you boatloads about what's going on in the marke

across the oil complex, we mostly see red with ensco extending their losses after conoco phillips canceledct with that drilling company. betty: thank you. correspondentkets , much more ahead on the bloomberg market day -- congress is back to work again and topping their list is maintaining the flow of highway funding. we will discuss that after the break. ♪ betty: welcome back. let's look at our top stories -- a major merger is in the air with lockheed martin pay $9 million -- will pay nine alien dollars to sikorsky which is owned by united technologies. it plans to focus on making jet engines, elevators and their conditioners. george h.w. bush is back home after being hospitalized for a broken neck bone. he was her last week when he fell in his summer home in maine. dr. say he will recover within four months and he is the oldest surviving president at 91 years old. main highway between california and arizona is closed in both directions today. flooding caused a bridge collapse on interstate 10 about 50 miles west of the arizona line. officials say they have no idea when it will open. thos

utility like verizon can trade with a consumer package company like proctor and high yielding oil like conoco phillips so it's important to consider that after a period of tame interest rates, volatile ones could move all three stocks at the sail time. we must always be concerned that the favorable tax rates on dividends could go away and would make the most competitive to bonds and give these fixed income equivalents a real whacking as it did by the way in the spring of 2013 but if you own one stock way really large yield and one or two of the other names in your portfolio, it's not a bad deal. i know dividend paying stocks may not be what most people consider sexy but you know what dividends make you money for heaven's sake. but to me that's the definition of sex appeal. i have a pretty warped social life so my perspective might be a tad skewed but buying high yielders and revinnesting into the stocks is one of the greatest most reliable ways to make money out there plain and simple because it allows your investment to compound overtime. in other words, overtime money from your past dividen

shell and conoco have yields near 6%. are these yields safe? for the moment the answer is yes.uring everybody it's safe. big oil can afford to fund the dividend from the cash balances they have. they also have access to the capital markets that they can tap as well. but in the long run -- i'm talking a couple years from now -- they all need oil to be higher. we're going to see what's going on with exxon-mobil. they'll be reporteding tomorrow. but everyone believes they're going to say the same thing. the dividend is safe. >> is exzonexxon-mobil the best performing company. that's 5%. >> that's the problem with this argument. amongst professional investors in energy they say you're trying to promote exxon as a utility to me? the stock is down. there may be more downside even with the 4% or 5% yield, that can get wiped out very quickly and that's the argument. if you are a yield-hungry investor it does have some points. >>> you threaten people with penalties and tell them they have to cut and they respond. californians reduced their water usage by over 27% in june! this is the fi

>> caller: conoco -- >> oh i would buy some here. but i know that the oil is going to 43.rybody says it. so why don't we just wait till oil goes to 43. wait a moment. it is attractive. charles in kentucky. charles? >> caller: yes. >> charles? >> caller: yes. >> go ahead, it's jim. >> caller: i wanted to ask you about sears. cerus. >> it's good. a nice spec. er is us logic can go lower. let's go to francis in florida. francis? >> caller: cramer, i need your help. during the past year you had the ceo of -- pharmaceutical on your show. i believe in him. and i believe in his company. isis was 77 at the time. i purchased it several time ossen the way down at an -- times on the way down. should i buy, hold -- >> 77 it was not at 77 at the time. because that's the absolute high. it was not. i said at 73 that i was worried about this company. now, it's all the way down here but i have to tell you in a market that can take biogen down 30% in the heart beat, isis is not correct yet. not correct yet. huey in texas, huey? >> caller: hey, jim. >> yes. huey. >> caller: my question is me

i'm stuck on conoco phillips and the sea drill. oil prices are going down. what do i do? >> i've been telling people from my charitable trust we've been saying look, here's the deal. oil is going oil and we did a good piece, if it breaks 50.51 it can go to 43 and that means the stocks are probably not done going down. i do not like deep water, seadrill. i say sell sell sell! >> this is tone ney westlake village, california. jim, in view of the market mess today at the nyse i want to ask you about two possible buy opportunities. first, i want to ask you about oracle. they had a bad quarter and they claimed they were having a cloud-based business at a rate that was faster than the sales force and they went out of their way to the sales force, and the sales force which i currently own continues to grow nicely and is on track to reach $6 billion in sale this year with the long-term goal of getting to ten, but their rate of growth has slowed quarter to quarter and the price is down significantly in the last two weeks and i've learned never to underest nate larrielson to catch

. >> scotty, conoco phillips, let's start there. the results did beat consensus estimates. company is lowering full-year forecast for capital expenditures to $11 billion. it was $11.5 billion. you can see the shares off the worst levels, still down b by .75%. occidental petroleum. sales missed hurt by low oil prices. marathon petroleum posting a miss, amid weaker refining margins and higher costs, the company announced a new two billion share buy-back. the shares still down 4% in the day's trade. not just off its say the worst levels of the day. >> dom, thanks so much. too bad jim lebenthal is not here, just added mpc yesterday or the day before. >> not working out for him? >> disappointed about that? >> ha ha. >> bad sportsmanship, joe. >> can we get lebenthal on the phone? >> let's look at earnings, chevron, exxon, both report before the bell. widely held stocks, what's the take? >> i think goldman had the piece about exxon the other day, talking about why it's on the conviction buy list it makes some sense. if you believe what currie was talking about yesterday from gold

does affect production in the u.s., ironically you're seeing a lot of the companies like anadarko, conoco-phillips increase year on year production as they squeeze costs out of the system and increase efficiency. that's a silver lining behind it because it will keep american oil production up. neil: in the near-term what wins out? americans going to the pump and seeing cheaper gasoline prices? makes them feel better, what happened? >> it will continue to get better and gas price is going to decline by over 40 cents a gallon between now and the end of the year. neil: another 40 cents a gallon? wow. >> another 40 cents, you're seeing $1.99 at the pump in parts of texas, ohio and south carolina. that's going to spread throughout the southeast. so good news for the consumer. still bad news for the energy sector as well as the houston area, but the refiners are benefitting from this because i look at it as crude is on sale. neil: it is that. andy, thank you very much. >> thank you. neil: all right, now you know we're showing what's going to happen to gas and oil prices. you know i love charts, it's cha

shell, conoco chevron maintain their dividend as well.ell went out of the way in the call yesterday to say the dividend is safe. they repeated it several times. so chevron, they were really a bit of a mess. they have write downs and project suspensions. it's complicated but all you need is look at is the earnings. $11. the estimate is $3 with the 80-cent miss today. those numbers are going to come down rather dramatically. let me note you mentioned, simon, royal caribbean. at a historic high as far as i can see on that. it's a historic high at $89 and the guidance was raised. april earnings were healthy and the guidance was healthy and continues to be well booked into the fall. when thing i want to note on tyco, revenues down 6 %. here is the company every day i point out one company getting killed on the dollar. revenues down 6% compared to a year ago. all of that was due to the strong dollar. >> major theme during earnings season. thanks, bob. as bob said treasuries are one of the focal points. let's go to rick in chicago. >> reporter:

conoco phillips down 22% and chevron down 17% in just 90 days.you like oil stories long-term, perhaps these are just good stocks trading at a discount. let's find out now and joining us by phone, senior energy analyst with oppenheimer. a tough run for 30 days. good companies that are trading at bargain prices or has something fundamentally changed for the worst for these companies? >> there is no change in fundamentals. i do believe that oil prices are going to be lower for longer and that is what bp said this morning that oil prices will likely stay at lower than most people expected for longer time and that's exactly what we think. most of the oil stocks are down and they were down significantly as of yesterday. 50% of them closed at 52-week low. obviously this is like bargain hunting, bottom fishing, rebound reaction if you will and short covering but fundmentamentalfundamentally, supply is ample and the demand picture is very weak. fear in the hearts of most people. so we don't see the change in fundamental that reflects the jump in stock pri

a few of them -- conoco exxon, apache. it is hard to find stuff at new highs. remember the rising interest rate story is very prevalent for the second half so a lot of people are hiding in bank stocks. we saw some intraday new 52-week highs in bank stocks earlier today. they are down here but they were up earlier at 52-week highs. pnc, citigroup, i guess my point is, a lot of people are hiding in those banks stocks because there is not a lot of stories in the second half that are working very well. if we get no growth at all, no rise in interest rates at all, these bank stocks are certainly going to be under pressure but right now they're one of the few groups that are really outperforming in the first half of the year. >> thank you very much bob. >>> u.s.-held insurer anthem plans to announce a deal to acquire cigna. the deal is expected to be announced tomorrow. anthem is set to acquire cigna for $188 a share and the deal will be 55% cash and 45% stock. both boards are expected to approve the deal. where this would all follow aetna's $37 billion agreement ear

energy names like kinder morgan conoco phillips halliburton, baker hughes and aog all negative over thethree months. houston, the worst of our power city indexes over 80 days. >> european leaders gathering in bruce brussels. cnbc's chief international correspondent michelle caruso-cabrera is live in athens but we start off with jeff cutmore live in brussels. hi jeff. >> reporter: yeah hello. what we have here is an ongoing meeting, alexis tsipras, the greek prime minister, game here and held a preliminary meeting with the german chancellor angela merkel and the french president also the president of the commission also. disappointment earlier in the day there weren't any new greek proposals as far as a new deal is concerned but it does seem that mr. tsipras has tried to push this story forward by suggesting if interim financing were providing until the end of this month, then potentially the greek parliament could move forward with some reforms, but at the moment the negotiation really is about trying to head off a big debt repayment that the greeks have to make on july 20th. so at this

denbury resources and tidewater, stock down and some of the biggies bp and conoco phillips just to bene is saying these will get cut. these are just the highest dividend yields of the non-master limited partnership companies out there. we've got andrew keen who specialized in options. and andrew based on the options market, is anybody saying oh, we could get a negative headline on some of these companies at some point. >> yeah. looking into the oil spies the ones that have dividends higher per share which has chevron and in the near term we don't see any dividend cuts in those names. if i looked at bp and used the option market, a lot of options can be traded for a dividend cut. we've seen this a lot and saw it in chesapeake. we've seen puts being brought across the board in lynn energy so i'm not sure if the dividend will get cut or they want more on the down side. the higher it goes down the yield is 20%. nothing in the short term in the three names. bp i looked out to 2016. it's implying about a 10% to 20% dividend cut in that name. >> even though it has a very solid balance sheet.

under pressure once again energy hitting new lows include an mobil, exxon and conoco.a proposal pressure on china and slower growth there. iran may have lower supply once a deal is put together. gold miners getting hammered with the surging dollar with the two-way sun commodities. you see the gold miners under pressure. pat flat down over 6%. under pressure. do you want to know how hard it can be to breathe with copd? it can feel like this. copd includes chronic bronchitis and emphysema. spiriva is a once-daily inhaled copd maintenance treatment that helps open my airways for a full 24 hours. spiriva helps me breathe easier. spiriva respimat does not replace rescue inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva respimat. discuss all medicines you take even eye drops. if your breathing suddenly worsens, your throat or tongue swells you get hives, vision changes or eye pain or problems passing urine stop taking spiriva respimat and call your doctor right away.

. >> conoco phillips plans to cut spending citing low crude oil prices. they already cut capital spending twice. it's raising it's quarterly dividend by a penny to 74 cents a share. in news out of washington the sec is ready to reject $3.3 billion of auction discounts requested by dish network entities. in the $45 billion box earlier this year. officials decided that the companies didn't qualify for small business discounts but i figured how these guys worked -- he's not stupid. >> but if you read through that story -- >> yeah. >> they say other companies have done this in the past but what you had was these companies driving up the bids, if that was based on the fact they were going to get a discount that means everybody else paid a higher price because they wouldn't have had to bid to these levels. >> they were aligned. >> collaborating. the three of them were playing together and as a result those three companies, the two small ones in dish they took 27% of the wireless bids. >> you got to try. if it was at&t or something i would be furious. >> pretend