Leading the way lower. S p financial stocks, they were at a two week low. Real leumi day and we had some ecodata that was bumpy and did not help to provide anything. Joe it was ugly overseas and asiapacific was down. Just once again, risk off, not that dramatic but not that great. Oliver it is a smooth ride up and once you get to 2100, things start to get shaky. A couple of sectors i think are interesting today you have the strength relative to the rest of the market these are three of the groups that help keep the market afloat year to date. Thefact that we still have s p losing on a day, that has only happened twice. Bondon the government side, we saw them going out on their lows of the day. 1. 77. Year yield at one thing i want to draw your attention to is the turkish lira. You can see it getting obliterated. The dollar strengthening, clinicalmashed on turmoil in turkey as the president and Prime Minister are at odds with each other. A good moment for emerging markets with the turkish lira really getting hammered. The dollar finally catching a little strength today. Pretty much up against all currencies today. The story has mostly been dollar weakness but people were buying dollars amid the risk off sentiment. Alix the action really was not in the actual commodity, it was the stock. Stock down the most in four years with Gold Production falling 11 . Down over 6 . Company for the venture that killed as many as 19 people. A similar story in the Oil Market Oil stocks got killed. Anadarko off 6 . The move was in the underlying commodity stocks. Dive into take a deep the bloomberg you can find all of the charts at the bottom of your screen. Joe im looking at some positive data. We have this negative market sentiment, but there was some positive Economic Data this morning in the isam data. Screen,o lines on the this is the employment sub index and the manufacturing index, both ticking up this month, both hitting their highs of the year and we have this jobs report coming out on friday and four april, these surveys showed an these employment surveys, so hopefully that translates to some good news. At ar i want to look longer term trend that might be in focus today. Is what investors are prioritizing in terms of how Companies Use their cash. We are looking at why backs, dividends and companies. These are indexes that spend the most money and there has been an interesting shift here twice in the past year. The buybacks started off very strong here in 2014. They were outperforming the market until last year when things started to change. Then we saw strength in companies with Companies Getting stretched on the margins and they need to figure out what to do besides using own using their own money to buy back shares. Weve seen a clear shift in dividend related shares. Alix we have tesla earnings crossing. Looks like they did a little better than estimates. A loss of . 57 a share. Gross margin, which is the number everyone focuses on because tesla has a hard time being profitable, Gross Margins coming in a bit higher, 22 . Expectations were for just under 21 . Car deliveries and car reductions are they numbers you have to watch with tesla. Comingquarter production in at 20,000 vehicles, reaffirming its delivery schedule for this year of between 80,000 and 90,000 deliveries for this year. At 217 million. Its cash flows provided by operating activities is 249 it is forecasting higher Gross Margins in 2017 on the model ask. It is looking to produce 20,000 vehicles in the second order and looking at a full year delivery that is 80,000 to 90,000 a year. Nine upock is up after hours but it fell after the Bloomberg News scoop earlier in the day about it reduction executives leaving the company. While it is rallying nicely, that is after a days dollars lee in the red. One of the vps leaving was one of the guys you ran operations for tesla, so the worry is to is going to pull off this model three execution . Tesla looking at growth margins of 25 by the end of the year and for the model s to approach 30 by the end of the year. In for more, lets bring nathan white. Thank you for joining us. What is your reaction on these tesla earnings . The market seems to like it. Is this a sign they are on track with their plans . Relates tohink it production and future deliveries and every thing i have seen looks like they are maintaining their confidence for 2016. Raising itsmpany is fullyear capex, about 50 ofher than its previous view 1. 5 million dollars. Where they going to get that money . 1. 5 billion. Nathan they have talked about potential assets and leases, but they may take advantage of this timing. Oliver im looking at previous earnings related moves here. It has not seen a lot of big post earnings moves. What is standing out on a positive note . Nathan a lot of that is just the reaction from the day today. Just the confidence for the fullyear delivery. It indicates no major production problems with the u. S. Negativee cash flow 466. 5 million. This is the problem with tesla. You might like the car and won it and think that it is cool but their cash flow is negative almost 500 million. You said yourself they would have to perhaps issue more equities. What is the turning point going to have to be for them . Nathan thats the problem and i dont see a turning point as a move to lower and lower gross margin vehicles. Between 30,000n dollars and 40,000 per unit of capacity. Foresla wants capacity 100,000 model brees, youre talking between 3 billion and five lien dollars just on the manufacturing size. The rally has abated a little bit. Topes news today that production executives are leaving the company. Does that give you anxiety about the ability for tesla to hit its rollout plan . Nathan elon musk is known for cleaning house. We saw that following issues in china. If you want to know or tesla is struggling, follow the turnover. A lot of manufacturing related turnover. What is the key thing to keep an eye on what the company . the order Conversion Rate on the model x. 10 12000at should have and line have already received their vehicles. Thank you for the instant reaction. Alix we have earnings coming out from whole foods crossing. The Company Coming in a little side, . 44e revenue a share. Eps was above estimates. One number catching my eye is calm sales down 3 . The estimates were down 2 . Nevertheless, easy afterhours trading, the stock is up and a company says they are expecting sales growth up to 3 . Grow in the middle of competition while it keeps cutting costs and ramping up promotion and marketing . Customers were not buying into the promotion and that was hurting sales. Down for thehat quarter by about 3 , but the market seems to like what they see. It does see a decline in fullyear operating margins by about 70 basis points. The last stock is 21st century fox earnings coming in at . 37, tang on estimates and terms of the segment revenue, its a mix. Its cable programming revenue coming in better than estimated. Tv is hang in line with estimates. Film and entertainment a touch light. I bring this up because dead pool was amazing and awesome it was going to be a killer for their film and entertainment unit, nonetheless coming in a touch light there. That stock popping and afterhours. One thing worth noting on whole foods, it fell to its lowest level since august of 2011, so this rally is coming from a very depressed rally a depressed level. Coming up, the chief International Economist at Deutsche Bank joins us for an extended sit down on inflation, the labor market, and jobs. Mark im mark crumpton. With get to first word news. A federal judge says he may order Hillary Clinton to testify under oath about whether she used a private email server at country state to evade public records disclosures. The judge signed an Order Granting a request from the conservative group, judicial watch, it wants to question state department staffers. Lawsuits three dozen have been filed seeking copies of government records relating to her time at the state department. John kasich, the last man standing in Donald Trumps half to the republican president ial nomination will and his Campaign Later today, making mr. Trump the parties present of nominee. People close to the campaign tell Bloomberg News the ohio suspend hisl campaign at 5 p. M. Local time in columbus. A huge wildfire has destroyed entire neighborhoods and forced the evacuation of fort mcmurray, a city with a population of 80,000 is home to the alberto oilsands, the thirdlargest reserves of oil in the world behind saudi arabia and venezuela. The Prime Minister called the destruction absolutely devastating. There have been no reports of injuries or fatalities. Global news 24 hours a day howard by our 2400 journalists in more than 150 news euros around the world. News bureaus around the world. Alix investors are starting to bet on rising inflation. Demand for inflation for tech insecurities is soaring. Have risen,anding meaning there is more demand and that etf is headed to its best performance in 12 years. Joe here to help us sort through the data is torsten he has been talking about the potential for higher inflation for a while. Thank you for joining us. Theres been hard time inflation anyone that could ever come again, so why are people starting to place thats on higher inflation . Torsten investors are voting with their feet and there are several reasons for this. One reason it has been taking off significantly is that the dollar is going down. When the dollar goes down, theres upward pressure on inflation. We are the fed has said close to full employment. Andfed keeps saying that they are trying to move rates up because they are worried about more coming. The second reason i think theyre worried about piling in is to say maybe we should protect ourselves. The final thing is you see anecdotal evidence of wages going up and all of this combined, it makes sense more investors start to worry about the inflation outlook. Wages is noink important topic as it relates to companies. Numbers come out with productivity where we have week productivity and labor costs rising. I wonder what that means for companies in particular and at what point in wages do we see pain on the corporate side . One way to think about is higher costs and its bad for Profit Margins and companies. The tugofwar here is between how much are wages growing up and at the moment, most measures of wages are going up to percent or 3 . Yet more reasons to expect they have reversed the trend from last year and you should expect to see solid Profit Margins. I have a chart that i used to keep track of various inflation metrics cpi services, core cpi they had been trending up for several months and in the last month, they all took a dip back. Do you think the trend is solidly higher for inflation . Is an important issue. The fed probably looked at your job and said we dont have to spend that much of a signal yet. We still have a little more room, so why dont we wait a little longer and get employment up even higher . The fed is still telling us we are near full employment and thats important. With the dollar falling and getting close to full employment , i would start to get more worried if i were the fed. Alix if the fed lets inflation run high, do they have two make up for it down the road . Torsten this is the key question. If the fed says we are not going to do anything and allow them to overshoot, will they just say thats right and we will wait for the fed or will they say the fed is behind the curve and maybe we need to trade rates higher as a result of inflation overshooting . Alix were going to get a preview of the u. S. Jobs report on friday. Well be right back on the other side of the break. Alix whatd you miss . Day friday and todays 80 p report was pretty soft with payrolls showing u. S. Companies hired workers at the slowest pace in three years and decline was rod based. Is still withlock us. What is it going to be . Torsten we are 175 on the headline not too different from adp. Lets not make a big deal out of fairly solid as long as we are above 80,000, we are still running down the unemployment rate, so we should be ok. We have a slew of important numbers coming up, but between now and june, is there anything that would make said funds futures jump up . A lot of clients are asking how the fed hike in june, given the expectations of the moment . The data could change the tone and change the probability of a rate hike. The data comes in stronger and any probability of a rate hike go up. Has basically made sure the door is still open if the data comes out better than expected at the moment. Citigroup had a note saying anything over 180,000 on right is good enough to the fed to pull the trigger. I think that is out of consensus. Think of what we went through in january and february. Now think about what Economic Data has done. Data has been important has been performing quite well despite this turbulence. Joe this is an interesting chart we have. Show us what we are looking at. Torsten the orange line is the Medium Weight occupation. This is total growth since 2010 in the first point is the vast majority of jobs created through this economy are high wage occupation. What is really good is the arrows indicate over the last year or so, weve seen more growth and low and middle income jobs. Particularly in retail and services, weve seen a significant amount of job growth. Goes to your point about corporate margins. Its going to end up hurting corporate profits at the end of the day. At dividendsu look and buybacks, they are getting stretched. We had some recent data from manufacturing and its important when it comes to companies because you have this delineation between services and what is happening there where there is strength and manufacturing is slowing down. A lot of people think its not important. In particular, when the dollar started going up, this means high productivity sectors Meeting Energy and manufacturing, they started shipping low because we were hit by a higher dollar and lower oil. The productivity level was low, so one important reason the Kansas City Fed had a paper pointing this out is weve had manufacturing which is done poorly m a factoring sector is doing rather well and thats why we see growth youre not quite seeing the growth we would like to. I would like to talk about the fed and inflation running hot. Goldman came out saying they were skeptical the fed would let inflation run hot. But not in 2016. You think the fed might let it go for a while . Torsten the inflation rate of two is not as shielding. Its just the symmetrical target we have. Its been below that target for six or seven years now. From a dual mandate perspective, we are close to full employment but definitely getting close. On friday. Right back. Show me movies with romance. Show me more like this. Show me previously watched. Whats recommended for me. X1 makes it easy to find what you love. Call or go online and switch to x1. Only with xfinity. Show show me more like this. S. Show me previously watched. Whats recommended for me. X1 makes it easy to find what blows you away. Call or go online and switch to x1. Only with xfinity. Crumpton. Mark lets get to first word news. It is the end of the line for republican president ial candidate, john kasich. Two people close to the campaign say the Ohio Governor will end his bid for the white house just one day after the exit of ted cruz and cements donald trump as the gop standard bearer and sets up an almost certain match against Hillary Clinton in november. Kasich will speak in about half an hour in columbus. President obama is in flint, michigan. He is addressing about a thousand people at a local high school. The president is there to meet with Governor Rick Snyder and talk about the lead contaminated water crisis. Did drink some of the filtered local water saying that the water is drinkable but that it does not negate the need to replace some of these types. The president again speaking at the high school. Michigan declared an emergency four months ago because of widespread contamination in the water. To state officials and one city official has been charged in the case. The Environmental Protection agency is accused of being 30 and handling waste water from oil and gas exploration. Environmental groups are seeking a measure to compel the epa to regulate the disposal and say it has become more acute with the prevalence of fracking and increased earthquake activity. U. S. Officials say an agreement has been reached to extend a fragile ceasefire to the Northern City of aleppo. A deal was reached yesterday and took effect at midnight. They say they have seen a decrease in violence since then but knowledge that while asians persist in some areas. Dayal news 24 hours a powered by our 2400 journalists in more than 150 news euros around the world. News bureaus around the world. Today, basically read across the board. The s p down and nasdaq little worse. Not very impressive in emerging markets. After the bell, late in the day, we got news out of turkey with ongoing political strife there. A red day all around. Oliver the nasdaq down and the russell small cap down even more. Though oilm oil even pulled higher, Energy Stocks never quite rebounded. And the winners were utilities and staples, the safety areas. Alix it was a crazy earnings day today after the bell. You have tesla reaffirming its delivery forecast and accelerating its assembly out but, pulling ahead by two years its plan to produce 500,000 cars a year. You have kraft to beating estimates on the revenue side as well as the earnings side. Full foods topping estimates with that stock higher, held by cost cutting measures. Trip advisor missing on estimates and secondquarter it prettyfit ugly fat stock, but on the whole, positive earnings with tesla and whole foods higher in afterhours. Whatd you miss . Senator cruz and governor kasich are out and ted and donald trump is clawing his way closer to the nomination. Ofs shows the 90 day history betting as trump becomes the nominee and his odds have just risen to above 40 . T