dave wilson clued me in. message the wilson at bloomberg.net, you can get on the chart of the day and find out stuff like this. to all over, you had a big story today on a very controversial topic in financial , with the idea that you can come up with a fair value for stocks based on what treasuries are yielding. what did you discover in reporting on this? >> this is a fun topic to look into. every valuation metric across the board is elevated. we looked at 20 different valuation metrics and 12 of them are overvalued. the only one never trays stocks in a way that is somewhat valuable is when you compare them to bonds. think about it conceptually, it makes sense. people are moving into dividend replacement stocks are buying equities to be a risky place they're willing to go because they're not getting returned elsewhere. that makes a lot of sense. but the fed bond rate is down quite a bit. both historically and mathematically. we have this chart showing what the fed model has done over time. cory: i feel like l

i stole it from dave wilson. you can get his charts. this is a ratio, the s&p 500 dividend yield.this a fair amount to see, the 10 year yield is low, how much income you could get from stocks. they are more of an income generator than the s&p 500. actually gave this chart bank of america merrill lynch. interesting ring is this ratio ended in july at the highest since 1958. in you are getting 1.6 times more return from the s&p 500 earnings dividend than you are from the 10 year yield. it is interesting. if i did suggest that, you could do the other thing. i am really a contrary indicator. -- joe: i amook looking at data out of china. a fascinating set of charts were put together that suggests maybe the economy is doing better than the official data suggest. this is a chart looking at industrial output of steel, electricity, and check out the purple line here. that is the lectures the end it has an kicking up lately, up 7.2% year-over-year right here. lookedong time, people at electricity numbers weaker than gdp and they said we are skeptical of gdp numbers because the electricity d

take a look at the bloomberg, this great chart was created by dave wilson. this looks like the differential between the six-month fix futures and the current fix -- vix futures and the current vix. really anticipation that the volatility is going to bounce. now let's get a check on first word news. mark crumpton has more. mark: thank you. president obama is challenging republican leaders to withdraw support for donald trump, saying that he's unfit to lead. during a joint white house press conference with the prime minister of singapore, the president said "trump does not appear to have basic knowledge around critical issues." trump later responded saying "mr. obama and hillary clinton single-handedly dismantled the accusedast." he also them of sending america's best jobs overseas in order to appease global interests. the ceo of the democratic national committee has resigned in the week of it -- the wake of an e-mail hack that embarrassed the party on that even of its nominating convention. that's according to the associated press. chairwoman already resigned

something else that dave wilson of bloomberg news pointed out today is that the vix futures curve isthe highest -- we see the highest gap between futures and actual vix that we have seen in quite a long time. there is all this expectation of volatility coming back. mr. kelly: yeah, and one of the reason why it is coming back when you look at those dates and where volatility comes from is macro events and concerts. if we go back to thursday and friday, the leading economic indicator is durable goods. that disappointed. the gdp disappointed we are starting to see auto sales not do very well. that is a leading indicator. that is one volatility starts to peek up and come back. we are headed into august. you know what that means -- last year, august, we have a huge china concerns. august is sometimes a temperamental month, but we know september is. people are looking out to that, especially when you see the election pick up into high give to there will be more rhetoric. that has significant implications on names like health care. the aetna was just -- ceo was just here. we have touched on

something dave wilson is doing today.t for bonds and he is comparing all of them. time now for the bloomberg business flash, a look at the biggest stories in the news right now. we begin with national grid -- it has begun and auction to sell . controlling stake it could value the business at more than $13.4 billion. national grid is selling its regional gas distribution network and is looking to be submitted by late september. buye: tiaa is in talks to ever bank financials. said it was in advanced negotiations to sell itself to a well respected services company for $19.50 a share. reuters says the deal could be worth $2.5 billion. scarlet: walmart is in discussions to acquire jet.com. jet.com has been in business for a little more than a year. the company may be worth as much as $3 billion. angie: goldman sachs will pay 36 point $3 billion over accusations employees obtained controversial -- controversial documents. andfed is pursuing a fine permanent banking ban against a former banking director against allegedly online

this is dave wilson's chart today. you can get on his mailing list.ding range on a quarterly basis for the s&p 500. this is during the course of the bull market it the range has been getting smaller and smaller for the s&p 500. we talk about this when we talk about markets, it's the 22nd straight day with less than a move of 1% in the s&p 500. that is the longest stretch like that going back to 2014. this range of the tightest going all the way back to 1993. it's unusual. one of the casualties of that have been these leveraged volatility etn's. you can see the 54% plunge in the short-term etn which is the midterm one that leverages movements in the vicks. v --ix. relatedseen forvix ept's in the last month. that is one of the casualties because back in february, we saw people pile into the vix. this is 2604 and here is the s&p going up and here is the vix going up except for the spike in volatility earlier this summer. i am looking for the lows for the s&p 500 back in february where we had the spike in the vix at that time and people piled into the lev

wilson was with dave on when he was killed. the third person was shot and killed hours after dancing at the funeral of pratt and wilson.>> with the death of the young lady, i got mad. and i went downstairs and i wrote this song. >> so many kids man. it is too much violence going on out here. >> it is dedicated to families like alice. >> he rose to fame as a rapper and the latest track is for parents who lost their children. he said he was riding a psa about gun violence when this was sent to him. >> that is exactly what i was thinking. he just did it in rap form. >> i lost my nephew and cousin and knees. all within a two year span. >> they want people to know even though their loved ones are no longer here they have a voice. in need to be remembered. that is why this weekend they will record a video with the parents and family members of those who had been killed. they stay together they want to get the community hope of ending gun violence but they can't do it alone. >> us as parents and uncles and brothers and sisters, we have

wilson. >> in for karen hepp. >> dave warren. >> i'm going to try not to let everybody down. >> stipulate.he'll be great. we were sitting here and open mike was rung. i don't want to you look at that it way. i didn't mean to leave. how many different ways can you look at it? you left. there is no different interpretation. >> he said he wasn't trying to let anybody down. that's my line down. i'm not trying to let anyone down. >> dave, did you see him, with the tears. >> i saw him. little trickle. >> trickle. >> segue. >> segue into the weather. don't leave. >> okay. >> i'm taking full responsibility for this. center city philadelphia right now it is starting off on warm note and humidity will increase. however, there's pretty quiet right now. watch for showers and storms that will be developing later. weekend wendy it's the 30th annual car bee yann festival at the great plaza the a penn's landing. note the time 12:00 to 8:00. 12, one work, three, 4:00 o'clock should be fine but five, six, 7:00 o'clock we'll start to see some activity here ultimate doppler radar. all quite right now but show

dave on was shot and killed while walking to the store. since the last year, at least three of his sons friends were killed. josiah pratt and amari wilson drowned over memorial day weekend. the third person was shot and killed hours after dancing at the funeral of those two. mr.pratt said he was writing a psa about gun violence when the rapper known as pooh man sent him a song. >> i can move, i'm not here in oakland anymore. if i am fighting for it and i've already lost my son, you need to help me. >> with the death of the young woman, i got mad and went answers and wrote the song. >> ellis and pooh man will record it video of the song this weekend. it will be with the parents and family members of those who have been killed. >> officials in alameda county are going to take action to address the problem of until it untested rape kits. the advocates say they need both money and found power to conduct the tests. mike honda and alameda county district attorney mike o'malley have been working to secure $459 in federal grant money for the testing. when they realized every 2000 untested rape kits in her county alone, her office started sendin