going to happen. you also have commodity prices continue to rally. we have seen a but if he bounce back in interest rates for energy, banks. seems like a better operating environment than it was certainly at the start of this year. expectations expectations have to, for the first quarter but they will continue to fall. afterne: the nasdaq, 1.3% performance. down justmer staples a little bit. health care, consumer discretionary, tech obviously huge. a decisive record. it is not like it just inched over it. dive intoet a deeper the action with our market reporter. been looking at what has

powered the s&p 500 to that high. oflth care putting in a gain 1.6%. that is the best daily gain for index for thee s&p 500 since january. health care stocks haven't really been moving on earnings today. of course, they been moving more as we've been looking at a lot $150rgain-hunting after billion market capitalization was wiped off the books as investors were concerned about medicare for all. individualupgrading health care stocks and really pooh-poohing the idea that medicare for all will come to fruition. someone said that legislation for medicare for all has "no chance of happening." ataine: i'm taking a look

constellation brands. 16% since is up about reported earnings back in april, and that was largely on the back of strong earnings reports of corona beer, modell oh beer. thestment in canopy, cannabis company, and specifically canopy's investment, acquisition in acreage. cannabis industry and sort of the potential that that could have a much higher payoff then some investors originally thought. shares up about 1% today on the pointsf a few percentage yesterday. abigail: here is a board of records. the s&p 500, the nasdaq, the s&p

500 finishing at a record closing high. the nasdaq 100 and the stoxx, they've been on a record high for a while. rally reallyisk continuing on. not as bad as had been feared. there is a question, can it continue, especially for growth year sectors? nasdaq typically a leading tell. this is a five-year chart. in white, the s&p 500. in, we've got the sox. andth moving higher in 2015 2016, the rsi going higher. of course we have this big rally after last year's fourth quarter selloff. the rsi is back in overbought territory. that's not necessarily a bad thing but lots of volatility

makes -- volatility points to some choppy trading action ahead. caroline: sticking on the tech scene, let's look at texas instruments. the chipmaker, a surprise growth in earnings-per-share for the first quarter, but the second quarter, a little bit below overall estimates. $1.12 to $1.32, down from $1.40 the year before. the estimate for 3.66. the sick company that everyone had brace themselves for slowing revenue. the ceo and a statement said the revenue decreased by a percentage a year ago because the growth continues to slow across most markets. joe: over 30% from the end of december, so to see attack on an additional 5% in the after hours, pretty impressive. you can imagine, after such a

rally, a little breather. >> there's been talk that the bottoming out of the chip market is here. you heard that from the micron ceo. so much of it is all about the ships. about the chips. stand?o we they look really good. earnings have been good. even though things come in a little bit light, the stocks able to get a little bit of a boost. >> i think this is maybe not the sole focus but one of the focuses of the market, what happens between the u.s. and china. that march 1 deadline get punted and determinedly in

the future. a resolution there could be another mini catalyst backwards. throughly chains moving greater asia. we've seen it slowly moving toward a resolution rather than waking up one day. from have earnings out stryker medical company. estimates of $1.84. this, noting through much reaction yet. we will continue to follow it. trade, does anyone talk about that anymore? >> it seems as this point that -- it seems at this point that people are looking beyond trade. there are still those out there who do believe that, should we get something, that we could potentially see even further of a boost.

60%re already up more than year-to-date, but some do believe that will be the catalyst. when you relate it back to semiconductors, i think it is unbelievable. stocks up more than 36% this year, yet you look at the industry breakdown for earnings and semiconductors are expected to see 14% growth declines from previous sectors. caroline: i think it is also interesting to see what the effect of trade in china will be on investors. from a sector perspective, is there any outside bets you are having particularly on china, for example, as a country? >> some of the mainland shares and offshore shares as well. seen the, we've economy get beaten up but the exposure to china has been helpful, also to u.s. stocks.

china is at the beginning of what looks like could be a pretty robust midcycle recovery. they just had this tremendous stimulus package. that should be helping new orders, factory orders, and orders coming in from importers as well into china. the trade resolution is a big kind of unknown here. how is that going to resolve itself. overall, china growing better will help all of these companies. >> i will recap again what we are getting from texas instruments. they are looking more at the forward guidance which might be what is driving stock higher. second quarter revenue now at $3.7 $3.4 billion to billion versus the estimate of about $3.66 billion. the ceo commenting that revenue was off about 5% due to some weakness in demand.

you are seeing a read through and some of the other stocks as well. that does it for the closing bell and for me. romaine bostick is stepping in ," where we you miss? will be looking at earnings for snap and bloomberg. this is bloomberg. ♪

snap, of earnings from course the owner of snapchat. whether it is users, revenue, earnings. a first quarter revenue -- adjusted loss of just $.10. the key is the daily active users. from 186 andup beating the estimate of very little growth.

rising after hours. remember, this is a stock that has already doubled since the start of 2019. this is what people have been waiting for. everything that people were talking about is how are they going to grow? there was also this general idea that there was sort of this thirst for an alternative to the facebook ad model. if twitter, if snap, if pinterest can sort of get their acts together -- i don't know if this will do it users, but90 million it's a start. rallied today already 4% going into after hours. now having another monster after hours session. i think both snap and twitter are at least showing that they are never really going to be facebook scale, they can never

compete in that sense, but there is space for the smaller social networks. romaine: one thing that i thought was interesting about twitter's report is that they seemed resigned to the fact that they would be small, that they want to be 18 each player. player. to be a niche i think these companies are recognizing that the pitch isn't to compete with facebook. interesting that we are starting to see this stock rally. we are seeing texas instruments perform well. earnings-per-share trading higher after hours. the dallas-based company is the first of the major u.s. semiconductor companies to report. bloomberg intelligence senior analyst focusing on technology. the author of the new york times

robots"er "rise of the is joining us from palo alto in california. first, your take on texas instruments. it looks as if other stocks like what they are hearing. ofthere was a tax benefit four cents. they guided down tax rates but they went down much more than anticipated, so that was a benefit to them. 2q guidance is actually a little light. i think the big dilemma with the semi stocks is we are all trading up based on second-half strengths. if the second-half strength isn't as high as people anticipated, then we are set up kind of poorly given the rally we have had. buts an ok quarter remember, the consensus numbers weren't that great to begin

with. their guidance is a little bit shy, it isn't a good bogey. you want strength to be outsized relative to what they had guided to to begin with. joe: texas instruments up over 30% off the bottom, now continuing to rally further than that. even if it is not amazing, it looks like investors are impressed by what they see relative to expectation. >> the investor sentiment seems to be far ahead. that is a little scary. ae of the things, pi is broad-based indicator in the fact that it is trading higher, ,ery close to all-time highs these are -- and we are looking at 2019. that is a meh year.

it doesn't justify the multiple. when you look at the industries, everyone seems to think we found this bottom in the actual business cycle. are we there yet? >> second-half is going to be fantastic. it is just around the corner. and we better have that because that is what the stocks are telling us. we will see. let's look more broadly at the news that was out today. what was happening between elon musk and nvidia. who's making the best chip when it comes to driving? >> driverless cars, let's focus on the journey, not the destination. second, driverless car-based aips for nvidia is less than

5% business. yes, tesla is probably well ahead of peers in its journey of driverless cars. their assembly of components for their auto is likely better than what they can get in the margin market. but, it's not a fair comparison because that doesn't make it, oh, we are four days away from driverless car utopia because of this chip. i want to frame the context appropriately because i think we are getting way ahead of ourselves. romaine: ebay reporting revenue slightly ahead of estimates. also giving a second quarter outlook. $.63,ed earnings, $.61 to slightly above the average estimate. joe: i want to bring futurist and author of new york times

bestseller, "rise of the robots ." we had the big tesla autonomy event. how close are we really to a car that can drive itself. elon musk saying yesterday that the hardware is all set up now, obviously there is more work to be done. it is starting to look like maybe the roadmap will be longer than we thought a few years ago. martin: i really believe this is 10 years away from having a truly autonomous car that can drive anywhere with no one in the car obviously. so i was really astounded by the prediction that a year from now he's going to have a million of these cars on the road. i just really don't believe that is at all possible. even if the technology basically existed today, getting that many cars on the road within a year in terms of testing, making sure it is safe, then overcoming the

regulatory hurdles, would be .nlikely joe: is the technology they are or close in your view. many have argued that maybe you could get 95% of the way there .ut that last bit martin: if you are talking about truly autonomous car's that will have no safety driver, even 99.9% isn't enough. lead to thousands and thousands of incidents right away. i think the first thing we will see is more limited deployment within specific geo-fenced regions, for example, where the cars don't have to worry about things being too unpredictable and so forth. to get to the vision that e line is talking about where it is

like an uber, it can literally drive anywhere, i think that is years, even decades away. >> it is not one singular technology that is needed to make this vision come together. it is hundreds of technologies. and that is just the technology bit. regulatory aspects, who pays for this one a car gets into an accident, who is liable. minor questions like that come into play. what if there was nobody at fault. all of these factors is only one part of the equation. it is a journey, not a destination. romaine: martin, another big story that came out today was

this idea that google is potentially going to have the ability, or at least is testing the ability to deliver things by drones. this is sort of another promise of the future. how realistic is this in the current framework not just of technology but also public acceptance of the regulatory issue. think it is definitely feasible in less populated areas. the question is, can you scale this technology and really make it meaningful? a company like amazon, in order to use drone delivery and have it be a material part of their business, it would be countless flights, the skies would be darkened by drones. i think it is clearly a technology that is beginning to work. it is going to be used in some situations. but if it -- but whether it is really going to be a big, meaningful technology is yet to be seen.

joe: i read this morning that on robotsa startup that -- a startup folding clothes robots that just went out of business. caroline: i have to say, i'm someone who owns a robotic mop and a robotic vacuum. so i'm full on robots. not a clothes folding one, sadly. martin ford is the author of books including "architects of intelligence." thank you for joining us. we just want to recap before we go to break, ebay earnings are out. the big news come on the second quarter outlook, they are reporting that they expect to report about $.61 to $.63 per share. crossposty did beta

-- across most of its metrics for first-quarter numbers. 39% from thep rose previous year. they came in at 320. they are also beating in terms of the amount of people using the apt daily, compared to 186 in the fourth quarter. some lofty aspirations coming from the analyst community but they managed to meet it. this is bloomberg. ♪

check on theuick latest business flash headlines. lockheed martin has raised profit and sales forecasts for the year. they are raising the production of the fighter, now hitting a record $133 trillion.

harley davidson posed to close higher than expected profit. the slump wasn't as bad as wall street had feared. president trump made harley the subject of his tweets again. this time, he blasted the eu for raising tariffs. inroup considering investing wire cards in exchange for a stake in the german payment firm. an agreement could be announced as early as this month. the financial times reported a wrongdoing at wirecard singapore operations earlier this year. that is your business flash update. speaking of -- -- speaking of softbank, we have to talk about the wall street journal piece on the softbank founder making a big bet. he pulled out at the beginning of 2018, it would seem, and lost a cool $130 million.

if you've lost basically 40% bitcoin how much, say, came down from the peak in december to the end of february, quarter ofve made a a billion bet. romaine: that is what i found amazing, not just the loss but the fact that he made a bet so big on a speculative instrument that was already trading at an insane high. caroline: he makes big bets for a living. $19 it is worth about billion. romaine: he's fine i'm sure. caroline: and he's making bets everywhere else. you win some, you lose some. coming up, we will be speaking to the founder and ceo of canopy on the massive deal. this is bloomberg. ♪

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bloomberg has learned that former vice president joe biden is going to run for president. theces tell bloomberg that 76-year-old will announce his plans on thursday and follow up with a campaign rally in pittsburgh next week. the announcement would end weeks of speculation and put biden in the crowded race as an early front-runner. the supreme court's conservative majority seemed ready today to uphold the trump administration's plan to ask about citizenship on the census. three lower courts have so far blocked the plan to ask every u.s. resident about citizenship

in the census, finding that the question would discourage many from being counted. >> this question, are you a citizen, it is not about a line on a form. it is about whether or not everyone in america counts. the government's own estimate is that putting the question on the census will cause 6.5 million people not to respond. they are just going to vanish from our nation's population count. mark: federal law requires people to complete the census accurately and fully. puerto rico's government says its plans to demolish 16,000 structures that were heavily damaged by hurricane maria two years ago. officials said today they expect to obtain a total of $400 million in federal funds, pending approval by federal officials. the storm struck as a category four and 2017 and is estimated to have caused more than $100

billion in damage. a 24-year-old wisconsin man stepped forward today to claim million powerball prize, the nation's third-largest powerball jackpot, saying he pretty much felt lucky the day he bought his ticket and has been worried people want to steal his ticket. wasell franco said he sorting through $10 worth of tickets after the march 27 drawing and thought he had checked all his tickets. then he saw one last ticket stuck to another one. >> i was going insane, pretty much. i looked back at the three other numbers. they all matched. i don't want to embarrass myself on live tv but what i can explain is that it was amazing. my heart started racing, my blood pumping. i screamed for about five to 10 minutes.

work afterranco quit winning. he said he just couldn't continue. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts. this is bloomberg. joe: the world's largest pot firm, canopy growth, agreeing to buy acreage holding with one major contingency. it hinges on the legalization of cannabis in america. joining us is canopy group founder and ceo bruce linden. i think this deal has a 90 month breakup period, so if it doesn't happen in the next ae years or something, it can go -- the next 80 years or something -- the next 8 years or something, it can go apart.

how novel is a deal like this? bruce: i would say we invented it. the reason we did it is because you have to navigate around the circumstances you are in. we said, we want to have the ability to buy shares. we need to make it some way right or an option, so we have to give the money to the existing shareholders. the exchange ratio. what we can do behind that is lend in our know-how, experience , brand, so they can become more dominant in america. we can keep inventing stuff and doing it in canada and lending it down. it is not when it is legal, it is when it is federally permissible. i do believe that the federal level they can't keep ignoring it. they can say to the states, if you want to have patience, you can do it. romaine: why sign this deal now

instead of just waiting? bruce: we do this now which means we can lend our intellectual property trade secrets, are learned lessons, and make a really powerful entity here. when we came up with the structure, we kind of looked at all of them, talked to a bunch of them. acreage has a really noteworthy board and a really confident management team. a double twist half flip landed perfectly type of thing but the alternative is to stand still and wait. caroline: how about your biggest shareholders at constellation? how did they react to it? bruce: i think the stock is up five dollars, six dollars, seven dollars. it allows us to get some momentum before things change. we had to of course clear it with the big exchanges.

i just came over here from bank of america, started coverage last week. is how you navigate through these things that creates a structure. the banks, their comfort in dealing with cannabis companies. bruce: it was probably a different answer monday. i say that in that last week bank of america issued a coverage and focused on us as a cannabis producer in 16 countries. there isn't a single day that i don't encounter bias. i like that. i was just down at the new york stock exchange. i still can't ring the bell because i may marijuana guy -- because i am a marijuana guy. romaine: do you think that is regulations or just kind of a

rule or what? bruce: i think it is, you really want your bell with the marijuana guy getting on instagram? the bias, we need that because that means we are at the front, pushing against it. when it is all gone, it is a new game. romaine: not everyone is offended by you or what you have to bring. what you're doing at bank of america will be different, but there is an issue with some of the smaller companies trying to get financing. going through more direct lenders. how is that sort of shaping up right now? across theing capital goes up when you have restrictions. they are late -- they are regulation called safe. disconnectction of between federally illegal and

state permissible. i don't think that will get ironed out quickly unless they do states rights or something like that. we've kind of got like a gold backed currency. whoot a variety of people might want to put capital to them because of the conversion. my business is to make sure advantages go to the people we play with. caroline: with acreage, also the caliber of their board and who is on it. there are political heavyweights there. is that in any way going to change the timeline, the potential legalization of cannabis? bruce: i think they will influence for the sector. what i liked was the big names. they are about the reputation and the risk against it. we are not going to be able

to supervise in any way, give budgetary direction or anything, i do like the fact that there's a strong management team that has attracted top-notch board members. this is a 20 state, well structured company. people in certain provinces where they only had a website and they could only buy from the government. people in their 60's and 70's saying, look at what i bought. basically, i will log into a government website, give them my credit card and home address, and ask them to ship it to my house. then i will -- on a certain number of levels, i didn't see that coming. when you have stores, people want to walk into a store, get educated. transactionst of that occurred on that sort of platform surprised me.

the median might say it didn't go very well. if i came on your show last year and you asked, with the government passed the rules, because they hadn't yet? in a. of like -- in a period of like six months, we went from, are they going to pass the rules. , we are expecting them to launch beverages, vaped devices, edibles. caroline: reality strikes. bruce linton, founder and ceo of canopy. ebay adjusted earnings-per-share beat estimates. earnings on fire. more next. this is bloomberg. ♪

caroline: twitter had its best day since october. 5%p in ebay are both up over after hours. senior analyst for bloomberg intelligence joins us from san francisco. i want to talk about snap first. the stock already up 100% in the last few months. expectations were pretty much for flat user growth. the user base actually improved. that was a surprise. beat was great but that wasn't much of a surprise because we anticipated that happening. andnd from advertising things like that. here, theseries

guys are focused on the core audiences, the engaged users on the platform, and sort of pivoting themselves to become a platform player, engagement player, and driving revenues through monetizing. that is what the story will be. joe: we also saw a massive rally for twitter today after a reported earnings. is the theme the same? both of these companies are essentially players in which there is just a question of how reliable the business models were. to have traction as a niche player. >> with twitter, it is a little different. with twitter, the surprise was bigger. , thes not anticipated acceleration we saw in daily active users.

abuse,controlling cleaning up the platform, simplifying the platform. of gety work to sort more users on a daily basis if metricthe metro -- the -- on a daily basis if that is the metric they are going to use forward. they still have more work to do. they are definitely on a stronger footing and showing progress. romaine: we had a graphic up that shows snap, ebay, twitter on the same screen, 35 -- three companies sort of fighting for relevance. ebay, still a company with something like $9 billion in revenue. it is kind of a behemoth when it comes to its marketplace but it doesn't have the kind of growth prospects we see with an amazon.

new guidance sort of gives us confidence into whatever platform work they have been doing is seeing some results. the number of buyers they are , it is not steady in the face of massive competition like amazon. cost controls to sort of drive the bottom line, they can unlock some of the value that the activist investors are trying to get out of it. caroline: we thank you. .ome breaking news coming in cbs has suspended its search for a new ceo. it seems as if the acting ceo has done a good job. it seems he will be sticking around for the next few one -- few months. they feel that joe has demonstrated exceptional leadership. romaine: coca-cola shares rising

after that company posted a profit. earlier, we spoke with the ceo james quincy about the process moving forward. >> using coffee as part of a broader coffee platform, we will be rolling out in the second quarter, later in second quarter. we are working with the management team to really update the plans and vision we saw for accelerating the vending machines, the beans, stores in europe and asia. we will be pulling all that together in the course of this year and you will start to see more as we go forward. >> staying with the u.k. for a moment, one of the things we have seen over the last couple of months, building inventory in advance of brexit. now that we have a six-month kind of hiatus -- hiatus is

, but we the wrong word have a pause. how will you handle that inventory? build isventory related to brexit but is very specifically related to the potential disruptive or no deal brexit. it could have been the end of march and now of course it has been postponed at least until october. i think the approach that we are going to take with our model is going to probably center around keeping that inventory on hand through to october, or at least through until there is such clarity on how or when brexit will occur. this is not just if brexit will happen but the idea of a disruptive brexit, particularly if there are problems in the ports in the u.k.

that is what we are protecting against. if that risk were to disappear, obviously we could wind down that extra inventory. for now, we have to assume that will keep through october. >> a high dividend payout ratio, 73%. to what you as might do instead, if there would be better opportunities such as looking at acquisitions or internal investments? >> we've got a high dividend coverage ratio. our shareholders like our dividend. we certainly are focused on having that continue to grow into the future. we believe our capital structure has enough flexibility and space within it. -- within it to both fund the dividend and the future growth of the dividend. something -- if something big were to happen on

the m&a front, we will look at that. but the plan is to invest in core business, fund the dividend and m&a. we believe those three things can be done within the current structure on an ongoing basis. >> would you be considering expanding your interest in energy drinks? you have a stake in monster beverage, for example. m&a, it is really more just filling in, regional. we are number one or number two in the broad categories across the world but it tends to be concentrated positions in some parts of the world and gaps in others. our strategy tends to be about filling in in certain categories where we have less developed positions around the world. that is really the focus of our m&a strategy going forward.

caroline: notably, coca-cola and pepsico, not only dogfighting in the grocery aisle but both have managed to raise prices. we see this again and again. procter & gamble, kimberly-clark. this has been a theme. we are starting to see prices being passed on to the retailers. joe: pretty consistent. you mentioned kimberly-clark. a range of companies right in the heart of selling everyday stuff to americans. i don't think it is massive inflation or anything -- romaine: earlier, when we were getting earnings reports, they work talk about how fearful they were to pass that on. now they feel like they have a window of opportunity here. caroline: it becomes inflationary at some point.

joe: it will be really interesting to see the data. no one thinks it is going to pick up. i don't think there is some sign that it is about to gather steam , but ate or anything least if the corporate talk is anything to go by. caroline: let's return to some of the earnings. we are getting more clear perspective after hours of what is happening. snap seems to be turning negative. we are going to keep a close eye on what is happening with snapchat and how its overall numbers are performing. when it came to profitability, sales, user basis, we are still seeing it just clinging onto to 1.75%.e speak back keep an eye on volatility after hours. this is bloomberg. ♪

marketina's stock looking increasingly vulnerable after increasing wariness about adding market stimulus. weren'tonfused because they just starting to grow again and they are already talking about diminishing stimulus? shery: before they started to grow again, one of the reasons the economy in china started contracting is that they really wanted to focus on deleverage -- deleveraging. they started this u.s.-china trade war, they started taking a hit, and they said, let's add stimulus. we haven't been seeing the wide-ranging measures we had seen a few years back. we are seeing a recovery in chinese eco-data. first quarter gdp numbers, retail sales, industrial production starting to rebound.

we are focusing back to deleveraging. withne: i have to quibble joe's work just with joe's use of -- quibble with joe's use of the word "vulnerable." there is an argument that whatever gains have been made, that if there is some shift in stimulus or outlook by beijing, it's not really tenting the market. shery: if you sell right now, you would still have made that profit of 30% gains. above 40% since its october low. yes, it was a huge rally. we just saw the biggest loss in a month. caroline: tune in for more from her on daybreak australia and daybreak asia starting at 6:00 p.m. eastern. facebook earnings after the bell. joe: i'll be watching tesla reporting its first quarter earnings after the bell as well. romaine: more earnings from boeing and caterpillar,

reporting before the bell. caroline: that is all from "what'd you miss?" romaine: "bloomberg technology" is up next in the u.s. this is bloomberg. ♪

♪ ♪ emily chang in san francisco, and this is "bloomberg technology." snap deliver strong first-quarter results thanks in part to its new android app. daily active users increased for the first time in a year. twitter reports positive results, saying product changes are drawing more consumers and advertisers, but concerns about hate and misinformation remain. i sat down with the cfo. and google's