alix: it is coming up, went away from the closing bell. i'm alix steel. ♪ you are looking at stocks at another record high, not just the s&p right now, but also the indicesecord high for , at its highest level in the end of april. another record high for the doubt.

best day inad its over a month and you definitely have that bond selloff. the biggest selloff in the week as you saw the yields really jump higher. i'm joined by bloomberg markets manager joe weisenthal. i know you hate the records thing, but another record. we saw another close for the dow. joe: i don't hate records. it's exciting. part of it was apple, for example, a big mover. carl icahn noting that they want to put more buybacks to the company. target of the reporting at definitely helps to move the tech sector. open letter ton tim cook, and it was pretty amusing, because in addition to the buybacks alchemy was talking about how great apple could do stuff, hehe buyback was talking about how great apple could do with cars and other things. he would probably not be the first person i would listen to about assessing a company's

position in some new technology. no offense to his previous record. had all terra jumping after a potential acquisition by intel. you also had a big pharma deal pharmaceuticals for about $8 billion. joe: especially on the farm aside. we just keep seeing it over and over again. alix: and retail also. joe: there was this deal where the parent company of ann taylor was brought out my but people don't -- was bought out, but people don't to this as a sign in retail, but just about cost-cutting. we are still looking for some signs of life and retail cap line that the can will come roaring back, but we are still waiting. alix: julie hyman is that the breaking news does raking the numbers down.

julie: is it not so good sign for retail. latest,tfitters are the earnings per share five cents shorter than estimates at $.25 a share. seven hundredn at 39 million dollars, $757 million was the average assessment. sales, that is the important part of the equation for these retailers. comparable sales were up percent , and the estimates were a gain of 5.3%. the shares are taking a dive on the news. sales, thatcan't has been the strongest breakdown probably. that and anthropology. anthropologie sales of 1%. urban outfitters of 5%.

there was some talk by analysts that it was perhaps because of the west coast port shutdown that some of the home goods might have been delayed. line, the u.s. consumer is either not spending, or spending on different stuff. we are still trying to put that picture together. to your point, in terms of the retail sector at large, a note about why retailers have not done well. you had a stronger dollar, so you had to risk coming in and not being able to buy as much as they used to. you did have the weather, sports rights, and higher taxes. jpmorgan also said that was an issue for retailers. joe: another thing with urban outfitters is so much of their story is whether they are cool at the moment. and they are sort -- they have had long stretches were they are totally off everything. you never know, that could be

part of the story. beyond just the macro retail. not just broad retailers, but the company specific issues. we do get walmart in tjx tomorrow. joe: walmart tends to be more assisted with low-income tumors, someill give us macroeconomic -- low income consumers, but will give us some more macroeconomic numbers. the juicy got all of goods that were delayed to the other retailers. that is something to look at as well. and the goldman sachs noted that oil, talking about seeing wti or the breakeven for shell companies around 50, they .asically need lower oil prices they are talking about pioneer sales, they are going to be the m&a takeout. wast -- joe: i got this

interesting from goldman, too, especially since they had their equity guys make the pre-long-term call about oil prices. they are saying by the end of the decade they are looking at $50 in oil. obviously, you have to look -- you have to be skeptical of any call that is looking at the year 2020, because who really knows? but they are saying basically there is a new regime shift in oil and that this is a thing. alix: and they made interesting analysis of certain stocks like eog resources. iting the amount of days takes to drill is about 10 days. it used to be 12 days. those days make a difference. you don't need to use a rate as long and you're cutting down on costs and that makes you more efficient. are the speed at which they cutting down on costs is fascinating. is story about how america

stuck in the twilight zone. i wish we had the music. we do a termme like this, you just sort of no that i suspect they are looking -- sort of know that they are looking for headlines and want to write about it. but basically, the story is that we are not getting any more juice out of qe, that story is over. and it is this lose lose situation for stocks. the best hope is that maybe the economy pick things up again. they highlighted to interesting things. one is, investors are optimistic, or they claim to be in surveys to my but there is a lot of cash on the sidelines. and the other thing they noted for the record highs on a stock, but u.s. equity funds have been seeing outflows for a wild. million -- $100 billion in outflows, which is fascinating. joe: it is something we will keep watching. alix: julie hyman is looking at

more earnings coming out. julie: the makers of grand theft auto videogame did well last quarter, but the forecast is a different story. earnings came in ahead of estimates, $.49 per share, up from $.21 a year earlier and the 28 sent average analyst estimate -- $.28 average analysts estimated. however, the forecast for the year is below what they had been anticipating both in terms of its earnings and in revenue. been anticipating $1.5 billion for the year with earnings-per-share at most one dollar. analysts have been looking for $1.23. the shares are still halted. one would expect them to fall once they do open back up as people look at that forecast. iswill get details on what behind it in the calls, because

they are not getting a lot of details statement. alix: thank you, we will be following what stocks reopen out there. are all things that question mark are they all doom and gloom? copper might be saying something else. it usually measure the health of the economy. that has kind of diverged in the last few years. but barclays has something interesting to say, saying that this is where we need to focus our attention and is actually becoming really important. if prices could sustain a rally from these levels, it could be a sign of continued mobile demands and after what we have seen in the past few months in terms of weaker manufacturing, it is actually transient. joe: you will be fun if copper, as you say -- copperhead this reputation -- copper this reputation as the phd of economics. be interesting to see if we do get a global pick up and copper comes back.

alix: a big part of that is china, how much they are buying and driving growth. we are talking about stocks and they are at record highs, but the math may be telling us something different. if you can or the late nobel prize-winning economist james tobin valuation tool called the qe ratio. u.s. equities are valued at 10% above the cost of the underlying assets, higher than at any other internet bubble. some argue this is a symptom of companies choosing buybacks over capital spending, take apple for example. carl icahn calling for an even bigger by that, shares telling -- 240es at $2.40 dollars apiece. what do you make of that? tobin qeree with the ratio? are we that overvalued? guest: no, i don't think we are that overvalued. i think docs are a little over

fairly value, but that is not to say they are -- i think stocks are little over fair value, but that is not to say they are too expensive. when you look at stocks relative to the things you can invest in, bonds or holding cash, stock valuations look pretty interesting. you have to be a little more choosy about where you are investing and look at certain parts of the market. places like cyclicals in the u.s. and looking at international markets. see his earnings come through. and stocks at this point, we think will be driven by earnings growth rather than any multiple expansion, which is where the valuations are he comes into play. alix: disappointing earnings with the stock down 12%. stephen, you are sticking with me. joe, always good to see you. coming up more with j.p. morgan and stephen parker, we will talk , japanesepean stocks stocks, and the u.s. when we

come back. ♪

alix: welcome back. i'm alix steel. federal regulators are turning up the heat on chrysler's 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 and also scheduling a rare public hearing. the -- the agency has been frustrated by the companies slow pace of recalls. just --the company as after just a few months as ceo. and now john cahill is entitled million9 -- what $19

parachute. ifill would get the payout he is fired without cause in two years or if he leaves because of a salary cut because of a reduction in his duties. stunned walls street by quitting last year and now he will go back to how he started, as an energy banker. mcgee has a track record that includes some of the energy industry's biggest deals ever. and he's one of the next ceos $41 billion sales of exxon mobil. in agreement to buy car pharmaceutical holdings in a transaction valued at just over $8 billion. terra roseof all today -- of altera rose today.

programmable low powered semi conductors. the company said no last month when intel offered $54 per share. intel is the world's largest chipmaker and has been looking to expand beyond the struggling personal computer market. the bond selloff continues and has divided wall street. after last week's slowdown, some analysts are saying the worst is over. what is it? we are back with stephen parker, head of asset strategies. what camp are you on? haveen: we think we may overshot in the near term, but the direction the next ex-twelve-month is probably higher -- the next six to 12 months is probably higher and that's a good thing. we are getting back to a more normal growth environment. -- weakness in the

u.s., things are going to get better in the second half. alix: we're looking at europe, for example, worth of 2% of -- in 2016. the growth before was just 2/10 of 1%. that means it the back half past two that much better to meet the target. stephen: yes, but things are looking a lot better if you look at global growth. we are starting to push on the pedal a little bit in china. we are seeing signs of places picking up in emerging markets slowly. but we are focused on a more global recovery rather than one that is focused on the u.s., it indicates a growing economy. the fed is pretty accommodative. global some still key to what is going on in market growth. alix: in terms of how you want to invest, what is the best country question mark and are you doing it for growth -- what is the best country? and are you doing it for growth?

we think the u.s. is still the best overall growth in terms of the broad economy, but one place where we are finding a lot of value is japan will stop japan's -- japan. japan started out as a policy trade. what we are seeing now is a big change in the corporate sector. companies for the first time in a long time are focusing on improving profitability, focusing on improving return on equity. earnings growth is the best in the world right now. and in japan, we are starting to see initial signs of share dividendsd increasing and shareholder return. doesn't matter that you don't have a lot of young people there and inflation is high? stephen: all those things are so well known by the market and everyone is focused on them and that is why japan has not worked for so long, which is why people are still skeptical. of the japanese corporate sector

has been incredibly and efficiently run in the past several years. and the abenomics has been forcing companies to say, you need to start thinking about shareholder returns, bring in outside directors. is a are a lot of -- there lot of low hanging fruit in a japanese companies can deliver on even if the local economy is not that great. alix: at what point you switch your strategy from value, dividend buybacks, to growth. stephen: i think we are actually focused on growth more at this one. we think the markets that can deliver the best earnings growth this year are those that will outperform. last year, it was completely the opposite. it was utilities, consumer staples, these bond proxy sectors that delivered a little in terms of earnings, but got a lot of flows and outperformed. europe and you look at japan, those are the markets that are delivering better earnings growth and they have outperformed. alix: the optimistic guy.

thanks for being here. a little optimism on this monday. coming up on bloomberg market day, we will talk about the state of the u.s. housing market. ♪

alix: welcome back. i'm alix steel. bigger earnings due out this week. we've got walmart, home depot coming out tomorrow morning, and lowe's orderly results on wednesday. mark crumpton and scarlet fu spoke to analyst david strasser of jenny montgomery scott about what he is expecting to stop -- what he is expecting. >> i think some of the money is going to walmart. see some of that smart, but clearly outside of the restaurant, we have not -- and maybe a little bit at walmart, we have not seen much there.

about the linkage between home depot and lowe's? is there a cause and effect on data and macro housing versus what used the at the cash register? -- what you see at the gas register? david: they definitely are related, but they have been doing a better job than the housing data with just. my issue is not so much that their numbers would get worse, but they are pretty expensive stocks, both over 20 times earnings him and it is hard to argue that we are not later in the cycle. i guess people do argue that. it gets down to where people in the cycle. scarlet: it is not looking to lock the -- lofty if you compare it with the sector, is it? david: that is a different question altogether. home depot is operating. most is operating better than they have -- lowe's is operating

better than they have in the past. but if you look at historical data, these companies are expensive. mark: these companies are expensive, but is it incorrect of me to assume that they are still a bellwether on how the housing market is going in the u.s. -- in the u.s.? david: you've got existing home sales that are about 4.5 million. .ou've got new home sales you are talking about a $500 million inventory turn. $5.5 million.be it hasn't changed that much. i don't because out the market, and you've got prices -- i don't think it is a great market. you got prices rising. it is an ok market. a lot of homebuilders probably don't have much hope right now a somewhat they are seeing in april, but i think it's fine. scarlet: did home depot and lowe's lose some business to amazon the way that walmart did?

david: a lot of the product in the isle, if you walk the aisles, it's not very specific to what you are buying online. that project focused for saturday or sunday. you need to get a couple of things all at once. and the help of the people inside the store and having people help you with your project has mattered. a lot of irregular type stuff, you will not sell a lot of plywood and things like that online. and they have done a great job, both of them, early on in embracing the internet. they are the two that sought early on and focus on it. i remember having this conversation with him seven or eight years ago, particularly home depot, and i think lowe's has had a good job catching up. alix: that was david strasser from jenny montgomery scott.

urban outfitters as well as take twoeported -- take reported after the bell. julie, how bad was it for take 2 ? julie: it looks like they are falling by about 3% out of the gate. investors and traders are having the first opportunity to react to these numbers. analysts had been anticipating a loss. it seems as though the problem is the forecast coming from take-two, which is the maker of grand theft auto and other video games. it's adjusted earnings per share --l five cents to the dollar $.75 to a dollar. one .4 and most will be billion dollars and analyst had been anticipating $1.5 billion.

the company has raised a buyback, but not enough to pay for those shares. alix: julie hyman, thank you. that rested up for the bloomberg markets. have a wonderful evening. ♪

>> from our studios in new york city, this is charlie rose. cardinal jaime ortega y alamino is here, the archdiocese theavana and cardinal of catholic church. he became archbishop of havana in 1981. he participated in the conclave that selected pope benedict 16 and pope francis. ly,