Desk where Ramy Inocencio has more. We are seeing green, but the nasdaq, just in the past few minutes, it has slipped into the red, and it has been falling over the past three or four hours or so. The dow is up one third of a percent. Past thee this go 18,000 mark, and we are off of the session high. It on over top see where the s p actually traveled throughout the course of the day, and this is where it is actually, this is a snapshot of where our last record high for the s p was back in may of 2015. You can see how close we are to that, just 7 10 of a percent away. For 2130 and some change, so were going to see where we go today as well as few days if we can hit that. And come to my bloomberg terminal. I also want to show you a snapshot of the s p sectors, and it has been a pretty much broad rally throughout the course of today. Energy has been the biggest leader throughout the course of the day, 2. 3 is where it stands right now. Telecommunications is the second biggest leader. On the flipside, health care has been at the bottom and has been the laggards most of the day, down by about half of 1 . Energy and talk about why energy actually has been rising higher, and the reason is because what is happening with nymex crude. Nymex crude is up at session highs, crossing the 50 per barrel mark right now, if two dollars and . 41. Of course, we are waiting on crude stockpile data from last week that is expected to show another supply fall for the third week in a row. Also this. Energy winners. Reset gainers, these up simply on the order of 5 , the highest in the past four or five weeks. On the flipside, as i was saying, health care, health care being the laggard, biogenic plunging the most in almost a year. Biogen, and alexion also down, and the drug here is for a rare neuromuscular disease, guys, also failed to meet its goals. Betty all right, thank you, ramy. Mark . Mark paul ryan is blasting the supports fore president , talking about blasting the federal judge hearing the case about trump university, calling the remarks racist and indefensible. Speaker ryan claiming a person cannot do their job based on race is a racist comment. It is absolutely unacceptable. But do i believe that Hillary Clinton is the answer . No, i do not. Speaker ryan says there is more of a chance of getting were public and policies enacted then there is with Hillary Clinton. And the race for the democratic nomination, according to the Associated Press, mrs. Clinton has enough delegates to win, and that includes the delegates she has one and commitment from superdelegates. Today,gest of six states polls show she is in a tight , andwith Bernie Sanders sanders says mrs. Clinton is depending on superdelegates who do not vote until july 20 five, and he is hoping to change their minds. Italian Prime MinisterSilvio Berlusconi has been hospitalized for tests after irregularscovered an heartbeat. He has had a pacemaker for years and has been largely sidelined from politics since a tax fraud conviction. City killed 10 people and wounded 26 others in the Commercial Area of a city which is located some 55 miles south of that dad. 55 milesmediately south of baghdad, and nobody has claimed responsibility. Global news 24 hours a day howard by our 2400 journalists in more than 150 news bureaus around the world. I am mark crumpton. Betty, vonnie, back to you. Said chair janet yellen chair said chair fed janet yellen. Body a guest with an outlook for the rest of the year. It is hard to have a brandnew outlook when we do not even know what is happening . That is right. There are a lot of uncertainties, but one thing we have been saying on last year is you should expect more that is theand theme of the outlook, which is selectivity, including fonts, commodities, alternatives, as well. A lot of investors, especially in 2013 and 2014 got used to a lot of simply broad market gains. Big numbers, doubledigit gains, and it is really time to start thinking about the Economic Cycle being and may be the sixth or seventh inning, and it that point in any cycle, we usually are more selective about which Asset Classes in which stocks. Right, but when i hear Something Like that, which is get ready for more volatility ahead, things are uncertain, we do not know what the fed is going to do, i my money in etfs. Of people are doing that, but you can really improve your return if you can be a little bit selective going in in the first place, and then secondarily, you start to think about rebalancing more frequently. That means taking profits on the things that have done well and looking for values on things that have pulled back. Betty what is going to be different, outside of that ready . What will be different in the second half of the year . Paul we try to bring this out in our report. Over the last couple of quarters, there has been concern we see u. S. , and growth farming. The Manufacturing Sector has started to rebound. We are already seeing it in orders and a consumer who has been holding the line all along, it seems like he and she are really ready to continue doing that, so if we have that steadier growth going forward, we will not be talking about the dow and s p flirting with record highs. We will be talking about them blowing through those highs, and even if the fed creates uncertainties, those create more buying opportunities. We are not talking about great gains. We are talking about modest gains. Anchor and if the fed raises rates . Paul we have done some research on that, and in the past, the beginning of a rate hike cycle is typically negative at some point, but at this point, we are starting at such a low level, it is hard to imagine a trajectory for Interest Rate hikes that is flat, more flat than this one right now. Betty the beginning of a rate hike cycle is often negative for an economy. We have seen tightening. Paul that is right, and this time, we have some thesis up our sleeves, which is housing, which typically leave the country out caserecession but in this was flat on its back in the beginning of the recovery and is now proving to be a significant tail went for the economy, so, no, we are not worried about the cycle ending right away. Anchor what about oil . Micah a stop to the manufacturing bullishness . Wells fargo . Paul it could, but we think it is unlikely. Us like many commodities markets these days, still in the throes of a bear market, and you can have a period in a bear market where you have a low, and then in a second phase, you bounce off. Lets not forget that one year ago, oil was flirting at 60 a barrel, and then at the end of the summer, the stocks built up, and the prices collapsed, and we think oil has put in a low, and supply and demand is working towards rebalancing, and as soon gets close to 60, and it cant, you will see suppliers increase supplies, and we will move in the opposite direction. Betty hall, we know you have a different outlook, particularly the american consumer, but i want to bring up this chart on how expensive stocks are, right, so if you look at the ratios, do we have that chart . It shows that the hasetoearnings ratio continued to climb over the last several years, and we are at a high since about four years ago, and more if we bring that chart back even more, so are stocks deal expensive relative to where we are in the economy . Paul it is a variable we watch very carefully, but we think no. Stocks as expensive compared to what . Inc. About in comparison to treasuries right now. Looks versus treasuries very attractive when you think of how expensive treasuries are right now. If you go back to previous cycles, that is where you get that median multiple of 17 or 18 being fair value. In previous cycles, it was a lot cheaper. So you would stay in the u. S. And in blue chips . Paul yes. It is about selectivity. ,e like Consumer Discretionary industrials, health care, and cyclical and those are sectors. We like the large caps in those sectors, but we have pulled back a little bit on small caps in emerging markets, where there is the most volatility, anticipating if there is some new disappointment oversees that could once again make investors worried. Ok, paul, how many rate hikes in the next six months . Hall we think one, and our money is still on december. Betty paul with wells fargo investments. Up, valeant is getting hammered. Can he put the company on the road to health . That is next. This is Bloomberg Markets here well i am betty liu. Vonnie and i am vonnie quinn. Close of trade, you can see we are coming down, the dow up 49 points, and the nasdaq has now gone into the red. In time for the Bloomberg Business flash, a look at some of the is the of the biggest business stories. Some cities have approved a 15 an hour minimum wage. A city Council Voted on it, and it would push the wage to 18 an hour by 2020. The mayor has pledged to sign the measure. Vonnie and the was a plane seen as necessary and unaffordable, but now, Congress Wants to put the f22 back into production. Betty and boosting Interest Rates and tightening criteria for far worse to qualify. Interest rates will increase by 55 basis points, and they also lowered the ratio of debt to income to bolster investor at lending club, and they said they were going to delay their meeting. Vonnie in massachusetts, lawyers are arguing over whether or not Sumner Redstone is mentally competent. Redstonesuing pertaining to entities that control fire, and cbs. They say the 93yearold redstone does not have the capacity to remove them and that he is being manipulated by his daughter. Betty that is your Bloomberg Business flash update. Arees of valeant plummeting. I a Conference Call this morning, the new ceo aim to assure investors that he could help. We try to be realistic with what we know and where there is bee uncertainty, we tried to good with what we are trying to accomplish. If we get a quick resolution, if we get quick approval and get ready and get it launched on time, there could be some upside, but i think we try to be conservative in those assumptions where there is some uncertainty in the marketplace. Reportere bloomberg who listened in on that call joined us, and investors reacted very negatively to that, despite what papa was saying. The problem is there were a lot more red flags raised, and they start to get this feeling that just when we feel we are getting out of the with someone point, Something Else comes up, so sundays that comes up was can learn about a program that they put in place as a distribution network, and they were losing money through that channel, that was very disconcerting, and they are having trouble with one of their big drugs, a gastrointestinal drug, and they talked about potentially coming up against generic competition so some of the things that came up in the call and the guidance they provided was pretty close, so this whole issue of whether or not theyre going to be able to be compliant with their debt agreements, it has just been i think no matter what he tried to do, it has only been a month, and he has not been able to show street. Leant to wall vonnie it suddenly went downhill with the guidance for 2017. There could be more to come. Cynthia it is interesting. Was tried toapa give more transparency to the company that in the past. He is new to the role, so there might be more to do yet, but with this company for years had to get used to or deal of the act that they do not get a lot of transparency even beyond the topselling products. You really do not know what is at the bottom of the portfolio, pharma, you the know what is at the bottom of the list. He wants to be more transparent. Him guess we need to give another Earnings Call or two to see if that will happen, but i think as the call went on, and list were starting to get inpatient, because they were not getting answered. Answers. Betty i think he mentioned dermatology . Dermatology, and they talked about bausch lomb, and that is a key asset. They talked about some new markets. So there are pockets of strength , so i think some of the key issues here are how do you make this Walgreens Program work, because, presumably, they are going to put more through that. They only have dermatology, so how are they going to put me drugs through their successfully, and this is not a small problem. This is one of their biggest drugs, and they have to show they can grow sales sustainably there, though those are the two issues that i think people got really spooked by. Betty cynthia, thank you. The story still continues. Still ahead on Bloomberg Markets, one stock up sharply since the deal with pfizer was called off. That is next. Is kevin. Ining me good to see you. Markets up two days in a work, the dow flirting with 18,000, and the s p is up, 2130, flirting with that record high, but after the comments yesterday, do you think we are going to go even higher . What what is interesting about the equity markets is they are being supported by the bond markets and the valuations there, so a lot of people are starting to get back into them. What is similar is last years set up to summer and this years set up to summer. Last year, about 15 trading days where we saw the absolute high on the vix and the absolute low on the vix. We peaked up just above 53, and that was because of the fed, so people were anticipating a rate hike, especially be chinese, so what did they do . Anticipating the rate hike, they devalued their currency, and we could see Something Like that again. We are not predicting a big volatility spike, the we are predicting one. Anchor this is very nominal compared to the 52 or 53 that you just mentioned, but still higher on the day. What do you think they are alluding to . Willdo you think traders do . Kevin you are seeing an uptick, and that is showing that people are going out there and starting to hedge, because it is so low out there, it is cheap. Especially as you get towards the top of the trading that everyone has been looking at, so people have been nervous about the market, and we are starting to get to the higher levels. Anchor i want to go to your trade. Allergan. It is down. People watching it knows there is something that happened since the start of this year. Tell us about that. Kevin the pfizerallergan deal got called off. Back in may, at may 10, they announced a 4 billion high back. They also have another deal in about 40 billion. They have a great pipeline. What is interesting is in may, the healthcare sector was actually the second bestperforming sector, and allergan is one of them, so even after this giant runup since may 10, what you put to do is sell the 245 before they announced earnings, and you can collect because of volatility is still elevated. You can collect about 3. 5 and lower your cost. Anchor we have got a little more time, so i want to go to the rate hike. A lot of people are thinking it may happen in july. What are your thoughts there . Hasn i think the fed painted themselves into a corner. They have come out to say the economy is strong enough, so if they do not do it, that will send shockwaves through the system, because what does the fed know that we do not know that they cannot raise it another 25 basis points . Allergan all right, thank you very much for your time. This is Bloomberg Markets. A bloomberg World Headquarters in midtown manhattan, i am scarlet fu. And i am alix steel. Mark crumpton has more. Alix, thank you. Not ready to endorse a candidate right now, according to press secretary josh earnest. He will be in new york city tomorrow to attend democratic fundraisers and type an appearance on the nbc tonight show with jimmy fallon. Bernie sanders is assuring his supporters he intends to win the primary, and jeff weaver says the democratic president ial race the continue until democrats passed ballots at the convention in philadelphia next month. There is news from the Associated Press that clinton has gotten the nomination which they say threatens to suppress voter turnout. Russian president Vladimir Putin hosted Benjamin Netanyahu at the kremlin, the talks expected to focus on boosting bilateral ties and the situation in syria. It marks 25 years since the restoration of diplomatic ties. Moscow is courting factions with israel to coordinate any possible incidents. And more than four out of 10 aren in the United States facing obesity according to statistics from a small Government Survey widely considered to be the best measure of the nations obesity problem. Obesity rates for men and women in the u. S. Had been roughly the same for about a decade. The World Health Organization says 15 of women worldwide and 11 of men are obese. Global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. I am mark crumpton. Alix, scarlet, back to you. abigail is live at the nasdaq with more. Abigail the index has basically been flat, flipping between ever so small gains and losses. Behind thesion here flat or neutral position, especially coming from biotech and technology, and starting out with the uglier, some pharmaceutical shares are plunging, dropping the most in more than 10 years after the Company Positive muscle disease a marker,d to meet and even so, the ceo says there were some positive signs in that study and that he knows of other drugs for Rare Diseases that are meeting primary endpoints, and there are some analysts out there who agree with that possibility, and also dragging on the nasdaq, the worst right and biotech are the shares of ogen, and thisi has caused their shares to be while Piper Jaffray says clearly some changes are especiallyiogen, around rmb, and we do see lots of uncertainty in the form of a trading range between the buyers and