On the s p 500, there were a lot of concerns that we would not close that gap overnight. I think we just about closed that gap at the close. Thatine it is interesting you are getting this risk on move in stocks but also seeing yields getting crushed. Taylor it is incredible, the moves we have seen. When is the last time we saw the nasdaq at a record high, gold at a record high . Where do you find value when spreads are already compressed. Caroline lets get back to nancy. Please, onctive, which is speaking your truth. Is it the bond market, or the stock market and sheer liquidity winning out . Nancy i think the bond market is more right than the equity market. Be ague that this will stairstep recovery. Acronymsalphabet soup for how we recover. We saw anarizona, so opening and a partial shot again. States have shut down 30 of gdp. The real concern that the equity market will have after the election is what is a sustainable level of earnings growth. Aile Technology May eke out 1 number for the year on earnings. The rest of the market is really struggling outside of housing and technology. The equity market is responding to massive amounts of liquidity. Romaine others will be crossing the wire. Disney a little later. There is some news on novavax. Early Study Results saying it was well tolerated. We will try to get some more information on that. Taylor really interesting. Some of the key data we were waiting for, the fact that that stock is up 4000 or so year to date is something we were keeping our eye on. You tucked about the bond market seemed to be a little more right than the equity market at this time. Cccs,ple see the perhaps breaking that distressed signal and going back to spreads we have not seen since before the pandemic. Is that not telling you that risk is priced appropriately at this point . Nancy what no one can really estimate is that we have never been in an environment like this before where we had an artificially driven recession not artificial to those lost love ones. But i mean it was an exile ousice event an exogen event. Then we have fiscal policy we have never seen before. Smallcap Growth Stocks outperforming smallcap value. I think half of those companies dont have any earnings. As growth atg it any price for these companies and theya and nikola, are not generating earnings or reasonable revenue growth. Disney is currently breaking at the moment. Coming in with Third Quarter adjusted earningspershare is a beat. This is the fiscal Third Quarter for disney. 11. 8 billion is where the revenue stands. As a slight mess. We are looking at the that is a slight mess. It is all eyes on parks and experiences. 85 ine that is down yearoveryear. Anyone in the entertainment space or any business that requires packing in crowds. The question here, what kind of provide . Does disney right now, these numbers not great. Of course, the street was not really expecting a homerun. Caroline the Cable Network networks are media doing well. We have got earnings coming thick and fast. How much do you expect forwardlooking guidance . Nancy the companies that have provided guidance have done much better than those that havent. I want to see companies starting to give us some insight into thanthey expect rather using the pandemic as an excuse. I do think it is important for management to tell us what they know. The numbers have come in enter than we expected that come in better than we expected, not the street. I think that is what has to happen next for us to break out on the fundamental basis. Caroline update for disney. Subscribers for disney plus below expectations. A bit of a hit. Plusne those espn subscribers, 8. 5 million. Caroline slightly better than expected for espn plus, but not for disney. Nancy, so great to have you with us. That does it for the closing bell. Whatd you miss . Is next. We will be taking a look at those disney earnings. This is bloomberg. Caroline from bloombergs World Headquarters in new york, i am caroline hyde. Romaine this is whatd you miss . Caroline markets closing out another record high for the nasdaq. Money flows into the u. S. Sovereign bond market. Meanwhile, smash and grab. China does not mince words condemning president trumps demands for the viral app tictoc. And, closed restaurants among the hardest hit by covid19. More on now kitchen can stay open and the future of the food business. First, earnings thick and fast. Romaine on the parts revenue, that was down 85 yearoveryear. The studio entertainment business, that was down 56 . Here are the subscriber numbers for disney plus. 57. 5ibers came in at million. Estimate was for 59. 4 million. Subscribers did come in above estimates. Subscribers, 35. 5 versus the estimate of 33. 8. The estimate was for a loss. Taylor shares moving higher, Activision Blizzard beating for a second quarter. Fullyear Forward Guidance looks great. We are on the phone with activisions longtime ceo. This sums it up. For the near term, everything looks on track. Caroline lets turn our attention to the artist formerly known as weight watchers, ww international. Second quarter revenues below estimates. Revenues at 330 million. Notably, we are also seeing earningspershare much below estimates. A 35 y, they are seeing expense related to oprah winfrey. Second quarter earningspershare not a comparable figure overall. Story wenother big have been talking about is tictoc, microsoft. I put together a chart to talk about who could perhaps benefit. Much has been said about snapchat possibly benefiting. Facebook,urse, influencers who might get paid well. Some of said a be they are going back to instagram. About 2. 7ok family, billion act of monthly users. Of course, all us all of this comes as Chinese State back to called it quote theft. They, what do you make of tracking by china, now coming back to the u. S. And calling this theft . Shery we are seeing very strong words coming out of china, especially from their editorial, the china daily. Their foreignto ministry, officially declining to comment. They said that they should not openness pandoras box because everyone will be using this to undermine. Even china itself has acknowledged they do not have that much capacity to react. China, objectively against, retaliating chinese companies. We have seen in the past in response coming from china on every u. S. Action being rather proportionate and measured. We have seen each others officials being sanctioned. Tone china has taken has been measured. Romaine a lot of talk about the politicians. What about the executives that bytedance . Are they willing to relinquish control or fight back . Shery the founder said that the u. S. Is not trying to save tiktok, but kayla day off. I t could happen but hill but kill it off. That could happen. Negotiateen bytedance in europe but at the same time, it has received a lot of criticism from chinese medicine chinese netizens. U. S. Tries to go ahead app, thenons this really it opens up a pandoras box. It would not only apply to tiktok, but any Chinese Company that takes mobile information, popular games like call of duty. Thingse talking all gaming at the moment with the earnings coming in. The ramifications are also global and that other companies could follow suit. We have seen india lead the charge, interestingly. What is it about india and how are we seeing geopolitics at play . Shery this is a country that continues to clashed over border disputes. Early in june, they had that deadly conflict in them only as the resulted in 20 himalayas that resulted in 20 indian soldiers dying. Already in june, they have released the blacklist. Tencentre expecting a music video platform to be added to that blacklist. Whenalso coming at a time we are seeing more american interests in india, as well as sectorge growing mobile in india. Over fromnt, taking youtube as the most Popular Video platform. Romaine you can catch shery in a couple of hours on the how to show out there in melbourne. Daybreak australia. And bill gates will be talking with emily chang coming up on bloomberg technology. Caroline lets turn to diversity on wall street. Dedicated to being blacked on wall street. Carlyle group talked about clients. With mostly you are seeing more corporate plants that not only demand to have more diversity, are asking managers to provide diversity statistics as part of the investment program. Manympete for business, pensions are asking managers to provide that background. I get it. Fromther was a retiree eastman kodak. Motherinlaw is a retiree from state teachers. I want to make sure they represent the organization and beneficiaries. Romaine lets start off with disney. Reporting earnings. Kind of a mixed bag. Disney plus subscribers. 57. 5 lien subscribers. That missed average analyst estimates of 58. 4 million. Parks business getting completely decimated. Down 85 yearoveryear. 983 million in revenue. The studio business also down. Of course, the studio business includes much of the theatrical releases. We should point out that while advertising did drop, production costs also fell, which helped it post a pretty significant profit. Caroline lets have a look at beyond meat. Still seemingly delivering in terms of adjusted ebitda. Second quarter net revenue hitting the highest estimate. Their outlook for the year remains suspended until further notice. We are currently off by almost 4 but we were down. Tenderquarter average subscribers up 19 . Romaine way to go, guys. Caroline adjusted earningspershare, . 32. That is below estimates. Overall, 12 growth in revenue. Liking the market is not Activision Blizzard. This is a company that eat on the top and bottom line for the second quarter. Third quarter also looks better than expected. That in oureresting chance here, you are speaking overan executive who has 400 million players. They have doubled the number of subscribers netflix has. The do you make of some of original numbers that, frankly, gaming has done so well for this company. Gaming is doing great. All of the companies that have reported have reported Great Results and basically increased their forecast for the year, 40 current quarter. For the current quarter. Gaming is huge. It is amazing to see how huge it is from activisions numbers. Caroline all of these Gaming Companies are affected by geopolitics. I am just seeing some headlines that china and the u. S. Will discuss trade deal compliance. So says dow jones. With phase one of the trade deal between the u. S. And china will be assessed july 15, so says dow jones. Covid butre we seeing also geopolitics . Think across the board, businesses are doing pretty well worldwide. Some other regions of the world are not affected as much or more affected. In lots of the world, people are spending more time playing at home. All the Gaming Companies are essentially seeing Exceptional Results because of that. Romaine these Gaming Companies, they have to have the big games Everyone Wants to play, whether it is call of duty at activision, fifa at e. A. Is the production of updates to these games, new games, has that been affected in any way by the pandemic so far or any regulatory issues . Olga with employees working from home, that is a big concern delaysis would lead to and some of the game releases. Activisionsed to longtime ceo. He says, nearterm, a does not expect work from home to lead to any game delays. I heard the same message from take two yesterday. It is interesting that you are speaking with the ceo and he did say that he is a naturally cautious person. And he doesnt know what will happen in these next six months. Im wondering if that is what is going on with the share price right now, a lot of caution. Activision has always been very cautious in its guidance. In the press release, they mentioned Economic Uncertainty throughout the release. I think that is what is giving investors pause. It is true, we dont know what will happen this fall. With a lot of people losing jobs, they might not be spending as much money on games as the summer or spring. Caroline from new york, this is bloomberg. Taylor we are still on earnings movers. We started with activision lizard. Second quarter bottom line better than expected. Guidance onrward the top and bottom line. Duties those uncertain are of course about uncertainties are of course about the pandemic. 3750 rally yeartodate after their vaccine study just came out of phase one. Huge expectations coming into this and it does seem that scientists in the market are a looksderwhelmed by what like was otherwise optimistic signs from this vaccine. Caroline such volatility around that. Lets look at ww. Used to be known as weight watchers. Rebranded of course. Million, their highest ever. Slightly. Ssed ever so seeing the shares get a bit of a drag. Alsoe also seeking seeing perhaps some oneoff payments made to oprah winfrey. Romaine disney, a lot of eyes were on that. There streaming service, number of subscribers coming in slightly below one the street was looking for. Parks business decimated as you would expect given the covid pandemic shutdown. Lets bring it paul sweeney. He hosts bloomberg surveillance. Before that, he spent a lot of years over at bloomberg intelligence. What is your main takeaway here . Subscribers for a streaming service that has not even been around for a year seems pretty good to me. It is a very healthy number. The number that jumped out at me was 3. 9 billion. That is the covid impact on their income line just for the quarter. Devastated here for the quarter. I think the expectation is that this will probably be the trough quarter. This was just a brutal quarter. I think the focus was, how do how the film and entertainment business will reopen. Focuses on thehe call. Caroline they saw a decline because they were unable to release some of their films in theaters. Also, espn and sports, so many over whethers sports will be played for the rest of the year. The median network did pretty well, rising in terms of profit. Programmingabout costs being lowered . Paul yes. We saw that across networks. They are just not producing a lot of content. They are not incurring any costs of production because production basis is shut down. That is all deferred spending once hollywood cranks up again, they will crank up their production as costs go back up. The question is, how will they monetize the movies they have already made . Taylor in your earlier life, before we stole you away and were one, you are and of the most respected analysts on the street. What is the question you ask the ceo . Do you believe that on the others of this pandemic, that your parks and resorts business can return to its former glory. Will people go back to restaurants, will they resume getting on planes . That will be the big issue, i think, for them. They have the most experience in the industry and i suspect, if they can get it done, they will. Romaine one last question here, and this is really on content. Obviously, disney has a lot of content. Caroline has been running around the office doing the wrap battles all day long. We know that disney has that catalog. Ton did we see them get back refilling that pipeline that i would assume is a little bit bare right now . Paul they have a lot of stuff in the can, which means it is already produced, ready to go. When they can, they will get all that content out there. They will have to ramp up production around the world. They have lots of partners that go into making the movies they have. Once i think hollywood gets cranked up again, hollywood globally making films and tv, it will be right at the forefront. What is your best judgment about when you can crank up some of these businesses . Taylor we will get you those answers when we get them. We will be monitoring the call. Our thanks to paul sweeney. Lets get an update on the first word news with mark crumpton. Mark lebanons Health Minister says more than 50 people are dead in that massive explosion in beirut today. Authorities say the blast was caused by material that was flammable at the port. Because Severe Damage to building and shops in the area, including to the home of former Prime Minister saad hariri. Sis swirls upm isia the east coast. Reportednadoes were across maryland, delaware, and new jersey. The storm made landfall in North Carolina on monday. Senate Majority Leader Mitch Mcconnell said he is ready to support a new Coronavirus Relief package, even if he has certain problems with parts of it. People inthe american the end need help. Seems toeling that have been expressed that we would like to get an outcome. I certainly hope that we can. The coronavirus is still not over. It is still an enormous problem. I think the American People would like to see us working together and getting an outcome. Mark another Key Senate Republican said today he supports an increase in the foodstamp benefit. Kansas senator pat robert said agreement on that issue could lead to overall progress on the negotiation. Chief saysnations School Closures because of the coronavirus pandemic has affected more than a billion students worldwide. U. N. Secretary general Antonio Guterres is calling for the reopening of schools once the local transmission of the virus is under control. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am a mark crumpton. This is bloomberg. Economy is doing all right. Weeksws and last durable goods purchases by households, bailout. The small share of the economy in Services Consumption is down. We dont really know the mix. The basket of things we all by, goods and services, is probably changing rapidly. Areeally dont know how we measuring inflation. Upside, downside, we just dont know. I think this is an example where , butncertain the is acute we are stumbling along here. When it comes to d. C. , in your work, what do you think we need to see in terms of support, and how long . I think i understand the concern of some members of congress. Butding support feels bad, this is the wrong time to worry about it. I worried abou