We will see what the next hour holds. We are seeing a pullback in volume today on the three major averages on this summer write a. It looks like all you money s p the 20 day average. We are seeing an extension of gains as we get towards the close. The nasdaq up 1 2 of 1 . The week and another winning week, the fourth week in a row weve seen gains for the s p 500. Take a look at the s p over that fiveday period. Here are the intraday highs that we saw on wednesday for the s p 500. We have not exceeded the intraday level. Right now we are above those levels. We see how it plays out over the next hour or so. We are watching the chipmakers today. We have a tale of two chipmakers. Advanced micro devices posting its first quarterly revenue gain, going back to 2014. It is on increasing demand for chips, as well as chips to power video games. Sky works is lowering. The company talked about some issues and its largest customer. It is forecast for fiscal fourthquarter Revenue Growth without the effects of its biggest customer would be 10 to 12 instead of its forecast. Precision accounted for the biggest portion of the companys revenue. There is a bit of a read through for sky works going through to apple. Paypal for years had not recommended that its users use credit cards, rather linking directly to bank accounts. Visa shares are higher on its earnings but there are concerns about the agreement effect on paypal earnings. David yesterday we were talking about chipotle. Vonnie julie and how terrible those chipotle numbers were. Samestore sales down 23. 6 . Its a huge drop. Stock was lower earlier in the day. It looks like chiptopia is to thank for this. The ceo did make some encouraging comments on the call, saying sales trends were starting to improve and he gave some credit to this new loyalty program. Asjust want to say chiptopia many times as possible. Matt miller a proud member. Those shares have turned around. Vonnie thank you so much. Now lets get a check of the headlines on the bloomberg first word news. Mark crumpton has more from our newsroom. Mark we begin with the latest details on that story developing out of germany. The public broadcaster said at least 6 people have been killed in a shooting at a Mcdonalds Restaurant at a mall in munich. Police are hunting for police two shooters at this hour and urging people to stay inside and avoid public faces. My colleague is in munich and she joins me on the phone with the latest tr. Elisabeth, are the authority so far labeling this an act of terrorism . They have stopped towards somewhat of labeling an act of terrorism. They have been saying there may and therorist attack, federal government has so far referred all our questions back to the authorities here in bavaria. I guess what is most important to stress is that there is Little Information on those sorts of things coming out right now, while the police are still hunting for the shooters, which they suspect to be 3 people. Mark what are you seeing, what are you hearing . Reportsh there were and rumors of shooters right in the city center where the Bloomberg Office is located as well. There were earlier people rushing through the streets and screaming, which is really quite scary when it happens right next to you. Since then several police fans turned up vans turned up and continuously police vans are rushing through the streets. It seems to be calmer now than earlier, which is related to the fact that the second suspected shooting turned out to be wrong. Mark yesterday the german chancellor met with the new british prime minister, theresa may. They talked about counterterrorism cooperation. And you give us a sense of how that has gone with germany and from some of the other countries in the eu . Elisabeth i guess especially since the attacks in paris and then the attacks and nice, in nice, there is an urgent sense that Corporation Cooperation needs to be intensified to counter these terrible acts. At the same time, what we are seeing is with nice, with perhaps the attack on the train in germany on monday, theres little authorities can do to prevent such attacks from people seemingly acting pretty much on their own. Mark bloombergs Elisabeth Behrmann joining us from munich. We have reaction from president the president saying that our hearts go to those injured in germany. Willid, germany, an ally, get needed help. The latest information were getting is at least six people have been killed in a shooting at or near a mcdonalds in munich, germany. Shooterre hunting for a or shooters at this hour. The city of munich virtually on lockdown on this friday. Back over to you. Vonnie u. S. Stocks advancing today towards alltime highs, led by rallies in the phone companies and utilities. S p 500 said to edge higher. If the longest stretch of weekly gains for the index since march. Joining us is the chief Investment Officer at commonwealth financial network. Do you think this rally will continue in spite of some calls out there, that there are some indicators that might be saying this rally will not continue . I think the rally is going to continue for lease the near term. We just broke into new highs, as you mentioned. Earnings coming in better than expectations. Expectations for the future are quite strong, and the economy is improving in such a way that they looks like its realistic. I think right now the trend is very firm. David earnings coming in better than expected rate how low of a bar are we working with right now . Pretty low. Part of that is by construction. If im a company manager, i would rather go a little bit lower and then beat that. The expectations are a little bit below what they should be. Given the improving situation, we set it up even more than we would otherwise get. Its a low bar, but not as bad as it would seem from that. Vonnie utilities and phone companies had been the beneficiaries. What will be the new leadership . I think you will move back into consumer consumer led companies, consumer gain staples. They will have money to spend, they are going to spend it. Consumer discretionary. You are going to start to see sectors, like industrials, start to bounce off the bottom. We have seen expectations start to come back. Often we see Capital Expenditures wide with that. What is your sense of sentiment right now . Bullish. If you look at the major indices, its bullish. Almost too bullish. That gives me some pause. I think the trend is up and we have some more room to run. Vonnie you must spend a lot of your time on the phone to advisors explaining how they tell their customers that this will continue, given the 7, 8 year bull run and the fact that what looks to many like a bubble in treasuries too. I think there probably is a bubble in treasuries. The question is not are we going to have a bear market. The question is, are we going to have it now. We saw a big hole back at the start of the gear. We saw a smaller pullback with brexit. If neither of those could sink the market, what out there will sink it in the near term . I dont have a good answer for that. I think clients, when you explain that, see the big picture. David i wonder how you are factoring what the fed is going to do into your decisions and when they in fact are going to do something. The fed has gone backandforth so many times. I think they are scared of giving an indication. I dont expect any news at all in july. I think theres a possibility that september they might hike. I dont think thats the base case, but i feel like i think they feel like they have been caught wrongfooted a couple of times and maybe its time to go. If thats the case, we will see more signals of that. I think right now the betting is december. David thank you very much. Cio of Commonwealth Financial Networks coming up, air carriers have been reporting Earnings Results this week. More customers are buying tickets that are expecting low fares. Vonnie pandora reported earnings out of sync with expectations. David global smart watch cells sales fell 32 . Tosung doubled market share 16 . The valued ipo could place the value within 3 billion and 4 billion. Plan to set terms and sell shares in the next few weeks. The japanese drugmaker looks to divest noncore assets to raise money. The potential sale could bring in more than 1 billion. That is your business flash update. Lets turn to be airline industry. Shares of American Airlines group are higher today after the Company Reported secondquarter profit that topped estimates. Yesterday shares of southwest tumbled the most in seven years. Was hit with a computer outage that forced the cancellation of 1400 flights this week. George, set the scene for us. Weve seen fuel prices so low. How is unaffected earnings . How has that affected earnings . Ini think the real challenge this space is we are concerned those record innings will continue. We are concerned they are not going to continue. Falling because airlines are trying to take market share. They are adding capacity and lowering the price of fares to fill airplanes. That lowering of price, fares has diminished revenue and is starting to affect profitability. Southwest yesterday essentially warned us that in 3q they will be less profitable because fares are falling and that some airlines, the price of wages is rising. Those two things are starting to hurt margins. Vonnie for them to offset the more people onut planes or more planes in the air . A lot of them are trying to combat it with efficiency. They are going to larger sized airplanes. The challenge is that the Industry Needs to get revenues to rise, fares to rise. That will make revenues rise. We are seeing too much capacity being added to the market to get there right now. That was the part of the challenge yesterday at southwest. The community was pushing southwest to say they would pull back their capacity additions. Southwest would not say that on the call. The shares tumbled 11 yesterday. Today you have american. They were more circumspect about it or they will grow 2 this year. They are watching things closely. I think the markets are better and thats what you see them doing. David on the subject of southwest, i mentioned that outage yesterday. Hereense of what happened and how damaging can an incident like that he . Be . They had a server problem. Overall yesterday was a rough day for southwest. They are a well regarded airline. Southwest will move past this pretty well. These things happen from time to time. United has had the same problem. When you get it through united having its problem, united seems to have more problems more regularly than southwest. I suspect southwest will manage this well. Vonnie what about hedging . Is that something that southwest does . This morning theres a lot of discussion about hedging with the American Airlines ceo. American has been one of the airlines and never hedges. His angle was, its a game you can never win, so why would you engage in it . Its a bit of a challenge in the industry. If we think fuel prices well bump along in the range of 40 to 50, it costs money to hedge. That is money that will hurt your bottom line, so why do it . I think in the u. S. They believe in lower for longer fuel and oil prices and they are reticent to hedge. The other challenge is, if you hedge and your competitor doesnt, you will lose because your margins are hurt by the hedging where his arent. Right now it looks very against hedging. Vonnie thank you for that. Lets bring you uptodate on the breaking story we are following out of germany. Mark crumpton is here with the latest. Mark more details on that story developing in munich, the Associated Press reporting at least six people have been killed in a shooting at a Mcdonalds Restaurant in a mall in the city. Police hunting for least 2 shooters at this hour and they are urging people to stay inside and avoid public spaces. Mass transit systems are frozen at these hour. Todays violence marks the Second Attack in germany in a week. President obama weighing in on the news, saying germany is an ally and will receive needed help. I am mark crumpton. This is bloomberg. David im david gura. Vonnie im vonnie quinn. Its time for insights with julie hyman. Julie joining me is scott our of trading vantage. Hes in chicago. Are we on this low volatility day, fourth straight weekly decline for the vix. I want to talk more generally about the drop in volatility you are seeing, and any takeaways you might have from it. In volatility, this is something we expect every year around this time. It is the summer doldrums. Volume is low, volatility is low. Theres not much going on. We have some individual moves on macrowise,cks, but theres not much going on. Next week is a big week. Hopefully we can see volume overall pick up. We have a fed meeting, gdp repor ts. I would expect more volatility next week. We are seeing the vicks almost automatic here bottom out here. I really hope next week in general we will see a lot more market activity. Julie we have the fed and other macro stuff going on. Going into this earnings season, there is an estimate of yet another job overall in earnings. How far do we need to get through before you start to see some big reads on how this earnings season really turned out . So far, overall its been pretty positive. All the guidance and expectations have been lowered. So far its been pretty good. The bottom line really remains is for those companies that are solid, that have at least some growth moving forward. The bottom line is, where are you going to put your money . There are still these influences coming into the marketplace because theres nowhere else to put it. I give it another couple weeks. Once we get a google, once we get apple coming out, once we get those stocks coming out, that can set the footing for whether we build this space and continue this rally or not. Julie one stock you think will perform well coming out of earnings is gilead, big biotech company. Can you talk me through it . What i want to do for this coming weeks options, the ones that expire next ride a, i want to buy the 88 strike call. I want to sell the 92 strike call, four dollars wide spread. About 1. 20, for 1. 25. Is to the upside, we will see that stock perhaps flow past 91 1 2, 92 or so. If we get that moved to the upside, and this spread expands, max profit can be 275 or 280. The most i can lose if the stock goes down or really sits unchanged below 88 is 1. 20. Im really bullish on gilead, this whole biotech space right now is one of the hot spaces. Q2 y led the market, gilead has had a huge buyback rogue ran which will help their bottom line. Theyve had a lot of new initiatives in the pipe wind that were just approved. Looking for this call spread to hopefully max out by the end of next week. Julie we will see. Good to see you, scott bauer. Talking gilead, which comes out next week. David we are continuing to monitor a story out of munich of a shooting at a mall. You are looking at live pictures of a police press conference, police have confirmed 5 people have died so far in a shooting in a Mcdonalds Restaurant in the mall in munich. Police saying three shooters are at large with long guns. This is a story we will continue to follow all afternoon on bloomberg television. German police saying 5 people have died. This is bloomberg. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. David from bloomberg headquarters in manhattan. Lets start with a check of the headlines. We go to mark crumpton. Mark we begin with the latest details on a story in germany, at least ask people have been killed in a shootout in munich. Police hunting for at least two shooters and urging people to stay inside and avoid public places. The mass transit systems are frozen. Antiviolence marks and balance marks the Second Attack in munich this week. And looking for the expedition of the turkish cleric who is blamed for instigated support for the failed coup. He lives in pennsylvania and has rejected the accusations. He is urging the u. S. To deny any extradition requests. Others are being arrested across turkey. President obama is insisting that perceptions presented during the Republican Convention during a press conference with the mexican president today, mr. Obama said that the al immigration is less of a problem today than 30 years ago. This idea that america is on the verge of collapse, this vision of violence and chaos everywhere doesnt really jive with the experience of most people. Mark he said he was too busy to watch the Republican Convention. Donald trump says he would accept the endorsement of ted cruz. He says ted cruz should have endorsed him the other night and he might set up a super pac aimed at defeating ted cruz if he wants another president ial bid in 2020. Ted cruz said that the attack on his father and wife mark global news, 24 hours a in, powered by journalists more than 120 countries. This is bloomberg. David markets close in under 30 minutes. We go to abigail. Abigail we certainly have a nice rally for the nasdaq, up. 5 . And this is a nice week for nasdaq. In fact, the fourth weekly gain in a row, the longest since the middle of march. And it is all about technology. Starting with the biggest, microsoft, the secondbiggest member, up about 5 on the week after the Software Giant beat fourthquarter estimates. Estimates. At other and there was a bit of a recovery in the companys legacy server business. What stands out the most on microsoft, is the fact that shares are still, despite their strength this week, 5 shy of the alltime record high that was set all the way back in 1999. David 1999. Abigail turning to one of the best performers on the nasdaq this week, ebay is up about 13 . The best Weekly Performance since 2011. Ebay not only carved out a new record high, but added . 4 billion of a market cap based on a solid second quarter. They were looking for a lobar quarter, nothing great, but instead they put up 5. 7 Revenue Growth and really wowed. As for whe