What's Up On Wall Street - Steven Russolillo, WSJ

Everybody welcome back to the second hour when he came in June. We just got economic data and it seemed. In the you -- -- you -- It looks to be like stocks -- down for us. Gathered down may not sound a lot to vary but Dow futures down 2.5 NASDAQ down nineteen. -- 500 is down six. Ten year US treasury still sitting at one point 919 gold down ten dollars oil down ninety cents consumer spending. Was down but US incomes were up so maybe people are saving money very get our let's go to Stephen Russell he's at the Wall Street Journal in New York Stephen welcome to the show -- on. While. There he that PMI number came out at 945. Would you be good enough just to. Refresh the memory of our listeners as to what that stands for -- why that's such a significant piece of data. -- you know that's a regional manufacturing survey in the Chicago area and he came in the at around 56 which is well below what economists were expecting. You know do with the regional figures. He is not a lot of people pull out a lot of stock into them but at chicken of the hole. You know people obviously keep very close -- and manufacturing and later this week we get the ISM report which is basically the there are some worries that would this week if you this could mean you know be. Fortunate to be a foreshadowing -- what that ISM report is gonna it's gonna hold so. The weakness today is part of the reason why we are as stocks are down a little bit. But again people are really -- -- make -- a little bit more cautious heading into this. This ISM report which is due tomorrow. When you look at the LE IST get the sense that the trend is that we're slowing down a little bit perhaps not entering a recession but at -- rate of growth is gonna slow down to one and a half 2% GDP. I guess I mean. Good to keep your Puerto Rico Friday show that first quarter growth came in at 2.2 percent. A lot of economists believe that that feature will be revised and and many more. More are conquer our region to be higher than lower but I a year -- -- in the sense that you know it seems like. Growth here has stalled a little bit and and not to say that we are gonna go into another recession but. You know people -- mean we -- 3% growth in the fourth quarter it would have been like it would have been nice to to build on for that to keep growing. The state your pace and so for right now we're kind of stuck in the this weird transitional basic -- where. No -- -- they've been bad enough where defending stepped and then implement more stability but it's not good enough that it really making anyone. Bullish on the economy so. Kind of stuck in the middle right now certainly not an hour and a recession in you know not many people are calling for a double -- any time soon but. You know nothing to get too excited about right now. Hey I am watching shares of sonoco in the symbol for sonoco -- Eskew and if you own folks up 20% today. This is all due to an acquisition by another company called energy partners buying sonoco -- they buy -- why why did they pick off sonoco seems like they're paying a pretty healthy premium for. Yes hopefully premium for has a five point three billion dollar billion of ebony activity has not been very very slow this year so this is. The big deal also -- came after we saw Microsoft investing in. In Barnes & Noble there and then -- Segment so you know. No one is really hard purge huge pickup and ending any time soon in. But did you know these systems and to deal and especially this look good deal of energy -- -- you're seeing. I think it's it's a good science a healthy -- -- -- would certainly like to see a lot more deals in the future to. -- feel feel feel bullish. Such an energy system pupil that would you know feature prospects. Well Barnes & Noble you let's talk about it a little bit it's up 64%. Today shares of Barnes & Noble trade under the symbol BK yes. They got it it seemed like a fairly small deal was it 300 million dollar cash infusion. Into. In in in to Barnes & Noble from Microsoft. I was actually surprised that the stock move this much. Right so what what what what's happening here is that. Microsoft infusion here's between valuing their their their digital franchise that does that the nook segment valuing and about one point seven billion dollars which is. Which is -- essentially double what my it would Barnes & Noble and higher valuation was just -- at Friday's closing price so basically what that means is. Microsoft is saying you know. This -- is the milk is a lot more valuable we think and so not only is with the palatable but the rest some personal business basically is not valuable call -- So debt that that is definitely an interest in deal and it that you're seeing the huge reaction in the in the operations so. -- lot of people are wondering -- is. -- -- -- if this is the beginning of you know if -- the world gonna spinoff -- into its own separate company and so. Stolen a lot of questions about. Howland whether that will be implemented but. That this is a big vote of confidence. Appeared. Not only -- cash what does the general on the on the future of the Belkin and and what could happen to -- -- -- Even based on these two deals you don't think this is a precursor to a lot of -- activity this summer. No no not at all I think that -- notebooks -- talk obviously about. Compared to what we've seen point 12011. Having it activities world oil below. What on the beginning of the years and so. It these are our big deal but it doesn't seem like there's. Any reason to think that we can see huge uptick in the in the next few months here. Right well I appreciate your time and a thanks for joining -- -- -- -- universal from the Wall Street Journal joining us today. Big stories were that the -- this sonoco deal but Barnes & Noble again is up 64%. In trading in the as a totally this morning.