katie: we are 30 minutes into the u.s. trading day, here are the top stories. a rough day for retail with shares of lululemon and nike plunging this morning after a week showing on the earnings stays with both companies delivering causes outlooks. a banner day for social media platform reddit which surged nearly 50% in its trading debut thursday. we will recap the action and discuss where the stock goes next. finally, checking in on the c suite. simon freakley joins us.

♪ katie: welcome to bloomberg markets. take a look at markets on this friday. it's pretty quiet behind me but it is a down day so far. the s&p 500 is currently off less than 0.1%. we can call that unchanged. it's more dramatic if you take a look at big tech where the nasdaq 100 currently off by 0.1%. i through the philadelphia semiconductor index on there and is pretty much the same story, down by about 0.1%. rudy quiet on the index level but you have leisure brands breaking a sweat over the strength of the consumer. nike and lululemon anticipating challenges in the u.s. market. nike's warning investors that sales will take a hit this year

with pressure particularly in the sneaker department. lululemon is seeing a sales slowed down to start the year with lower foot traffic and shopper pullback. i want to start with lululemon because we are looking at a titanic move in the shares of lululemon. was it really that bad? >> the results were actually very good, i think it's the guidance that has investors concerned. the slower start to one q with traffic weaker than expected and conversion which means that they need to improve the product. we think that's what's causing some of the downside we've seen today. as they improve product and move forward, lululemon is a strong brand. we see 3 theirx strategy able to drive their target to double sales ahead of time. katie: maybe a light at the end of the tunnel.

shares are currently down by the most since march 16, 2020. that was a pretty bad day as you can imagine at the onset of the pandemic. let's talk about nike because it seems like it's a different story. you look at what nike said with sales that will decline by the low single digits in the first half of the fiscal year. >> the near-term for nike is definitely very choppy. they also did say that sales will turn positive in the second half of their fiscal 2025 and end the year on a positive note. nike is going to have challenges in the near term and position itself for the longer term. they need to focus on innovation and product to drive longer-term gains and maintain their brand lead. it's a $50 billion brand. it needs to step up their game on innovation. katie: competition is growing for nike with the ligh -- likes of these other sneaker

brands. i'm sure we will have this conversation again soon. our thanks to you. let's broaden out and take a look at these equity markets. joining me now is the head of u.s. equity and derivative strategy over at bnp paribas, happy friday. >> likewise, thank you. katie: let's talk about your year end price target for the s&p 500. you last clocked in at 5150 and you look at the s&p 500 now and are trading about one of the points above that. what happens next? >> at the moment, it's the story of continued momentum. there's been little in the data or little from the central banks that has caused the market to pause. the earnings news has been good this year and the monetary policy environment remains pretty good in the macro data has been benign so momentum is the story for u.s. equities. katie: are you going to raise that price target?

take us into what that strategy goes into formulating a target? >> the things which make us more cautious about the market are the valuations. equities look expensive on any metric you choose to look at and positioning. we think there is a bit of a fragility. neither of those things we think are triggers for a correction. the marginal news flow that tends to set the tone directionally has been positive. if we main in an embarq -- in an environment where the news remains good, we could continue to trend higher. we may have to think about kicking that forecast higher. we said this forecast was a most likely outcome but we feel there is more risk here given the forces i mention. katie: you look down the list of wall street year end targets for the s&p 500 and there is a lot of for handles with speaks to

how quickly this market has moved. maybe you are not anticipating a correction but would you anticipate some sort of pullback given the valuations that maybe we take a breather at some point? >> i expect we will take a breather and have a pullback but it's hard to gauge. valuations and positioning are the things that make us cautious. we just got through a kind of big event from nvidia this week, got through a big event for the central bank may have a little bit of lowland terms of data points before we get into the next earnings season and a couple of weeks. assuming that's benign, we don't see the trigger in the first half of the year. any signs of cracks in the price action could be asymmetric. katie: let's talk about what's going on between benchmarks. the s&p 500 biggest names in the u.s. stock market, it's been outperforming as of late. the nasdaq 100 which is sort of a flip and the relationship

there. usually have big tech leading and you look at that change in leadership, do you think that's sustainable? >> it's one of the things we've spoken about previously. you need some broadening out of the rally. it's hard for it to be led by a handful of stocks in perpetuity. under the surface, there's been very large amounts of rotation, dispersion and low correlation between stocks even within large-cap tech. there are diverging stories and the magnificent seven. at the start of this year, we felt an equal weighted s&p could be an interesting place to hide away from the highest valuations. we are cautious about the other end of the spectrum like the small and mid-caps. we are a little bit cautious about the medium-term outlook. katie: i want to talk about the smaller names in just a bit but let's talk more about the magnificent seven. you mentioned we have seen some

dispersion in that group. you have apple and tesla falling out of bed this year. if i were an optimist, couldn't i say that's a healthy thing to suggest that correlations are not just at one across the board? >> low correlation is something we associate with a bull market environment of relative winners and losers. normal environment where you have a bull market and low correlation is outperformer's. we have stocks that are high and stocks that are down 25%. katie: less healthy, less sustainable in the way you have valuations really putting a restraint on the market. you think about this big falling out of bed and we are talking about the names like tesla for example. how much is that going to restraint the market when you think of the heft of some of these companies? >> i think it won't restrain the market but there is a counterweight at the other end. still have some very large names performing very well but it

doesn't necessarily become too much of a weight on the market having a couple of names underperform. the interesting there is the differentiation between the names performing in outperforming but i don't think it's random. we think there are underlying trends there. you talked about a couple of the retail names having difficulty emily desimone we look at those names, they are more consumer facing stocks versus the ai investment thesis that is driving the stocks that outperform. katie: that's a good point, it's not like nvidia is selling its chips directly to individuals. hang tight for a couple of minutes, we want to take a quick look at what's moving underneath these markets. tell me about what's going on with fedex. >> people keep a close eye on that because it's a big read when you think about what it means for the global economy and how that company is holding up. that stock is up about 8% today on pace for its best day since

june, of 2022. it's been going through so many cost-cutting efforts over the last 18 months. you are beginning to see the price supported particular because it announced a $5 billion buyback. this is an executed yet but when you see that, that typically supports the stock price. katie: you take a look at fedex shares currently up about 8%, having a better day than lululemon. that is the fedex story. take me into the world of big right now. >> i have to start off with apple. it lost more than one billion, 100 billion dollars market value yesterday. the wall street journal reported its in palermo neri discussions with baidu in china because of their generative ai technologies particular with devices in china. when the report came out, you initially saw shares of alphabet fade on that because we've done so many different earnings stories my comes to alphabet and

its search engine and the competitiveness when it comes to what's happening with ai. some of those shares we are looking at google in particular have come back. even apple before this report has been under regulatory scrutiny when it comes to the justice department in the u.s. as well as in europe. we've seen this with big tech companies and apple stocks have been in a correction year, over 10% since its most recent highs. it's clearly underperforming the broader markets was been pressured and many traders were trying to traded effort fell below the 180 level. it's been hard for traders to short any type of company especially those they got burned because of what happened with nvidia last month with their blockbuster earnings report. that stock was already under pressure coming into today. katie: apple investors are probably breathing a sigh of relief that the stock is at least unchanged. read it has taken all of the limelight this week. we had another ipo,astero labs.

>> it had its ipo earlier this week before read it and our reporters have been all over this. go to their bio page to reward about this. -- to read more about this. you are seeing that stock was already 70% higher from its initial public offering debut. you are seeing that stock supported and when you think of the back of that and what's ppening with reddit, what it could mean for this ipo pipeline. you have two years into the fed's most aggressive tightening cycle in decades. what it could mean as the fed shifts gears. especially in the capital market spread, you can see more companies going public. katie: we are not talking about gigantic ipo's but as a measure of sentiment, very important. thank you so much. coming up, we will talk about reddit because it's paring gains

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ahhh katie: let's check in on shares of reddit. they are falling a bit today but that's after they surged nearly 50% in their trading debut yesterday. the ipo raised $748 million in his the fourth largest u.s. listing so far this year. for the latest, we are joined by amy or. reflecting on yesterday, what we saw it feels like by most measures, this was a success. >> it is an especially given the

fact that it sold 8% of its offering to redditors, its users under the direct share program. if we look at history, it didn't fare very well when we look at facebook in its early days. deliverable was down and facebook went through a phase of losing half of its value in the first three months before it rebounded to where it is. reddit is actually doing well compared to that. katie: it will be interesting to see how the next weekend the weeks after that go. it feels in some ways we are back to 2021. with the big pop we saw yesterday, the reddit valuation is very close to that $10 billion valuation they had about three years ago. >> it definitely chose the right time to go public. for the market in general, i wouldn't say it's back to 2021 given that the ipo market was

red-hot then with $330 billion raised and we've only got $9 billion of ipo's raised this year. the sentiment is much better with reddit still holding well above its $34 ipo offer price. i think the sentiment is for people to be more optimistic especially issuers lining up to go public in the second quarter or later on this year. we have to be reminded there is an election coming in the second half of this year and there will be volatility in the market. katie: absolutely, it's hard to forget that i know you had a busy week and we appreciate your reporting. still with us, the head of u.s. equity and derivative strategy at bnp paribas. when it comes to talking about reddit, the conversation i keep having is that this is great news for the pipeline, all of the ipo candidates waiting to see how the market receives some

of these ipo's. you take the other side of that? >> we think it's interesting but i'm not sure how much of a read there is for the broader market sentiment. equities have rallied a lot this year and we see plenty of evidence of exuberance. a small name being listed is nice but i'm not sure there is a bigger read across the market. katie: not a huge take away or life shattering revelation but it's a good counterpoint to what we are hearing. when you mentioned the exuberance we have seen so far, you can look at the chart of bitcoin, the more surprising thing is we haven't seen the ipo window open up more meaningfully. >> i think it's certainly like 2021 were received that in the secondary markets with positioning indicators we look at. they look similar to the first half of 2021. the big difference is monetary policy backdrop. katie: we were talking about the

concept of d equities asian and the fact that you take a look at equity markets and they have been shrinking a bit. what have been trying to work out is that's an interesting trend but is that something we need to care about? >> it's an important driver of the u.s. equity market. the buyback story has been important for a long time. is it sustainable? the answer for a long time for u.s. buybacks that are driven by large-cap tech names with great balance sheets amazing free cash flow profiles is a lot of it is sustainable. katie: especially if you have a big, beautiful balance sheet. let's circle back to the midsized and smaller companies we were talking about before the break. in addition to the reddit ipo, we had a fed meeting this week we got a. plot in the median. was raised to 2.6% which is up marginally from 2.5%.

if we are heading into this higher for longer environment, that in and of itself is as of you for debate, what is it mean for the smaller companies with shakier finances? >> it creates a challenge and you see it clearly in the price action. when you have a cpi print and a fed meeting, the russell and smaller mid-caps are the reaction. the russell had a 20% rally and was very constructive. we said that we effectively think the market got ahead of itself there in the russell has lagged this year to those very aggressive cuts that were priced in at the start of the year that have started to evaporate a little bit. we got a relatively dovish message from the fed this week but something we are nervous about how that continues and we think in a more normal rate environment, there is more challenges in terms of the balance should desk balance sheets there especially in terms of mid-caps.

katie: you do have a lot of lost leaders in the russell 2000. it feels like we haven't seen a really meaningful uptick in defaults or bankruptcies. not anything that would cause of panic. went to the higher rates really start to crunch some of these corporations? >> i don't think you have to get that bearish to think about the default side. if you move into a more normal environment and you have a corporate that has to refinance and has debt in particular those which are not turning a profit already, that becomes an incremental stress. it doesn't have to result in a crisis but when you look at earnings momentum, it strong and ai's a big part of that. you look at momentum in the smaller mid-caps and that's what it amounts to. katie: let's have a meditation on what higher rates mean for big tech. one of the narratives out there was that when you have higher rates, interest rates rising, yields rising, that would pressure big tech.

that hasn't happened. in some cases, it feels like a benefit. what is the relationship? >> it has deftly changed and it's interesting. on a technical level, if you look at the nasdaq relative to the russell and you look at those relative to rates, the correlation of russell related to nasdaq relative to rates is lower than it has been in the last 20 years or something has changed. wes changes the way the market is looking at the narrative. when the fed started hiking, people thought about from a test what about it just thought about it from a fundamental perspective. the fundamental backdrop is been so strong for tech that we see these earnings upgrades and hasn't had that much impact. the other impact of rates is a more direct fundamental impact if you are a corporate and those interest costs are rising, has a more direct fundamental element so it's a switch from valuation

to a kind of refinancing quality type story. katie: really interesting stuff there. we have to leave it there but i enjoyed this conversation. thanks so much for being with us. still ahead, we will look at the companies making the most social buzz today and that's our social climber segment up next. this is bloomberg. ♪

katie: it's time for social climbers, look at the stocks making waves on social media this morning. first up we have united airlines which is now letting people share their frequent flyer points with family and friends. the carrier will allow groups of up to five mileage plus members to share and redeem miles from a joint account. it's aphasia that's offered by some of the smaller carriers like jet loop and air canada.

talk about fast food on the fly, wendy's is delivering food by drone for the first time in virginia. as part of a collaboration between doordash and the alphabet food delivery company. wing drones fight -- like eligible items including burgers, fries at 65 miles per hour before gently dropping them off on a customer's front lawn. the pilot services said to expand to other u.s. cities before the end of the year. finally, the demand for the drugozempic is causing stress for the drugmaker. over 14% of workers reported stress symptoms last year, figure they say is too high. worklife balance is a vital part of the culture at novo with many employees going on vacation for the month of july. the gop druggist said to be making news after reports of its impact on fertility. some women reporting they get

pregnant unintentionally while taking weight loss medicines bit despite being on birth control. a lot to unpack there. you can follow the latest company buzz on your bloomberg terminal. coming up, we will speak with simon freakley, the ceo of alex partners. ♪

katie: it is day two of trading for reddit. shares for the social media darling surgeon the first day of trading, jumping nearly 50% above its ipo price. will the excitement entice more companies to tap the public market checkup joining us now to discuss his simon freakley, the ceo of alex partners. it's great to see you again. >> good to be here. katie: let's talk about the ipo market. you had reddit a andstero labs optics week -- out this week.

they seem to be important as temperature checks, that you have the ceos of other companies in the pipeline really seeing how they were received in terms of whether those companies then want to go public. i'm curious whether you view it that way and whether your clients are as well. >> 38 ipo's so far this year in the u.s. come up about 20% over last year is nothing like the volume of 2021. there is a lot of excitement about reddit and the 48% bump on the launch. generally, i think the excitement of the possibility of ipo's being back. the real story on reddit is not the 48% bump which is exciting but the fact that they've licensed their data to google. it's an interesting story because the redditors, the 70 trillion -- 73 million unique users per day are not happy about the fact that their data will be used to train googles

lot -- language model. it will be interesting to see what the licensing of data does to drive the commercial revenues of reddit but what it does to the sense the reddit community feel they are being watched and listened to as they trained these models. in the next few weeks, that will settle down to a narrative and we will see. katie: it seems the ftc shares though can -- those concerns on the part of reddit users. as we progress you have other companies try to tap into the same sort of ai craze and try to license their day to come it seems this is an issue that will become apparent for many other companies. >> i think that's absolutely true. half a line is trodden between the applications in use and value creation of this data against the civil liberties point. i see this every day as i have the privilege of sitting on a front row seat with their clients as they deal with their opportunities and challenges, the winners and generative ai

are going to be the people that have the best data, not the people who have the best large language models. the richness of this data will be what drives value. katie: it's fascinating because not everyone can make chips, not everyone can be nvidia but it's these data rich companies that will be the treasure trove's. when you speak to your clients, how are they weighing those concerns? they'd also don't want to get left behind when it comes to ai. >> how do they think about the value of their data? this is an asset that typically isn't on their balance sheet. they are waking up the fact that the this could possibly their most valuable asset and how they navigate between the regulatory requirements but also what the reaction is of their stakeholders as they understand their data is being used.i think it requires an acute focus by management teams to understand how to navigate that area the opportunity for

management teams is not the efficiency play which is talked about a lot in call centers, the real opportunity is in growth. how do you use the inside data to drive growth, that's where the winners will be. katie: i'm curious to hear in general terms how ceos are feeling about ai. i spoke to a panel of four economies yesterday and they were optimistic about ai from a productivity standpoint. if you talk to maybe some of the workers in the labor market, they wouldn't feel quite as optimistic what is the mood music in the c-suite when it comes to ai? is it a risk or opportunity? >> we do a survey every year of about 3200 ceos and major economies and one the questions we asked them is, what do they see as their biggest opportunity in which a they see as their biggest challenge? i thought their biggest challenge would be ai but in fact that was their number one opportunity.

there is general excitement about the possibility, the excitement of how to become more efficient also have to use these tools and their data to drive growth. sometimes joke that the disruption is the anxiety of ceos as they focus on these multiple opportunities and challenges but clearly, ai is at the center of their vision. katie: what was seen as the biggest challenge? >> interestingly enough, not just in the u.s. but globally, the biggest challenge was seen as the u.s. elections, the worry about what will happen to global security particular, disruption to supply chains, geopolitical issues as a result of the election and then a cascade of all the usual suspects. geopolitical issues is high on the agenda. let's talk about inflation. that feels it's on the minds of everyone. we had a fed meeting this week in addition to the reddit ipo. this is something we talked

about earlier in the program that you take a look at the long run dot was raised to 2.6%. it seems like we will enter into higher for longer. what does that mean for companies? how do they finance themselves but also refinancing costs. >> it's interesting about the inflation numbers. the fed is focused on trying to get it down to 2%. they've said rates will come down but not very soon. when you talk to commentator steve schwarzman about the cost of rents in the u.s. and rent make up about one third of the consumer price index which everybody stares at. he is the largest owner of rental properties in the u.s. and he says that already, the inflation rate for rent is somewhere between zero and 1% significantly lower than the cpi numbers are showing which he argues are six-month out of date.

in real terms, inflation is coming down. it serves the fed to use the published numbers and keep cautious for longer but rates will clearly come down. what does that mean for business leaders? the medium-term view is that rates will reduce and it makes them more confident about business conditions and refinancing costs. generally, it builds on the optimism we saw coming into this year. katie: does that imply that maybe we are not going to see the big wave of defaults as some predicted some -- as some predicted last year? >> i think so. it's pretty frightening but in truth, much of that will get pushed back and get extended. i don't think we will see the crisis some people were predicting last year. katie: i want to talk about the business of alix partners. on the consulting front, you compete with the likes of mckinsey and others. they are going through layoffs and talking about restructuring.

of those conversations happening at alex partners in this environment? >> we have very strong growth last year and so far this year. it's a choppy market out there and we are known for dealing with complex issues, urgent issues, big challenges as well as big opportunities. the phone is ringing so we haven't seen those conditions and we are pretty busy at the moment. katie: is great to see you again i appreciate your time on this friday. that assignment freakley of alex partners. let's get a broader check on the equity markets. abigail: we are looking at stocks kind of mixed on the david on the week it's the best week of the year. the s&p 500 is up 2.3% over the last five days having to do with the dovish tilt and the idea the fed is likely to cut three times this year. that's being seen as very supportive. on the day, small moves to the upside and downside.

to the downside, nike down 8.7 percent in the outlook disappointing as they compete with the likes of newer running sneaker companies. they are having a little problem with growth for the top line. lululemon at session lows, down 18%. the last time i looked, it was the last day since march of 2020. the sales outlook is leavened -- is 11-12 percent versus 18% last year having to do with foot traffic in the u.s. not being as strong. the bright spot is fedex, up 8.4%. they put of a mixed quarter but is that $5.5 billion -- or $5 million buyback investors like. for the s&p 500, you would think the index is truly breaking out. i don't know this -- i don't know that this chart suggests it's frosty but it suggest

investors will have to get frothy and get irrationally exuberant if they are going to take out resistance. you can see resistance and selling pressure holding like a glove even with the best week of the year. the rsi is rounding down a series of lower highs. the recent high we had yesterday and today is actually less momentum than we had last year which is bearish divergence. on other assets, if we look at the dollar yen, up 1.4% despite the doj historic move and some say they will probably not hike again this year so the dollar is stronger. the two year yield on that dovishness from the fed chair down about 13 basis points and finally bitcoin taking a breather at 7%. katie: the worst weekly performance for bitcoin of this year. thank you so much. coming up, former treasury secretary larry summers is criticizing the fed's itchy fingers on rate cuts.

that conversation is next. this is bloomberg. ♪ the all new godaddy airo helps you get your business online in minutes with the power of ai... ...with a perfect name, a great logo, and a beautiful website. just start with a domain, a few clicks, and you're in business. make now the future at godaddy.com/airo

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abigail: coming up, the managing director at morgan stanley investment management joins bloomberg tv at 3 p.m. new york time. this is bloomberg. ♪ ♪ katie: it's time for wall street week daily. we are reading into the fed's messaging on rate cuts. david westin spoke with former u.s. treasury secretary larry summers to get his thoughts. >> certainly there is been some encouraging dataflow during 2023. the last two months have not been quite as encouraging. it's great and right to hope for the best but hoping is not planning. certainly from that scenario

laying out the dot plots, i think there is more room for things to surprise on the bedside than surprise on the better side. we may have the path that's described there materialize and it's gotta be recognizes a very real possibility. my sense is still that the fed is itchy fingers to start cutting rates. i don't fully get it. we've got unemployment if anything low what they think is full capacity. we've got inflation clearly even in their forecast for the next two years above target, we've got gdp growth rising if anything faster than potential. we have financial conditions, a holistic measure of monetary policy at a very loose level. i don't know why we are in such a hurry to be talking about moving toward the accelerator.

david: we heard from chair powell that he thinks these conditions are restrictive now. even if we are not seeing a lot of restriction but that depends on where the neutral rate is. i still don't get a sense from the fed that they figured out where the neutral rate is and do they need to know that before they decide where they are going? >> they need to take a view because you don't know what's neutral, you don't know how expansionary or restrictive you are being. i find their view that the ultimate new full rate is 2.6% to be bizarre. in current circumstances. here's what we have relative to a few years ago when they said it was 2.5%. we've got fiscal policy in a much more expansionary place with much higher deficits, much larger role of debt which puts

pressure on credit markets. we've got a huge set of new private sector investments going on with respect to green investment and the ira, going on with respect to resilience and reducing dependence on single sources. we've got a potential huge source of demand for chips and for electricity coming out of the ai revolution. and we've got a huge wealth effect as markets for housing and stocks have run way up for the last few years. with all those impulses to demand, i cannot understand why someone would form the view that the neutral rate was essentially the same as they thought it was

four years ago. i think the neutral rate is far more likely to have a four handle on it now then it is to have a to handle. david: you have questions about antitrust enforcement policy by the biden administration. we do have a fascinating instance now in the real estate market being redone. what do you make about the realtors fees decision? >> i've been very critical of competition policy in the last few years. this is a huge win. the process of buying and selling houses in the united states is probably as egregious an example of special interest politics putting huge burdens on consumers as anything else we have.

breaking the realtor cartel is something that could have benefits that could be $100 billion or more over time to american households. i'm really glad to see this start. i hope we will build on it. in other countries, that commission number that is five or 6% in the united states is more like 2%. by the way, with all the tremendous progress we've made in digital technology, the whole need for the personalized service of realtors has substantially diminished. in addition to the international comparison, you have the capacity of digital technology.

as a matter of routine, you can now do something that's a pretty good tour of a house with a video or with 40 still photos of every room. that's got to reduce the need for realtor services. in the era of the electronic signature, the whole set of complex rituals associated with making offers on houses, associated with house closings, there is huge capacity to take costs out there. that is a place i think we can do a ton for americans. when you take the frictions out, here's the important thing, when you take the frictions out, it's win-win. katie: that was wall street

post-david westin talking to larry summers. tonight, we will hear from barclays global head of technology investment banking. that's at 6 p.m. eastern time. this is bloomberg. ♪

♪ katie: it's my favorite part of the week because it's time for etf friday. we are looking at etf derivatives. i am thrilled to say we have eric balchunas, bloomberg intelligence senior etf analyst. let's talk about etf launches. january was insane, february a little more muted but still pretty brisk i would say. talk me through what we are seeing. >> the bitcoin etf got all the attention but there's only nine of them.

then you've got 93 total. we forget that there is a lot of product coming to market that's obviously part of the reason is there is so many assets and flows coming in so all kinds of people are launching all kinds of stuff. some things we are noticing is we are still seeing actively manage c.t.s. and the use of derivatives to sculpt outcomes and create trading tool prepackaged trades. kweb a big hit from five years ago and now there is kbbuf which isf options to buffer the downturn possibility. i don't totally get because i think you want the volatility with the internet. they see a market for it. magx is an etf of the 2x the mag seven stocks. it gives you the seven

magnificent seven stocks in one shot. people on those stops take oblate -- those stocks typically and i just saw a filing for 1.5x etf which is saying that let's take this serene jeppi and add some leverage to it. there is a lot of experimentation and design to come up with the perfect mix and try to solve problems in the market and that's what we see with the new launches. katie: tell me who are these for because we are getting a bunch of frankenstein leveraged etf's. who is actually buying these and treating them? >> i think everybody has a 10 or 15% bucket for what i call hot sauce are trading tools. they want to feel a little adrenaline want to speculate on a lot of these products are for that area. you can charge a lot there. some of these leveraged products

over -- r 1% free -- are a 1% fee. something like a jeppi could be for boomers or want more zip because they lag the market last year. i would say advisors but most of the trading crowd. katie: have a great weekend. that's great stuff. you can catch me, eric and scarlet fu every monday on etf iq at 12:00 p.m. eastern. before we go, let's take a quick look at the stocks hitting highs. fedex is hitting a 52-week high after announcing plans to buy back $5 billion of its shares and it beat on third-quarter profit estimates. you take a look at the energy names, they were higher and now they are not. starting with marathon, its price target was raised with shares down slightly as well as diamondback energy. the stock outlook was raised on

that stock but we are well below that. coming up, the bitcoin ceo joins caroline hyde and ed ludlow. have a great weekend, this is bloomberg. ♪ ♪♪ hello, mia. are you ready to meet your demise? man, we really need to upgrade your trash talk. ♪♪ nice shot... shot... taker. who programmed you?! i'll see you tomorrow. the future isn't scary, not investing in it is. 100 innovative companies, one etf. before investing, carefully read and consider fund investment objectives, risks, charges expenses and more in prospectus at invesco.com.

her uncle's unhappy. inv i'm sensing anves, risunderlying issue.ses it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for.

announcer: from the heart of where innovation, money, and power collide in silicon valley and beyond, this is "bloomberg technology," with caroline hyde and ed ludlow. caroline: i'm caroline hyde at bloomberg's headquarters in new york. ed: and i'm ed ludlow in san francisco. this is "bloomberg technology." caroline: we will discuss the regulatory over ted