>> clear 30 minutes into the u.s. trading day on this thursday. here are the top stories we are following. the s&p 500 hits an air pocket. we will look at what the next catalyst to be spc data looms large tomorrow morning. taking stock of retail earnings. foot locker and kohl's out with earnings this morning. we will break down the action but also what it says about the state of the consumer.

the summer movie season off to a rocky start. what does the rest of the year hold? rich gelfon joins in just a bit. ♪ i'm katie greifeld in new york and welcome to bloomberg markets. you look at the markets and like i said a little bit of an air pocket. s&p 500 off by about .3%. really building on the losses we saw yesterday. the same thing when you look at the nasdaq 100. currently lower by about .3% as well. getting a little bit of relief from the bond market. ten-year treasury yield or by abou four poi -- by about four or five basis points. we got some good data in the form of gdp but we are elevated

comparative where we had been on the treasury yield. let's get straight to the retailers reporting today. best buy to alto beauty. we will hear from a number of consumer names. kohl's down sharply after reporting a profit and revenue miss. dollar general posts of bs bargain hunters really drive sales. let's bring it together with john edwards. i want to start with foot locker. holy moly is foot locker surging right now. what went right? john: it is more with did not go quite as wrong as people were expecting. same-store sales were still down but only 120%. that was -- 1.8%. that was better than analysts were expecting. it gives indications that the turnaround effort is starting to take hold. it is not really so much that the results are fantastic just yet. there is more hope for the future and turning around what had been some really terrible

results in the past quarters. katie: markets are forward-looking animals in the turnaround story is always exciting. let's talk about kohl's. down 26% today. i would thought kohl's would benefit from the tray down we have seen. john: that is what makes you think it very well could be a merchandising problem here. it looks like kohl's is not selling what people want to buy. they had been doing a discount. they said they are discounting -- there discounting was an area that did not really help them in the past quarter. they actually did a little better at their full price sales than they did with things that were on clearance. they continue to cite their partnership with sephora, the cosmetic giant. that is bringing a lot of people into the sephora locations in kohl's stores but not the actual

kohl's aisles and buying anything. katie: we have a few stragglers. we are at the tail end of retail earnings. when you added together it feels like we have seen a lot of have and have-nots. what is the common thread running through this season? john: it's about the picking this of the consumer that picking us of the consumer. people are look -- pickiness of the consumer. they are being selective. they are looking for things that are still really going to appeal to them even as they look for the lower prices. that is what you see the have and have-nots as some people are managing to get the merchandise mix better than others. katie: always appreciate your time. really great to talk to you. that is bloomberg's john edwards. let's keep the conversation going with ellen hazen. fl putnam manages $6.5 billion.

when you look at what we heard specifically from the retail names it is a story of a weakening or still resilient but definitely more choosy consumer. you wrap that into the broader equity market, does that give you any pause? ellen: thanks katie. as we look at the rest of the year we think there is some danger the consumer may weaken. he sought in the gdp revision numbers from today when he saw the q1 gdp revised down a few tens of a percent. that was due to lower consumer spending. you are seeing more differentiation in the retail names that have recorded -- reported recently. you have seen weakness in the job market. it is not weak but it is weaker than it was. the job market had been so strong for the last 12, 18 months. it's beginning to soften a little bit at the margins. i think you will see more

differentiation amongst the consumer names. you will see a little bit weaker consumer numbers generally as we go forward this year. that does not mean the market is lost. it does not mean the economy is going down. you just need to be a little more selective. katie: that's a good point. we are seeing so much dispersion within sectors. foot locker and kohl's are a example this morning. i really haven't have-nots situation here. i thought this line was interesting. the underlying strength of the economy still seems to be underestimated which leaves room for much of the market to do some catching up. i feel like whether you call it a catch up or a broadening out, people have been trying and trying to play that trade. it has not really stuck. i would like to hear from your vantage point, when we finally going to see a sustainable broadening out of this very narrow rally? ellen: broadening out can mean a lot of different things. let's try to drill down into that a little bit.

i think what we will see in terms of broadening out is within the s&p 500 we will see broadening up beyond the magnificent seven. that has not happened yet. if you look over the last year and a half, every time the market has broadened out in one month it has reversed the following month. it has not been sustainable yet. this year the magnificent seven on average are up 28%. the s&p is up 10% to 11%. you are seeing the dispersion. i think if you look within the s&p 500 you will see broadening out beyond those seven names and other areas. -- into other areas. the biggest reason is if you look at earnings growth projections by sector for q2, q3 and q4, in q1 the highest growth in earnings for the sectors was in communications and tack. no surprise -- tech. those of the stocks that did best. if you look at the rejections

for the next three quarters you see a broadening health to health care, industrials and other areas. i think you will see broadening out within the s&p because of the growth differential. but i don't think you are going to see broadening out beyond the s&p to the small-cap sectors. this has been talked about even earlier today on your programs. small caps have higher debt. they have more floating-rate debt. they are more disadvantaged. statistically they don't tend to outperform an elite cycle economic moment. i think we will see broadening out within the s&p away from just the tech names towards other names and the other sectors that have higher earnings growth. i don't think you will see it brought out the small-cap stocks. katie: i appreciate the drill down. i want to talk about what catching up means. to catching up we could see within the market. maybe we are torturing the english language here but when you talk about a catch-up, is that the under loved areas of

the market really rallying and beating tax and other -- tech and other leaders of the rally? d.c. te -- do you see tech and their peers falling from here? ellen: it's more likely to be the former than the latter. the rest of the economy is in fine shape. earnings are decent and valuations are decent. they can catch up in the sense of those stocks giving better than they have done. some names will underperform. you saw that this morning with salesforce. i'm sure there will be others. i don't think that tech needs to crash in order for the rest of the market to catch up. i think tech can tread water for a while. you look at nvidia, the valuation is not that high for with the growth has been and is projected to be. you can say the same about a lot of tech names. you might have to be more careful but i don't think you're

going to see the largest names collapse. i think there is room for a much more reasonably valued name to appreciate as we see the earnings growth come through. katie: it certainly feels like we are treading water, at least when it comes to this week. i want to talk about some of the specific names you like here. booking holdings is on your list and that caught my eye. from what we heard from american slashing expectations, the ceo said they misjudged travel demand. 20 think about the rest of the industry does that demand misjudgment we saw on the part of this airline could spell trouble for some of the other names? ellen: it is not just american that had trouble in the travel area. you had expedia with trouble in the travel area. looking is executing well. -- booking is exiting well. there is strong demand for travel and you were a lot of the numbers.

i think american was somewhat idiosyncratic. if you look at some of the management actions taken more recently, it does appear as though they misjudged demand more than demand weekend -- weakend. pricing strategies did not go over well with their consumer base, their corporate consumer base. that might be somewhat of an american problem. you see that looking continues to -- booking continues to do well. as we look forward the meta-capacity being added in the airline space is becoming more constrained. that will be good for pricing. booking paying just over 20 times is a really attractive alternative. again, look what happened to expedia. you need to be very discerning with respect what names you want to own. katie: it goes back to execution. that is something i have heard time and time again this earnings season. always great to speak with you. really appreciate your time. that is ellen hazen.

let's look at what's moving underneath these markets right now. talk about salesforce. >> rbc said it was a rough quarter which you never what the here when you're running a public company. the stock is falling in the biggest drop since 2008 and it's all about this week sales growth forecast. the company said revenue will rise as much as 8% to $9.25 billion. it marked the first time the company is reporting single-digit growth in sales. they are usually in the double-digit number. this was a big shock not only -- shock. morgan stanley said this weak first quarter will test investor patience as they are not just buying tech but hardware names, pivoting away from the software

name. vital knowledge said this is the latest in a long string of underwhelming software reports. katie: if you're looking for double digits, you see it in the shares today, off by about 20% or so. . painful. let's talk about moderna and the bird flu vaccine. emily: the bird flu has been infecting dairy cows and chickens all over the u.s. there has been an outbreak just a few days ago in iowa with the worst outbreak in bird flu in over two years. moderna is making a vaccine for humans, not cows and chickens. earlier this morning the u.s. government -- there was a report that the government is nearing an agreement to fund their mrna bird flu vaccine. to could come as early as next month. could total tens of millions of dollars. the stock was up in the premarket. now it is pairing those gains. you look at what is done in the last month, up something like 25% last week. some of these losses this morning could maybe be investors

taking profits. katie: it will be fascinating to see how this develops. it would be a boon for modernity diversify their pipeline. we will continue to watch that one. what's going on with palantir? emily: they won a 480 million dollar contract in the u.s. army for work on an ai computer vision project known as the maven smart system. the contract is there may of 2029. it marks a change in palantir's strategy. the company had really been pivoting towards contracts with companies. their original message and kind of original plan was to work with governments. this is a move back to that. mandeep singh saying given the reliance on large contracts this will improve revenue, visibility and could drive more referral deals in the commercial segment. katie: want to watch.

emily graffeo, thank you for the roundup. coming up on the show, pc giant dell set the report after the bell. walter todd joins us to look at what is to come. this is bloomberg. ♪

katie: dell is emerging as one of the biggest winners of the ai boom. shares are acting like market leader nvidia recently. expectations very high for dell is the pc maker reports first-quarter results after the bell today. for a look at what to expect i'm pleased to say we are joined by walter todd, president and cio of greenwood capital that owns a

little under 2% of dell shares. let's talk about it. it is year-to-date, 130% higher so far in 2024. is what we are going to here today enough to justify that? walter: that is the right question to ask here. i think the fundamental picture -- i expect earnings to be raised following this report this afternoon. i think given the move we have seen not just here today but over the past 12 months, up over 200%, not technically in the magnificent seven but probably should be. i think it's at risk for a pullback and we trimmed a little bit of holdings yesterday in anticipation of potentially having a better opportunity. in might pullback to the breakout level at the $140 to $150 level. the bar is very high. katie: interesting. it feels like that has been the

case for a lot of tech giants. it's kind of a possible to meet some of the bars that have been set. it sounds like if there were to be a post earnings dip, that is something you would lean into a little bit here. walter: absolutely. dell is well-positioned on multiple fronts. they are benefiting in the near term from the server build out, the data centers and exposure and the close relationship between michael dell and jen-hsun huang. it is certainly benefiting the company. the other reason is the upcoming pc refresh we see happening in terms of not only replacing the three to four-year-old computers of the pandemic search but also the transition to ai pc's. we think it will be a significant driver for pc growth. that's a big part of their business. they are focused on the ai opportunity and we understand that. if we were to see a pullback, a decent pullback we would likely add back to the stock. katie: great point that rbc ai servers and data centers is all very exciting.

you look at the pc market and its half of dell's revenue. it's been in a rut the last couple of years. it sounds like you're seeing green shoots. walter: we heard from hp last night that gave us a little bit of a window into that. they are seeing a bit of a turn. the profitability is definitely more on the data center side than the pc's. that's a late 2024-20 when he five dynamic that will bolster the earnings of dell. you are seeing a dramatic revision in the last 12 months. given what the move has been the multiple has expanded from low teens to low 20's. not that extensive relative to tech peers but a jump from where dell has historically traded. katie: you think about a company like dell. the fundamentals totally solid from that perspective. the shares just looking a little

expensive. i'm curious if the same logic applies to a stock such as nvidia which has been hitting all-time highs recently. it is the poster child for ai. it has definitely gotten more pricey. walter: nvidia, if you don't own it which we don't right now, it's been a struggle to compete with the s&p without nvidia. we look at the valuation. a lot of people focus on the pe relative to growth. you're talking about a $2.8 trillion market cap. it is 70% larger than the entire energy sector of the s&p. the extrapolation of growth going on in out years seems a little optimistic given the ultimate cyclicality of the business over time. that when we would not be stepping into. it's a tremendous winner. the only winner of the past 10 days in the s&p and over the

past year as well. katie: you have to imagine that's a little painful to watch but i appreciate your point. we are talking about summer lee bananas numbers here. -- some really bananas numbers. you talk about leadership. it's only been nvidia. what does that mean for the health of the rest of this market and the catch-up trade, the broadening out, whatever you want to call it but it never seems to come? walter: i listened to the discussion with ellen. the combination of tech catching down, it's a combination of the two. you don't have to see tech collapse but if it stops going up at the rate it's going up and allow some of these other areas of the market to catch up we think that would be helpful. the other dynamic is rates you talked about the earnings progression in an earlier segment for the rest of the year versus tech versus the rest of

the market. small caps are dependent on rates. if we can saw them come down like we saw in early may, another moving backup, the small caps and the rest of the market are struggling. to the extent the fed can ease rates, that would be of benefit to go down the cap scale on company's more dependent on. katie: catch down. that was the phrase in looking for. walter, always great to speak with you. i really appreciate your time as we count down to the dell earnings. that is walter todd of greenwood capital. we will look at the companies making the most social bus today and our social climbers segment up next. this is bloomberg. ♪ ♪

to start a business, you need an idea. it's a pillow with a speaker in it! that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly... is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow!

katie: it is time for social

climbers, a look at the stocks making waves on social media. birkenstock reporting earnings a step above expectations. the maker of high-end sandals and clogs has higher demand. tesla making the rounds after a report the maker's are -- ev maker is about to register self-driving software with authorities in china. tesla is not commenting. you will soon be able to order take directly on amazon's website. they are spending their partnership with the food delivery service grubhub. members will get a free grubhub subscription. the move intended to sweeten the perks of amazon prime as competition and loyalty programs heat up. you can follow the latest company buzz on tren go on the bloomberg terminal. the s&p 500 still lower to the teen of about .3%. for the week we are down about 1%.

we have pce data coming in hot tomorrow morning. that could change the narrative. right now certainly a down week in the markets. coming up, a bunch of box office busts. we look behind the curtains with richard gelfon, the ceo of imax. that is coming up next. this is bloomberg. ♪ ld. but... taking the gains is smart here, right? feel more confident with stock ratings from j.p. morgan analysts in the chase app. when you've got a decision to make... the answer is j.p. morgan wealth management.

katie: well, the mad max and garfield movies setting a memorial day record for all the wrong reasons. this weekend's boxx office numbers with the worst in three decades as the movie industry tries to regain its footing in the post-covid economy. abigail doolittle joints me now with more. abigail: we will take a look at those numbers in a moment, but first let's take a look at

entertainment stocks on the year. i max, healthy. cinemark, also higher. to the downside, amc. if we dig deeper into imax, tons of theaters out there. so much for the death of the theater. they are on right now at nearly 1800. we can see that if we take it back to 2017 it's a tremendous amount of growth for imax. an impressive number of theaters for the company. as for that memorial day weekend , it's not impressive for sure. hollywood grossing just 132 million, down from 203 million in 2023, about the same amount in 2023 -- 2022 going back to the boxx office. take a look at the numbers going back to the last decade, work to

be done in terms of those big blockbusters that grab folks into the theater. there was a lot of beautiful weather here in new york, though, katie. katie: that's really true. appreciate that set up. for more on the future of the movie business, we are joined by richard, ceo of imax. good to see you in person. richard: it's been a while. katie: it has been. things have changed in the last couple of years. let's dive into the boxx office, i was reading that we were down but then when you look at the was recent imax earnings report, you beat expectations, shares on par with the s&p 500 this year. i'm curious how you disconnect imax from the general health of the boxx office. richard: the simple answer is that our earnings are not really levered to box office. the north american exhibitors,

we are not north american or an exhibitor. we are global. two thirds of our revenue are from outside the united states. the business model is licensing the technology. we don't sell popcorn. we have very little to do with the kind of model that exhibitors are. looking at our sources of content come from foreign language films. look at last year and it was about equal to our best year ever, 2019 where exhibitors were 20% off that. even our percentage of the boxx office, memorial day, we did 20% of the boxx office for

"furisoa," and i heard of this morning that you have to say something 16 times before anyone pays attention. we are not an exhibitor. our model is just very different. post-pandemic there has been a push to premium. premium sporting events or concerts. imax is the best way to experience things. the people who did go to "furios a," they wanted to see it in imax disproportionately. it's a pivot moment. people have forgotten about the actor strike and writer strike last year. compared to memorial day, you need to put the asterisk back this year, 25 to 26, it will be dramatically different. katie: let's start with that

point that you made 17 times, you might have to make it 18 times. my next question is that there have been estimates that there might not be a blockbuster that surpasses our billion-dollar's this summer. i hear what you say about the business and how it functions, but does that impact you, what would it look like if we had a dud of a summer? richard: you have big movies coming out like "despicable me 4," "deadpool vs. wolverine," even "bad boys," coming out next weekend, so i don't think that's right. if you are an exhibitor, you will have multiple screens. you need to have those kind of breakout hits to work. i next -- imax, single screen

company, our last seven movies in a row have done double-digit indexing. that means that less than 1% of the screens. it is just a different business proposition. it's like impairing us to a company that shoots rockets to mars. it's not the same kind of thing. when you look at 25, for example, the slate is ridiculous and i will go out on a limb and say not only for imax, but i think the industry is going to see 2000 19 or better numbers. just stacked up like airplanes waiting to land. there just hasn't been anything resembling normal coming out of the pandemic, going into the strikes. i think we are finally getting to that now. katie: the 2025 slate, that is even with the lagged impact of the writer strike from last summer? richard: no i think enough time has gone by for that will be over by then. one of the points i should make is that one of the great things

that has gone on in imax special filmmakers like chris nolan or villeneuve have shot using imax cameras. on those movies we really index. people really come out. between next may and next september there are eight movies in a row that are shot using imax cameras. they include things like "top gun," formula one, two marble movies, "superman." we are getting back to normal for the exhibition industry and for imax it should be like pre-pandemic. katie: you did make a point that it was not just north america, you are exposed internationally as well. i'm curious to hear how china is faring from your perspective. richard: china, this will surprise a lot of your audience, last year china was 85% of the pre-pandemic high.

do you think that would surprise people hearing about the chinese economy and how various sectors are not doing well? the movie sector did very well last year area in terms of this year i think it will be back. the chinese new year had a more eclectic mix then in other years. it did ok, i think it was the third-best one, but this summer there are a lot of really good movies coming out. one of the biggest they have had. there is a sequel, a new jackie chan movie coming out. again, i think that you will see that manifest itself later in the year. katie: you mentioned the big name filmmakers shooting on imax cameras with a lot of demand from hollywood. i'm curious if big tech is calling. apple, netflix? richard: amazon is a great starting point. we made a documentary called "blue angels," we made it with

that robot, jj abrams, glenn powell, we sold that to amazon. we launched it in imax theaters and it became the number one documentary of the year on only 200 imax theaters, limited run. it opened this last weekend on amazon streaming and was the number one movie of any kind on amazon streaming. i'm not just talking documentaries, i'm talking any movie. that's an example of how we are working and leveraging with the streamers. also, the "real one" movie i just mentioned -- formula one" movie i just mentioned, it has a lot of potential and is an apple movie. they struck a deal before they even announced a distributor. it's a good quadrant for us. especially imax, they really romanticized the movie chain. streamers recognize that, having

theatrical release on imax enhances the streaming effect. katie: let's not wait two years to have you back. really enjoyed this. thank you for richard. getting a check on the hour -- getting a check on the markets one hour into the trading day with abigail. abigail: socks down not just one day, but two days in a row. the nasdaq was down more, .7%. take a look at the dow, down 1% yesterday, most numbers are higher. we usually don't look at the index, but it stands out, this weakness, and this is why. year to date can see the dow tracking with the s&p 500 and nasdaq 100 higher. down into april higher, the dow hit 40,000 briefly, not even on a closing basis. take a look at the divergence

back down, losing 2000 points in a couple of weeks. today the weakness has to do with big tech. salesforce.com, we will look at that in a moment. along with microsoft, ibm, most numbers are higher. big tech is waiting down the dow today. as for the bright spot before look at salesforce, let's look at this mixed picture with a lot of bright spots. down a record amount the most since 1992, across-the-board they cut the outlook and clearance, this is interesting, we're hearing reports of folks going bargain shopping. clearance items that they simply did sell. american eagle, down. the brand underperformed. some analysts saying the quarter , it will be interesting to see what it does by the end of the day. birkenstock, up 8.4%.

short interest there, and finally, take it back to salesforce. on the day, 19%, worst since 2008. the outlook for the current quarter, not as good on a profit basis. they could wonder, is this a sign of economic weakness? we don't know, but it is worth watching, especially because they have laid off so many people and trimmed the costs, get the profits from the quarter are expected to be the slowest growth on history. katie: yeah, all about the outlook. you are seeing that in salesforce shares. coming up, glen august joins us to talk about the coming trouble

in private credit. this is bloomberg. ♪

abigail: you are looking at a live shot of the principal room. coming up, k ppg's chief economist joins us. this is bloomberg. katie: all right, time for the daily wall street week conversation. david westin spoke with glenn august, oak hill advisor founder and ceo, about the opportunities and challenges in today's market. glenn: there is the macro, there is the micro, then there are the risks out there. from the macro standpoint, what is clear is that the broader economy, corporate's, have been able to weather this meaningful

increase. as i said earlier, the fed decided not to cut rates so far this year, because inflation is real and you heard kashkari this week and others say we've got to see more data. it speaks to the resilience of the economy today. my own personal view is that what we are benefiting from still today is the stimulus of a couple of years ago. that stimulus is working its way through the system. we are also still working through post-covid. again, certainly at this point years ago, four years ago, this spring, but behaviors have changed, consumption has changed . the real question is when do the effects of stimulus and changes to consumption change? my sense is that there is a reasonable chance that we start to see some modest slowdown in

2025. obviously, it's a big political year. we will see what happens with fiscal policy. i think that for the near term we see a decently solid economy. where we see weaknesses on the low end of the consumer side. that's it. a little bit of delinquency picking up, so when we look at our portfolio -- again, we are credit investors, not equity investors, though our philosophy is to buy the company. that's our mentality, owning companies. but with the amount of cushion that we have, i think that we can whether some softening. going back to 2008 to 2009, we were able to grow, low growth and low inflation for a long time. the real question is will some of this wage inflation, where

will the post-covid mentality be? it's a delicate balancing act, from the macro standpoint. david: during the great financial crisis, to get us out of that, stimulus, and we have had a series of raisi, but how much of it is psychological? people in the markets assuming that daddy is going to bail us out no matter what happens? glenn: i don't know if it is daddy bailing us out. look at the covid distress cycle, it was about two weeks. so, it wasn't even six months. i think there is -- if you look at the breadth of the market, clearly nasdaq or anything that has ai has exploded. one of my partners at our recent annual meeting said that if reddit people are talking about ai, you know it's real.

but there is definitely a sense that we are in the earlier stages of extraordinary growth with ai. there could be ripple so that they could hurt employment. certainly, there's lots of commentary on what it could do longer term. maybe that will be interesting impacts to slowing down inflation at that point in time. so, i don't -- look, i look at equities and today, certainly the trajectory has surprised me, especially given where rates are , but the growth trajectory and the foam that is in the equity markets, in credit, i think that spreads have come in some. as i commented earlier, when you adjust for the quality change, it's actually reasonable. that opportunity to leverage a multibillion dollar company at a

40 to 50% loan-to-value, it feels good to me still. even though spreads have come in at 100 basis points. david: we rely on prices as individuals and as a society by the way, ceos use it for that as well. is there a danger in undermining the reliability of prices when the government plays into the game in the way that it has? glenn: the government has always played the game. i do think that part of the reason why m&a deal activity is down 40% from a couple of years ago is because rates are higher. i mean, the price of money and how one thinks about discounting future cash flows is fundamental. yes, the government plays a role in setting the short-term rate. the market plays the role in setting the medium and longer-term rates. so, i'm a big believer in the

markets. yet there are obviously edible inefficiencies. -- incredible inefficiencies. katie: that was glenn august. joining me now, david westin. great conversation. like glenn said, he's a credited investor. it's an interesting and timely time, given jamie dimon saying that there will be hell to pay in private credit. david: we asked him about that question and he said -- he was careful to say, listen to jamie dimon, it's always interesting, but he pointed out that jamie dimon is moving into private credit, but also that he has a point, so many are rushing in, it may cause some people come he's not one of them, to be reckless in underwriting. katie: you have to wonder if there are enough deployment opportunities out there. it's interesting, you think about the parish rallying cries around private credit, a lot of

that has to do with the massive refinancing ball that we keep hearing about, but we haven't really seen it yet. david: we talked about that. six months ago he said it was coming and it was around the corner. i asked why it hasn't happened. he said in part because of growth. he also said because some of the borrowing costs have come down, there haven't been so many m&a deals or demand for the credit with so much crashing into private credit, there is more supply than demand at the moment. katie: an interesting juncture. who else is coming up? david: neil ferguson of the hoover institution, very different things, he calls it cold war two with china and how the united states is conducting it. the other big issue is demographics and whether we will run out of people on the planet, believe it or not. neil is concerned we will go the other way.

that is coming up tomorrow on wall street week. katie: thanks to david westin. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh

what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

katie: all right, let's take a quick look at some stocks hitting highs this morning read hp hitting a 52 week high after second-quarter revenue beat estimates. hikes from city as analysts looked for increased growth in the pc business. hitting highs after upgrading to overweight at j.p. morgan, helping to spur a 2.3% rally today. good enough for a 52-week high. also higher as analysts look for the discount retailer to report third-quarter results. cosco shares are up over the past year.

taking a look at the market right now, 90 minutes or so into the u.s. trading day, it is soggy and getting worse. the s&p 500 is currently lower by half of 1%. even worse on the nasdaq 100. coming up, tom seybold joins bluebird technology with caroline hyde, coming up next. that does it for "bloomberg markets." i'm katie greifeld and this is bloomberg. ♪ but. is smart here, right? feel more confident with stock ratings from j.p. morgan analysts in the chase app. when you've got a decision to make... the answer is j.p. morgan wealth management.

>> from the heart of where innovation, power, and money collide, silicon valley and beyond, this is "bloomberg technology," with caroline hyde and ed ludlow. caroline: i'm caroline hyde. ed ludlow is on as