Plan parent governor murphy says forill go continue to press tax fairness. According to a bloomberg survey, the central bank is likely to cut rates by a quarter of 1 point in september and again in december before a week as meeting of fed policymakers. Economists were expecting just one rate cut. U. S. Unemployment filings increased to an unexpected high. Job claims rose to 207,000. Among two people eligible held around 1 . Jobless claims remain near historically low levels. Global news 24 hours a day on air and at tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. This is bloomberg markets, the close. Awayn we are 30 minutes from the end of the trading day. The outperform a today is the nasdaq. This mood music is one of risk on in spite of the mixed message of whether there will be any progress in g20. A ban on tech sales to quality muddied the waters. The euro basically flat. Ofhad woeful data in terms sumer Brent Crude Oil down. 2 . Gold still above 13, 100. Carolyn there will be no buying today. Lets look at the next element of industrials. Been theones has underperformer. Flex the dow is turning red here on the day. We see small caps holding their ground actually. Really havent given into any issues in the market. What flex get some breaking news here boeing will need up to three months to fix the latest 733 max problem. Hough all we have seen a sharp downturn , about 2. 3 . The us turn to politics now. Biden and Bernie Sanders are among those on stage. Off the stage, republicans out theo be sure president positive voices heard. A debt from afrom small visit in miami. Im afraid we will have to bring in that particular piece of information a little later. Lets return to the breaking news happening with boeing. One we have been looking at all day in terms of the 737 max 8. You look at the element of updating software to bring it back to the aircrafts back in use. Now there is another safety issue that is been found. We have had reports that this would be longer. These are very complex systems. One thing goes off in the software and 10 other things go off and of course you have to get it right. Right. Lag in. Pilot running a response because of computer chips. We will see how that unfolds. Lets get you back to the discussion on the republican side in miami. We spoke with the rnc chairwoman. Lets have a listen. I thought it was frightening to see candidates on the stage lurch further toward socialism, demonizing capitalism, demonizing job creators and saying they are for open borders. There were so many things i saw last night, taking away private health care plans, i do not want to lose my pediatrician for my kids that i had for 14 years. It is not right. I saw a Democratic Democrat Party totally reshaped in the likeness of Bernie Sanders. We have a Republican Party that can go to the American People and say, we have created more jobs and wages are up and this is why you need to elect donald trump. You hosted just earlier today roundtable ands immigration was a key topic at last nights debate and will likely be for the second portion as well. Of the father and his daughter, their bodies, it has gripped the attention of the nation. Last night, Democratic Candidates blamed President Trump. Let me say, as any mother would when you see the photograph, it rips your heart out. It is heartbreaking. A father and his daughter and the mother survived and they have to live through that. It is heartbreaking. I know that the president has been fighting for Immigration Reform for over two years before he got into office. That is what started his campaign. He said we have broken borders and we need to fix our laws. Democrats covered a manufactured crisis in january. They said it was a manufactured crisis. It gave them a license to sit on their hands and not do anything. That photo brings home, they have got to fix the immigration laws. We need to secure our borders and fix asylum laws and make sure that people are not taking a treacherous journey that puts their lives and their kids lies in danger and the only way we will do that is through comprehensive immigration form, which the president has been fighting for since day one. The democrats have chosen to sit on their hands here you talked with cubanamerican floridians and you say one of the themes is common to some as well as Immigration Reform. What are some themes you are taking with conservative voters and, candidly, swing voters. They are in tune with what the democrats are putting out e they are frightened putting out. They are frightened. In the end, it is a government takeover and it becomes oppression. We know many people today came here cuba and thats because they lost their livelihood and ability to achieve the dream of success. I think it is something that resonates. I want more people to hear the stories of these fine people and what happened with them. We have to educate Younger Voters with what socialism really means and the democrats are really embracing that. Joe biden takes the stage tonight. What do you think . With the have a tougher time against senator sanders or President Trump . He goesever the wherever the wind blows. Every possession he is changing. He has a 45 year career in politics. I do not know what he can take to the American People and say we need to get things done and argue why he has not gotten that done. To see be interesting how he embraces different positions and revamps himself for the American People tonight. The president tweeted that it was boring. The timestamp was when they were talking about immigration. Was he saying the issue of immigration was or was he critiquing the candidates . I am not going to speak for the president. I did think it was boring. I did nothing moderators really pushed back on some of the answers. I hope we hold these candidates accountable. I would like to see msnbc do that tonight. You are listening to the rnc chairwoman. Kevin will have coverage and highlights from the Second Democratic president ial debate tonight and tomorrow here on bloomberg tv. Coming up, nike firstquarter earnings respected expected today. What to expect. This is bloomberg. Nike expected to release fourthquarter results today. Analysts are positive on the stock with a few negative prizes expected. Joining us now on the phone is a , a buyretail analyst rating on nike shares of the price target of 91. When we get these results tonight, what is the primary thing you will look for that will give you some sense of nikes Growth Prospects . Absolutely. It is a Multinational Company and we care about every region for better or worse. Nike has done a phenomenal job revitalizing their business. We want to continue to see their selling their product in north america to your point about foot locker. On the flip side, there has been so much conversation around tariffs and global uncertainty in general that i think investors will look toward the asian trends. Do you have a worstcase scenario . Worstcase scenarios are fun. The reality is there hasnt been a sign about a slowdown. Nike is a u. S. Brown brand obviously. But if you think about where messages have generally trended to politically, they have actually been somewhat on the other side. I think the beauty of this business is they are the largest in their class of athletic tears. Which means they can write the biggest checks to get the biggest endorsers. What they have done is convinced go rld that if you where a swoosh, you become superhuman. It transcends politics sometimes and situates them pretty well. Nike has done well being trendsetters. You look at adidas, they have partnerships with kanye west and beyonce and highprofile celebrities who can get people in the door so to speak. How does nike respond to that increase of competition . Monopolyonopoly these days is the worst thing you can be well welcome healthy competition. There is plenty of room for multiple players. The nike adidas back and forth is a decades old story. A couple of years ago, it was like adidas was gaining meaningful ground and it looks like they would potentially siphon away share. To your point, it was grabbing celebrities that were not necessarily on the Basketball Court because that is where the trend live. I think what becomes important here is if we bank on that and return to the idea of the largest Balance Sheet and the largest check book, it means any given year, trends may go away from you but as long as you can outlast the ability to find who people care about, you can win. I think we come back to nikes portfolio. 20 seconds. What will you ask . I want to make sure north america continues to push in the right direction. Thank you for your time ahead of those earnings and that call. Great to have you. A look at the market s p 500 in rally mode. Emerging markets, look at bitcoin. Losing moses most of their games for the week. This is bloomberg. The group stands this is bloomberg. When you rest on a leesa hybrid mattress, bedtime is no longer simply the time you go to sleep. Its time to switch off and catch up. Enjoy me time, and we time. 40 winks or 8 hours solid. 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The way they described the economy, there are obviously issues with the economy, a lot of it, you would think the American Economy is a total health skate where the only ceos. Doing well are there are certainly issues with the economy but their characterization is not exactly match up with how people feel about the economy right now. We have the bloomberg comfort like 2001. High as even among democrats, they break the mostdemocrats of optimistic about the economy since 2001. People who make under 50,000 era feeling the best about the economy. Picture the data out of europe, it is like Investor Confidence is low since 2016. Joe i get that politicians have to say politician things, can a striking. The other thing about the market, it is kind of a good day. It is very quiet. Glot of more waiting for the 25. But a pretty nice rounded rally we are getting today in the market. S p up, the dow and nasdaq, small caps rallying. You have seen a lot of broadbased stuff. A nice handful of stocks. Financials, the biggest gainer. Joe i do not know that is connected to not much wall street bashing last night. Bernie will come through. Bitcoins having a horrible time. Tonight is andrew yang passes time. When we were hearing from romaine, perhaps some of the financial areas doing well. Transportation as well is up. It is a broadbased rally. It is one of the more volatile parts of the energy today. You see some laggards. Health care also strong. There was a sense of relief that the candidates last night did not say anything new with regards to that. Raisedly two candidates their hand. It is not the median of where they are. It hasnt been in the eye of. He storm today, were up here the Dow Jones Industrial average is the laggard. We only have 6. 5 minutes with the close. Abigail, what are you watching . One of the top stocks top stocks for russell 2000. Up 20. 3 . It is a head scratcher. They put up disappointing earnings and abysmal growth yearoveryear. There is an amazon affect, you will be able to pick up amazon orders at rite aid stores. The question is, willis those customers by incremental items when they come in . The stock has been up on pace for its best day since 2015. Right now on pace since 2017. Could be looking at a short squeeze or short covering. Raided a year ago, they have had a rough time with deals falling apart. Relatively high but more recently as the stock dipped below 10, you might have some of those and i am wondering again, maybe some sort of m a activity could be ahead. Whatever the reason is. Taylor i am looking, almost 80 . Pray much all day long. More portly, order has increased 50 , more than 2. 5 expected from the average analyst estimate. Fat plugs well beat estimates. They grew in every region including california, facing and affordability issue. It will softer than some inland markets which leads me to my next chart. What we were really talk about when it comes to home stocks are the affordability issue. Im looking at the ratio of home aices to income, which is not good thing. Buyers are now transitioning to smaller and cheaper homes to offset affordability issues. An interesting take. We thank you. Lets get some more analysis. The sneakyng at rally and how brought it is what about the overall bond market . Joe i mean, you had a post on the blog pointing out that the last time the s p hit its record, about 71 above the 200 Day Moving Average, similar to other past market peaks, i think people give very nervous when they see this is really hard rally. Were up 18 this year. It makes people nervous that we are the smelt up situation. This smelt up situation. Corrections can happen on either axis of the chart. Price or even time. Basically flat compared to where we have been at the beginning of 2018. It doesnt really suggest the melt up thing. The yield credit side, things feel a little more extreme. It seems to be one area human with stocks an alltime high, people look at credit markets and cannot help but feel anxious. Especially look at how everyone came into the year. Almost every strategy predicted a further rise in yields. Ive got my eye glued to the 2 level. We have had one close below it. Maybe the treasury rally is running out of steam. A big negative shock could cause it to go back up again. We want to bring an eddie, the chief Equity Investment officer in boston. When you look at the market now, is it actually a Good Environment for people to enter into the market . Understand why someone would want to stay in it, but would it pass those by who have not gotten in it . The point you just made is a good one. Were not that far from where we of 2018the beginning will he got the Corporate Tax cuts that have the effect last of rate isnt raising earnings per share by 22 . If you put the two years together, it is not much of a rally at all. Shape. Nomy is in solid the fed seems dovish. We may not get a china deal sooner rather than later. To invest int equities, not there. Risk equities are not at and pessimist him is very high. People are dipping a toe into the stock market and buying yield stocks. That is where the richness is in the markets p are financial stocks are performing well. Is where the value is. I do not think it is too late for those stocks. They continue to edge lower at a rate environment that much might go lower. Talk about what you like. I do not want to get to individual names but they are all interesting. Regional banks are interesting. Interestrate sensitive. I think the larger universal banks which of trading businesses and Asset Management businesses are also interesting Different Reasons to there are plays on volatility and higher market levels. I think the flatness of the yield curve is a recent stocks are cheap today and why there is to buyopportunity today those stocks. We get a rate cut on the short end and good news on the economy in china and trade on the long end of the curve, you could get from here andg that will be a strong catalyst for those who want to go back to those players. We can add to the banks in recent weeks. What was the vibe today in regards to preg20 positioning . It is quiet and cautious. Yougeneral sense, how do define success at the g20 . The bar is really low. Is allhake, a photo op, people are expecting. Take some reald negative outcome to really make the market react strongly. Caroline meanwhile, s p 500 up 3 10 of 1 . Volume down about seven points. Joe look at that gain. 2 . Romaine when you look across the markets, not a lot of great names. Uber is on there. Tripadvisor. Not necessarily those largecap leaders we would normally look to. Deeper with our markets reporter, abigail. I was thinking about that outside move you were just noting. 1. 9 , best they in three weeks. Some of that goes into the smallcap index for underperforming. That has done something for the index. Over the last year, it is below 200 Day Moving Average. A backup of the 200 Day Moving Average doesnt mean that much at this point. A little bit of a line in the sand. Perhaps with the rsi or momentum indicator trying to move back into the middle of the range, really duking it out. Perhaps the fact that you have those two readings going bullish today. Lets see whether or not we have that after the g20. The worst performing stock ra, the brandg behind the likes of pam, chef boyardee. Reported earnings, investors were not impressed. The company missed on both the top and bottom lines. Headwinds included competition from private label, other brands and an increase in steel prices. Deal prices increased 14 and that forced them to raise prices, however, their competitors did not. There was a wide price gap there that customers could not ignore. Going forward, the company is saying that they will be lashing onto trends we have seen these days. One being vegetarian meat. They will be expanding manufacturing capacity for the vegetarian brands, but as you just saw, conagra down more than 12 today. Joe thank yo