shifted their focus. we have one more caroline: we caught onto our games -- gains today. s&p 400 -- 500 up four points. nasdaq outperforming. energy has become a key driver. a lot of sectors coming into vogue. record highs for the s&p 500. ditto for the dow. no round number for you. i know how difficult that can be. ae nasdaq is off just shy of record high. it didn't make up yesterday's declines. let's dive deeper. what were you watching at the close? >> and taking>> about the russell 2000. it's up 1.1%.

closing a .3%. -- up three point -- .3%. a leading index doing that sort of reversal. it's not the close some traders want to see. the russell 2000 has been unable to get out of its own way. a micro version of that today. the last tie was up a year ago. it's around the 200 day moving average. it is starting to rise. russell 2000he cannot get above 16 -- 1600. now it is back below it. the rsi is caught in range. we could continue to see consolidations of the recent gains. keep an eye on it. it has not been able to put in an all-time high like the other major averages. taylor: from the equity markets into my world of the bond markets, i wanted to look at treasuries. yields rising today.

year.t the 10 big moves, to 190. this chart is the five-day move. get3 basis point move to 2019 has brought in five-day swings in both directions. it is translating into a bayer steepener -- bear steepener. it is now the steepest going back to march of this year. that's why you are seeing some today, risk on rally partly fueled by selloff -- a selloff in yields. i amck in equities, where looking at party city. its recordropped to low today after reporting its own quarterly earnings. look at the intraday action.

it cut its revenue and profit forecast for the second time. it was a halloween scare. sales for the holiday fell 3.2% from the year prior. it's usually a successful time of year, favoring costumes and the third quarter for halloween. it's the weakest third quarter since 2013 for gross profit. it had a helium shortage as well as well as higher costs. small bright spot came in the company's digital business. marketplace shales -- sales had a stronger growth. caroline: party poopers. no helium. still with us is patrick palfrey, senior equity strategist at credit suisse and luke kawa.

we are waiting for numbers out of disney. hearing?t are you i think something that will turn it be glass half-full is even as earnings go into the year ahead, we will come under the knife. it doesn't matter too much at -- at all. i was looking at a survey of investors. what are your expectations for earnings growth? it was in the 3-5% range. you you willing see high single digits. it looks like the people buying stock see a more modest pickup next year. that means you could see stoxx do well after earnings estimates coming -- stocks do well after earnings estimates coming -- come in.

joe: do you expect managers to chase the move and accelerated into the year? patrick: managers will look at this and they need to rotate their per -- portfolios to be more procyclical. the growth and low volatility trade is no longer going to be one that works. we will see a rotation. they need to be able to access the market. caroline: disney, upbeat and adjusted earnings-per-share. beat and adjusted earnings-per-share. are seeing cable networks revenue, 4.2 billion dollars, ahead of expectations. ands and experiences consumer products revenue, $6.6 billion. it's a beat in terms of their sales. earnings-per-share, also a beat. we will see how it performs, up

1.25%. on november 12, they unleashed disney plus. scarlet: any estimates they can given what they are thinking, the launch of disney plus will bring, and terms of subscribers. -- in terms of subscribers. this is what they are spending on. they don't think it will make money until 2024. this is what bob iger is betting on. eye onkeeping an activision. whetherquestions about these publishers can continue to keep pace with all the entertainment out there. caroline: what do you think, patrick, you were talking about rotation -- where's the consumer? the consumer has been

the bright spot. we expected to continue. retail sales on friday. that will confirm the trends we have seen. they are getting pay increases. that is filtering through into a healthy backdrop. joe: what is the next big thing on people's radar? few weeks before the macro data, the fed, is it just this trade thing? luke: i think we are stuck in the confirmation of positivity we have had on trade for some time. we won't get anything on the remaining $300 billion. that has been the view for the while -- a while. there is renewed optimism about rollbacks. the glass half empty would be any time you get more optimistic, it's another chance to be let down. you can always go down another 99%. [applause]

-- [laughter] scarlet: no one can predict what is going on in washington or beijing, but how do you address it and put it into your analysis? we think about trade, our measure is to look at volatility within equities, stress within other asset classes, to see how the market is reacting. largely nots concerned about the pace of the trade war discussion. when you look at bank lending standards, we are not concerned. the areas that would show signs of stress, we are not seeing them. >> that is true across globally oriented volatility. vix has version of the been acting up, because it has seen bids for calls.

you see on the cross asset picture, and ebbing of fear. caroline: on pricing, or people not hedging enough? -- our people not hedging enough -- are people not hedging enough? patrick:patrick: the fact we have moved beyond the inversion of the yield curve and bottoming, anything we get around the trade war is an extra helping of gravy. caroline: everything that comes out -- has come out of indicates the view that we are in a good place. no fewer than three fed officials have said that. to thethink back september meeting, we were talking about division on the fed. how will they get anything done? the completed amid cycle adjustment. completed a mid cycle adjustment. they are all saying the same thing these days. the desire not to

move. the way the data has been, it is not pushing them to deliver more accommodation. scarlet: we just had activision blizzard reporting the results. third quarter eps of $.32. that's a beat. revenue is higher, $1.21 billion. analysts were looking under $1.2 billion. in terms of the outlook for the $6.3 adjusted revenue for billion. it's higher than previously estimated. mark.ses the analysts' think there is too much loaded into the fourth quarter in terms of companies having to make up a lot of ground in order to meet their forecast? patrick: when we look at the fourth-quarter estimates, we are not seeing anything that is overly punitive.

when we look at the numbers, we don't see a problem of hitting a full year 2019 number. caroline: i was great to have you with us. -- always great to have you with us. thanks to you both. let's check on disney. spiking up, 3.8%. it was a beat across the board. earnings-per-share, $1.07. the estimate was $.95. -- $.97. media networks, they sell revenue at $6.5 billion. -- we saw a revenue at $6.5 billion. are keeping an eye on activision blizzard. third quarter adjusted eps be the highest analysts estimate. the average was $.23. you saw a pop in the after hours

trade. -- dollar $.15at eps -- $1.15 eps. gopro is jumping in after hours trading 12%. revenue has beat the highest analyst estimate. the adjusted loss per share was $.42. stock is surging higher after hours. that does it for " the closing bell." romaine bostick is stepping in next. this is bloomberg. ♪

♪ >> we are live from bloomberg's world headquarters. of morea snapshot record highs in the face of back-and-forth trade headlines. joe: the question is, what'd you miss?? caroline: china and the u.s. may be looking to rollback tariffs in reports -- amid reports that they may be in the white house. stocks claim to gains on the varying trade headlines. haven assets in gold and sovereign bonds sank. disney's big push. shares coming for percent after hours after the company beats expectations. for more on disney's

results, let's bring in devin leonard. what jumps out at you? the stock has been trending up since 2017, when bob iger announced this change. it launches in a couple of days. everyone is betting on it. they are decent results. romaine: we are paying attention to the results. it beat on most metrics. disney plus is coming into a crowded field. if you had to bet on who would win, disney has the franchises, what are we expecting? do we think they will crowd out amazon, hulu, netflix, everyone else. uber plus. [laughter] they are beating everybody on price.

$6.99. -- $412e wonderful $12 90 nine with espn plus and hulu. $12.99 with espn plus and hulu. you can also get pixar and marvel. caroline: from the earnings, they are beating. all are firing on all cylinders. your story in businessweek is brilliant. the front cover is excellent. the fact that bob iger is there, watching the final cuts of the shows that you will get exclusively on disney plus. what was it like to interview him? i'm aware this is his legacy wrapped up in this. devin: he is always focused.

he seems relaxed. he is excited. he was pretty serene. he hase: serene because plowed so much money into what he hopes is good technology? almost $3 billion for this streaming service. he's a guy who has spent a lot of money. people used to be skeptical. people are not skeptical now. romaine: we will keep an eye on this. story, read about the the bob iger story and the cover that caroline mentioned in the latest issue of " bloomberg businessweek." earnings.k with activision blizzard and

take-two, coming out with earnings. they did beat on most of the main metrics on top and bottom line. activision blizzard shares down about 3%. take-two shares are halted after hours. let's bring in cameron leach. he covers media and technology for bloomberg news. there has rbc been a lot of focus on activision with the issues they have had with regards to hong kong as well as the games they announced at blizzcon. >> it's not surprising, this beat. it's priced in. i just got a text from an investor who said they are worried about their biggest games bleeding users. joe: fundamentally, there are

issues with just the most popular games and no one is convinced they will continue to have the whole day of had for so many years. what is the issue? >> we are seeing there is a big transition into mobile. you don't know if call of duty will be to gain -- game, the main catalyst. we have to see what happens. take-two, we are expecting numbers. are they looking to mobile as well? >> they are doing a lot better than activision, probably because of nba, it's a pretty global game. driver. their main you can see why they are down as much as activision is. thanks for being with

us. ceo is stepping down. there is always a sale on. not -- the--this is market does not like the fact that their executives lead -- leaving. romaine: i think they are looking for better leadership. nonexhaustive the chairman, he is going to fill the role on an interim level. planon't have any [p-- here. he was atsince 2015, banana republic, but he has been at gap since 2005. this is someone who knows the business. we will see if you gets the potential role. the trade deal is back. larry kudlow taking us back to

where we started last hour, saying there will be tariff concessions if a trade deal is passed. this is bloomberg. ♪

romaine: breaking news. stepping down,k going to be replaced on an interim basis by robert fisher. the company releasing guidance for the third quarter. they essentially cut its guidance for the quarter, as well as for the full fiscal year. remember, art peck was supposed to stay on as ceo, but that won't happen. caroline: in the interim, it will be robert fisher, part of the integral cap family, has

been there 35 years. been therely, has 25 years. his guidance,r they were able to see investment. not a clap on the back. theill get more on earnings-per-share forecasts and the ceo transition for you in a moment. we will get back to what is happening in terms of trade. it is usually one step forward and two steps back or the other way around. there will be tariff concessions if there is a trade deal. it comes after reuters reported that china and the u.s. want to rollback tariffs on a new trade deal. apparently it has met resistance in the white house. let's welcome bloomberg news is -- news' sarah mcgregor.

the latest headline we got from larry kudlow. >> the big question in my mind has been for the past few weeks, has been, what is in this for china? why will they stay at the table and agree to this deal, that before, they have walked away. the made concessions that the u.s. would no longer accept. the talks collapsed. a rollback of the tariffs would be a key way to keep china happy and keep them at the table. this is not just laying new tariffs or postponing new tariffs, this is rolling back some of the existing tariffs on $300 billion of chinese goods. joe: there's a theory you hear out there, which is that maybe china waits it out and hopes trump loses the election in one year. tariffsling back the and taking the boot off a little

bit make that strategy more likely? sarah: absolutely. the giant caveat is that the trump administration, from what we have seen is not afraid to put tariffs in place. if the u.s. feels like china is not living up to its commitments or that the u.s. might even look weak in the face of a deal that is reached, they will hold that possibility every implement in tariffs and putting new ones in place and inflicting more pain. i think the trumpet administration would say it's a goodwill gesture on their part, but they are more than willing to put them back where they started. caroline: thank you for the roundup. let's get more focused on what is happening in terms of gap. they cut their full-year toecast and waved farewell their ceo on an interim basis.

this is bloomberg. ♪

>> let's get to the first word news. our top story. what has economic advisor larry kudlow tells bloomberg a phase i trade deal between the u.s. and china would include concessions. this after a report citing strong opposition to any rollback inside the white house. negotiations are still ongoing. european commission president jan clout juncker is brushing off tariff threats against the eu. he told a newspaper that he is confident donald trump will not impose levies on european union automotive goods.

he called himself "a fully informed man." it took three hours for mexican secured he forces to arrive earlier this week. nine women and children were brutally killed. that is because many mexican troops have been deployed to stem the flow of undocumented migrants to the u.s.. the cartel dominated territory has been unprotected. new jersey transit saying it cannot handle all the visitors to a pair of major destinations, the american dream model is forecasting 40 million visitors each year. well.adowlands as the railroad is cash strapped to meet each -- strapped. it would like private help to help meet demand. 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.

this is bloomberg. the u.s. justice department says it plans to move quickly. for more on this story, let's bring in our legal reporter. she is in washington. there was a story this morning on the bloomberg terminal that tod that the doj was going act in some sort of expeditious fashion to deal with these antitrust cases. i'm wondering, what is your interpretation of that? especially when we know there are 200 other federal agencies investigating these companies and probably fortysomething states. pile on moment when you have two federal agencies, states, and congress all looking burning issues around antitrust violations going on

with these dominant tech companies. we sat down with the deputy attorney general. they typically don't reveal the details of their investigation. want to movey quickly. they tend to be long, sprawling investigations. with thickened means they want to focus on developing a theory of harm as quickly as possible and moving forward so it is something that drags on for years on end. these are complicated industries and complicated markets. they will take a deep dive into their business models. joe: i know there are tons of criticisms of big tech companies on all kinds of fronts. what areas specifically could be seen as anticompetitive in the -- and ripe for antitrust action? >> we know for our -- from our reporting, we know that google is a primary target. this is a company that makes

more than $100 billion on advertising every year. through their, acquisitions, they have acquired enough companies to control the digital advertising market from soup to not. be a realat will focus of the investigation, as well as the search practice and how they work out. for that thank you great story. let's get back to breaking news. haveas announced they fired their ceo. our reporters take. i feel like they all have a sale whenever i walk past them. >> they do. beenis something that has a long time coming. he has been in this role and he was named during his 24th --

during 2015. that's a long time to orchestrate a turnaround. it has been a game of retail whack-a-mole. one brand is functioning ok. then, problems happened in other brands. they solve those, then problems reared their head in another brand. they haven't been able to get these brands in a place where the merchandise is looking good, they don't have to rely on promotional discounts and they are back to a place of consistently taking market share. i think leadership changes for the best. that?hat is up with why isn't the merchandise better? >> there's a case to be made that they got rid of some creative directors at different times over the

for amazon, and these companies,

these are all in the game. >> just to make sure i understand, they don't need to make money off of streaming? >> we are talking about streaming. landscape is very different. for amazon, whatever they do in video could be considered a marketing expense for prime, a way to get more prime customers, stickier, happier, satisfied. dollars, $5d three billion, it is worth it to them. netflix ultimately has to be profitable. flow i thinke cash netflix, we talk about the streaming wars, it is a little bit like larry bird and some free -- some three-putt contest.

contest, saying which of you guys will come in second? for two reasons. is they will be at 200 globally, which means they can pay more and are. and, they have learned a lot. execution matters in any business. this is no different. they have a huge advantage. i can't imagine them being one of the winners. >> you can't imagine them not being one of the winners. >> they will be there. at some point, they will be judged not on subscriber growth talksgagement, which reid a lot about engagement right now and that makes sense, but ultimately it is like falling to

earth, gravity. you are judged by free cash flow and earnings. that will be an interesting pivot. romaine: you just listening to jonathan nelson, speaking with bloomberg businessweek's jason kelly. gas, the ceo being replaced by the executive chairman. we will continue with this story right now. phonen the dana joins us by phone. when you hear the departure of art peck at this time when they are getting rid -- ready to split the company, having trouble growing topline and bottom-line growth, what does it say to you? >> obviously, the business is not getting the traction they would have wanted, product is it

-- isn't resonating, there are headwinds in the business model. we need to re-instill the ability to drive full price sales. are weak across all three sales. you are going into a holiday season where there's excess inventory until the apparel landscape. places inhere other the space that could make it work and gap would look to the model and this is the style that they should be aiming for? >> i think it doesn't matter the model, if it doesn't have the right product, you can't sell goods at full price. are newer models from rental subscribers and subscriptions, but you have to look at what subscriptions -- consumers are spending time and money on. the focus on experience matters. the focus on active taking

share, but there's work to be done on the core product both at gap and nana republic, reinvigorating the brands and catering and capturing a younger customer base. caroline: it's interesting also that seemingly old navy did not fare that well in the latest quarter they announced. we saw alexa like sales fall. i thought that was the one meant to be outperforming. >> old navy has been weak for a number of quarters. sales have been negative for all three quarters of the year. the ability to address that is expected to happen more as you get to the fourth quarter and next year, but it certainly is a disappointment in terms of weakness that they have. here.e: one last question what is the vacancy in gap or the old navy list gap, how attractive of a job opening do you think it will be for an external candidate.

>> the big brands certainly still have a revenue base. turnaround candidates and restructuring candidates, but we have a dearth of talent at the senior level in retail. i think overall to attract a candidate, it is a lucrative package, which adds incentives to the upside to do this. you have powerful brands. but the brands need a fix. telsey of telsey advisory group. this is bloomberg. ♪ loomberg. ♪

expanding its footprint in the u.s. and coming right back to where the company started. earlier this week, the cannabis company opened up its first recreational dispensary and its home state of massachusetts. joining us with more, the leaf.dent and ceo of cura talk to us about the state of

recreational cannabis across north america and where we are today versus the expectations, as so many people have gotten excited. >> i think massachusetts is a sign of things to come across the country. it is the first state on the east coast that enacted a cannabis use law. there is a very vocal conversation in new york, new jersey, about youth cannabis. i think the progression of more and more people adopting programs and recognizing cannabis should be mainstream and part of our society. joe: caroline: how much are you having to go out and explain about vaping and the backlash tch is getting? people initially thought that was where the illness was coming >>. from what we see, it looks like most of the problems are coming from the black market driving these illnesses. i think it suggests that we need

regulated, controlled cannabis and people should go and buy products in stores that have been tested that are safe and reliable. romaine: but how do you get there? when you look at the landscape, if you were to go shopping around, if you want well educated -- weren't well educated, there are a lot of shady things online. you have the issues caroline brought up with vaping. how do you convince states and federal government to finally provide a real framework that would provide consumer protection and protection for your company. >> first and foremost if you are a consumer, go to a regulated shop. don't buy a vape pen down the alley or from a guy down the street. we have a lot of work to do to educate people. 33 states now have medical marijuana programs. there is a progression of state regulated programs. i think the government will get in line and create a national framework. we want regulation. we are trying to get a $100

billion industry into regulated, texted -- tested, taxed markets. joe: how many stores do you think you can open in massachusetts? >> legally, you are allowed to open three stores. what's important about curaleaf 's we were allowed manufacturing facilities last month, and we have a prolific wholesale opportunity in the market. the demand is exceeding the supply. we can carry the brand all across the state through wholesale. caroline: talk to us about demands through wholesale. are you on top of supply issues, are you able to bring the goods to bear where needed? >> absolutely. in florida, we had a bit of a supply dip, but we are harvesting, and i think you will see in the weekly data that it is back and our goal is to be number one and we will keep going. romaine: talk to us about the

select acquisition and why you amended it in the way you did. select >> is -- >> select is the biggest adult use company in the country. they primarily sell vapes. we expect they will earn their way back to the 95 million shares. we expect they will do that. we are highly confident. joe: quickly, what are you seeing in terms of brand awareness? i saw something about canopy grove entering a pact with drake on new lines. do people say i want the curaleaf product? do you see repeat loyalty? >> on the east coast, we are vertical. people walk into the curaleaf store and buy curaleaf products. in more competitive markets like california, there are more brands taking shape. we are excited about the future of it for both curaleaf and select. joseph lusardi,

president and ceo of curaleaf. "bloomberg technology" is coming up next in the u.s. have a great evening. this is bloomberg. ♪

>> i'm taylor riggs in san francisco in for emily chang and technology."mberg coming up, bottom line versus data breaches. questions for facebook after leaked court documents emerge. plus, trouble woes. online travel company expedia shares falling after they post disappointing earnings. we hear from the ceo in an exclusive interview.