were 86 hundred publicly traded stocks. even the smallest stock was a big stock. now, that has been cut in half so the smaller russell stocks are really tiny and a lot of them are not profitable, so a lot of the numbers in the russell, where you say a record high 36% of stocks are unprofitable, and a lot of that has to do with the fact that these are a different kind of stocks. an apples to apples comparison over the last 20 years is it really doable. romaine: s&p 500 closing at all-time highs. call it what you want, but is a record high. joe: something that is catching my eye, pretty big outperformance from the s&p 500 to the nasdaq. i just ran a chart. the tech weakness,

energy strength, reversing the typical pattern we see. down 17%, even amazon down half a percent. scarlet: let's check in with our reporters for a deeper dive on the action. look across the asset classes. abigail, what are you looking up? >> i am thinking of volatility. we are in volatility. what we looked at before was a 1% moved to the upside, the downside suggests more volatility is ahead in the spring and summer of 2018, we had a huge stretch of moves that led to the fourth quarter where we had a lot of 2% moves. earlier this year, another move led to september. lots of greater than 1% moves. year, into this year over the last eight trading days, five are greater than 1%.

suggests more big moves ahead. we will be interested to see whether it balances out shortly with volatility. a look at shares of qualcomm awaiting first-quarter earnings. they were up about 2.2%. really high expectations on 5g spending. could be a big tailwind. deutsche bank is coming and expecting big things. citigroup, one of the most exposed stocks. with record highs, qualcomm up 80% or so in the last year. really the only headwind we should be hearing about is some of the fears from the coronavirus and disruption not only on the consumer side but on the supply chain, given the big exposure in china.

>> i will close it out macy's. the company is in the middle of restructuring but that didn't stop investors from buying shares. the third straight day shares were higher. customers have grown more comfortable, shopping online. the s&p 500 last year and in the next three years, macy's will close on hundred 25 stores and cut 2000 jobs. company executives expect the , saving $1.5 billion. joe: thanks, the market team. romaine: qualcomm moving across the wire. $.99ted eps coming in at over the estimate. adjusted revenue is above the estimate. is a range they

are giving the average estimate $5 billion. getting range they are was for $.85. scarlet: a lot of optimism around ig spending. thewonder to what extent whole coronavirus issue will start to weigh on spending. joe: so far, we see the market reacting positively, a 2% gain after hours. still with us, research chief u.s. strategist, just commenting at the close. substantial performance of the s&p versus nasdaq thanks to different sectors getting the love today. energy, financial and so forth. scarlet: i'm going to jump in, we're going to head to washington and look at the senate. we are getting ready -- they are

getting ready to hold the impeachment vote. >> as a reminder to the chamber demonstrations, of approval or disapproval are prohibited. >> the majority leaders recognized. >> the senate is ready to vote on the articles of impeachment and after that is done, we will adjourn the court. >> the clerk will now read the first article of impeachment. >> article one, abuse of power. the constitution provides that the house of representatives shall have the sole power of impeachment. that the president shall be removed from office on conviction of treason, bribery or other high crimes and misdemeanors. in his conduct in the office of president, in violation of his constitutional duty to faithfully execute the office of the president and to the best of his ability preserve, protect

and defend the constitution and in violation of his constitutional duties to take care that the laws be faithfully executed, donald trump has abused the powers of the presidency in that using the powers of his office, president trump solicited the interference of a foreign government in the 2020 united states presidential election. he did so through a course of conduct that included soliciting the government of ukraine to publicly announce investigations that would benefit his election, harm the prospects of a political opponent and influence the presidential election to his advantage. president trump also saw to pressure the government of ukraine to take the steps by conditioning official united on as government acts public announcement of the investigation. president trump engaged in this ineme for corrupt purposes

pursuit of personal benefit. in doing so, president trump used the powers of the presidency in a manner that andromise the united states undermined the democratic process. president trump engaged in this scheme through the following acting- president trump directly outside the united states government corruptly solicited the government of ukraine to publicly announce investigations into a political opponent, former vice president joseph biden, and a discredited theory promoted by russia alleging that ukraine interfered in the 2016 united states presidential election. motives,same corrupt president trump directly and through agents outside the united states government conditioned to official acts of public announcements he had

requested. the release of $391 million of taxpayer funds that congress had a perforated for the purpose of providing vital security and a headto ukraine of state meeting at the white house which the president of ukraine salt to demonstrate continued support for the government of ukraine in the face of russian aggression. faced with public revelation of his actions, president trump released the assistance to the government of ukraine and has persisted in openly and corruptly urging and soliciting ukraine to undertake investigations for his personal benefit. these actions were consistent invitation ofous foreign interference. the powersrump abuse of the presidency by injuring

national interests to obtain improper benefit. he has abused his high office to enlist a foreign power. president trump has demonstrated that he will remain a threat to national security and has acted in a manner grossly incompatible with self-governance and rule of law. president trump warrants impeachment, removal and disqualification to hold and enjoy any office under the united states. each senator will stand and vote guilty or not guilty as required by rule 23. article one, section three, clause six, regarding the vote required for conviction provides that no person shall be

convicted without the concurrence of two thirds of those present. on the first article impeachment, senators, how say you? is donald trump guilty or not guilty? a roll call vote is required. the curve -- the clerk will call the rules. mr. alexander, not guilty. miss baldwin, guilty. mr. barrasso, not guilty. bennet, guilty. , not guilty.urn blumenthal, guilty. blunt, not guilty. booker, guilty.

boozman, not guilty. braun, not guilty. brown, guilty. burr, not guilty. cantwell, guilty. mr. cap, not guilty. cardin, guilty. mr. carper -- scarlet: you are watching a live shot of the senate. senators vote on the articles of impeachment. they are currently taking the vote for the first charge, abuse of power. it will soon move onto the charge of corrupting congress. you can continue to watch the boat taking place on bloomberg

live, but we do have earnings that broke in the last couple minutes. shares of peloton moving significantly lower in the after hours. they appeared to be on top line metrics. the company also forecast for subscribers as well as revenue, going to run through the numbers quickly. 2020, 1.55, that is above its previous range and above the average analyst estimate of 1.49. it is also forecasting a loss for the year. loss than whater it forecast previously and smaller than the $158 million loss that analysts expected. 920,000 to 930,000 subscribers for 2020 and 81% growth at the

midpoint and above the forecast of 885,000. the sharend out why reaction is white is but those are the top line numbers. obvious.s not entirely scarlet: the last time we reported earnings in november, that was the first set of results. it also plummeted after hours. down about 7%. joe: let's get back to the senate vote in the impeachment senate trial, drawing to a close. very little market reaction so far to any of this. marketcal context of the , still surprising. , it justrkets editor never really became a market story. it is now ending most likely. what do you make of that?

>> obviously, from the beginning , the impeachment procedures, the assumption suggested that acquittal was almost a guarantee. the market sort of just ignored it. senator romney came out with his vote. had there been more drama surrounding it, maybe we would have seen a market reaction, but i think it was a foregone conclusion. the market did not have any sort of speculation that it would resolve anything. romaine: we should point out, this process has come down to party lines. even with clinton, we saw a few people splintering off from the democratic party. that didn't happen this time around and maybe that factored in. >> with 100 senators, there is a

so theysample group, were pretty confident in this result. that is not to say that politics will not come back to influence the market, depending on what the polls look like after tuesday and if a progressive democrat seems to be going out in the lead, that could cause some moves in the market. hooking the market is in the problems with the isla caucus as a win for trump. how many people mentioned that as a factor for the sharp rebound yesterday? >> it was mentioned in the stew of everything else. it is hard these days to say exactly what is influencing the market. happened,on as it

there was a joke that the markets were rallying because sanders didn't do well then suddenly, that became the actual take. that's 2020, the joke becomes the real take. scarlet: voting to acquit the president, the senate will -- at the conclusion of the vote for the first charge will move onto to the second vote. the second vote is on obstruction of congress. the president is expected to be acquitted. we will bring you the headlines when they cross. for now, the senate voting on the second article impeachment. we were talking about how politics were not moving the markets much. coronavirus did move markets, but for now, everyone seems to be content to look past it. that definitely saw rotation in the energy, financial value names.

i wouldn't call it another rotation, but across asset has caught up with the sectors. , so sorte coming back of those faang stocks may have benefited from the self quarantine of people from the coronavirus. people speculating that we will not see a long-term effect. i always look at it as like a bad winter with a lot of blizzard. we are going to see some impact. pastnk people will look and do calculations. joe: do people just assume that it will be contained? has that changed since last week, the assumptions? china.ink outside of that is an assumption, it is speculation that i think there is some risk to.

see some of these cases pop up in the u.s.. mediawere new york reports about two more people being tested in new york. risk fork there is the another bout of risk off if we should see more cases pop up. for now, not seeing that growth in the virus like we see in china involving people to take on risk. scarlet: it is pretty remarkable, the gains you see. s&p 500 closing at a record high. it does not matter if it is higher. things we haven't seen in months. somehow, the market gets renewed higher. romaine: to mike's point, he sort of brings up the economy and that is what it boils down to, whether you are concerned about the coronavirus or washington. day, thed of the

economy seems to rule everything for investors. tohave not seen any data suggest that there is anything to be too worried about. >> all the data we are getting confirms that people came into the year before the coronavirus. the adp jobs number wasn't strong today. out makes itming look like the bottom is maybe set in 2019. we are seeing inflection point turn higher in economic data, which was basically the main case in the year. coronavirus made people rethink that, but now we are seeing that it is being justified. romaine: just to bring a back to what is going on, maybe we can listen in now. >> guilty as charged. 52 senators have pronounced him not guilty as charged. two thirds of the senators

present not having pronounced him guilty, the senate judges that the respondent, president of the united states, is not guilty as charged of the first article of impeachment. clerk will read the second article impeachment. scarlet: we are about to hear the clerk for the senate read the second article of impeachment for obstructing congress. let's listen in. >> the sole power of impeachment and that the president shall be removed from office on impeachment for and conviction of treason, bribery or other high crimes and misdemeanors. in his conduct of the office of the president of the united states and in violation of the constitutional of faithfully to execute the office of president of the united states and to the best of his ability preserve, protect and defend the

constitution and in violation of his constitutional duty to take care that the laws be faithfully executed, donald trump has directed the unprecedented, categorical, and indiscriminate defiance of subpoenas issued by the house of representatives pursuant to its sole power of impeachment. president trump has abused the powers of the presidency in a manner offensive to and subversive of the constitution in that the house of representatives has engaged in an impeachment inquiry focused on president trump's corrupt solicitation of the government of ukraine to interfere in the 2020 united states presidential election. as part of this impeachment inquiry -- scarlet: -- read the charges against president trump in the second article of impeachment, obstructing congress. the president was acquitted of the first charge, abuse of power. separately, we have an update

from iowa. pete buttigieg holds the lead in the iowa caucus in the latest tally. iowa results are 85% accounted for. it is not the final tally. so far, pete buttigieg holds the lead. bernie sanders, elizabeth warren and joe biden trail him. romaine: we are paying a lot of attention to what is going on with impeachment, but what is going on with iowa, when we talk about who runs the country, there is a lot of short-term market reactions, people trying to game what they think the new policy decisions will be. the markets will always find a way. unless we have something really catastrophic happened. onlyhappens in washington seems to lead to what the market seems to interpret. nixon in 1973 with the impeachment, we saw was clinton, and we are seeing it now where as long as the economy is doing

well, the market can still make sense of it. >> i think that is true from an index level. . think you could see rotation elizabeth warren seeing a huge surge in the polls, some of the positives. joe: i want to go back to the virus and some they we talked about yesterday is that this is a major source of global concern. we have had major sources of global concern every few months for the last decade. ceiling,iff, debt people talked about the possibility of the oil spill in the gulf. fukushima, all of these eventually end up getting resolved in the consistent thing is, each one of them kind of presents -- prevents the economy from really overheating and engendering the type of federal response that might do it. >> everyone is wondering, will

the fed react to this data, or at least signal that they could react to the rate cut? that is enough i think to keep those spirits in the market and keep people positive on equities. i think we have to wait and see what the damage is. how long it lasts is key. how long these numbers keep going higher and outside of china, even more important if we should happen to see it skirt higher and suggest that this could be prolonged. people, it is like looking past a really cold winter and expecting spring. scarlet: or even just a somewhat cold winter. whatever happened to the idea that it is a good thing to have a run-of-the-mill -- they call a garden-variety position. the last recession we had was the global financial crisis.

since then, any sign of weakness has everyone speculating on when the fed is going to step in. romaine: people are concerned that because we have not had that garden-variety, the next recession could become long-lasting. at some point, you have to have a pullback. my colleague had interesting post looking at that. if you look at the average of manufacturing, there is this mini cycle within the long economic cycle. they got close to 50 with the oil crash, so there have been -- joe: early 2016, people argue now that should've been declared a recession. scarlet: but we didn't meet that definition. joe: we didn't technically meet it. it is a great point, which is that we do have cycles, even when history remembers it.

scarlet: it is soft touches now. >> we have not had a bear market, but we have come close a couple times. what does it really mean if it is not that official threshold taking the gas out of the market? romaine: put into context if you can, some of the earnings we have gotten. at least with the big names that really matter, this hasn't been a great season, but definitely better. surprise, analyst estimate is about 5%. it is still a negative number as far as growth, but not quite as bad as expected. seen is a real rating of guidance based on the virus. we have seen material impacts. there is going to be some impact, but we haven't seen anyone put official numbers.

romaine: nike was out yesterday. they didn't put a number on it, but they were pretty firm. scarlet: nor did starbucks, which said it was going to close half of stores. in china. >> eventually, we will get numbers put on there. episode,a short-term people will be happy to do sort of an ex-coronavirus calculation and gauge the health then. scarlet: i go back to the idea yesterday of morgan stanley that the coronavirus may cause customers to delay spending when goodses to experiences or . for manufacturers, it might result in loss of activity. excuse me, the other way around. for manufacturing it will delay activity, but for consumers, it might result in lost spending that will be made up down the road.

romaine: i think that's what a lot of people anticipated. a lot of other folks we have spoken to had the model that some of the spending will be made up. it won't be such a hold that you need to revise your global growth forecast. >> to me, what would be interesting would be job numbers, cutting back on hiring, taking loss temporarily. soulll see the heart and of the economy, these really strong job numbers. if we do see companies start doing temporary layoffs, and again this is probably not something we should expect right away, but should the virus thatnue to cause problems, might be something we start to see. joe: one thing i am interested are real supply

chain disruptions that have happened. we don't know how long they're going to last, how long the quarantines and lockdowns will persist. at some point, companies might have to figure it out. the number of cases in china is continuing to rise. scarlet: is it fair to say that most of those companies are not u.s. companies? most are companies that u.s. companies have contracted out to? of,ou also have to think the trade war sped up a lot of companies to be in a better position, building redundancies in the supply chain, found other suppliers and really worked around the tariff issue. now, the impact is a little less when suppliers shut down. war because companies to brace for this without realizing it was coming and be able to handle a little better. there is going to be some disruption, some numbers off because of it, but we have to

wait and see. scarlet: maybe the end result will be like a bad winter. >> let's hope it turns out to be something like that where can be isolated. for more on the data we are theng, i want to bring it macro strategist. thank you for joining. year, you late last thought the data was going to come in better. we did get that with some of the service data, how are you ?hinking of the data until now we don't know the degree yet. thesis of january in

particular, it would be the first after the trade deal and our view is the reason they were diverse is the pmi's are based .ff a smaller sample set as we started to see the trade war trickling, we started to see the convergent and that is why we think there is underlying macro and the way we think about that is when traders ask how bad it will be, you may as well ask how long is a piece of string at this moment? until we see secondary data, some high fidelity data is not there. we are looking forward to see do we see hockey stick type charts in which case the international data is saying the chinese data

is not high or do we see a continuation of what we have maybeeeing where ok, february 3, a lot of folks were expecting, that type of directory did not materialize. >> take the data and when you look at the economy that has been running on the consumer, that was enough to keep the economy going. point whereget to a we see the baton passed with manufacturing question mark >> -- manufacturing? believe that production and from here on out, that is the underlying backdrop of course. --ill say

>> we are going to go back to justiceon where chief john roberts is speaking. officer directs in accordance with the senate as follows. the senate, having tried donald john trump upon two articles of impeachment exhibited against him by the house of representatives in two thirds of not havings present found him guilty, it is therefore ordered and adjudged that he be acquitted of the charges and set articles. -- saidrticles articles. [no audio]

>> it is ordered that the secretary be directed to communicate as provided by rule 23 of procedures and practices when sitting on impeachment trials and also to the house of representatives, the judgment of the senate in donald john trump and transmit a certified copy of the judgment to each. >> without objection, the order will be entered. >> the majority leader is recognized. >> before the process concludes, i want to knowledge a few of the people who helped fulfill the duty the past two weeks. foremost, my colleagues think justice chief .oberts

[applause] -- thank justice chief roberts. [applause] aswe know that his presence in addition toer his day job across the street. we think the staff who helped perform this unique role. like his predecessor, the senate will be awarding chief roberts the golden gavel to commemorate his time. award this toally new senators after about hundred hours in the chair, but i think we can agree that chief justice has put in his do and then some. some. and then >> you are currently listening to mitch mcconnell speak after the senate acquitted president trump on both impeachment

articles. trump acquitted on both and we want to bring in laura davidson, our reporter on capitol hill. the result of the outcome is highly expected and the vote went along party lines except for the first article where there was a surprise crossover. said heromney of utah believed what the house managers brought. he cited religion in his andement and this was large expected he was pushing for witnesses. esau a lot of democrats feel vindicated, here is a republican who said the president should be removed from office. there was never any doubt that

present from would be removed. >> obviously, the impeachment trial is over, but our house democrats done? they still have the power of subpoena. even if there is not an impeachment, could we see more hearings that attempt to shine a negative light on prison trump between now and the election? >> that is something that house democrats were talking about when they met this morning. there are other investigations .lready ongoing they are still trying to get it eventax returns and puts more pressure on some of the investigations if they want to have them look.

present trump is not fighting on those, so it will be a battle on what democrats find. >> we know the president did not mention the state of the union address. will the white house be addressing the impeachment at all? do we know if that is on the schedule? >> it is unclear if he will be doing that himself. aump's lawyers will be having congratulatory lap. how should trump respond and iny said as we all know, goes by his own instincts and he will certainly have his surrogates out there pointing to his victory here and that he was acquitted of the charges today.

>> laura davidson of capitol much asank you for so prison trump is acquitted on both impeachment articles. we got a funny headline, this raises another potential source of volatility which is the strength of the primaries. risk ah is standards source of elevated volatility over the next few weeks? isi don't think wall street taking his chance seriously. it was considered by the market as pro-trump.

ultimately, i think i would not ,e debating bernie sanders odds especially the psychological backdrop. however, i think he would be good for profit growth considering the equations. >> we heard from jamie dimon talking about bernie sanders saying he did not think it would happen. the reaction we get from wall street has been pretty severe. clarityhink we get more on how it will shake down? some volatility run-up to an election.

thereld not surprise me it feels like they are due for a rethink because most years, there is a noticeable drawdown. to your point, i would like to hear what you think bernie sanders would be good for corporate profits? >> i think the idea is there is two main things. expansion in general to other sectors of the economy considering how much is saved by consumers and because things target there for all lower end of the consumer base, those folks would be able to access credit they were not be able to access.

this would be a impulse on the consumer and a net positive. think eia all alpha weather partners. from new york, this is bloomberg. ♪

>> time now for smart cards were we look at timely topics to the charts and this week i am joined by jerry. you have -- even with last week volatility, you remain bullish. talk to us about your chart here.

>> the key takeaway is still healthy. a lot of similarities between now and the reaction in 2017. 500. off, i have the s&p importantose were market bonds and there were similarities and then the subsequent action as well. we have seen very similar action. mirrors similar to the bull market. you had the check back to the 50 day average and this has helped the bull market action. how quickly the sentiment changed. >> a very quick question. we don't have it. you have showed lower highs

where you get super bullish. >> that is another similarity. more recently, hit the 75 level and the last time it did that come up march, so actually accelerating. >> let's take a look at how data stocks. now is thate interest rates are oversold for the market. here is the 10 year yield. and, rates for topping out it acted like a headwind for high socks and now it is the opposite. at the same time, just starting to take on a leadership role.

>> what stands to benefit? the financial sector really moving in interest rates. pushing right over the 2018 high, you have a rising trend going into it and you have a strong market behind it and you have the potential for backup and interest rates. >> any possibility that this could turn into a double top? >> there's always the possibility. you would be looking for signs occurred.nce that for joining us for smart charts from new york.

this is bloomberg.

>> the world health organization is pushing back against reports -- vaccine.irus xe joining us to talk about this is true armstrong. thatto me about this drug gilead may or may not have? >> there has been a tremendous amount of interest and excitement over potential their views for this disease and one of the things we have seen is drug companies, researchers, everyone involved, they want to help. this is a messy situation where you're trying to do things, so gilead has a drug. there are some signs and early

research that it may work against coronaviruses. they are in the process of testing this on humans. a lot of other people are pursuing similar paths, but we are so early in the game and it will be quite a while before we have definitive answers. >> how big of a deal was it about china saying it wanted to patent the drug itself and this raised questions about intellectual property. >> if you are a major drug maker with a group of assets you want to protect, you want to try to do good. you want to make sure the chinese government, which is in the middle of a giant revolution

, show they will reimburse for and the pharmaceutical industry isn't going to turn around and attempt to take ip away from those say -- same western drugmakers and practice capitalism and all the things they want to do to revolutionize their health care system. >> to what extent are drugmakers capable of coming up with a treatment on their own? is this something we have any indication that china is going at it alone or want to team up with drugmakers around china >> there is a huge industry in china. i was over there in december and a lot of the talent over there, ,eople who trained in the u.s. they have come back and they were kind of the cream of the crop and started their own businesses. there is a lot of talent there, i'm sure they are making

efforts. a lot saying they wanted to help their fellow citizens in china, but i don't think we have heard as much buzz. bloomberg'ss to armstrong for the latest. by more, we are joined lessons from the frontlines of doing business in china. thank you so much. we are starting to hear more companies saying this will hit our bottom line. the your perspective, people you're talking to, the supply chain disruptions alone, how much is it a risk for these companies that have so much infrastructure in the country as they clamp down on movement and other things? group witha we chat

companies in china and have been talking to them. everything is shut down, everything is locked up, supply chains are not moving and people are being told to stay in their houses, companies have to check on employees to check on their and the main doctor that runs the committee on this virus , he predicted that the peak would be now. yesterday, he predicted two more weeks away, so there is this february 10 day on going back to work. i don't think that is going to happen. fareally don't know how this has spread. 59 people have left.

you look at shanghai and beijing, why are people in homes there? >> what becomes the lasting effect? things start to go back to normal. are we talking about a long-term disruption in the way that china operates in the way that businesses operate with china? >> if this goes on for three or four months, the for se perfect -- the effects -- the will be profound. sars, 2002, 2003, gdp when out and this thing is more serious in the people that get infected. >> you lived in china for nearly three decades are at currently

live in shanghai and beijing. you mentioned sars. is that the best to what we are passed it or have we in terms of the spread or the scale? what would be a good comparison? >> there is none. this has not happened before in the modern era with people that live so closely together and at a time of chinese new year's where hundreds of millions of people are traveling. i don't think there is a comparison. it is going to be sad to watch. it is also fascinating to how this works out. does the party say let's let everybody go in the with it or do they keep them locked up

longer and longer? they are in a difficult position. >> thank you for joining. 'd youoes it for what miss? ♪

>> welcome to bloomberg markets. >> coming up in the next hour, restricted travel, many largest cities remain on lockdown. plus, business interrupted. how it was delivery, affected