from bloomberg world headquarters in new york, good afternoon. i am brendan greeley. here is a we are watching -- the markets soaring higher. oil added more than 5%. now approaching $31 a barrel. the fed minutes came out an hour ago, boosting markets even more. the minutes show policymakers believe turmoil in the market is posing a rising risk to the u.s. economy. apple takes a stand, refusing to help federal investigators on that the iphone of the san bernardino shooter. how will this impact apple's business? we are one hour from the close of trading. stocks are soaring. julie hyman has the latest. where are we? highs of are at the the session, or very close to

the highs of the session. for the third straight day, a gain of more than 1%. only happened 15 times. this is the 15th time that has happened since 1990, when we have had three straight days of 1% gains or more for the s&p 500. it is quite unusual. it is happening an environment where it seems to be a rebound/recovery kind of affect. there is no big macro headline for the past several days spurring the rally. we have not seen a lot of the cyclical groups leave the rally. energy is the best-performing group. technology, materials, industrials -- have been some of the leaders. let's look at what has led over the past few days. finances have gained the most in financial terms over the three-day period.

the only group a little lower is utilities. brendan: that is equities. where are we with everything else? julie: a similar move depending on where you look, particularly the bond market. ec see a move into stocks and out of u.s. treasuries. here is the 10-year yield for the years to date. there has been buying up treasuries and a bounce in the yield over the past several days . it has also been a three-day move, just as we have seen in stocks. gold has been a little more ambiguous. two down days for gold. today, flirting with unchanged, and higher, which is curious, in what appears to be more risk-on environment. oil is marching to the beat of its own drummer, more volatile this year. the volatility of everything is elevated, but oil volatility in particular is elevated. as alix steel points out, people are both long and short -- very

long, and very short. volatility,ot of and continues to gain on this talk that iran is favorable or open to a freeze on oil production. the short -- the shorter answer to your question is it depends on what asset class. we have seen, perhaps, a decoupling of some of these traits. brendan: it is amazing what we have normalized -- he said we the 10-year in yield. it is up to 1.8%. we also live in remy innocency of's world. what is up? at the news desk? ramy: we want to get to reports of an explosion in turkey. 20 people were killed and more than 60 others were killed -- injured. the explosion occurred as a bus carrying military personnel was passing by. doctors without borders says 20

people were killed in an airstrike on one of its hospitals in northern syria. nine hospital staffers and 16 other people were killed, including one child. the group says a hospital appeared to be deliberately targeted. the stage is set for a battle between apple and the u.s. government. apple is refusing a federal magistrate's order to help the fbi unlock the iphone of one of the shooters in the san bernardino terrorist attack. tim cook says building a backdoor to get data that is on the iphone and undermine security for all of apple's customers. president obama will sign legislation hitting north korea with more sanctions for refusing to stop it nuclear weapons program. bill on approved the friday. until now, the white house said mr. obama would not oppose the bill, but is not committed to signing it. the u.s. is confirming china has placed a surface to air missile in the south china sea. it is not clear if it is a

short-term deployment, or something intended to be more long-lasting. china has said they have limited defense capabilities on the island. global is 24 today powered by our 2400 journalists in more than 150 newsrooms around the world. back to you. brendan: the fed released minutes from the january meeting one hour ago and transcript show policymakers expressed concerns the falling commodity markets poses risks for the economy. joining us from washington, bloomberg's economic editor michael mckee. we have had one hour to look at the minutes. you have had two hours. there has been a reticence on the part of the fed to say what he thinks the risks are. do you read any more understanding out of this document on what they see the risks are, and whether the balance is good positive? michael: we know where the risks are from the fed minutes, we do not know how big they are or

would they will come to -- or if they will come to pass. this was back in january. it has been a month since that time and janet yellen has only testified about a lot of the stuff. the minutes show fed officials were struggling to understand implications of falling oil prices, a stronger dollar, chinese growth, and volatile financial markets, all at a time when consumer markets were hanging in, and the labor market was remaining strong. in general, many saw the developments as increasing the downside risks to the economy, although they had no framework for how bad those risks would be. financial markets -- one of the biggest concerns for them. they started going down at the beginning of the year, and "almost all participants saw tighter financial positions pushing a volatility, but what did it mean? here is a key quote. a number of participants noted "the large magnitude of changes was difficult to reconcile with

incoming information on development. if things were so bad, why was the data ok on the labor market in particular? they did not know, so as you say, they punted. they said let's wait and see what happens. brendan: if it makes you happy, why are you so sad, sings the fed. quoted, aline you couple of participants pointed out the recent decline could be viewed as bringing equity valuations more in line with historical norms. again, no there there couple of people in the fomc say things were over value it was a well-needed correction. inhael: what is it just about the minutes that you do not often see if there was not a lot of disagreement. it is mostly people offering various into petitions of what was going on in the problem areas and they discuss them. nobody faced off over any of them, and in general, everyone

agreed that could pose more downside risk, but one of the other interesting notes was that a couple of participants noted didn't -- the markets did not understand the concept of the fed being data dependent. mckee getting a very early this morning, thank you for sticking around. you are excused. you can now go home. the market is continuing the decline. phil orlando. is i want to pull this line out of the minutes that we just looked at, basically a couple participants of the fomc saying look, things were overvalued, they are more in line with historical norms. this was a correction that had to happen. is that a valid way to look at it? mr. orlando: well, stock certainly got ahead of themselves based on where we

were through last thursday. stocks were down 11 percent or 12%, down about 15% from the may highs. you have had a nice, healthy correction. whether or not we can conclude that this guys have cleared, that there are no more problems left on the horizon, that is a completely different conclusion. brendan: you know, i am looking in your notes, and you go back and find some historical comparisons of what has been a miserable start to the year for equities, how much you historical comparisons hold up, because i sometimes talk to economists who tell me the rules are slightly different now. we are connected to other economies in a different way than we were even 10 years ago. we cannot get inflation to behave right. can you do this historical analysis, or do we live in it if world? mr. orlando: the four most famous world -- words for an investor are "this time it is /"fferent

i look at historical conclusions and data in the last five to 10 years, which i would say is more relevant. the conclusion we drew -- a tough start to the year. that makes four-insult more challenging. it is more that full-year results are challenging. -- that makes full-your results more challenging. get energy, currency, even the election, we will be able to right the ship by the end of the year, but there are a lot of ifs, maybes, and buts. brendan: when you look at china -- a little bit of trade locally -- what has to happen in order for that to go well? mr. orlando: china is going from a transition, for our manufacturing base to a consumer-based economy, and as a result, economic growth would decelerate. there is nothing that happened here that surprised any of us. what is confusing the markets is the pace of the deceleration. china if theyis

are not in a recession, they are on their way. we disagree. we think the face of the economic growth coming out of the consumer is accelerating nicely. the consumer now accounts for more than half of the chinese economy. we think that to some degree mitigates or offsets the decline we see manufacturing. the bigger problem is one of perception. the average consumer, investor, has to get a sense of what is going on in the chinese economy. wonder: that is what i -- we see these wild swings early in the morning in the shanghai and the shenzhen. they carry through to europe and the united states. do you think institutional investors in the u.s. have a good handle on which indicators to watch -- whether or not. in china mean anything? -- whether or not the stock markets in china mean anything? mr. orlando: the short answer is no, because they do not mean as much because of regulatory accounting and reforms.

indicators choose and figure out which has a more important correlation what is going on here. brendan: it is amazing that no matter what we talk about we always end up talking about china. should we be more focused on the u.s. fundamentals? mr. orlando: china is only one of the things we what about, which means china is one of five things we could be worried on -- .ike energy prices, the fed there are more tangible thanks to focus our attention. brendan: phil orlando, the chief equity strategist at federated investments. apple dramatically escalates the battle of cleantech companies in the gulf. -- escalatesker the battle between tech companies and the government. how is what impact industries. that is next. we will look at some of the biggest gainers -- report mac ran, garnet, priceline.

salesforce. ♪

brendan: welcome back to bloomberg markets. i am brendan ceo tim cook is accusing the u.s. government of an overreach that will set a dangerous precedent. order.ejecting a court in open letter, cook writes it would be wrong to force apple to build a backdoor into the iphone. he says that would undermine the freedom the government is meant to protect. the obama administration is not backing down. press secretary josh earnest said earlier it was not about holding a backdoor. : they are notest

asking apple to redesign the product or create a backdoor. they are asking for something that would have an impact on this one device. brendan: that is josh earnest. here on the desk, we have cory johnson to her tickets that back. this is not a one-off event. we have heard a steady drip from government agencies on how necessary it is to build backdoors to get around encryption if they have to. while customer through where the broader state of play is in this fight. cory: that is exactly the context -- the fact the white house is speaking about this, that tim cook is speaking about this at all, it tells you more -- it is about a lot more than this one case. how many times do we expect the white house or a ceo to say we do not comment on pending legal matters. we would expect both of them -- but clearly there is something else at play. what is at play is how much of government access through backdoors -- it has already happened. thenow the prism program by

nsa has found a way to get into apple, perhaps with apple's permission, getting private files for people that are not accused of crimes in any way. brendan: tech companies are going in both directions because 10 years ago, seven years ago, we watched yahoo! get raked over the coals for not being careful enough with use information in china. are they actively being dragged one way by their customers -- is there a constituency for encrypted privacy in communications? cory: i think there is. if they want their things to be private and want to do business in the crowd, we know businesspeople like the privacy. this case is red-hot because this became a hot national political issue. this morning, donald trump on fox was talking about this very thing about apple. to what he had to say. mr. trump: in that case, we should open it up -- security overall, we have to open it up and use our heads. we have to use common sense.

they call me a commonsense conservative. we have to use common sense. our country has so many problems. we have to be very careful, very vigilant, but to think that apple won't allow us to get into her cell phone -- who do they think they are? we have to open it up. cory: so, that is the question ?- is it just a phone the fbi has said they want software that will let them enter as many possibilities of codes to get into this phone. they want to use it for this phone -- the question is do they just want to use it for this phone. we know why apple is sensitive to this. it explains why tim cook is doing the things ceos don't, which is putting himself in front of this controversial decision. brendan: after the paris attacks we heard from agencies that the attackers used encrypted information desk and medication. i wonder if there is a proper sense of perspective on just how frequent your medications are encrypted.

how common is it that you -- communications are encrypted? cory: here is a better question -- not to say yours was not great -- brendan: it was an amazing question. cory: i feel smaller to be in a room with such a big, great question. brendan: brendan: -- cory: they do not want to protect information. the larger issue is this is part of a chess game. there are going to go back to court, try to appeal the case. at some point, the judge will say you have to or you do not have to, but maybe the solution will be the fbi will walk into apple headquarters, open the phone, assuming it is possible, you can leave now, it is for the one case. brendan: there are several planes of liability -- one of the reasons why did not want a choice is because it not want to

be legally liable for mishandling it. cory: absolutely. and one can quickly imagine where this goes from going after terrorists, those who have committed the worst crimes in american history, down to people in divorce cases who are looking through phones who have a court order willing to go through stuff. that is with the slippery slope could slide. brendan: cory johnson -- thank you very much. still ahead, we look at the options market as we head to the break. here is a look at how various sectors are performing. energy and tech of the leaders. till it is, the haven -- utilities, the haven, the laggard. ♪

back to welcome bloomberg markets. i am brendan greeley. stocks are valued. policy options market playing the rally? julie hyman has the options

inside. julie: joining me is todd horowitz from the cme in chicago. we have been talking how it is fairly unusual to get a rally for the last three days, and that it has 1% or more updates for each of those days. reads youhe market are looking at to see if this is going to be further sustainable? mr. horowitz: what happened is last tuesday we had a double bottom, and basically we trapped the shorts and are getting more of a short squeeze valley. we see the shorts are just about squeezed out, and that we will see what kind of real action we will have. we have had a move that has been parabolic straight up over the last five days. tohink you will see an end that, and we will see some side with consolidating markets, or a

market that will take profit here. brendan: most of the options -- julie: most of the options guys have said elevated volatility is here to stay. that would speak to the idea that it will not be a return to wine and roses, so to speak. mr. horwitz: i do not think we will see wine and roses. i think we finally recognize there are more problems in the overall economy, and volatility has been hanging on very well. if you look at the measure, the 20-year moving average is 20%. we are hanging around 25%. it should be more the norm, especially in a market that has this much uncertainty. now that the fed is creating more uncertainty with their finance engineering, i think we will continue to see volatility higher up, these triple-digit day moves back-and-forth every day. the last two days, late yesterday and all the way today, other than the gap higher, they have been quiet, flat, but staying higher. julie: one of the groups leading the gains -- it had been leading the losses -- big cap technology.

your trade is on facebook. i am not going to pretend to understand it. it is called an iron butterfly. walk me through it. how exactly does this work? mr. horwitz: ashley, it is a weighted iron butterfly. what i'm really doing here, julie, is i really thought facebook had a chance to have real volatility and again big move one way or the other. yesterday it traded down under 100, and backed $104, $105, and i think it has a chance to make a large move. the market is telling us facebook should move six dollars, or seven dollars in the next 10 days. i want to capture and play the move. what i am going to do is the first part -- sell the call and the put. i am trying to build credit. i do not want to pay a lot of money for the trades. then i am going to buy a strangle. i will sell the 104 straddle, by the 105 -- excuse me, the 106 call, and the 102 point.

i will sell two straddles and by three and that beats the call on the put. initially, i am collecting an $.89 credit. if the stock does nothing and stays around one dollar -- 104, i can make it $.89. if we get the big move the street is looking for, and weaken the six dollar come a seven dollar move, i will have unlimited upside potential on other -- on either the upside or the downside. it could connect a premium if we do nothing, but if we get a big move, it benefits the mac -- the average investor and it has a maximum risk of $300. julie: thank you. looking for the move and facebook. we will be back. ♪

the conference call. the ultimate arena for business. hour after hour of diving deep, touching base, and putting ducks in rows. the only problem with conference calls: eventually they have to end. unless you have the comcast business voice mobile app. it lets you switch seamlessly from your desk phone to your mobile with no interruptions.

i've never felt so alive. make your business phone mobile with voice mobility. comcast business. built for business. bloomberg'se from world headquarters in midtown manhattan, you're watching bloomberg markets. i am brendan greeley. we start with the headlines on

first word is. ramy: first off we go to u.s. politics. presidentialican candidacy, marco is getting a big endorsement. governor nikki haley, the biggest name in south carolina politics, will back rubio. that is according to the state newspaper. nikki haley deliver the 2016 republican response to president obama's state of the union address and she is considered a top potential must presidential candidate. also, republican presidential candidates donald trump and had crews locked in a battle for south carolina voters could have another one looming in court. cruz says there is a letter that declares the billionaire is pro-choice. his message to trump -- "file the lawsuit." apple ceo tim cook is accusing the u.s. government of overreach that will set a dangerous

precedent, rejecting a court order that will help the fbi on lock the iphone used by one of the shooters in san bernardino, california. in an open letter, he said it would be wrong for the government to force apple to build a backdoor into the iphone. the number of traffic deaths in 2014 to rose 8% from 2015, the largest year-two-year increase in a half century. the national safety council says more the 30th thousand people were killed on u.s. roads, and 4.4 million were seriously injured. the council says lower gas prices might have played a role. more people are on the road with driving now more affordable. global new story four hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. brendan: markets close in about 30 minutes. it has been a day of big gains for all of the major averages -- the nasdaq in the lead. abigail doolittle is live at the nasdaq with the latest.

abigail: well, we remain in full rally mode at the nasdaq. the index opened up and has stayed higher for the third date in a row, a contrast to the intraday volatility we have seen so far in 2016. is star -- trying for a second three-day winning streak of 2016 and it's first 2% after back gain since august of last year. let's see how that plays out in one of the standout stocks -- priceline. scherzer one of the top performers -- shares are one of the top performers. it beat first-quarter estimates by 7.6%, making a whopping $12.53 per share. 70% growth year over year. big numbers. not surprising the street is bullish. mark at rbc says it could be some of the lower airline prices that have helped to entice consumers to use priceline. his street high price target of $1700 is well above a trading

range priceline has been trapped in for several years now. another big winner -- fossil -- shares are soaring, of more than 25%, after the watchmaker beat fourth-quarter estimates across the board. there is a high bear short interest rate of about 20% in some of this could be a short squeeze. with the stock up more than 15% year to date and outperforming the nasdaq by a wide margin, this might be a nice turnaround stock 2016. just the barest of gains for yahoo!. what is going on there? abigail: yahoo! has been volatile, up and down, and about 20 minutes ago, the company said they are planning to phase out digital magazines to focus on news, sports, finance, and lifestyle content. abigail doolittle at the nasdaq.

as we discussed earlier, the fed released minutes from the january meeting. while there were no huge red flags, policymakers expressed concern over falling commodity prices and bode miller's said they could not assess -- voting members said they cannot assess the economy. we will bring in the pine bridge economist -- chief economist markus schomer and joe weisenthal. a couple of participants questioned whether some fully dissipated that monetary policy is data dependent, and a number of persistent emphasize the importance of continuing to can indicate this aspect of monetary policy. this is amazing that you have people in the fomc sitting around saying i wonder if anyone in the markets thinks we are not data dependent and they need to be told that -- is that just too hard to believe? mr. schomer: the confusion is

they say they are data dependent and they ask themselves the question, but at the end of the day they give us a path. they do not tell us they might be doing something or will not do something. they say they will most likely raise rates four times this year unless something else happened. it is a confusion between data dependency and a path forward that gets them and us in the markets. brendan: she has been clear since the path laid out in december that the rate hikes are not on a predetermined path, but what i wonder about is they keep saying they do not know what the balance of risks are, joe, but they keep talking about the downside risks than the upside risks. yeah, obviously since the january meeting and the meeting where they hiked, there has been a lot of volatility. it is interesting that they noted in the minutes today that some members saw upside risks to the unimportant rate, so as our colleague in bloomberg news pointed out, if that is the case, still in march, that

probably means the expected path -- they will change the do somewhatt in march if they think the risk of the unemployment rate has gotten worse. brendan: in a chart joe showed us this morning, he did humans work digging for some sign of inflation. he founded in dpi for medical expenses and some services, but i have been wondering whether to take seriously the little bit of the uptick in the workforce participation rate. lo and behold, in the notes, we see there are some gains in workforce precipitate -- participation. does that say we are running out of slack? mr. schomer: there is inflation. you not have to look that hard. if you look at the cpi report, 50% are domestic sources. that is running at almost 3%. that is above the fed target. the reason we are not running at 3% overall is because the other 42%, which is energy and food, commodities versus the

dollar is running at 2.5%. that is fading. i think the fed is correct -- we are heading beyond 2%. brendan: sometimes this feels fed forearm shopping -- the pays closer attention to core pce. they say i prefer the cleveland-trimmed mean, but if you look at the measure the fed cares about, the picture is like -- less rosy. mr. schomer: he does not matter. it will all go the same direction. some technicalities about the way the ppi is measured -- there are some missing substitutions going on between the fixed basket cpi and the actual spending. i think it is mostly autos because auto sales are booming. i think that gap will close. if they all had in the same head inn, he nashad -- the same direction, that is what matters to the fed. there is a lot that

is being missed, even going back to one week ago when markets were doing the exact opposite of what they are doing now -- there is a huge wave about -- sentiment that central banks are failing at getting close to what they wanted, but it is true, as markus schomer points out, even by the fed's own measures, people like to laugh at the term transitory because things last longer than people expect, but in terms of core aspects of the economy that will not be affected by oil like rent, services -- you are seeing firmness in the prices. it is not like deflation is spreading across the economy, or anything like that. we have seenthing more in the last two or three months is increased attention to market measures of expectations, and looking at consumer sentiment, which is always deeply wrong about inflation -- they always overestimate -- but the trend is interesting. william dudley of the new york fed says he is looking at consumer sentiment. you can also look at market expectations.

do you think the possibility of inflation expectations having lost their anchor? do you take that seriously? mr. schomer: not really because it is hard to get your head around what that would mean -- how would they assessed the question? what is the anchor? you can look at the michigan survey nationally --survey -- brendan: william dudley prefers the new york fed survey. mr. schomer: we can look at the new york fed survey. they are all trending higher. we see have this discretion -- discrepancy, and appointed is much higher, but i do not think there is a less-anchored inflation application. brendan: it does kind of sounded like the two of you are a little more sanguine about what the fed is capable of copper should. -- the fed is capable of accomplishing. but i am not an economist, it does seem to me looking at the data is not that bad.

they are hitting their goals on employment. ashley, employment has been coming in below their forecast. on the inflation data, it is not oil, andyou strip out the idea that survey measures of inflation are going down, they look at gas when oil is pledging, but is that bad? it is hard to understand why andne would get worried that will cause negative behavior in consumer spending. brendan: this is the great thing about me and joe weisenthal -- we both have to offered a disclaimer that we are not economists, but we have to play one on television. we are running out of time -- great paths -- what you see? mr. schomer: we forecast one rate hike this year. in june, they will get into the silly season with the election in november, and that will take the fat out of the game. maybe december, but i think we'll get one more rate hikes. anddan: joe weisenthal

markus schomer, thank you both. coming up on bloomberg markets, with all the market volatility, is now a good time to jump into real estate? why markets like miami might hold up better than they did in 2008. here are some reporting earnings after the bell. those are a few of those he was he reporting in just a second. -- of those we will see reporting in just a second. ♪

brendan: welcome back to bloomberg markets. i am brendan greeley. we'll take a quick check on the markets, as has been the story over the course of the day. the nasdaq is dragging the rest of the markets up by the scruff of its neck. the nasdaq up two point 1% --

about 1.6% on the s&p 500. the dow up to what a 55 points. a lot of green today. -- 255 points. a lot of green today. time to see if this will hold. it is time for the bloomberg business flash. yahoo! will phase out parts of its digital magazine including yahoo! health, yahoo! food, yahoo! travel. they plan to focus on four of its most important successful areas that food, sports, lifestyle. the new head of entertainment at abc -- benji becomes the first african-american in charge of a major network. she has been at abc since 2009, "lping to develop shows like housewives." a disturbance in the force at the box office -- tickets for the new "star wars" movie are

fading fast. the film will fall well short of the all-time box office leaders including titanic and "avatar." they have made a little over $2 billion globally. business flashr update. with the stock market seen massive swings in volatility, what is the outlook for investing in real estate. neidichate investor dan joined us earlier and we asked how he is investing in these volatile times. eidich: a lot of us, at least in our world, took less leverage, looking at markets that we like. a little more concentrated in the markets we think are the 24/7 cities, as opposed to going into some of the secondary and tertiary markets. stephanie: what does that mean -- markets you like our what?

cities,ich: the 24/7 new york, washington, d.c., parts of miami, los angeles, san francisco, boston -- places where they have vibrant downtowns, where the suburbs are not as critical to the economic health of the city, as maybe some other -- what we think of as a lesser markets. stephanie: even though miami was in the epicenter of paying a few years ago? miami did something we have not seen before -- it used to be you build and sell, and now in miami, you sell, and then you build. at least up until now, you cannot get a construction loan in miami unless you have 50% contracts with 50% deposits. it is something very different, and something we do not see in any other city. when you go to miami where we have a couple of projects, and you see the cranes, for the most part, all of those projects are presold with substantial deposits -- as much as 50%.

what happened last time, when people put up 10, 15, 20%, and the market crashed, and people walked away from their deposit at 50% -- the belief is no one will walk away from a 50% deposit. we think miami is a very different case. david: you invest differently in distressed real estate. mr. neidich: you done a lot of distressed, but we do some things that are not distressed. david: what you look for --what you see that others do not see? mr. neidich: i think there are other people that do what we do, so we are not that unique in that regard, but we look at situations -- much of what we have done is look at situations where we like to real estate, but without the capital structure was nonsustainable -- so we thought a property that might not have been a good performing property, when the levers was too high, where the owner might have had problems elsewhere -- it was not as specific to that particular property as it was to other issues that may be the owner of the property was dealing with. that is how we think of distress. brendan: i want to talk about

long-term changes in residential real estate. all of the credit activity we see right now is going into multi family rental dwellings. wethat the future -- are done with the standard -- are we going to see less of the standard american dream where you buy a house, it is your own house, and you live in it forever? like thath: it feels is of the moment. i think single-family ownership has gone from something like 66% to 62%. that is a significant change. i think we believe -- you know, one of the things no one has really answered is what happens when the millennials have families, and the schools in urban centers are not able to deal with those kids? do those people move out to the suburbs, which, in some ways, is what happened historically. i think it is a good time for multi family. i think there are places in the country where we start to see ist maybe over-building occurring, and that is something we have not seen in other

cycles, other than as you say, condominiums, as you point out, in miami. i think we think multi family will continue to do pretty well, but single-family, we are reasonably positive about. single-family is the one place that has not had the euphoria that you maybe have seen another place in commercial real estate. dich,an: that was dan bei the ceo of dune real estate partners. here is where the markets are trading -- the nasdaq doing better than the other indexes. 2.1%. s&p 500 still the benchmark, 1.62%. green on the day. we will talk about that when we come back on bloomberg markets. ♪

brendan: welcome back to bloomberg markets. i am brendan greeley. mark's closing about 10 minutes.

stocks are headed for a three-day winning streak now. julie hyman has the market check. yes, indeed, and we've seen a similar pattern over the last three days with stocks closing near the highs of the session. once again that has happened. gains have been remarkably steady today, as they have over the past few days. i have the three-day chart and the intraday move over the three-day period, and now we are setting for a gains of 5.2% over that span of time. tois also highly unusual have three consecutive sessions for the s&p 500 to gain at least 1% or more. i showed the chart earlier. i will show it again because i love it. lu wang of bloomberg news created it. here you have it -- it looks at the time going back to 1990 where the consecutive days of percent gain. this is when it happened only one day, this is when it happened only two days, this is when it happened three times. 15 times, this being the 15th, has it happened since 1990.

i also want to call up the imap to see what groups are on the move. excuse me while i type on television. we are seeing a broad based rally. it has many of the economically sensitive groups -- energy doing the best, as it gets a boost with oil prices. utility down, as we see yields higher. big cap technology is part of the story, as it has been during the three-day period. the nasdaq has been the underperformer this year, and during this period, it has been the outperform her. i mentioned oil. a last look at oil before the closing bell. 5.8%, powering the gains in energy stocks on the headlines that iran is at least considering joining the production freeze on oil. finally, taken look at the 10-year, as i mentioned, yields have been going higher. here it is year to date in this little bump we have seen, but as you very appropriate pointed

out, it is a little odd when we are saying the yield is up to 1.81%, and it is a big rebound. brendan: i was in a meeting with our eco-team two weeks ago and it was below 2%, and hearing that news, we all gasped. it is amazing how much we take this for granted and how much things have changed in a year. thank you, julie. joining us now on the rally, denny burger. risk on -- what is happening? couldone of the things we look at is who is leading the rally and they are a lot of the names that were selling off early in the year. financials are the biggest losers thus far in 2016, and they are up 7% versus 12% for the year. part of it could be we had this really big selloff in people are saying maybe that was overdone and it is time to grab some of these names again. there are some near-term catalysts here. the possible oil deal. the fact that people are saying -- they are being cautious.

so, we're probably not going to have that march rate hike there. whenw that sentiment today the fomc minutes came out and we had a little bit of a bump. the last one i .2 -- a very to -- a verypoint bearish indicator -- surveys with for a couple of years the highest number of bear sentiment. people say it is time to go out, see what stocks and valuation have fallen, look attractive, and by them up. brendan: let me see if i can get the inflection right on this question -- at what point looking at the shift in sentiment over the last few days do you start going huh? at what point does it become a thing? julie pointed out, this kind of move is pretty rare. i think what it comes down to is waiting for the data points to

come in. we still have i.s. on. we still at -- isn. we still have concerns about china, oil. it comes down to patients and seeing where the data falls. again, we have the short term catalysts, but it is hard to say that is enough to completely turn around the sentiment. brendan: 10 seconds, i'm looking now -- cpi ont friday, does that matter to the markets, or just economist? it definitely does because the fed is data dependent because people are looking to see what the numbers are and what the fed is going to do. brendan: that is a we will watch the debt and figure it out. thank you. that is it for bloomberg markets. "would you miss" and the market close is next. ♪

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>> we are moments away from the closing bell. i'm joe weisenthal. alix: and i'm alix steel. today. fu is off

♪ u.s. stocks seeing another huge rally. s&p up for a third straight day. the dow jones rising 250 points. what'd you miss? alix: it's time to buy oil. prices is below $30 are unsustainable. joe: interpreting the yield curve. what it means for the fed rate hike timeline. alix: walmart in trouble. closing the most stores in two decades. we breakdown numbers ahead of earnings tomorrow. we will start with the market minutes. another unbelievable rally. this is the third day the s&p has gained 1%. that has not happened since october 2011.