inflation to jump back up. the thought is those three cuts two hours ago. you had eight of 11 in the red. 2000 didn'tsell close in the red. >> earnings of 10% -- earnings up 10% purity that some good stories that gay people hope. report.so had the gdp it is the first read only. however, you could say there could be some cause for concern. >> there were some internals

that were not fantastic. nonetheless, there you go. indices in the00 red purity >> we are still waiting for amazon results to come out. is for dollars $.11. what was higher than anticipated. amazon web services, the most profitable are -- profitable part. they are facing a lot more competition on that front. $69ooking at net sales billion. to 4.2 $3 billion billion that is the range. that while sog

many of these mega-caps are all-time high, amazon still quite a ways away from that all-time high last july. it is getting close to the highs here, not quite there. this is not one that has steadily marched upward. all >> it has not been i flyer, -- certainly investors giving investors a reason to go higher. let's check in with reporters to see what they were monitoring. >> taking a look at copper because once again copper is down. either way, take a look at this now, 11% over that time. the worst stretch going back to generate 2015 and record losing

streak going back to 1988. global economic growth really slow. one interesting thing, we've had this remarkable turnaround since the hopes of the fairies one trade deal -- phase one trade deal with china would happen. a beautiful risk rally. the global economy considered to be a risk asset and we see a nosedive by copper. the s&p 500 basically up, very interesting to see how this particular divergence had such a big gap. usually one side will be right, so stay tuned to see what happens. >> we stick with the commodity space, oil under pressure again.

theerns that china is second largest consuming. those are really key markets and that is on the demand side. flip up and look at the supply side, geopolitical risk a main concern because we have not seen that, but if you look here, the brand premium up and this is one area we will be watching. >> i'm going to keep our attention back on amazon. i want to bring you the broad numbers on the top line. north american retail segment looks interesting, $1 billion higher than what analysts were expecting and international coming in, struggling a little bit to make gains on the

international retail business. amazon web services, analysts were looking for a 33% jump, a little better than expected. it is 88% of that business and amazon web services about 11%. forward guidance on net sales around the midpoint estimate, very curious to see the first quarter guidance if they can give us any numbers on the bottom line and you saw the terminal chart about the amazon web services, that number coming .n again about 33% >> to taylor and everyone on the markets, breaking news on earnings coming out. on fourth quarter, getting forward guidance coming in a little light.

the shares moving a little lower and after hours trading, $25 billion to $25.6 billion which is in the range of what analysts were expecting. >> also looking at electronic arts. they have the analyst estimates and epsor the outlooks, of $4.65, but that misses the consensus. revenue, $5.5 -- the stock is off by percent. >> a real quick note with amazon, shares spiting. if this holds, it would take the company to a $1 trillion valuation. >> it is also a record high if

we close here. >> we will continue to watch. still with us is both bargo asset strategist and bloomberg reporter. i want to go back to you. we see amazon soaring, topping -- $120.dollars markets loving it. is there any alternative for investors to not still be heavily invested despite their incredible runs, continue to surprise? >> it is interesting that the very large companies can continue, although it is equally fascinating that facebook apparently had some decent numbers, but fell on the news. it is about the context and the guidance. , kind of playing that

idea that we could continue to thetech outperform over near-term, but there are still plenty of opportunities. more be longer-term position is to look at areas that have been unloved, small-cap and mid-cap stocks we think have very compelling valuation and if anything can be pulled along with some of the larger cap stocks. arehink the downside risks marginally less because of that valuation buffer we might have built-in. >> be set has come out with numbers as well, first quarter revenue beating analyst estimates. is sixrounded up it point billion dollars. net revenue beating estimates

and the eps beating estimates as well. right now, good enough for a little changed or slightly higher. 9% versuster volume, the consensus estimate. >> this has tripled in the last year. you would not think of it as a tech stock because it has been around forever. >> they would argue that they are tech. >> it has been a consistent business model. i want to go to katie here because one thing we did not talk about is the ego data -- eco-data. did we see any reaction? maybe two weeks ago you would

have, but the coronavirus dominated. there was some mixed data on the consumer, the overall the u.s. economy is still in a good place. the yield curve and perhaps this is a reflection than thessessment economy. >> looking at the results, visa looking good. amazon is looking strong. for the market overall, do we really need to get some clarity on where the virus is going or some evidence. the curve of new cases is starting to been lower. >> i think so. it is going to be a looming concern, how quickly as the virus spreading and how quickly what they get treatment that is

effective? that is a big wildcard purity you look at some of the data available from the world health organization and i think it is fascinating. jon hopkins has an interesting chart where you can see the where is outside of china, it is relatively flat. it appears to be contained in i think that will be an important part of the story. whereponential growth that -- there is the inflection point. i think people will have that lingering doubt until we see that curve turned the other way. >> so much hinging on all the headlines. -- ryanf bewkes and jacobson, thank you. that does it for the closing bell. next, looking at one health

records company connection to opioids. this is bloomberg. ♪

>> live from bloomberg world headquarters -- >> here's a snapshot on how u.s. stocks open today. the dow and nasdaq all covered -- recovered to close in the green. >> if you were paying attention, amazon potentially reaching $1

trillion at least in after-hours trade. amazon becoming the latest big cap stock to reach $1 trillion after earnings exceeded the highest analyst estimates. web servicesamazon 33.9%,e to take lower to not as much as amazon expected. a little bit of a softening, but this is a result of increasing competition as a result of microsoft. >> a new infrastructure and the industrial and i feel like slightly better-than-expected numbers from amazon services. data services, it is powerful. that allwas a concern

they were spending to maintain that, they were spending so much in regards to retail business, but obviously can turn a profit if they want. >> let's move onto another top story which is the coronavirus. the world health organization declaring the outbreak and international emergency. to -- he praised china left, right and center. they reconsider her decision not to raise this emergency. a vote ofs is not no-confidence, actually surprised at how aggressively china has acted. when they first raised an alert, i wonder why they didn't do this

last week. apparently they had so many criticisms in the past of raising or lowering, this is only be six times they have raised it to an emergency. >> this is people in a room talking. kind of have an economy shut down. we are not getting any indication. are we expecting back to normal immediately or this will be a long transition? >> last time, they have the sars outbreak, they extended the holiday for much longer. normal would not be the case. it is a ghost town in some parts, but the markets could see the reactions. when theyual towns

resume business as normal, shanghai slowing things down and not necessarily opening for business on february 3. >> every night we get the latest count in terms of the number of cases. are there any indications that the curve is being slow down or all these measures, we hear the who praising the actions from china. >> it is not surprising given the outbreak did not peak for months on end. it started in november. this time around, editors have been much more aggressive, but we have to keep in mind the a few bashan and not knowing what the symptoms are, some people not even having a fever. it is likely that all of these

people out there are the reason we are seeing the u.s. on high alert. >> banks to sherry bringing us the latest on the virus. by more, we are joined senior scholar at the jon hopkins center for health security. thank you for joining. what you make of the who statement. are they taking the right outoach and not calling travel restrictions and giving high praise to the approach from china? >> i think they are. public healtha emergency of international concerns and i'm glad the committee finally issued this. this is a warning to the world that it is a dangerous

situation. thatis only the six-time such a declaration has been made. i agree that the chinese are andg an exceptional job trying her up measures to control it, but frankly i think it is too late. even before the outbreak, it was wase out-of-control -- it already out of control. >> i wonder how much pressure there might have been to hold off on declaring this and international emergency. as the yuan organization, it has to be mindful on how it plays globally. do you think there was any pressure on the who? >> i have little doubt that it

was part of the equation. the main thing that the world realizes is this is a dangerous situation and i think the world realized without the declaration. >> the world health organization pretty much made it clear that they were less concerned about china itself and more concerned about what they said were other countries. should we be worried that there are countries out there that are prepared and are exposed to it? >> i think many countries around the world don't have strong public health infrastructures. >> it will be very serious situation.

>> i want to expand on that further because initially you did sir that she did say by the time they acted, it was too late. what is the situation that scares you? i think it is difficult for people to wrap their heads around these truly unknown scenarios. about it being too late and getting out of control, what are you envisioning as this trajectory of where it could go? virusis clear that this is spreading person-to-person a month before the outbreak was recognized before contained efforts were put in the place. significant community spread was already happening and with this virus, a large percentage since like a majority of the cases are very mild.

would not know how many mild cases there are and so there inld be many more cases other countries than we are aware of right now. the time prime minister saying there's two new coronaviruses. the u.s. has its first human transmission case as well. scholar for health byurity, it is supported michael r bloomberg. >> want to bring you quick breaking news. volkswagen actually owns a 17% stake. the company made by the rest of the company that it does not

already own. bloombergork, this is >> we are going to recap

amazon which is absolutely story. the $1 trillion club -- let's get to the reason.

and guidance in the first quarter. >> some of the reasons the stocks have been lagging is because of the spending. likeooks like -- it looks spending up slightly in the first -- the first quarter. the one-day shipping, a lot of people got nervous about how much it would cost. have pulledpears to out in the fourth quarter. hundred 50 million subscribers. from new york, this is bloomberg. ♪

>> the world health organization declared the outbreak of coronavirus a global emergency. [no audio] confident by what they are doing.

there have been isolated cases of human to human transition in united states, japan number germany, canada and vietnam. schumer -- admitting witnesses and evidence into president teachings impeachment trial. vote collins say they will for witnesses. schumer would need to what the .epublicans >> the president wants to make sure all the democrats don't get the attention in iowa. they are battling for support in monday's iowa's caucuses good become campaign promises to have cabinet secretaries and some of the president's children that day. the united states finding ways

to provide humanitarian aid to iran. officials say cancer and organ transplant patients were the first to benefit. >> global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. >> adjusted revenue coming in. that is the forecast. resultscoming up with of analyst estimates and the

reason seems to be lower. retailerse banks and will increase faster than revenue. is part of say it making sure is starting to eat away at markets. >> we are also seeing a little bit of a selloff here from end-to-end. [no audio]

>> taylor riggs, more on the company, and investors just .oving it what is it with all the concerns? the word ising as pristine. i think they were pretty clean and amazon selling some revenue of. i think they were surprised about the talk and the bottom line. it is translating down to the bottom line. balancing growth investment, you see that on the operating for the first time in the few years and it knocks it out of the park. this company revenue still comes from retail in numbers were a little better.

international coming mostly in line. >> a lot to look for investors to be optimistic about. when the company holds a conference call, what do you want to be listening for? >> that they can has to be competition with aws and the outlook. they are one of the most formidable competitors. the entire intelligent cloud rose about 39%, so if they need to alleviate further concerns they can keep up.

amazon web services is a force to be reckoned with. transition, the company named [indiscernible] as ceo. >> they will be taking over on april 6 of this year. she will essentially step down from the company with the entire career. thate total return during , totalrman of the board turn annualized up 14% which is

why it is moving higher. this is bloomberg. ♪

higher asres moving naming another ceo who is retiring at the end of the year. surprise. as a bit of >> it is interesting to get this and talking about amazon its cloud company. he was one of the people behind theyurchase of red hat, so have to get this right. >> it is interesting because where they had the red hat

results and it did not quite impress people. there were concerns is it going to pay off and apparently the architect of the deal is going to take the helm here. >> that is not the only change as well. james whitehurst has been welled president of ibm as . nevertheless, the change in leadership, they like it. go back to 2012 and you think about where ibm was. and shed was emerging really did steer this company and turn it into something a little bit more appropriate. >> on the other hand, this is a stock that has not gone anywhere

than 10 years. investor insome patients to see what is going to click. >> to your point, i'm looking at total returns. turn.r, it was a negative >> whitehurst becoming resident? you basically have the two red and -- ofthere are potential areas growth and people are excited in theory and the intelligence and you, cloud services

just see it in the stock prices. so far, we are not convinced it is actually clicking. i think a lot of things people have been saying are things people might have been saying about microsoft. dois certainly possible to traction here. >> i'm glad you brought up microsoft. not only getting them into the cloud, but becoming a formidable competitor. comes after ibm managed to turn things around with the lading's earnings report where it broke five consecutive declines and because of that push.

>> let's bring in someone who knows a lot more. this was kind of a surprise. >> wendy red hat deal happened, i was hoping they would make a change around that time. made a lotwould have more sense, but this is actually very good news because he was responsible for the club division and said we cannot live in a silo. >> are those divisions doing well? see and itstarted to is not going to be easy. we are starting to see early still has awth and long way to go, but this is a good step in the right direction.

excitement is around the cloud business. part of that represents 30% overall revenue, but it is not exciting. what is going wrong? >> ibm prior to the cloud assets , which largest company is where this revenue comes from >> people are shutting their data centers off and they are moving it to a third-party data center and it will remain under pressure for some time. management and executive chairman overseeing the transition, are you expecting any hit up? >> i think this is another big statement that they will be a lot more open and have been

working with the public cloud such as amazon, microsoft or google. assets to the cloud, this should help. >> let's bring in another voice .t the top and bring in the cio i know you have a neutral rating on ibm. does this change in leadership make ibm a buy? >> she has fought a good fight and ibm hasime underperformed the market. down while the tech sector and other tech leaders have gone up substantially, so it is unfortunate it has been a difficult situation.

i think there has been a lot of shareholder disappointment, so a lot of time for change. with redmbination hat's, that was supposed to live. they could be this operation investors are looking for? it paid a significant amount of money. laid out a lot of money and investors want to see ibmturn, but the problem is has had so many legacy business is while the whole tech semester -- text connector has changed, this -- tech connector, the

whole moved to the cloud and edge computing. the red hat does address and they have to get ahead which is taking the problem with cloud is you have legacy timeframe to and racked and move it to where the client computer is and that is the next big trend they will have to get ahead of that because everyone else is focusing on the edge as well. talk about how the growth may be there, but it is very early. technological standpoint, would you say that are looking reallynd or is ibm viable or do they still need to close the performance cap or the offering cap in some way with competitors like microsoft? >> i think strategic positioning

was a lot better. >> they have a good mainframe business and microsoft is extremely different. ibm being the biggest service company, i think this could really help. right.ink he is exactly good positive start. one thing to have is legacy business, but a lot of legacy customers. companies don't like to change because they want to be with companies that have sustainedity and structure. >> google and their cloud

platform, there's a lot of competition and a lot of great companies. edge computing is the next big trend, so i think ibm should try to leapfrog over the harvard cloud. >> talk a lot about the competitors here. is ibm were going to model up a competitor, which one would it be? >> they have done a very good job offer. they have a very large practice and i think that is what ibm should exasperate. feinstein, financial partners helping us analyze the

breaking news out of ibm. from new york, this is bloomberg. ♪

>> stocks erasing their losses earlier and as for the world health organization, that the efforts to combat the coronavirus. and accelerated last week ,ere for an economic outlook macro strategist, how hard is it right now to come up with any forecast when there is so much radical uncertainty question mark >> ultimately, you want to take a negative on how this virus involved. i don't think anyone had any insight on how this would

evolve. >> what is different is the way that social media apple flies everything and coverage is all must nonstop. how does it contribute to people conflating what is going on and perhaps thinking it is going to have an immediate impact? >> i think in the absence of real confident information, we rely and have a group that looked at the intensity of the media article discussions and what they found is twentysomething days, we are seeing seven times more intensity than we did in stars and in zika. instances, it took about 50 to 60 days, so there could be some more volatility and stocks are at risk.

this was going to wrap up quite easily. continuously on what sort of geopolitical issues cropped up. we saw this play out with regards to be coronavirus. is there anything tangible? >> i think the market certainly traded up. some of the internals -- internals had not been up. a lot are very tech oriented. versusu look at defenses cyclical. ultimately, the corona -- coronavirus is concerned. whether not it overwhelms, we asl see, but not as healthy

one would believe. >> are you surprised by the speed with which investors fought back for the state haven? up toer saw rates pick the degree that assets were on. >> i have been watching the fact that it has been a tepid response when you look at some of the internals. the concern had always been there and this is just a spark. we are back to one 50's, so it got here fast. >> the yield curve or part of the l curve, what does that show us? >> i think it shows the global growth concerns and they were

always there. ,e certainly never steepened but we quickly cut that in half. i also think it shows that markets try to push the fed around. into a lot of what part, and for the most the markets don't believe that will hike and you have this asymmetric type of environment. >> thank you for joining us. after more than three years those believe brexit is happening. out.e spending numbers are >> more earnings before the bell

tomorrow. >> that does it for what you missed. >> have a great evening. sometimes your small screen is your big screen.

and with the xfinity stream app, which is free with your service, you can take a spin through on demand shows, or stream live tv. download your dvr'd shows and movies on the fly. even record from right where you are. whether you're travelling around the country or around the house, keep what you watch with you. download the xfinity stream app and watch all the shows you love. >> welcome to "bloomberg

markets." i am taylor riggs with paul allen. coming up in the next hour, international emergency. the world health organization says the coronavirus outbreak is a global health emergency. we will have details. plus, the evaluation club. amazon crosses estimates on earnings-per-share and revenue. we will have details.