chinese market is the best performing in the world. in local currency terms it is up 31%. >> the nasdaq 100, the larger component, finishing at an all-time high even though the nasdaq bigger, mineralized -- >> the nasdaq 100 is what everyone cares about. >> the course health care, the worst performer down 3.6%. down for the year as well. they had in -- they have a negative print. up until this point every index group was higher. 500, despite this increase in volume, suddenly putting trades ahead of tomorrow. up about 20 percent in terms of volume. >> let's take a closer look at what some reporters were checking out at the close. abigail gets us started. >> let's look at a big divergence happening on the day. not surprisingly having to do

with health and policy concerns. blue is the s&p 500. all year long the nasdaq biotech index, the high momentum, high potential outperforming the s&p 500 by a couple hundred basis points. that is until the last couple days. two weeks ago we had the nasdaq biotech index of about 18% on the year relative to the s&p 500 up 15.5%. we now have the s&p 500 flatlining around 16% higher on the year. biotech index has climbed now of 8.5% on the year. you have to wonder whether or not there will be contingents which could spread from that high momentum, high-growth sector getting hit towards the broader markets, especially big s&p 500 stocks. >> i'm looking ahead to mx earnings which report before the bell tomorrow. the stock marginally down today but off to a stellar start throughout the year, up close to

18%. it is on track to meet its 2019 revenue growth. in this chart you can see revenue has been growing robustly over the last few quarters. you can see more confidence has been strong throughout february and march and that is true for the high income spenders who have called to amex's customer base. amex recently renewed his credit card deal. they said business travel was key to their better-than-expected first quarter results. speaking of that deal, they will be looking for more information, earnings chart was announced when the renewal was aroused -- announced. for 8% of all spending on amex cards. >> about 9% of the s&p 500 today hit new 52 week highs. that might not seem like a high number but returns us to a trend line which has been missing.

nike, intel, dollar tree on that list. across, we you look had more than 100 companies hit 52 week highs. the peaks we had over the past year with about 177 new companies on a daily basis was back in june. decemberer fell to two 21 and there has been criticism of the recent rally that we have not been seeing any real new day-to-day highs. what you are seeing now is this balance between the new highs and the new lows. it puts us above a trend line that we had back in the better part of 2018. if we can hold about that trend line, a lot of strategists say that could continue to fuel this rally. >> thank you. you were just talking about it before the closing bell. an important software company coming up with his numbers. third-quarter revenue $309 mil lion.

we are falling after hours in the market. we will get deeper into these numbers. and whether this will be a read across to the other key software companies. >> still with us is chris joining us from west sacramento. you are about the companies and whether they make profits. what is your sense of how earnings chaise -- earnings season has shaped up? what does it mean for the rest -- today'se to tell you, market action and the charts makes me a bit more uncomfortable. i do not feel as enthusiastic as i should for a market that is close to an all-time high. i cannot put hard numbers on it and i did not think there is any particular news that will cause the market to sell off, but this, the internals did not feel as good as i would expect at this time. and i think that is an investor

you have to be a bit more cautious until you see better earnings. and you are already hearing that some people are beating the estimates, but by very small amounts. so, this is an interesting earnings season that is not what you normally expect when you are about to hit an all-time high. >> you heard chris talking about skittishness about the markets despite the impressive rally. where is the latest on positioning? i know we have another hedge fund manager survey out today. still this view that discretionary managers and individuals are underexposed to this market? >> the latest actually is that slowly getting back in the survey shows that one short european equities is the most crowded for a second month in a row. stillck to the u.s., defensive but turning a little bit more cyclical. but the positioning does show that fund managers still are not 100% certain about this market.

we are nearing record highs and it is difficult to have conviction, especially when you look at the underlines. we have earnings coming out and they have not been so great. at the same time, we have a bit of an odd market. you look at semi conductors that are just posting new highs, really flying away. then you look at what they are expected to do earnings-wise and semiconductor companies are expected to post a 20% earnings declines this quarter at 14% declines for the year. there really is a large disconnect between what the market is showing and what the earnings forecasts are showing us as well. >> we have more earnings out. las vegas sands just reporting $.91 for the first quarter. analysts were looking for $.81 on average. in terms of revenue. the mean estimate was for $3.5 billion. did i say billion?

themedian estimate was also same. so this is a miss on the revenue line. >> but the shares went higher. let's go back to the positioning. chris, your perspective. from a global perspective, is there anywhere looking better than all in on the u.s. or is it just wholeheartedly better at home right now? >> my perspective is i like the home country bias to the usa. but a lot of companies in the u.s. market are truly global in nature. so you are getting that exposure. china is the second most important economy in the world. sometimes our market pays attention to it and it gets back to itself. there should be opportunities in europe. obviously the german economy is close to a recession. , italy, greece. but they are not priced as i would expect to see those kinds of discounts. nothing is cheap. it is hard to figure out where you want to position a portfolio.

in our case we are completely neutral. we are not overweight or underweight any of the asset classes. we want to stay right online with our long-term target. it is tough to have conviction and this kind of a market. >> great comments. of course we are seeing that lack of conviction show up in the prince and the major indexes. we are close to record highs but we cannot quite get there. chris, thank you so much. the cio of counselors -- calstrs. that does it for the closing bell. next, looking at china's economy and ongoing trade discussions. this is bloomberg. ♪

>> live from new york, i'm caroline hyde. here's a snapshot of how u.s. stocks close for the day. pretty much in the red but volumes were significantly higher. defying expectations. chinese economy rebounds, and xi jinping more wiggle room as trade talks with the u.s. enter an official stage. from pinterest to pot. we focus on the latest ipo's coming to the market, including the first cannabis company based in the u.s. and happy birthday bugatti. marks its automaker 100th anniversary. from anve earnings out aluminum maker. inan adjusted basis coming

at $467 million, higher than what analysts expected. it is giving its forecast. coming a little slower at about 3%. it had previously seen a growth rate of 3% to 4%. joe: nafta trade. the u.s. and china are aiming to sign a trade deal as soon a slate may. let's talk about this with derek scissors, the american enterprise institute resident scholar and chief economist. thank you very much for joining us. us outside the room really know exactly how close they are but in your view do you think we are going to see something called a deal? derek: i think there is about an 80% chance we will see a deal and i think we have a schedule laid out. it will be second week of may or something like that where they announce a deal. together isp and xi

a difficult exercise but that will probably happen in late may. i see that with confidence because i think it is the most likely outcome but a lot can mess with it. someone we had on previously was traveling with republicans and saying the white house considers any sort of deal to give a pop to the tune of about 2000 points for the dow. are you thinking that any deal that his truck will be quote, unquote, a good deal for america? derek: i don't know what the white house is thinking with regard to the dow because this should be priced in. i do not think the deal will be good for the u.s. and i think people respond to that and wonder about the viability. two main parts of the deal are stopping chinese coercion, which is a big part of the chinese development model. it will be difficult to stop. and then purchases. the chinese do not have money to

make purchases for 10 years. they have money for a couple years but that should be priced in already. thate of the big concerns has been raised with regard to the proposal is this idea of enforcement in both countries will have the ability retaliatet is not met. what do you think of that idea? do you think that can work in this framework? derek: i think there are three issues on the enforcement side. an, if you are going to sign agreement which says to china you are allowed to take unilateral actions, that is something i would think would involve congress. and it is not going to. the administration will not submit the deal to congress. second on enforcement, the u.s. has failed to take enforcement on action -- on china. there is a number of things we have done nothing about so the u.s. credibility is thin.

the administration itself says clearly china steals 100 of billions of dollars a year from the u.s. on ip. we are talking about meetings and offices. that will not do the trick. the scale of this problem which the administration identified will not be met by what we know so far. joe: let's talk about the state of the chinese economy right now. i think the prevailing view is that we are seeing what people call green shoes, that some data is looking better, gdp was better. do you share this assessment? what is your view right now, and is it sustainable? about aour intro talked surprise strength in the chinese economy. it is not a surprise. the chinese sent out the signal to lend more, borrow more, make more. production rose, there was a ton more borrowing and lending. that is fine. they were able to execute this

re-expansion off the fourth quarter which was much weaker than what they reported. first quarter is definitely stronger. but it is all new to borrowing. -- due to borrowing. we have not seen reform or improvements in efficiency. >> it has a corporate ramification. demand forecasting. your perspective on whether we will see further stimulus, whether or not it is the right stimulus. today we are hearing rumors of consumer purchases and the likes of auto with some kind of green shoots being shown an economic data, however real or however muddled they are. do you think we will see further stimulus? derek: we are going to see the chinese try to move from monetary stimulus to fiscal. they have tried it before and it has not worked. that will be an important change. a lot of ramifications if they can go it because fiscal stimulus will go to different parts of the economy. in this better first quarter he

still had very weak auto demand and cell phone demand. not coincidentally that is where you hearing talk of stimulus. the big question is if they can switch to fiscal stimulus. the smaller question is if they want to stimulate every weak part of the economy. they should not do that but they might because even with a better first quarter you have clear elements of weakness like autos. romaine: fantastic to have you here. thank you. just to recap, we got alcoa earnings. the big news here is the company sees its fiscal year 2019 global aluminum demand growth at 2% to 3%. we previously saw a growth rate of 3% to 4%. scaling back the outlook a little bit. as far as actual earnings, became came in a little ahead, but the adjusted loss per share a little wider than some expected. caroline: it is interesting they are saying lower demand growth

and china is perhaps cutting that demand forecast to 2% to 3%. joe: that is the key thing. people are still looking for a sign that china is stabilized and the data suggests it. here you have a company citing china for modest growth. romaine: i think it is interesting they would say this on the heels of the chinese data showing a little bit of a rebound. something thew rest of us don't. caroline:this is bloomberg. ♪

romaine: a cloud services company atlassian releasing its numbers. market reaction a little number

-- negative. a lot negative. down 10% despite being some key metrics. here to talk a little more about that is a bloomberg intelligence senior technology analyst mandy. what is the main -- the main number people seem to be reacting to? mandy: this company was growing in excess of 35% the last few quarters and it was trading -- standardare priced two deviations over -- it was not a miss. is this one of those things where there are a lot of companies priced for perfection? and could you read it lasting through some of those? mandeep: absolutely. software is a sector where you get topline growth, free sector

growth,, expansion. this combination is hard to find when you look across other sectors. especially the application side of software. atlassian falls under application software. infrastructure software does not have those kind of margins or cash flow attractiveness. companiesother can -- you can trade that historically have traded lower and they are much higher. one or two standard deviations above. any time investors see a slight pause and growth, that is way -- pause in growth that is when you see a re-rating. it kind of fell in terms of having trade at premium valuations versus lower growth companies trading at regular valuations. caroline: who should we see the read across and the public markets and it is a concern to slack? mandeep: on the software side

investors are willing to give a pass simply because they do not have a profitability problem like the ridesharing guys do. it is a cases, yes, question of if you -- of what you are going to grow but still you will have positive margins and cash flow. and you have predictable. revenue. the thing about cloud is predictability. they have predictable revenue which is what investors want to see. caroline: ibm wants to see it at some point as well. great to have you. meanwhile, do not put pinterest in a box. the digital bulletin board is making it clear to investors they are not to be compared to social media or a social engine. making these comparisons may very well help boost demands. so why put them to aside? reading, what is it trying to call itself?

it is dubbing itself some kind of way, a visual discovery platform. why do they not want to be compared to social media? >> pinterest is ready to assert it is neither a social media company nor a search engine, although that is obviously what analysts and potential investors are looking to compare it to. it says that is not quite the same as a company like facebook addh does have a lot of business because when you go to pinterest you really -- add business because when you go to

>> where you go to right and what you're looking for. pinterest is a lot more visual and it says it will help people find the things they are looking for without them really knowing how to explain it. it is trying to differentiate themselves saying it is going to be stronger because of the intent to buy when people go there. >> why would people might aspire to own it one day? >> they are trying to say they are not quite the same. maybe have a chance to set things on their own terms but instagram is coming for the same kind of thing pinterest is trying to do. see something beautiful, you think you want to buy it and instagram will be an e-commerce business and people will see that as a threat going forward. joe: let's talk about an ipo that i understand. this is actually profitable and i think the narrative is easier to explain. ellen: zoom is something we are

expecting to come tomorrow. the main thing people are looking at is unlike a lot of the other ipos we are expecting to see or have seen this month and the rest of the year is profitable. compared to the big things we have been talking about like lift and over, it will be a different calculation. flashierbout big year, -- bigger, flashier ipos are losing money and seem like they will continue to lose money for a long time even after going public. caroline: great analysis. we brace ourselves for the company coming public as soon as tomorrow. sitting with tech we are turning to documentaries and now two new subpoenas. hulu and netflix may face the court over respective documentaries for the notoriously failed as accessible, fire fast. -- fyre fest.

joe: i was riveted by them. the social media aspect. buyit swayed the public to into something that did not really exist. caroline: it changed rules for influencers. placedd to say it was a ad. it was such a painful failure that instead of having luxurious high-end vip jets, they were stuck on your average plane in cattle class and you are giving -- given a cheese sandwich. it looked like hell on earth. joe: if you can watch star wars you can watch this. ja rule have we asked to be on the show? caroline: i always want him to be on the show. joe: nasdaq it's his first lifting from a cannabis ja ruley just as a sector may be cooling. this is bloomberg. ♪

s bloomberg. ♪

mark: i am mark crumpton with your first word news. the white house today intensified its crackdown on cuba, nicaragua and venezuela. president trump is ruling back obama administration policy. new restrictions and sanctions were announced, whose leader national security advisor john bolton called the three stooges of socialism. >> as the president said in february, the twilight hour of socialism has arrived in our hemisphere. cuba,oika of tierney, venezuela and nicaragua, is beginning to crumble.

spoke hours after secretary of state mike pompeo announced in washington a new policy that allows lawsuits against foreign firms operating on properties cuba seized from americans after 1959 revolution. presidenta, a former of peru suspected in a continent-wide corruption scandal, is dead. authorities say he shot himself today as police tried to detain him. he was president of peru between 1985 and 1990 and again from 2006 to 2011. he was under investigation on suspicion of taking a bribe from brazilian construction officials. he denied wrongdoing. state officials in colorado see a young florida woman who was infatuated with the columbine high school massacre has been found dead of a self-inflicted gunshot will. they say the 18-year-old woman traveled to the denver area monday and purchased a shotgun from a store that is not far

from the scene of the 1999 school shooting that left 13 people dead. threats, used to frankly,, at columbine. this one felt different, and it certainly had our attention. mark: authorities said her threats were not specific to any morel, but columbine and than 20 other schools outside denver reacted by locking their doors for nearly three hours tuesday afternoon and some canceled evening activities. global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. >> a bit of breaking news on the robert mueller report. attorney general william barr and deputy attorney general rod rosenstein plan to hold a press conference tomorrow morning

specifically to talk about the mueller report. early of the justice department was expected to release that report to congress and to the public tomorrow. a press conference being scheduled for tomorrow at 9:30 a.m. washington time. caroline: now let's turn our attention to -- new concerns are coming at the worst time for this one ipo which bills itself as the first u.s.-based cannabis company which goes public on thursday. the prime harvest index, which of course -- has underperformed. let's get more analysis. i am taken by this but at the same time we have a new etf coming through the market, more of a pure play when it comes to cannabis. your perspective on the hotness of pot.

are you still as convinced of the growth perspective across the industry? >> sure. for the public canadian license producers that i cover there has been a bit of a tempering in terms of expectations. last monday we lowered our numbers for several names under my coverage in terms of thinking about sequential growth quarter over quarter from the fourth quarter of 2018 into the first quarter of 2019. that really reflects software data we have seen in january which showed a month over month revenue decline of 4% in the fourth month of legalization. there continues to be quite a lot of tightness in supply in the market and the rollout in stores has continued to be slower than expected. that the canadian recreational market is supply constrained, there will be bottlenecks, it will be a while. do you feel confident that all of them can be addressed?

and how quickly? vivien: i do. i do feel confident the supply constraints will be addressed. in fact, one of the leading companies over last week actually took up their targeted 2020 capacity production goals and we continue to see supply ramp. bringing on this much supply at scale and producing high-quality cannabis certainly has proved challenging. but the infrastructure is they are and continues -- companies continues to work towards that. willrms of tightness, it be compounded likely by the october rollout of new form factors which is not yet been available in the marketplace like beverages and edibles. so you could see a big supply constrained a backdrop for another 12 to 18 months. romaine: can you give us a little more perspective on some of the new form factors, specifically with beverages and edibles? where do we stand? vivien: product development

remains underway. key paying points are time to affect and the duration of the effect. what has been challenging for a lot of consumers with traditional beverages and edibles is that they are not water-soluble. the thc has to get absorbed in your liver which takes time. so the companies are trying to accelerate that and have that time to affect what you would get with alcohol which is 10 to 15 minutes. all of that r&d is currently underway. caroline: we still wait for regulatory approval from the fda. what interests me is no one seems to care if the fda is regulating it yet. we are getting the rocky mountain high, a cheeseburger delight which is coming out for on april 20. why are companies still willing to assume they will not be taken down by giving out edibles right here and right now? vivien: we are talking about two

very different things. the beverages and edibles i am describing her for the canadian marketplace and they'll be heavily regulated in terms of dosing, potency and packaging. that is in canada. what you are referring to is cbd. waslegality of that partially address in the 2018 farmville that passed in december of last year. there was a setback provision in the farm bill. the fda is cognizant of the unregulated status of cbd and they announced they will have a hearing in may. u.s., somel in the states recreational cannabis is legal, cbd is proliferating everywhere. there still seems to be an issue in either one with banking and access to the financial system. do you see signs that that is improving for the legal players in the u.s., their access to a

financial system? vivien: access to commercial banking is something congress is working on right now. it is a piece of bipartisan legislation called the states act. it did pass out of committee. -- it didhouse, now pass out of committee in the house. so now we see if it gets rolled up into a larger piece of legislation. optimistic the act will pass in 2019. caroline: you made great points in some written work talking about how maybe m&a is the flavor of the day or at some point we will look towards profit rather than growth. will we see it within the space and who might be the purchasers? it will always be corporate from the outside. some acquisitions and mergers within the smaller space? seen strategic

acquisitions within the cannabis space already. lastpany that i cover, year they acquired a fairly large canadian lp. tactical m&a from the canadians to get access to hemp to address several cbd opportunities. another also seen company make moves in that space with an acquisition. caroline: thank you. we love receiving your research on this burgeoning industry. breaking news on jp morgan. some shuffle at the top. may 1.fo will be named . . jp morgan. cfo marion link will be ceo of the consumer part of the building. move.e: an interesting

this is bloomberg. ♪

caroline: time for a look at what stories are trending. we just had several traders in new york and london. the bank making a renewed push after it brought on senior staff last year. to help expand. greek yogurt sales continue to fall. with it being low in sugar and high in protein, farmers hope the new variety will help lift them out of years of lackluster demand. tictoc on twitter is reporting the most important meal on the day is more expensive depending

on where you live. the price of breakfast is rising faster than incomes in south asia and sub-saharan africa. the most supportable in switzerland. you can follow all of these on bloomberg.com and tictoc on twitter. now we are also going to be taking our attention to bugatti. it was celebrating its 1/10 anniversary with a limited 110th anniversary with a limited-edition car. the price tag is $3 billion. -- million. >> the idea is to make something timeless. to connect the driver with the car without too many items. just the essentials. to make a design which will last forever. you can see it is the essence of

a bugatti. in this car you have specific anniversary.e 110 and the steering wheel is very special. >> a unique shape. >> correct. . formula one. good.t sounds that sounds very good. they will know you are coming. >> that's an idea of how it sounds. 16 cylinder. the only one in the world. >> and this is simple and easy. >> easy, timeless and easy to drive with the best technology and sound system. you can put the car in full driving mode depending on where you want to drive.

you never lose control of the car. that is our goal. torque is very difficult to control. >> what does a car like this cost? more thanail price is $3 million. all included. the car comes with four years maintenance and service which means you do not have to take care of anything. bugatti. price of a it is one of 20 worldwide. we are very proud we sold a few of those units in the u.s.. >> wonderful. weit is the only car imported from geneva. then it goes back to france. >> when can we expect the few

that go to the u.s.? >> they will be on the road this year because this year is the 110th anniversary. joe: thanks to hannah elliott for bringing that story. them every saturday and sunday on bloomberg television and radio. now to a notable stock mover today. shares of an italian soccer team plunging as much as 24% at one point. they were knocked out of the elite competition. this is so we had the u.s. perspective because we do not have publicly traded stocks for sports teams. let alone move that dramatically on one game. i guess it makes sense. romaine: i love how this team has a fifth of the budget. they are almost like the moneyball. joe: it is just one game.

they have less money so they have to be more careful about some of the young raw talent. joe: my question is whether any windows trade while making a bet and trading the stock. arbitrages an opportunity between e-sports book and equity in the country. i would like to see someone put that together. i don't know how to do it. romaine: time for smart charts with abigail doolittle where we walked to the latest market analysis. you are doing a deep dive on the banks. abigail: standing next to me is a true bank bull. it is positive to have a bullish bank person next to me. you have charts that really tell a story about why investors may want to buy this. let's look at your first chart

of the financial sector relative to the 10 year yield. the 10chart relative to year yield, the top shows the s&p 500 financials. the bottom shows the 10 year yield also with a 200 week moving average. what we are seeing our similarities to 2011 and 2012 which is where the -- a lot of people associate lower yields with weaker banks. you can see banks are rallying. also cyclical similarities here. financials high or low. here in 2019. i think the next phases we are going to break through that downward slope and trendline and on s&p -- s&p financials go back to the 510 range. it is basically that high. abigail: do you think there is a chance we could see the 10 year yield break before that 200 week moving average? steve: there is always a chance you could break below that moving average.

right now i think there is support on the 10 year yield. abigail: i love this next chart you have which is the financial sector relative to the s&p 500. a long term really showing reliability. steve: what we are doing is a similar comparison. see you had a relative low in 2011. i relative low in 2016. and now we are testing the trendline off that relative low. the relative ratio for the s&p indicates that since early 2018 it has been a big laggard but right here and right now it is bottoming and shows the potential to rally versus the amount outperforming. abigail: that does seem to mark that downtrend. to make sure it is not a false start. steve: i like to go in piecemeal. we are developing an absolute chart.

i will reward good behavior. if we go above the 40 week i will add. abigail: final europe. you like the european banks as well. steve: there has been pushback on this one a little. when you look at a global manager survey -- what we think here is we have a bear trap. it is a false breakdown. we broke down in 2012 and 2016 briefly around brexit. i think what happens here is we get a nice recovery. there is a base on that chart that we can see on the breakout 100. it accounts to 115. if the path is any guide you can get closer to that trendline. abigail: in terms of these three charts you tell a very compelling story in terms of why investors may want to get involved in the banks.

thank you so much for joining us for smart charts. --e romaine: coming up, an executive shakeup at j.p. morgan. this is bloomberg. ♪

romaine: breaking news on canopy, the marijuana company. it is said to be near a deal to buy. we don't have a lot of details. based one near a deal reporting by bloomberg news reporters. caroline: a shakeup at j.p. morgan. they have named marilyn -- caroline link ceo and another new cfo. question is are

they grooming? a successor could one of these females? >> be the next in line this is the big question -- inthis puts another woman the pipeline. they are both the same age. she's been there more than two decades. it draws questions about who will take the top seat. joe: going to run consumer lending how much of a surprise is that? >> surprising. she's been cfo since 2012. she's seen as a successor. gordonbe reporting to smith. employeese sent to was sent by three men.

caroline: irony. joe: i don't want to get too much on the gender issue. but we could get a major bank with a woman ceo. we were talking about best buy, about the woman there, they wer finally embracing a woman -- as he said, a gal. have we reached where it doesn't matter? we know she's worth it. why is this a big deal? >> there has to be more room than just one or two women. it recently.y did this gives another woman a seat. it's very important now because just a week ago in congres they

got grilles on this extact topic. caroline: timing is everything. she has never headed a significant part of the core business so this could help her broaden. >> she was a cfo before. she now has a more operational role. caroline: thanks. jpe female reshuffles at morgan. pinterst to start trading on thursday. joe: i'll be watching economic data at 8:30 a.m. romaine: blackstone reporting 1st quester earnings. joe: tech is next. this is bloomberg. ♪

emily: i'm emily chang in san francisco. this is "bloomberg technology." the tech ipo boom rolls on, zune video and pinterest preparing for their debut, but will investors hit the brakes or move full speed ahead after the lackluster review of lyft. the qualcomm stadium it -- welcome settlement -- no