welcome to bloomberg markets. from bloomberg world headquarters in new york, good afternoon. quinn.nnie stocks are poised to end the week in the red. the nasdaq off more than 3%. is it a strengthening dollar? what about monetary policy -- does the jobs report put the case for multiple increases this year back on the table? investors might think so. shares rally. after earnings0% reports. one hour before the close of trading for the day and away, and stocks are falling. let's head to the markets desk, where julie hyman has the latest. julie: we are seeing losses accelerate into the closing bell. it feels like people do not want

to be long going into the weekend. the nasdaq down more than 3%. the s&p down 2%, doubling losses. the jobs report initially look strong report. the jobs report following to the lowest rate before -- since before obama's presidency, 4.9%, and a glimmer of wage growth. all of that would seem to be relatively strong, but because it has brought forward the expectations on the part of market participants for a rate increase, that seems to be putting pressure on stocks. bloomberg, at the you see that not only do you have steep declines, you have a relatively broad decline as well. technology has been leading losses all day. the nasdaq is the underperformer. this is what we have seen year to date, with the nasdaq down 26% in 2016.

many big cap technology scherzer weeks. media stocks are falling. energy shares are falling -- health -- there is plenty of pain to spread around. the s&p 500 has continued to make lower lows as the day has gone on. with one hour left, if there is more deterioration, we could have an ugly close. is fanningtainly oil the flames. oil was not doing as poorly. we have seen it take a leg lower. interestingly enough, earlier today, we got the latest baker hughes oil-rig count. we will get to that in a minute. oil futures down 3%, fanning the flames because energy shares have taken a leg lower. let's look at the big cap energy stocks -- actually, no, let's look at the bloomberg terminal. here is the rig count i was referring to. even though we saw a decrease by

31 last week -- more rigs idle, in theory meaning less supply -- that did not help oil prices at all. phillipss -- conoco down sharply after announcing the dividend cut yesterday. finally, the dollar -- i want to check on that as well. the dollar has been holding up on this perception about rates. .hat is not helping oil prices still, it is notable we got the rig count and it did not put a dent in the oil-price decline. vonnie: thank you. back with you in a few minutes. let's check the headlines with mark crumpton. mark: thank you. forconomic victory lap president obama following the release of the january unemployment report. with the jobless rate at 4.9%, the lowest level since 2008, the president reflected on how far the economy has come since the

recession. president obama: we should be proud of the progress we have made. we have recovered from the worst economic crisis of the night -- since the 1930's, the worst in my lifetime, and the worst in the left him of most people in this room and we have done it faster, stronger, and more durably than just about any other advanced economy. mark: employers added 151,000 jobs. russia's u.s. ambassador says at a meeting in germany moscow will present ideas on how to restart syrian peace talks. one of the suggestions will be a call for a cease-fire. tensions were high outside of the un security council as britain and france blamed the syrian offensive on aleppo backed by russian airstrikes for the suspension of negotiations. scientists may be learning more about how the zika virus is transmitted. workers have found active zika in europe and saliva samples.

-- urine and saliva samples. suspectn researchers there is a link between the virus and a rare birth defect. a you and human rights panel has come out in favor of wikileaks julian a son, ruling he has arbitrarily been detained by the u.s. and sweden and should be free. julian assange had this to say this morning. julian assange: i am being detained now without charge in this country, the united kingdom, for five-and-a-half years. today, that detention, without charge, has been found by the highest organization in the united nations to be unlawful. mark: julian assange has been holed up in ecuador's embassy in london since 2012. if british police arrest them, he would be extradited to sweden, and he could end up in the united states, being

questioned about leaked classified documents. a british spokesman said the yuan will and changes nothing -- u.n. ruling changes nothing. i am mark crumpton. back to you. vonnie: thank you so very much. in theave been hearing tech sector, with the nasdaq 100 headed to its lowest close since november, 2014, linkedin is not helping any. down about 45% now. the worst plunge ever, after giving weekend -- weaker than forecast guidance. our investors eager to cut the connections to the company? earlier, an opinion shared with bloomberg. delivering is not and they are being punished. vonnie: here to talk about what is next for linkedin is "bloomberg west" anchor emily

chang and tom from the company's offices. emily, i will turn to you first, and ask you to give us a brief summary of why linkedin is getting punished. emily: destroyed. goes down more. it goes back to a week forecast, 6% lower than they originally said they would get to, but overall the quarter was good. they released a new mobile app, it is getting traction. the talent search solution is strong. it does not have a lot of competition. user growth was good. the only u.s. social network to have penetrated china in any significant way, but i think with the market volatility going on, investors are skittish. tom, that may turn to you on this one. many tech stocks are getting hit by 4%, 6%, but this is a stock-specific drop.

tom: i think there are couple of things going on. linkedin is, sort of, a textbook, high-multiple internet stock. when you have a mixture of high valuations and a volatile equity market, performance and guidance as to be perfect for the stock to work. of slowingad a hint growth, particularly in the back half of 2016, implied in the gardens. on top of that, you had commentary of weakness, and you had a company-specific issue where the company surprised investors a little bit by announcing they would be exiting a business they bought about 17 months ago. that, and other messaging surprises -- those factors, basically, contribute to the selloff here. i will say it is important to keep in mind the wheels are not falling off the bus

fundamentally at all. our estimates for 2016 came down to the mid-single-digit range on the top and bottom line, just highlighting this really is, sort of, de-risking, across broader tech, and specifically in u.s. internet, resulting in multiple contractions. vonnie: he seems to be strange that it comes on a day that we got an optimistic jobs report, and linkedin is closely tied to the climate economy, right, the liberty economy? tom: that is true. linkedin is in a point where it is tied to the jobs cycle, but it is hard to detect, really, that much cyclicality in their business. quickly,growing very particularly outside of the u.s.. there is some sensitivity there, but they are not hybrid tuned to it. vonnie: emily, tom sounding not that pessimistic. is this a case of people cashing in?

emily: i think there is some conservatism baked into the forecast, so maybe it will not be as bad, or as weak, as they say. you mentioned the jobs report. now that there are more people in the workforce, maybe there are less people looking for jobs. an other thing -- it is not app you go to every single day, all day long. maybe you go to it once in a while. you are probably more often on your desktop. it is not inspiring intense engagement you get from facebook, that you use 10 times a day. vonnie: are investors skittish -- i referenced facebook, but are they too skittish about the others? go-pro and tom: i do not think investors need to be too skittish about linkedin. you have to keep in mind the companies core business and talent solution business

basically has no competitors on a global scale. linkedin iset that selling to clients of that business is the data in member profiles. you look out globally, and there is not any company that offers large enterprises or hr departments what linked in could offer. i think the competitive landscape is still relatively muted in the core business. on the advertiser side, you touched on the fact that engagement is still a challenge. that is certainly true. one of the important things that came out of the call last night is the early signs of this new mobile-app and mobile-web redesign for linkedin has been really encouraging in january. it is too early to feel really that increasebake engagement into the outlook, but that is a possible area for upside in 2016. why that is important is the advertising business for linkedin, similar to facebook, is a high-margin business, and

it would be the highest margin revenue stream and contribute to the, sort of, bottom line. vonnie: tom, we have to leave it there. thank you. emily chang. to that was tom white. coming up next, are we back to good news is bad news when it comes to the fed rate hike? we will look at how the bond market is reacting to the general jobs number. and adjusting reaction. as we had to break, a look at the s&p 500. not too good of a day -- premature one direction. the s&p, a drop of 40 points. the dow down 1.6%. you're watching bloomberg markets right here on bloomberg television. ♪

vonnie: good afternoon and welcome back to bloomberg markets. i am vonnie quinn. let's get a check on where the markets are right now. that ishe s&p 500 -- intraday chart -- the s&p is down 2.1%, more than 40 points. 1885 is the level. the dow jones industrial average, a mirror image, down 1.6%. 16,147. the nasdaq composite index, it is having the worst day of all, more than down -- more josh down more than -- down more than 3%, being led by energy and telling indication stocks. have bond debt telik indication stocks. have bond markets looked beyond the federal reserve for cues? for more on what we could -- what it means for credit investors, we bring in lisa abramowicz, columnist for bloomberg gadfly. to i for joining us. you say we are -- thank you for

joining us. you say we are moving beyond the federal reserve for cues, yet we a better-than-expected jobs it was and it seems like the traded we received. lisa: it stopped. the t--- the two-year was responsive and sells off on the expectation the fed could have the justification to raise rates at some point in 2016, and investors have gone pessimistic, so this did seem to be a reproducing -- basically bringing back, understanding maybe the fed will raise rates, but if you look at credit markets, they were not moving in lockstep, particularly investment-grade credit. typically, you would see this type of jobs report, and it would indicate momentum behind the u.s. economy. you saw actual wages increase. yet, if you look at, sort of, the measure of risk of the cbs,

credit default swaps, on investment-grained bonds in the u.s., they rose to the highest level since, at least, less chu, and it, sort of, indicated people are seeing a greater amount of risk in credit, which does not co-here to a strengthening of the economy. vonnie: yeah, what about the idea there has been a lot of inflows because of turmoil elsewhere in the world? this raises another issue because then you start looking at how much we can look to treasury yields to give us a sense of whether or not the fed will raise rates. you are dealing with unprecedented flows from countries dealing with negative rates. yes, exactly -- the point being you look around the world, it is very hard to look at just the federal reserve statement or potential actions for guidance as to how to move. vonnie: that said, we move from a scenario where almost no said hikes were priced into the year to date, and there are now some

priced into the markets. what is that based on? what is that trade based on? is it not just investors and strategists saying we are getting some strength, we're not headed toward a recession? lisa: i would say that between yesterday and today nothing massive happened in the bond markets. you saw moves, but it was not overwhelming, everyone is suddenly rejiggering their shift. --ble alliance unlock said gundlach said there was no chance of raising rates in march. i do not think there are people trying to shift around, trying to get a sense of what is going on, while they look at specific credits and credit quality. vonnie: we heard from work mccarthy of jeffries, chief economist. this was almost instantaneous -- after the jobs report. mr. mccarthy: what the bond market is telling us is the u.s. economy is resilient, and has

been concern about how the economy will react to volatility in the financial markets, but this will all pass at some point, and the labor market is telling us this is a good number for the household sector, and we are a household, consumer-driven economy, so we shall prevail. vonnie: where are the safe havens now, lisa, in bonds? lisa: that is a great question. people are struggling with that. treasury,? could they selloff? people still look at -- treasuries, could they selloff? people still look at them as safe havens. even if the u.s. has momentum behind it, treasuries would be viewed as a safe haven. i would say human response to what he said about the u.s. economy been strong, i would like to point out the lowest-rated junk bonds are yielding more than 20% for the first time since 2009. that does indicate there are some credit problems ahead, and the number of bankruptcies have been mounting to the most in at

least five or six years. so, this is becoming an increasing problem. so, as strong as the u.s. economy is, it is certainly not strong enough to support the weakest copies. vonnie: and we're definitely going to see problems, at least in the energy sector, in months to come. thank you so much. lisa abramowicz is a bloomberg gadfly columnist, and for more fast comments from bloomberg gadfly, type gadfly on the terminal, or search bloomberg gadfly on the web. still ahead, a look at how some of the biggest sectors are performing. discretionary, hitting the market lower. a drop for the nasdaq of 3.1% with about 40 minutes left in the days trade. ♪

vonnie: back to bloomberg markets. i am vonnie quinn.

stocks selling off big time with the nasdaq leading declines. julie hyman has options inside. julie: thank you. we're joined by scott bauer he, senior market strategist at training advantage. he is joining me from the cme in chicago. it has been a dramatic day here, scott. the selloff gaining momentum as the day has gone on. you and i were talking during the commercial break about what is going on with the vicks today, not just today, but right now. scott: earlier this morning, there were lots of buyers up outside vix calls, especially going out to the march options. not largeuyers are sellers. every they bought them this morning after the jobs number came out and we saw the market fell off and they are getting out of the positions. maybe they are liquidating something else. just what i am seeing right here, right now, large sellers of calls right here.

to thethat would lead me question -- that would seem to indicate that perhaps it will not be sustained. what else do you see today that would show you that this is going to be sustained beyond today or not? scott: it was interesting, julie, because up until about had0 a.m., noon, the vix not changed too much, even with the selloff this morning. it was not really up. then we saw it accelerate to the upside. we got the selloff. hit rock bottom. 2.7 0, 2 .80,n whatever it was -- we are lower than that right now. the vix is coming back in. my gut feeling is we will not see a further decline going into early-next week, unless something comes out over the weekend, but this may be it for now. the momentum to the downside in the marketplace might be over for a short while here. julie: summer earnings reports have not helped either, and your trade today is on a company

coming at with numbers next week, hasbro, the toymaker. noise around hasbro and mattel with bloomberg news reporting they had been in potential merger talks, but hasbro is taking the mantle from mattel on a lot of different products -- "frozen" princes -- consensus, etc. -- what is your strategy going into the earnings report? scott: and "star wars" specifically. k.at is now their roc they will, with earnings and it will be pretty good. put spread,067.5 collect $.90 or a dollar for that. i stop on a loss right around the 69-level. if the stock trades down that far, i'm a buyer because that is big support. the options market right now is pricing in a six dollar move one way or the other, earnings

monday morning. to the downside, that puts us at the 69-level. the upside puts us where the blip on the upside was when they came out with the news with mattel. we will see what happens. in any event, i like selling the put spread because of the stock goes down, i want to be a buyer of the stock at those levels. julie: just to be clear, what is the way you would not do well in this trade, if the stock goes up significantly? scott: no, if it goes up at all or stays right here, i make the one dollar that i have sold this put spread. the only way i can lose is if the stock goes below $.69 in february. julie: and then you are ok holding it. scott: yep. julie: thank you, scott. have a great weekend. we will be right back. ♪

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mark crumpton has the headlines. mark: puerto rico's governor has declared a health emergency is more zika-related cases emerge across the united states territory. the government has frozen prices casesdoms after two known of sexually transmitted cases in texas. the prospect of a north korean missile test is prompting some airlines in asia to reroute flights. japan and south korea are mobilizing ships and missiles in anticipation of the tests. the north says they plan to launch a satellite this month. the u.s. says any test would violate long-standing united nations resolutions. in new hampshire, senator marco rubio has moved into second place and is closing the gap with republican front-runner donald trump. according to a poll with cnn and 19%.u are, trump is at

the survey found that one-third of republican voters in the primary have not decided support. chris christie picks up an endorsement -- massachusetts governor charlie baker is endorsing his fellow republican in the gop primary. baker, who has try to steer clear of national politics, says he was moved to endorse christie because it did not feel either of the two top public and candidates coming out of the iowa caucuses had the ability to forge a consensus. people watching "saturday night live" this weekend might be seeing double. the bernie sanders campaign says the candidate is taking a short break from new hampshire and will be in new york for an appearance on the show. the host will be comedian larry david, who happens to do a spot-on impersonation of the vermont senator. nbc declined comment on whether sanders would appear on the show.

global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. you so very, thank much. we have less than 30 minutes until the close of trading. abigail doolittle is at the nasdaq with the latest. abigail: very true what you just said -- a big selloff at the nasdaq all day, one that has intensified and accelerated as the day has progressed, leading averages for to be will main reasons, weakness in biotech. it is down from a percentage standpoint not just today, but also overall. it is deeply in a bear market that seems to be worsening. amgen,the culprits are regeneron, celgene, and biogen. some could be the sentiment of sell the big winners of recent years, but there are also renewed concerns that rising drug prices could spark activism

in congress, something very few investors want to be involved with. the big question around that biotech market relative to the nasdaq, is it a tell of what is to come overall? the nasdaq is down more than 60% justlast july's peak, not national quite a bear market, but something to keep an eye on. the biggest drags on the big technology names including amazon, facebook, amazon, and apple, down in sympathy with linkedin. cornerstone macro says the momentum stock bubble may pop. when we look at amazon and netflix, the momentum stocks last year, the top stocks at the nasdaq, both are now down more than 25% from their peaks last year. this, plus the weakness in biotech could be a tell of what nasdaq.me for the

vonnie: thank you so very much. we will stay in touch with you for the rest of the session, about 27 minutes to go in trading. let's turn our focus back to the bond markets -- treasury two-year notes fell. barclays today reducing its number of expected rate hikes from three to two. joining us now with more on inflation and his strategy, michael pons, head of global research at barclays. it seems like there are a lot of things going on and are have been a lot of things going on in global markets. after today's jobs report, does it make you any more optimistically begin to see better inflation anytime soon? there is nothing in the inflation data yet. it is trending lower. there are some signs within the wage data that we are starting to pick up, but even at 2.5% we

see on average hourly earnings -- it is not because of a strong -- but we are getting there on wages. re-think over time, the medium term, we get there on inflation as well, but the fed continues to miss on its target on inflation yet they continue to talk about hikes. annie: you are i had of inflation-linked strategy. it is difficult to come up with a strategy when we do not see inflation. mr. pond: our outlook on inflation is relatively benign over the next year or so, but importantly, our outlook is much higher than where the markets are priced. the markets are price for inflation to remain around 1% over the next couple of years, or even over a medium-term period. vonnie: it is funny you should mention that, because i told that up on my bloomberg. hopefully you can zoom in. you are talking about five years forward. mr. pond: right.

you can see that is low, actually below 1.5%, well below the fed's target, and it is trending lower. so, the markets are losing patience with the fed. the fed has missed it target pc for about four years in a row. the markets are losing patience, credibility with the fed's ability to create inflation. vonnie: yet, you at barclays capital are forecasting two rate hikes this year, at least. that is right, and it is largely because of what the fed is saying. we do think that payrolls report was mixed enough against a backdrop of an increase in financial market volatility that the fed will hold off until june. clearly, they are signaling tight enough are

that it will create inflation, and that gives them enough confidence to tighten policy. vonnie: how many months of which both of .5% or more do we need to see, michael? mr. pond: we do not think .5% or more per month is what we really need to see, but vice chair fisher earlier this year talked about getting to 3%. we are not there yet. we are trending there. that is what they would like to see. but it is, an important the, not translating into -- importantly, not trading into -- translating into inflation yet. vonnie: how much is the stronger dollar weighing on things? we see company after company, with warnings, fx hits, and today, what happens? the dollar strengthens. mr. pond: right. if you dive into the inflation data, you find domestic inflation pressures look fine. they look as they did in 2006, 2007, the crisis. it is important inflation that

is going the other way. we are importing deflation in the u.s. because of a stronger dollar, week mobile growth. those things, for now, do nothing to be going away. vonnie: we do not have time to get into it too much, but i wanted to ask about the tips market and how it has changed. there is no demand for treasury inflated protected securities, is there? mr. pond: let's not say no demand. vonnie: ok. mr. pond: there is more demand than there had been in 2009, 2010, when foreign market started to enter the market en wrappednd the treasury up supply to meet that growing demand. we think that demand has cap doubt and treasury is just now replying. vonnie: where's the 10-year yield in a year? mr. pond: we think the 10-year yield moves higher, but not

genetically higher than where it is now. vonnie: -- dramatically higher than where it is now. vonnie: michael pond, thank you for joining us. coming up on bloomberg markets, what is better -- active or passive investing? the ceo of vanguard gives us his take. and a look at the most active stocks -- make of america, freeport-mcmoran, ge. as you can see, all down. oh, i don't know, here is a live shot of san francisco. a lot of events leading up to super bowl 50. two days away. can you believe it? the denver broncos will take on the carolina panthers. i cannot wait. ♪

vonnie: good afternoon, and welcome back to bloomberg markets. i am vonnie quinn. a quick check on the markets

with just about 29 minutes to go in today's trading. 1.6%, see the dow is down a drop of 258 point after today's mixed, but mostly positive jobs report. the s&p 500 down 2.1% -- a 40 point drop there. the nasdaq been let lower by telik medications. --sumer discretionary telecommunications and consumer discretionary. time for the bloomberg business flash. apple, for the first time, will take broken iphones as trade ins for a newer model. until now, they only excepted trade-ins if they had an intact screen. it only applies to the iphone 5 and later models. the company wants to encourage more people to upgrade to new iphones. a chinese company is getting a inthill in the chicago -- the u.s. market. the chicago stock exchange has agreed to sell itself. the chicago exchange and is percent of u.s.

stock trading. who are the most unhappy with bonuses? the trading with bank of america's london unit. the average time with someone of the title managing director, $890,000. that is your bloomberg business flash. then guard is known for its low-cost index funds, and the firm is making it cheaper. reduced feedsuard -- fees. earlier, ceo bill mcnab, said there is room for more reductions. have a listen. mr. mcnabb: i think investors low-costn to focus on leading to long-term outperformance, and indexing is the. form. what we're continuing to see is a lot of interest -- is the purest form, and we are continuing to see a lot of interest.

in january, we were exceedingly strong across the board, especially into equities, which you would have thought, given the market volatility, would not be the case. bill, good to see you. it is known as the vanguard affect any time you move into a different space. you not only drive your fees lower, but the entire sector, to be competitive, has to drop fees or it are you guys still in a mode of taking your cost structure lower? is that possible at this point? youmcnabb: obviously, when are at our levels, it gets higher -- harder to do, but we still think there are opportunities. last year we reduced fees on 100 funds, and we announced this year fee reductions on 50. we think there is still room to go, and we have created a lot of size and scale at our firm. we try to pass that on to the investor. isphanie: it is clear this going to be a very difficult

investing environment. top hedge fund managers say you pay for quality. you would not ask for a discount surgeon. why would you want discount investing? aremcnabb: again, if you paying more and getting more, that would be a good theory, but all the academic evidence is the more you pay over the long run, the less the returns are. the most important thing, stephanie, is for investors to know what their goals are, and set reasonable expectations for those goals, and then it am at a very diversified strategy in the lowest-cost manner possible in order to meet those goals. that is what we are all about. that is what we are trying to do. stephanie: don't goals need to be met with managing the market environment? it has been one direction, a woman template to be long and strong irrelevant of what your fundamental views were, but this year it is a different game. mr. mcnabb: certainly, so far,

it has been streaming volatile and more to the negative than the positive, as you point out, but i will tell you that is normal. in the last 35 years, we had 12 corrections, several bear everys, and they occur couple years, and the markets timespent one-third of its in correction or bear markets. i think it is difficult to time that. we think the best antidote is to have a long-term asset allocation and constantly rebalance back to that. barry: bill, probably the highest area of growth over the last couple of years amongst indexing has been the smart beta, the so-called various ways of constructing an index that are not market-cap taste. have you explored that? have -- will we see any sort of smart-beta product from vanguard down the road? mr. mcnabb: i think the

phenomenon -- first of all, hats off to whoever created the name, because it implies cap-weighted indexing is not smart. when we look at smart beta, we look at it as a mechanical way to get active exposure, which can be a reasonable thing to try to achieve because as you well know, when you look at active manager performance and you do the attribution, it is as much factor driven as times -- as much as it is securities driven. our caution to people is don't look at it as a substitute for indexing, but look at it as essential to four active management. vonnie: that was vanguard ceo bill mcnab earlier. coming up, here are the markets have performed this week -- a rough one, especially for nasdaq investors. the dow, down to 286 points. down 3.25%, a drop

two 1877 so far. the nasdaq is down 5.5%, 253 points. we will see where the markets end up in about 13 minutes.

vonnie: welcome back to bloomberg markets. i am vonnie quinn. the markets close for the day and the week in about 10 minutes. we have seen a huge selloff. julie hyman has the market check. julie: and it is not abating as he gets closer to the closing bell. i have not mentioned volume -- volume on the s&p 500, for example, 36% above the 100-day average. not only do you have the selling pressure, but it is on heavy volume, and as i said, no relief in sight with just 10 minutes to go until the closing bell. the nasdaq is leading to clients today, down 3.4%.

that has really been the story all year -- all year -- this little more than a month we have had of it. if you look at the year to date returns, the s&p down a percent, the dow down 7%, and the nasdaq down 13%. -- has beennce leading the losses since 2015. it is happening today. -- biggest declines microsoft, facebook, apple, amazon -- all of them under a good amount of selling pressure. we have some smaller companies out with earnings that are causing large declines in those individual stocks, and that seems to be casting a pall iraq the industry. -- throughout the industry. salesin plunging after a forecast that missed estimates. lions gate declining after disappointing numbers. nk, ditto there. you talk about three of these four, physically and technology, are they negative indicators --

specifically in technology, are they negative indicators? that is a we have been watching it in other asset classes, oil prices have been trending lower as well, really since the afternoon, midafternoon call, even after we got a rig count report that showed a smaller rig count last week not helping oil prices. we also see the dollar not helping oil prices. the dollar has been really consistent with its strength today in the wake of the jobs report, interestingly enough. not as consistent has been the 10-year note today, which earlier saw a boosting yields. people were selling it. there is now a little bit of a comeback in the young, but interesting how it, sort of, came down. a divergence between the yield there and the u.s. dollar. vonnie: a lot of dynamics. --nk you for covering for it it for us all day long. we are in the final stretch, eight minutes of the market session. it has been a tough day.

why are investor selling off after a relatively quiet? week here to answer some of the questions, oliver renick. i will outs&p 500 -- the s&p 500 matt. we see a couple of areas in the green, and it is strange, because telecommunications services are slightly higher, but in the nasdaq, forget about them. oliver: it is quicker to talk about what is doing well, telecoms is the only thing above water. what that indicates is a market generally takes the fed is going to stay where it is. it will probably not have a big move. we see that in the fed funds futures. you have to wonder if the market is expecting the same sort of low-interest rate, qe-type environment, why is everything doing poorly? it is concerning. today's selling could be either one of two extremes -- people finally capitulating and selling

the companies they have been holding out on. today number -- copies that are roque and our once they have that are downies are ones that have been doing well. investors like qe, that kind of stimulus, but even if the fed work to do something with rates, pullback, or reverse course, that is at the same thing for equity investors. oliver: absolutely not. with the fed, the push is will they do it, move higher, and if they are, what is the economic dropback? numbers all week were pretty much for and the ones that are beating are not doing phenomenally. today we had a report where jobs missed the estimates, but if you look deeper, you saw signs of inflation, and that is kind of the least ideal situation. the market wants to see a strong economy, and the fed will go on

that, or a weaker economy, and the fed will stay dovish. today it is not feel like a rate play. it feels like people selling out stocks that are highly valued. linkedin went down. vonnie: taking an awful hit, losing almost estimates market cap. the stronger dollar is not helping. it is an earnings-rich environment. i am sure investors are reacting to the dollar that is not looking to go anywhere but up versus the major. vonnie: that is true -- oliver: that is true, and overall, the earnings numbers are not good. look at the companies beating expectations. it is fine. overall, seven out of 10 sectors are reporting shrinking earnings, shrieking profits. it is not just energy. it is across the board. the only sector doing well is a materials company keeping the market afloat, and that is not because earnings are good. vonnie: i was looking at gopro

because it was up about 7%, regaining some of what it had lost, but even thoughpro is up only 2% now. oliver: look at google. all these companies that are highly valued. essentially, the market is telling us linkedin was twice as expensive as it should have been. they are wondering about their own copies. vonnie: investors are getting out of what they can going into the weekend. oliver resnick, thank you. that is it for bloomberg markets. just a few more minutes left in the trading day. you will have it all with scarlet fu and alix steel coming up. ♪

>> u.s. stocks tumbling in the close. nasdaq sinking to its lowest level in five months. we begin with our market minute. we had a fairly decent jobs report that became a job day tumble and selloff. you mention the nasdaq. that late selloff push, deeper into the correction. not there yet but everyone is eyeing that level. 19% above the moving average. it was pretty much when you look at the momentum names of those were the ones that lead the decline today. alix: it was amazon, netflix, facebook. they erased 30 points from the nasdaq due to that selloff. it was hard to find a catalyst. when you get a good jobs report they tend to end lower but this was not ending lower. this was a selloff. you hadli