What's Up On Wall Street - Michael Regan, Bloomberg

Today is one of those days where you wish you were a little beta investor what does that mean -- that you wish you're a low risk investor because. Yet again -- it's it's it's a remarkable every morning hey I. I go to bed at night 930 or so I take a look at the future before -- turn the TV off market was you know not bad shape last night 930 when the Shanghai opened -- Things are doing fine this morning are coming in and have a -- a copy futures are positive territory. I leave it in your hands to -- anti Vietnam I'd give this to you at 930 and say June let's see which you can do today that. You know and and today yet again yet again you know harm your delivering a disappointing numbers. Can't believe you're taken it out on me again -- -- -- -- that Wall Street is in my hands and it's all about me right okay and -- the Dow yeah it's down fifty points Barry NASDAQ down twenty. S&P 500 down seven tenured US treasury that's down slightly at one point 76. Gold is up 1470. Oil is trading up 67 cents to 9348. And yeah the worries about Europe kind of overshadowing that. Jobless data. -- -- came yet you know when you look at what's going on the it leading economic indicators the EE look at all the numbers the earnings -- that's everything right. You say wild things are going pretty well here in the United States. It's this fear of what could happen in Europe now the destruction of the Euro. It is seemingly what's causing stocks to sell off yet again. Our next guest is Michael Regan he's from Bloomberg News maybe he's got some inside information forming about why stocks are selling off Michael I don't. Michael. Michael. Here. Anyway we had Michael -- from Bloomberg News and you know it's highly unusual we are getting guy. Do you well let me give you the symbols okay that would mean prompted to deal. The stock symbols for the three stocks that we had on -- we are joined earlier by Deirdre Dennehy from Rockland trust. The stock symbols -- Express Scripts the symbol there was ES RX that's like a 52 dollar stock. Comcast CM CSA that's 28 dollar stock. And MetroPCS. -- 88 MetroPCS was the low cost telephone provider. The they're the ones that some trial the drug dealers with the -- the bones eaten the disposable phones if you. Six dollars and 53 cents a share for MetroPCS. So there -- three stock picks from Deirdre Dennehy at Rockland trust MetroPCS. PCS's symbol Comcast's -- CS aid is assemble and Express Scripts -- are acts are do we have a now via. He hopes -- Hey Mike what -- wire stocks on -- positive in the marketing before the bell and give decent jobs report was are not a terrible -- report. So why the sell off today. Well that the headline that's brightness down as he pulled up to Federal Reserve bank's general economic index which. It was a big -- is negative five point eight vs the consensus estimate of about and so. Some contraction in -- manufacturing. There. What's of course included the sixers performance last night -- the I don't know. -- get a big issue ordeal with designers report out saying that. Spanish banks are gonna be downgraded today so you know we're -- -- -- -- now that should drop to. Yeah I'd I think it the Greece story I would think most investors have already written Greece often assume that they exit the Euro in the next six months. The Spain's story is a very. Different animal yeah how do they deal with Spain would -- what are you hearing out of Bloomberg in terms of how they try to resolve. The issue with Spain's debt because Spain's economy. Is a large multiple of that of both Portugal and Greece and they're in big big trouble Spain has major economic problems. It's curious then looking at their stock market I mean they've they've really taken hit I -- the benchmark index there's trading basically about the that the lowest level since 2000 entry. The banks have really gotten slammed. You know obviously Greece gets all the attention but you know it is that that's that's a problem that we don't look for two years but a lot of it a lot of the market's focus is now switching to the Spanish banks and. You know will be action he would is this we report comes to fruition and Moody's comes up today the statement about them of interest and see exactly what does that. All right well we'll follow that story how about Wal-Mart I noticed that Wal-Mart had a very good quarter they reported either late last night or this morning. How are they do and easily you look at JC Penney JC -- was down 20% same store sales. And then Wal-Mart turns around and says hey we're doing just fine. Right what part of of course -- has always been one of these companies that sort of benefited from economic uncertainty you know people. First stop spending at the higher up press department stores and and sort spending more of Wal-Mart -- and a -- that -- in earnings this this quarter G internationally you know of course a lot of attention in the economy is in Europe and and overseas so Obama's overseas sales were up 15% to 32 -- that's about twice the group's creative they're revenue in the US in total revenue and about. Almost three times they're they're US revenue. For a so that is something else we talked to said he had a ball mark it's because they're -- and got back the basics that that made in the world's biggest retailers you know from the start not. Keeping prices as low as possible and really -- not supply chain keeping inventories stock. Keep your items people are by the most on the shelves and you know it's it's worked out firms would. In May represent about a third of the retail sales number doubt that -- when you look at when you evaluate the re as a sector you're trying to. Figure out how to invest in the retail sector -- as Wal-Mart goes so goes the American consumer. It's a pretty. Over the exact number of retail sales credit account for but he yet it's that we need the lion's share of it you know. What what's -- thing about he's the person stock directly. Is separate from the retailers. Including the and installing a lot of basic -- Burnett necessities and so they're they're less sensitive to the sort of economic ups and downs and other retailers would be. All right and when you look at you know one thing I've been surprised siren pleasantly surprised by is the price of oil that worried about 93 dollars a barrel now. It's up a little bit today but generally the trend on oil has been down I think we're as high as a 106 dollars a barrel back in March. Now down to 93 is that something that's gonna continue or have we have overshot the runway in terms of price declines -- oil. You know it wiggles it's a very -- commodities to predict it. You know I would take a look at the charred -- 2000 neat note when -- high is very important five dollars a barrel on July. But into the years that 33 dollars a barrel so. You know. Big swings in oil or or what -- expected. I think a lot of it you gotta watch it obviously will have a very dynamic supply and demand equations so. You know as demand might be reduced in Europe also -- to worry about I -- sort of threatening in the. In the supply candidates. And also look at the dollar a lot now -- dollars not the dollar index you know which tracks the dollar against its major currencies. The tougher of the fourteenth straight day today that's that's never happened. So that that also have a big impact on -- -- you know -- traded in dollars finished we have struck at a dollar debt so you know the last. You know the producers of oil demand. Her her well let's talk about that -- what do you attribute the increased value of the US dollar. Well it's it's mainly a function of the you know does the decline in the Euro you know until these -- collections of sorted out unions Spanish issues that -- talked about in the Euro was. Trade enormous near its close following years so it's it's really more about your weakness and dollar. The -- -- is the Euro now won 2728. Okay. Well I gotta tell you Michael it's it's a very instinct tiny you'd get the economic did you think you're gonna have a good day for the stock market and invariably. Stocks sold off at the end of the day it's just seems like it's the same for routine each and every day. Bright -- it's really go ahead by headline by headline at this point you know obviously there's lot of wishful thinking in the market that. You know the European policy makers come out with with some new plan you know that the tenth new plan and of the month or whatever and obviously a lot of you know speculation about what that's gonna do next will be another round of quantitative easing so it's really one of those volatile markets where you know he never know which way it's the next. Did you have your Bloomberg terminal -- now are you on -- Did you tell me what that PE ratio is for the S&P 500. It. Any idea it's it's right about twelve point five I think with a double checked that Korea so it's getting close to those levels were -- support in the past yeah it's ten feet. Yet cheap you know you look at it were average updated about sixteen points worse so it's -- spent stop below that that is Turk average for a while. -- I was probably now be delicious piece thirteen poetry so sorted sorted near the low for the year you know. -- That is an in earnings are pretty good idea earning season it's almost behind us now that is a good season so. Who left to see how companies do going forward I guess that's a key measure that we watch so that's. Right that's right get off -- -- for the Mexican Alex said it's sort of the doldrums now between earning seasons so not a lot of support to be. -- down there. Well now -- Michael thank you very much for joining sure appreciate it thank you --