you are looking at stocks at another record high. not just the s&p right now, but also the doubt. a record high for both indices. the nasdaq is higher for the third time in four sessions at its highest levels and's the end of april. another record high for the s&p and the doubt. the dollar also had its best day in over a month. and you definitely have the bond selloff that we had been talking so much about. the treasuries that bring the biggest selloffs really jumped higher. i'm joined by bloomberg's joeets managing editor weisenthal. i know you hate the record thing but we saw another close for the dow. joe: i don't hit records. i love them. alix: you make fun of me. that's why i say it. r.o.i. con noting that they

wanted to put more buybacks into the company. noting that they wanted to put more buybacks into the company. an open letter to tim cook. it was pretty amusing. he talked about how great apple could do in cars. is a great investor. nobody can argue with his track record. he would not be the first person i would listen to in assessing a company's position in new technology. alix: did not mention the phones. mentioned the cars. also m&a, a potential acquisition by intel. the purchase of pharmaceuticals for $8 billion -- that is not nothing. joe: especially on the pharma side. side. we just keep seeing it over and

over. alix: retail also. joe: the parent company of ann taylor was bought out. but people don't think this is some sign of, like, incredible optimism in retail. people see this as cost-cutting. we are looking for some signs of life in retail. that the consumer will come roaring back. alix: let's see about the roaring because urban outfitters are releasing numbers at the breaking news desk. julie: another not so good sign for retail. --have seen all of it except all of it miss except for nordstrom. five cents short of estimates. million.ing in at $739 $757 million the average analyst estimate. the sales is really the important part of these retailers. comparable sales up 4%. they looked for a gain of 5.3%. the shares are taking a dive on

this news. i am looking at the breakdown of the brand. it has been the strongest brand, probably. that and anthropology have been very strong. up 17%. up 1%.ology sales urban outfitters comps up 5%. talk because of the west coast port shutdown that some of the home goods that come into anthropology might have been delayed. we will look for more commentary on that. the u.s. consumer is either not spending or spending on different stuff. we are still trying to put that picture together. alix: look at that. joe: getting crushed alix. was talking about why retailers have not done well considering oil prices have

fallen. you have a stronger dollar. tourists coming in and not buying as much as they used to. it you had the weather. port strikes. higher taxes. maybe it doesn't turn around. another thing with urban outfitters, their stories of if they are on trend or cool at the moment -- they famously had long stretches where they are totally off of everything. you never know. it could be part of the story. the on the macro story. alix: it could be the company's specific issues. walmart and -- joe: walmart tends to be associated with low-end consumers but it will likely give us a lot more macroeconomic insight than urban outfitters. see if itwe will benefited from the port strikes because they got the juicy goods that were delayed to other retailers. let me tell you something else

that caught my eye today. a goldman sachs note about oil. about 50.ll see wti they need lower oil prices to make money. m&a, eog, pioneer. the shells, mother frackers, they will be the m&a take out. interesting fort will be goldman because they had their equity guys make this long-term call about oil prices. we are now in a permanently lower era of prices. by the end of the decade, they are looking at $50 in oil. you have to be skeptical of any call looking at 2020. because who really knows? normal,g in this new is a permanent thing.

it will not be a bounce back. is a permanent thing. alix: the amount of days it takes when you start drilling to total depth is about 10 days. it used to be 12 days. those days make a difference. joe: the speed at which these producers cut on costs is amazing. the bank of america note of how the market is stuck in the twilight zone. i love any time they do a term like this because i suspect they are sort of looking for headlines and people are right about it. they are stuck in this space between not getting any more juice out of qe. the economy doesn't look that great. it is kind of a lose lose situation for stocks.

of a lose lose situation for stocks. maybe the economy turns and pick things up again. spotlighting interesting things. they say investors are optimistic but there are really high levels on the sidelines. there were record highs on the stocks like we saw today. equity funds have been seeing outflows for a while. alix: $100 billion in outflows. a fascinating divergence. joe: sort of a weird twilight zone point in the markets. alix: more earnings coming out. it julie hyman is looking at those. the makers of grand theft auto video game did well last quarter but the forecast is a different story. earnings came in ahead of estimates, $.49 a share, earnings-per-share that is. that is up from $.21 a year earlier. in the $.28 average analyst estimate. take two is coming out with a both in for the year terms of its earnings and in terms of its sales for the year looking for revenue.

anticipatingbeen $1.5 billion. been looking for about $1.23. the shares were altered -- halted in anticipation. one would expect them to fall when they do open back up. people look at that forecast and hopefully we get more details on what is behind it. they are not giving a lot of details in the statement today. we will follow what stocks reopen out there. are all things bad? are they all doom and gloom? copper might be saying something else. we hear that dr. copper measures the health of the economy and that is correlation to global growth. barclays had a great show today about dr. copper along with other people saying this is where we need to be focusing our attention. it is becoming really important. if prices could sustain a rally

from these levels, it could be a sign of continued global demand. and what we've seen in the past few months in terms of weaker manufacturing is actually transient. joe: copper had this reputation of dr. copper, like it had a phd in economics. when i heard it, i thought it was the coolest thing. the oracle of the economy. it's been discredited in recent years. but it would be interesting to see if we do get a global pickup and copper comes back. alix: part of that is china. how much it is buying and driving growth. the math may be telling us something different. consider the late nobel prize-winning economist james tobin's q ratio. equities are valued above 10% above the cost of replacing their underlying asset. it is higher than any other time than the internet bubble. some say it is choosing buybacks over capital spending.

carl icahn calling for a bigger buyback. what gives? we want to bring in stephen parker, head of multi-asset strategies a jpmorgan. how are you? stephen: good to be here. alix: do you agree with the tobin q ratio? stephen: i do not think we are that overvalued. i think stocks are a little bit over fair value but that is not saying that they are expensive. wes important to recognize have not overshot. we are at the normal context of history. when you look relative to other things you can invest in, the stocks look pretty interesting. you have to be a little bit more choosy about where you are investing. cyclicals in the u.s.. we do not think that stocks are overvalued. we need to see earnings come through.

stocks at this point we think will be driven more by earnings growth rather than any sort of multiple expansion where the valuation story comes into play. are waiting to see where take to comes in. thanks for coming by. coming up, more with jpmorgan. it is just after the break. it will talk about european stocks and the u.s. when we come back. ♪

back to thee bloomberg market day. federal regulators are turning

up the heat on the u.s. unit. the national highway traffic safety administration is requesting more documents pertaining to how the automaker 's handling the recall of millions of vehicles. also scheduling a rare public hearing. they have been frustrated by the pace of the company recall as well as the efforts to reach effective consumers. he agreed to sell his company after a few months as ceo. john cahill is entitled to $19.9 million golden parachute. agreed to be bought by another food company, heinz. if he leaves because of a salary cut or reduction in his duties. the former ceo of barclays america is going back to his roots. he quit last year and will go back to how he started, as an energy banker. he formed intrepid financial partners. he has a track record that includes some of the industries

biggest deals ever. and a major deal today and the drug sector. pharmaceutical holdings including debt to transaction invite a just over $8 billion and a takeover to strengthen its business in generics. rose today by reports of a talk of a possible buyout by intel resuming. the new york post citing sources makesll tara -- altera semiconductors. they said no when intel offered $54 a share. intel is the world's largest chipmaker and is looking to expand beyond the struggling personal computer market. those are your top stories. the bond selloff continues and has divided wall street. some analysts are saying the worst is over. what is it? stephen parker,

head of asset strategies a jpmorgan. had upon last week, resuming this week. what camp are you on? overshotrates may have a little bit over the near-term but the direction over the next six to 12 months are higher at a gradual pace. we think that's a good thing. it's indicative of markets accepting the fact that we are getting back to a more normal growth environment after the weak start of what we've seen in the u.s. that things are going to get better in the second half. that is why rates are going to rise. , for we look at europe example. in the first quarter, it was .4%. better than the u.s., but the back half has to be that much better to make that target. but if you does, think about where we are globally versus where we were a year ago, things in europe are a lot better. we see china push on the pedal in terms of stimulus. we see signs of picking up in places like a merging markets slowly. when you think of a more global

inovery more than focused the u.s., it points to a gradually improving economy. and the fed is staying pretty accommodative. global stimulus is still very much key to what going on in markets. a look at how you want to invest. are you doing it for growth or for dividend and buyback? we still think the u.s. delivers the best overall growth in terms of the broad economy. at one place we find interesting value is japan. japan is a trade that started out more as a policy trade. andaw a weaker currency that is what drove the first part of the trade. we see a big change in the corporate sector. companies are focusing on improving profitability. focusing on improving return of equity. earnings growth is the best in the world right now.

the signsan, we see of share buybacks of increasing dividend and a big focus on shareholder return. alix: does that mean it doesn't matter if you have an aging population or not a lot of young people there? inflation is nonexistent. stephen: i think all those things are so well known by the market, that is why japan has not worked for so long. which is why people are still skeptical. the japanese corporate sector, what we are really focused on, has been incredibly inefficiently run the last few years. the biggest part has been this corporate governance code forcing companies to say, you need to think about shareholder returns and think about outside directors. there is a lot of low hanging fruit. they deliver honoring's even if the local economy is not that great. what point do you switch mobile strategy to growth? i think we are focused on growth at this point.

we think the markets that deliver the best earnings growth this year are going to be the ones that outperform. last year was completely the opposite. staples, theer bond proxy sectors that deliver little in terms of earnings but got a lot of flow. this year, we think it will be growth that drives it. japan,k at europe and those of the markets delivering better earnings growth and they have outperformed. alix: thanks for being here. optimism on this monday. a lot coming up on bloomberg market day. we look at earnings from home depot and what they will tell us about the state of the u.s. housing market. all of that coming up next. ♪

alix: welcome back to bloomberg market day. you have walmart, home depot, earnings coming out tomorrow

morning. and lows on wednesday. mark crumpton and scarlet fu spoke to david strasser about what he is expecting. they had a better than anticipated q4 comp. i think some of that is going to walmart. i think we will see some of that tomorrow, but outside of the restaurants, we have not seen much there. the linkaget between housing data and home depot and lowe's? is there a simple cause and data on macro housing versus what ucf the cash registers? >> there has been for a long time and doing the analysis allowed me to be wrong on to talks. been outperforming, taking share, and doing a better job in the housing data would suggest. we will see how that continues. it's not that the numbers would get worse, but they are pretty expensive stocks.

20 times earnings. it's hard to argue that we are not late in the cycle but people do argue that. scarlett: retailers overall at 29 times. it's not looking too bad compared to the sector? >> that's another issue. but they don't have the square footage. they are operating wrong. home depot is operating as good as any retailer out there. lowe's is operating better than in the past. but if you look at any historical data, these companies are expensive. it incorrect of me to assume that there is still a bellwether on how the marking -- housing market is going? >> i think it can be an indicator of the housing market. basically you have existing home sales give or take that are about $4.5 million. you have new home sales about half that. you're talking about a $5 million inventory turn.

maybe $5.5 million. somewhere in there. i think it's a healthy market. i don't think it's a great market. there is a lot of push and take here. it's a great market for housing. there's always a lot of hope. on what they are seeing in april, i think it's fine. scarlett: does home depot lose business to amazon the way walmart does? >> they do a much better job. a lot of the products you see are not specific to what you would typically think of buying online. a lot of it is very project focused for that saturday or sunday. you need to get a couple of things all at once. online. people inside the store and being able to have people help you with projects matter. i think you are not going to sell a lot of plywood people ine

store and being, wood, and stuff like that online. definitely not with prime. and they done a great job very early on. there are two that saw it very early on and focused on it. ira member having this conversation seven or eight years ago about home depot back then. i think lowe's has done a great job catching up. alix: that was david strasser from janney montgomery scott. we are looking at earnings after the closing bell. take twofitters and interactive. we are waiting for them to begin trading after reporting a pretty bleak quarter. julie hyman has more at the breaking news desk. break it down how bad it was for take two. just resumes has trading as you began talking and they are falling by about 3% here out of the gate. investors and traders have the first opportunity to react to these numbers.

the company reported an adjusted gain. it really seems here as though the problem is the forecast coming from take two, the maker of grand theft auto and other video games. company says for the full year, the adjusted earnings per share will be $.75 to one dollar. the estimate from analysts were $1.23. company says forthe company ise buyback, but not enough to help with those shares. ,nd we look at urban outfitters falling as much as 12%. alix: thank you for joining us from the breaking news desk. that wraps us up for bloomberg markets. have a wonderful evening. ♪

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oh! i can't believe it! [cheering] hi, grandma! ♪ emily: karel icon stirring the stirring thecahn pot in silicon valley. why people think he misunderstands apple. i'm emily chang. this is bloomberg west. take two interactive is getting revved up by grand theft auto. but where is the company's mobile strategy? alibaba says, not a chance. the lawsuit that has them lawyering up. move over, engineers. it designer may be the new hot talent in silicon valley. first, to the top story. carl icahn is once again poking the apple.