Energy was the best performer. Initial jobless claims moving up a little bit but theres no direction to come with tomorrows jobs number. The dow was up 85 points, so that slide was a bit dramatic. Volume was terribly light, this time of day, it was a very light day. Oliver if you look at stocks, a few things jump out. Look intoe a deeper what is going on, few things have popped out. Alibaba andclose to you have a few other measures if you look at what happened with financials and look at what is happening in terms of their momentum, the 200 day moving average, they have been down there for two days. Of the s p. Part you have to keep that in mind. Index. Ut the volatility if you look at the curve, it is interesting to see how futures are priced in. Spot realized volatility. A reflection to give you an idea of what people can expect on the road. Alix and thats not the only sector testing that level. Definitely something to key in on. Im looking at the bond markets two different indicators. Yieldrkish five year spiking today on the news. Increasethe biggest since january and spiked the most at the end of the chart there. I want to look at something that is kind of on related. The largest etf that lies junk bonds. Seen 2. 6 billion dollars in redemptions in just the last four days. You are looking at shares outstanding. The longest week of losses since february 11. Is it good or bad . Are you putting it into Something Else or is it a bearish signal . Scarlet maybe it is a sign of more movements to come. Politics causing convulsions in the currency now that the Prime Minister is stepping down as the leader of the party. , it is rebounding. Is it a dead count dead cat ounce . The selection of a new party leader and Prime Minister are unlikely to lower the temperature. That means a 6 depreciation in the dollar. Alix and the last check on commodities, looking at west canadian select and the discount. We have the canadian wildfires there and the difference has really narrowed from 15 dollars two weeks ago. They are taking production out of town. Oil prices are reacting to do to that. Scarlet Dreamworks Animation reporting fiscal firstquarter of 194and revenue million, higher than the contestants consistent confesses estimate. For now come we do have earningspershare of . 15. Once you rounded up, it is about a penny. Betterthanexpected results for dreamworks. Were watching it carefully because comcast is buying it. Alix kind of flatlining in afterhours trading. Im looking at chesapeake debt. Up and thistock is chart is a huge reason why. This is how much they have been able to reduce their debt as Natural Gas Prices have fallen. Pretty dramatic slide and today, we got news its going to sell some of its drilling rights in this prolific area of oklahoma. Sales just this year, 1. 20 7 billion. They have done a lot of work to get that down. Oliver im going to talk about corporate squeezes. Its always worth revisiting, especially as they Start Talking about inflation and wages this week. Hereis the lou line tracking data from the fed in terms of cash coming in versus what is going out. Think of what they are spending on dividends and capex. The white line here looks at hourly warnings hourly learning hourly earnings. Companies have more money going out and you can see it has been negatives march of 2015. It lets them think about what they are doing in terms of outlays with cash and it has been very creative to the market. Scarlet for mine, i am looking at the u. K. The u. K. Is holding Regional Elections today. E is the economic backdrop starting the Second Quarter with a loss in momentum. The manufacturing pmi is white line. It doesnt really matter lets do this again. Here its the difference between expansion and contraction. It is that direction causing concern here. The u. K. Economy is near stalling because these measures indicate a growth rate. Alix that does not feel good if you are in the u. K. N earnings coming in revenue coming in a touch light, just under 1 billion. The lightnessying in revenue is because of a decrease in their macau operations offset by. 7 increase. By macaus live and die here. Macau hurting them here and a stock is up 3 after hours. Scarlet square also reporting. This Company Founded by jack dorsey, boosting its sales forecast. Now looking for as much as 635 whereasin revenue earlier, they had anticipated 620 million. Before, they were looking for anywhere from a range of Million Dollars to 12 million. Basically just under 10 million. That is the outlook here. Oliver i want to bring in the cumberland advisor chairman and earnings officer. Corporate america showing off it like in thet, energy sector, citing more downside. Talk about your positioning and tell me why the changes. David we got out of the energy sector. Probably i dont know how many months ago. Ago. Ong reentered because of an oil price of 30 something was , iractive and natural gas member scarlet chastising me for being favorable about natural when it was about 1. 80. Now we see the backup in prices. You see the contraction of supply and we see refinery outages, movement in saudi arabia. The world is changing and our view is this is not going to go back to 70 or 80 a barrel. Too much supply and the players in the oil patch, you just reported chesapeake doing a Balance Sheet and reducing debt. We see other issues with exxon. Even that giant headache Credit Rating drop. We back doubt and we are underweight the energy patch and we want to take our time before we realize and go back in. Do you seet happening in the tech space . Is it a gross versus value dynamic . David the shift was triggered by apple. Apple was a very large weight. Exister etfs, it doesnt or is not a large weight at all. 13 , microsoft is about 10. We owned by gn and took the weight up. Allow that to be roughly the weight we wanted but weight and that increased amazon and facebook, which is positions we want to integrate into the tech portfolio. Alix much more coming up with you. We will preview tomorrows job report and talk about japan. Scarlet breaking news paul ryan is speaking right now, saying he is not ready to support donald trump as the nominee as the presumptive nominee of the republican party, but trump should be congratulated for winning the nomination and the nominee should advance the principles of the gop and adds republicans can still beat hillary clinton. We will be back with more. Crumpton. Mark lets get to first word news. The white house says president obama has commuted the sentences of 58 federal convicts, including 18 serving life sentences. In march, the president commuted 61 sentences for drug related offenses. The Obama Administration has commuted 306 people in the last six years, more than the last six president s combined. Clinton is urging democrats to unite around her presidency. She told Community Leaders in los angeles that her lead is much wider than the advantage. She is more says 3 million votes speech, the Prime Minister of turkey said it was not his choice to cut short his term as mayor and party leader. The decision cap a power struggle between him and the turkish president. 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. Scarlet we have breaking news from gopro reporting a First Quarter adjusted loss per share of . 63, wider than what analysts were looking for. When you look at the top line revenue for the quarter, it was higher than the most bullish most lush most bullish forecast. This fiscal fourthquarter revenue beating the consensus estimate as well as its own forecast. Gopro reaffirming its fullyear forecast and we see the stock up 6 in afterhours trading. David, we were talking about your calls a recent call is you are bullish on japan. Has that changed . David it hasnt helped matters. It certainly set us back. Theres a nuance he did extend credit in the Banking System after the earthquake at zero Interest Rates for longterm. Markets ignored that and my sense is part of the debate at the bank of japan is whether stimulative act or not and it certainly was. If i lend you money for a long time at a zero Interest Rate, that is stimulative. Japan to weaken the an end do more to add fiscal stimulus and not raise the tax raise defense spending because of what is going on around them, these are an enormous pressures and we think they will come to bear. In that light, it would make sense the bank of japan would decide not to do anything ifpt old and wait and see this would have the desired effect. Oliver thats the big surprise here. Japaneseart here is demographics and thats not something that changes rapidly. How concerned are you that the roots of the problem are too ingrained . If this is not working, what will . Will, we dont know. The only policy that exists is to have very long stretches at no cost to finance. In the demographic, you need to have high defense expenditure when you have a neighbor, china, and another neighbor, north korea posing existential threats, and they do. In thisld we do demographic if we were in charge . Have highly productive Defense Technology at work and they are going to do it. Amending their budgets and they have to defend themselves. Scarlet lets turn it over to jobs. A lot of people call this critical because we see a multiquarter deceleration that has extended through the First Quarter. What are you looking for to determine if the fed can go ahead with an increase . Surprise we get a number, that would surprise us. We think we are in a slow growth environment. Not. Continue, the fed is weakerkets will like numbers and say that postpones things into the fall or into the winter. If it is robust, markets will like it because that will give the fed cover to act. Corporate profits keep going down, but the job market is going up. The question is how long can that gap be there . Oliver i think that is going to be an important issue. We know what the employment picture is, but one of the things here is when you look at the jobs, is there a certain inflation level that would send a yellow or red flag to you . David you could have it but the fed cant get the inflation rate up to their target. At this very banks low Interest Rates still cannot get the inflation rate up to a target. How do they act in a slow growth economy when they cant get the Interest Rate up . If we were to accept for a minute that we were going to have these low Interest Rate for a long time, would you revalue stocks at higher levels . Why do we have to be bound by old metrics of priceearnings when in fact we are at very low Interest Rates for a long time havei think asset prices an upside and then up word bias. Alix good to see you. Check on goprok once again it is soaring in afterhours trading, up 6 after the Company Coming out with revenue that top analysts estimates. The adjusted loss was wider than anticipated. Scarlet turkish default swaps declining as follows the Prime Ministers resignation. Brookings is the institute workings Institute Senior fellow. A lot of political turmoil taking place in turkey but the underlying economy is not that bad. Guest among emerging market economies, turkey is not doing that that. Instability is taking center stage right now. The concerning thing is related to whats happening with the central bank. Theres no new Central Bank Governor in place. Is whether the central bank is going to maintain the fight against inflation. Alix isnt there a reason turkey is not doing oddly is because you had a Prime Minister who was seen to have closer ties to the west and eu . Guest thats right. The Prime Minister was seen as something as a reformer and was respect to the in International Markets respected in International Markets. The low oil prices have been a boon for turkey because turkey imports oil. They had a recently good fiscal position and was benefiting from the increasingly favorable view of the markets at least in the short term. But this political instability overrides all of that. Oliver you had commerzbank reducing the gdp expectations and nomura saying the chances for a downgrade have doubled. Are these reactions out of place . Its going to be difficult in the coming months because the market is losing confidence that turkey will go in the right direction. Succeeds in capital , in order to pump up growth, that creates uncertainty and instability. Its going to be a rocky few months for turkey. I think political instability will keep things rocky for a little while. Does the president listen to or who is he beholden to . Guest he seems to be largely beholden to himself and is accreting a lot of power. Tohas shaped the military his liking, so theres nobody who can stand up to him right now. Thank you. We will be discussing china and the yen next. Alix Cheniere Energy reporting a firstquarter loss of 1. 41 a share. Estimates were for a loss of . 32, so im not sure if these are comparable. This is the first liquefied natural gas exporter terminal in the United States that began exporting lng just a few months ago. Profitve not turned a since 1998, so the stakes are high for this company. Loss of 1. 41 a share. We will be right back. Mark House Speaker paul ryan says he is not ready to endorse donald trump for president , at least not now. Presumptive the republican nominee needs to do more than unify the party. He needs to show he can share our values on conservatism and limited government. Republican says he hopes to be able to support trump, but says to be candid, im just not there yet. We learned mitt romney is planning to skip this summers Republican National convention in cleveland according to the associated press. 2012 republican president ial nominee has been one of trumps fiercest critics, delivering a point by point indictment of him in march. The us trillion central bank has named a new governor. He is replacing Glenn Stevens who has run the Federal Reserve bank of australia for 10 years. He wont have much Interest Rate ammunition to deal with as rates are now at a record low. In syria, a an airstrike has hit a refugee camp near turkey. It is not clear who carried out the airstrike. The camp is home to hundreds of people who have fled from the surrounding provinces. Dayal news 24 hours a powered by our 24 hundred journalists in more than 150 news bureaus around the world. Lets get a recap of todays market. We had a rally underway earlier today at around 1 00. Then start docs started to slide in closed relatively neutral on the day. Volume was quite light. Tomorrows jobs report. We had the initial jobless claims move higher last week. At gold king looking at gopro, they have had a rough year. They did beat on the revenue, which clearly the market takes prewell. For a company that has had as much trouble as it has, it might take a little more to get the stock moving higher. Scarlet news corp. Has just come out with its results revenue slightly lighter and analysts were looking for. This is the oldschool part of that is miss, the newspaper business, not the new media assets from news corp. That was spun off into 21st century fox. Adjusted earnings per share was four cents. Not much of a reaction in afterhours trading. Alix looking at should near energy, that company reporting a loss estimates were for . 42 a share. Loss forlike a severe the First Quarter for the first u. S. Lng terminal. Their processes has commenced, they are one step closer to shipping out liquid natural gas and its a good sign. But once again, a loss of 1. 41 a share. Scarlet what kind of indication did you get that things would go on as planned, given the volatility we have seen in oil prices over the past year . Alix in terms of what is constructed, it is good. Wait for a little while, but as of now, people have commissioned it. Its like a juicy dividend. Scarlet whatd you miss . Capital outflows from china are tapering off. Its a sign of stabilization. Still with us is the former head imf china division. What do you look at to determine if this kind of capital outflow stabilization is legit . Guest the sentiment about china has shifted since december or january when the sense with the chinese economy had no way to go but down. It can manage the outflows since they walked off a lot of the capital flight and some of the carry trade related to corporate debt and foreign currencies. Surplus running a trade and still getting good inflows. There is now a sense that they can hold the line. The weakening of the dollar has helped as well. I want to bring it to a macro Capital Markets look and dive into bloomberg. Risk freet the return. China has a pretty high risk premium. That has happened as the return on the 10 year yield has taken a dive. What is this telling us in terms of macro sentiment . Guest the important thing about china is the chinese economy and chinese Financial Markets and the two dont often moved together at all dont often moved together at all. When the stock market was rising up, the economy was not doing that well. Then the stock market crashed in the economy was weakening, but not to that extent. Defaultsr of corporate are rising and some of the things you see in the fixed income state. The market problems in terms of debt are beginning to come to a boil. Scarlet what happened at the end of last summer through chinese officials for a loop. They thought they had a handle on things and it spiraled out of control. What did they learn from the august valuation ver