katz of ubs. the march selloff, six days where more than 95% of the s&p 500 declined. one snp stock right now -- s and p stock right now in the green. every other stock will finish the day in the red. the majority down at least 2% or more. incredibly broad-based selloff. we saw this also in the nasdaq and russell. caroline: zoom video once again the only stock that defies gravity come up 0.5%. the other 99 of those stocks on the downside, led by united airlines. companies have been doing relatively well over the past week or so, your travel and leisure stocks.

today, a dose of reality whether fed allrld bank, oecd, worrying about the economy. virus upticks in texas, california, worries about a second wave. now?ne: where are we taylor: take a look at this. you and i have been talking about how key this previous resistance was, now becoming a new support level. we blew through that, down now 3 the s&p 500, closing at ,002. that clearlyaying this is not a good sign. he was hoping for that moving average to provide some key support. now that you have fallen through it, a little bit of a dip. new resistance line clearly on the bottom of the screen. ofht back to an rsi reading

50. you mentioned the travel and leisure stocks. this is a one-day move. carnival, macy's, delta. the minute we woke up this morning, the entire narrative changed in an instant. wells fargo, off 9% yesterday, off 9% today, the worst two days going back since march. we will hear tomorrow on lowering her dividend forecast for wells fargo. who will have to see how some of the other banks stakeout. if there is any bright spot, it is here. the mega caps company big tech keep getting bigger. market cap outperforms bigger weight. the ny faang index well above that 200 day moving average. a reading here well above the 200 day moving average.

rsi reading looks reasonable. if we have anything to say about this, those ny fangs, those big caps continue to come ironically, provide some defensiveness in all of this. caroline: jason putting it so well, is it really that we are calling some of these defensive names, but also in light of regulatory concerns. we have to remember that we had some key corporate stories out. romaine: there are a lot of sort of individual stories to some of these stocks and second errors that have nothing to do with the economy. that definitely provides a bit of a push back here. the vix is closing above 40 here. now forbeen below 30 the last few weeks and that was

generally considered a pretty bullish signal. volatility is increasing. i want to get the thoughts of jason katz, who is still with us, about the potential reemergence of volatility and whether maybe that could be a good thing. jason: i think it is a good thing to the extent that i think people need to be sober. they need to recognize that markets are not one directional. volatility spiking here affords the opportunity for perhaps some hedging strategies vis-a-vis buying puts, calls to the upside. it reminds people that this is not a free game. taylor: this sounds eerily similar to mid-march when we kept hitting those circuit breaker limits, the market would have to take a 15 minute either. do you get the sense that there is the same level of panic he's

-- panicky selling going on? jason: i don't get that sense. we have the equivalent of $9 trillion of fiscal and monetary stimulus just here in the united states. there may be some zombie companies that should not be walking around, but they are there and it has provided a backstop to not only corporate america but many municipalities. having that in the background i think has given some people some solace that we are not going to go to the depths of the covid lows. caroline: looking at tomorrow's action, it was interesting that it was noted that a lot of the action was happening overnight, asian activity driving some of the sentiment on the benchmarks. how do you for yourself for tomorrow's trade? jason: the dollar is strengthening again. it is apparent that everyone will take the lead from the

u.s.. i would not be surprised if overnight, we see further downside. i think the best trade tomorrow is no trade. today was a day where the baby was definitively thrown out with the bathwater. being selective, waiting for the market to gap a little bit, i think you can pick your spots. caroline: that does it for "the closing bell." "what'd you miss?" is up next. we will be looking at today's market moves and the moves after the market. this is bloomberg. ♪

from bloomberg world

headquarters in new york, i am caroline hyde. romaine: this is "what'd you miss?" caroline: the selloff was real today, dow jones closing almost 7% lower. s&p 500 having its worst day since march of 2016. -- since march 16. a haven bid, risk assets, havens rally. u.s. treasury bills are emboldened. it is all bad news for the banks. wall street among the hardest hit as rates remain lower for much longer. all that and so much more coming up for it -- coming up. inaine: lululemon down 8% after-hours trading, missing on revenue. $690stimate was for million. caroline, they are basically not providing any detailed financial guidance for fiscal 2020.

caroline: adobe manages to beat in terms of the second quarter. record revenue. third quarter looking a little bit light. protests in response to the killing of george floyd while in police custody continue across the country. let's get more of an insight into racial injustice. jason from bloomberg news wrote and reported that john rogers is one of the fund industry's leading african-american figures after founding aerial investments. fromjoins us on the phone chicago. welcome to bloomberg radio and bloomberg television. our cover story is about the disconnect of what is going on in society. the anxiety, protests over

racism, we have seen the markets take off. it does seem like the equity markets today are catching up to some of what ails us in society. are: we think the markets weak today mostly because of the fear that covid is coming back and that there is some risk that certain states might have to close down again. i think that is a very disturbing phenomenon for the markets. we are hoping things can stabilize and not spike too aggressively. when are living in a time it feels like it is crisis on crisis. most of the -- both of the major crises really have laid bare some of the massive inequalities in our system, in our country. i wonder what you make of it. we can't separate these two in many ways, the pandemic.

the unrest as it relates to --temic constructional systemic structural racism across this country. what do you make of it and what do we do about it? john: a huge problem in this country is the wealth gap has gotten larger and larger over the last 40 years. i could have never imagined when i started aerial in 1983 that that would be the case. i thought we would benefit from the civil rights movement of the 1960's. data from the federal reserve at st. louis shows that between 1992 and 2016, african-american college-educated folks saw their wealth decline while college-educated whites saw their wealth increase. that is dramatic. we are going backwards. we have to get corporations to not only hire more

african-americans in executive and leadership roles, but we have to do business with african-american companies. everything we do outside of just construction, catering, we have to move doing business with african-americans in the part of the economy that is growing today. financial services, professional services, and technology. i think we have to do away with that term of supplier diversity and use what the university of chicago calls business diversity. we can have a strong entrepreneurial african-american community that will provide jobs and philanthropy to urban communities. the investmentut industry and how they can make a difference. i think many would argue that funds have not helped move the needle when it comes to erasing racism in country. john: as you know, private equity has become to be so powerful.

venture capital has become so important in wall street and silicon valley. firms havee equity never had a black managing director or black partner. so, we need to be included in those lucrative parts of our economy and not only make a lot of wealth for people who work in them but they have so much impact on the countries -- on the companies they bring public. a lot of companies that come through the private equity or venture network have never had an african-american on their board. that is so important because so much influence that giant equity firms and venture capital firms have in our society, we have to be included if we will move the ball down the field. whot feels like the folks might be able to make a

difference in the behavior of the venture capitalists and private equity firms are the ultimate investors. those are big pension funds, endowments. is there the wheel on the part of those big institutional investors to push this issue a little bit? john: it has fallen to the crack basically. the major public pension funds have done a great job of forcing public companies to have diversity on their boards. these privately held businesses, you could argue they have more influence because they are writing these big checks to private equity firms. thendly, you are right, nonprofits have been actually the worst. they have also fallen through the crack spirit they have so much power and influence. the ivy league schools, big schools like notre dame,

michigan throughout the country pushed this agenda. those private equity companies, venture companies would have to change their ways because their most important customers are pushing them to do the right thing. >> we are speaking with john rogers, ceo of ariel investors. i had a big private equity manager say to me earlier today that we are at an interesting moment in 2020 where if you look at esg, environmental, social, and governance, the e was like e for the last six months of the year. mid-2020, maybe the s is getting more attention. what do we need to keep that attention here? john: not only do we need to get pensionrofits and big

funds. what is happening in congress people like joyce leadership active in on the financial services committee, they have been able to force corporations to do more around inclusion. we need to have more people interested in bringing economic our society. all those types of issues that are critical, they have stopped asking about economic justice. in the old days, harold washington, when he was mayor of atlanta,the mayor of they have asked those tough questions. we have to get our political leaders to push that agenda and our civil rights leaders to

remind people that economic justice is so important for carol: where does it start? we have had a lot of discussions about where you are born determines what kind of education you get, what kind of jobs you get, health care, kind of determines your place in society. where do we start? here are the gaps still. john: it is clear that wealth is key. wealth is at the heart of it. if you have equal wealth, equal education, equal health care, the opportunity to have successful retirement, etc.. capitalist democracy we are part of. we will suffer all the ills of our society if we are left out of the economic equation.

jim crow, separate but equal, all of the kind of things that happened that did not allow us in oury participate capitalist democracy. it is insidious, and that is why the wealth has just deteriorated and deteriorated, and why the anger is building, because it is multi generations of families who realize they have not been able to participate fully economically. carol: hundreds of years. is it different this time around? as you know, the conversations have been happening for a long time, and yet here we are. john: i am hopeful. we have a more progressive congress then we have ever had, more diversity than any time in history. i think that will make a big difference. talking to many of the ceos of companies we have invested in, this feels different this time.

people want to hear best practices, how they can make a difference. people are feeling that something is really wrong in our society and this is a time to fight the change and fight for economic justice. >> you mentioned serving on boards. , whether public or private companies, we continue to see huge gaps in many ways. what needs to be done on that? does that come from the ultimate money behind the scenes? is there something that can be legislated on that front? john: it is hard to legislate quotas in this environment. i think you can do what representative crist welch has done in illinois, to force transparency so we have the data to see the lack of diversity at some of our biggest companies in illinois.

the second thing that does not conduct about enough is we need to have diverse directors that come from a background of understanding the civil rights agenda, understanding the historical discrimination that is part of our society, and being willing to speak up and fight for social justice once you get into the boardroom. if you are someone that comes in, you are diverse, but you are quiet and shy, don't speak up, the white l ceo will think, i must be doing a great job here. we've got to get the right people into these board seats who are willing to fight and speak up. carol: the virus, no one had a playbook on how to deal with the world, pretty much the economy shutting down. what is our playbook for making changes? businesses,eos, what are the first couple of steps to help erase racism and

make sure that blacks are not being left behind? john: we have agreed on the three p's. people, purchasing, and philanthropy. people is important, making sure that philanthropic dollars go to civil rights organizations, not just always the local opera, symphony. secondly, when it comes to purchasing, we want to make sure we are keeping track of the spending by category so that we can push our companies to work with minority firms, everything we do, african-american firms in everything we do from finance, professional services, technology. not just the lowest margin part. third, measure the people. tie compensation to making progress with minority executives at the company you are involved in and also, at the

same time, all of the fictional services firms that work at the company you are involved in, making sure they have black managing directors and partners. we think that is what enlightened companies need to do. diverse people, diverse purchasing, and diverse philanthropy. >> what about for an individual investor. it feels like individuals are wanting to do things with their money. some of that can be done philanthropic leave. but, as an individual director, should they be looking at the board of the directors, the supply chain? john: i think that is something that is really important. they should vote their proxies and vote no when boards are not as diverse as they should be.

then maybe have a chance to make sure you have strong directors. it makes a difference when you will have people who will speak up and make a difference. i think that question can be asked by shareholders, both institutional and individual shareholders. write letters to the ceo. say, i see that you put someone on your board, but i looked at the resume and there is nothing there that shows they care about civil rights or diversity. carol: it feels like leadership and stepping up has never been more important than now. john: exactly. in the spirit of dr. king, john lewis, bobby kennedy, people spoke up and fought against racism and were not shy about it, they are the ones who made such a difference in our society. we appreciate your time.

, on rogers, ceo at ariel the phone from chicago with thoughts about what we need to all do to make it better. you are listening to -- romaine: our thanks to carol and jason, a great interview with john rogers, chairman and co-ceo firm thatnvestors, a he founded with $10,000 of his own money and turned it into a $10 billion mutual fund company. andits on a lot of boards has had a lot to say over the years about race and representation in corporate board rooms. you heard him talk about just how important this is to focus on the economic opportunities, not just the political ones. caroline: he sits on the board of mcdonald's, nike, new york times.

it is interesting the backlash that companies are getting about not being authentic. what about the leadership team? nike has put out some really powerful out -- powerful adverts. john rogers is on the board, but who leads nike? not a single person of color. i think those are questions that need to be raised by such authoritative figures such as john rogers. taylor: darren walker said, the old playbook does not work. you really do need to do some soul-searching. take a look at the board you mentioned, the strict corporate policies to really make sure that you are pushing forward some equality that unfortunately we are not quite seeing at this moment. caroline: it takes more conversations like that with john roberts to make sure

corporate america steps up to the role they need to play. the european union will file an antitrust complaint against amazon. the case has to do with the way the world's largest online retailer treats third-party sellers. there's been allegations that amazon takes data from their vendors and uses it to compete against them. hasstor bill ackman confidentially filed for an ipo of a so-called link check company. blank check companies raise money on public markets to make acquisitions within a set period of time. machinesw of vintage million.ay fetch 25 the painting will be auctioned off by july 10. it is known for depictions of cake, ice cream cones, and other objects. that is your business flash update.

coming up, we will discuss the market selloff. this is bloomberg. ♪

romaine: a wild day in financial markets today. we saw stocks having their worst day going back to mid-march. when you look at what went on in the debt market, it was not much better. to tell usht be able something about what is going on in terms of the crack cindy credit market. high-yield cdx, the cost to protect against fault is rising as people are starting to price in more default risk. widest this3, the month. you really do wonder how this

translates back over into the equity market. levine,at with alisha the chief strategist here at bny mellon management. i wonder if you are noticing any crack cindy high-yield market that make you worried about the equity market. >> the scene of the crime companies, the companies that are most exposed to the downturn, really what you want to look at. retailers, and some of the smaller financials. that is where you really want to look because those of the companies that will get hit first. that is what you really want to look at today. classical risk off day. x, spread widening. on top of that, let's point out that we have not really had an

awful day like this in 10 weeks. the headlines have been wretched. this is the reckoning that a lot of us were sort of waiting for it we waited a long time. caroline: what pushed us over the edge? the magnitude of the selloff seems pretty forceful. was a little bit of a perfect storm. let me first say that i think essentially the direction of travel is upwards. i mean that over the next 6-12 months. over the next couple of months, we expect there to be some consolidation and softening. but the direction of travel is upwards here. ,ertainly, jay powell yesterday his comments were not surprising if you are following what the economists are saying because most economists are expecting unemployment rate by

the end of the year. were not pricing in a very sharp v-shaped recovery. jay powell gave us a soft v. eight 2.5 year recovery. , notht to be a nike swoosh a straight up v. i think that, coupled with the rise in cases in certain parts of the u.s. that has looked to be unconcerned about the virus, that sort of together was really the perfect storm. markets went marching straight up for the last three weeks. the last three weeks where the first time it really felt like the late 1990's. today's even with remarkable day, still talking about a market up 30% off of those march lows. anyone who jumped off this train

over the past 3-4 months made off well. the last couple of weeks where things got a little bit crazy. sentimentm to have a that even with the economic downturn, there was a lot of confidence. some firm footing that we would get a return of business spending. is there any reason to think that bet is worse today than it was the day before? the short answer is, no, there is no reason to think today would be worse. i think one of the surprising things is that as the weather got warmer in the u.s., people came out of their houses and

reengaged, and reengaged in ways that most of us in new york did not think possible. that is a sign of where the consumer wants to be. frankly, unless we have cases that overwhelm the health care system, the company will -- the country will stay open and regions will stay open. you may on occasion have certain regions and counties that have to shut down but the demand is clearly there. fisa is telling us that spending is pretty much the same year-over-year. telling us that the consumer is there and ready to reengage. that is a reason we had such a great rally, this kind of turbocharged it. we will come in and consolidate. as i said, we think the direction is forward and upward ultimately over the next 6-12 months. caroline: we will probably get

these bouts of volatility. when we just had one like today, how do you set yourself up for tomorrow's trading? alicia: i think the right allocation, you should have a core allocation to the growth sector. what we saw over the last 10 years, pretty much a sluggish recovery from 2009, those are economies that did really well with low interest rates. you must have some allocation to gold as a hedge to your risk assets. we think you should invest where the fed is, which is sovereign debt. even though rates are low, you still look at some protection, particularly on a day like this. and you do have to have some exposure to the reopening of the economy.

the economy will open and it will stabilize. the best time to make money is when you are the most fearful. and today was a fearful day. caroline: the vix, what a move. great to have you with us, alicia levine. let's get the take of mark crumpton with the first word. isk: a key senate panel defining president trump and has approved a plan to have the names of fedor -- of confederate figures removed from military bases and other assets. in the house, nancy pelosi is amending that statues of confederate figures such as jefferson davis be removed from the u.s. capitol. president trump promised wednesday that he would not rename military bases honoring confederate generals. for years, the confederate battle flag was a common and controversial site at nascar

races. now, nascar has made a decision that the confederate battle flag is no longer welcome. it has been banned from all nascar races and venues. iv, averend robert w. lee descendent of general robert ely, welcome to the decision. >> they will be deep conversations about what it means to be a primarily southern sport and also be engaged in conversations about what it means with racism. mark: the conversation was pushed to the forefront this week by bubba wallace, nascar's loan black driver, who said there was no place for the confederate flag in the sport. said, to see the shift happen so fast, gives me a lot of hope in humanity.

america's top military official is apologizing in taking part in 's controversial appearance outside a washington, d.c. church last week. the chairman of the joint chiefs of staff, general mark milley, said today, "i should not have been there. general milley's presence has been criticized for giving credence to the president's claim that he could use the military to stop the protest. india is seeing a spike in coronavirus cases. the country reported 10,000 new cases over when he hours, the highest since the pandemic began. india has had 8100 deaths. most indian states have lifted lockdown restrictions. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries.

i'm mark crumpton. this is bloomberg. ♪

what a day on the markets. what a flight to quality, flight to havens. taylor, break it down for us. taylor: take a look at this chart. i wanted to highlight it again today because we continue to talk about some support levels that were previous resistance levels. the s&p 500 fell through the 200 day moving average of 3013. matt madeley earlier this morning said, all day, this was the level that we needed to watch to see if there could be some support levels here going forward. i want to bring in the arspective of liz saunders,

chief investment strategist at charles schwab. a day like today, when you break through the technical levels, a market cannot find its footing, cannot find support, is that something that makes you nervous? where do you stand? have yet not sure we brought fear back into the mix. i think one of the problems leading into today was that sentiment had gotten pretty frothy. behavioral measures among speculators, particularly small speculators. there has been obviously a lot of media attention on the unbelievable parabolic spikes in the bankruptcy stocks. i think the froth that had started to appear suggested that he did not need much of a catalyst to consolidate some of the recent gains. we certainly got a catalyst with some of the remarks from powell

yesterday, concerns about the second wave and the virus. i think that was a recipe in the mix with frothy sentiment. i don't think we will quite get fear back. i think we need more to reverse the sentiment environment. romaine: i wanted thoughts on how you interpreted powell's comments. he did not really say anything that most of us did not already know or have not heard. that the fed was going to keep his foot on the proverbial gas pedal to continue to support the economy or the markets or whatever people think he supports. i agree with you. i think powell was quite honest, correct in his assessment. i think where it contrasted was some of the optimism that was tied in with some of the fraught

we were seeing and assumptions that the stock market was sending a much more positive message. i think what powell reflected was the reality of the situation and i think today was just that, a reality check. he probably only surprised people that may have been whistling past the data. caroline: these reality checks, are they healthy, and should we just be bracing ourselves for more doses of reality and/or volatility? nobody likes to go through a particularly ugly day like today. but i would rather go through short-term corrective phases as the market moves along than building, say comedy kind of speculative access we ultimately saw into the peak of 2000. if i had my personal druthers, i

alongrather see periods the way instead of a melt up kind of scenario where we all have learned the hard way that melt ups tend to be followed by meltdowns. a consolidation to bring back in some of that market sentiment. romaine: for those who might have a more traditional portfolio, how do you -- if you do anything i guess in this moment, how do you diversify with 10 year yields still below 70 basis points? how do you diversify when a lot of the other assets out there, if not overvalued qamar definitely stretched -- overvalued, are definitely stretched? liz ann: a function of each individual assessor's personal situation, needs for income. there is no cookie-cutter

numerical answer to that question. aboute do hear a lot diversification into things like the treasury market with yields as low as they are. that during mind the worst days of the treasury downturn, treasuries generated almost a double digit positive return. diversifier.s a you saw outperformance by some of the asian international markets. so it is not always the case that it is just u.s. and no other area. i think probably the most important message over the past several months to investors, to the extent that they can handle it in terms of maybe tax implications of increased turnover, rebalancing is always such an important exercise. a lot of investors will rebalance based on the calendar.

they might do it quarterly or annually. we have been suggesting that investors may be let their portfolio by virtue of volatility tell them when it is time to add two more asset classes. you are rebalancing more frequently but sort of staying on the right side of the trade, so to speak. it forces us to add low and trim i. that is about as close as you get to a free lunch in this environment. taylor: down the credit scale, 's have been the big outperform her. is that something that you would continue, that if you were to dip your toes into the 's would bemarket, dd a place. how are you thinking about credit? liz ann: i am not a fixed income

strategist. that is my colleague, kathy jones. we had underweight overall to high yields until we saw the blowout spread a couple of months ago. but, our overarching message, anywhere in the high-yield space, you have to have a fairly high risk tolerance. what has been happening in terms of investors moving up, that has been translating into moves down the quality spectrum. you saw it in the zombie companies, and the bankruptcies, and in the fixed income space. in days likeed today, without regard to your own risk tolerance, you can sometimes get in trouble stretching for what is a fairly marginal cup in yields. i think that is what burned investors a few months ago or relief last couple of years, desperate search for yield.

you were not getting a lot of extra yield given the risk you are taking in those lower quality investments. i think the disregard of sort of quality has at least today come back to bite investors. caroline: great to get your inside take. thank you. now, a quick check on the latest business flash headlines. accused facebook today of failing to stop the spread of misinformation. biden circulated a letter to --porters to demand that facebook responded that elected officials should set rules they should follow. facebook said -- twitter says it was following first member rights. evan spiegel says he is surprised other social media sites are not willing to do the

same. california, regulators have classified drivers for uber and lyft as employees and not contractors. that would require companies to pay unemployment insurance and worker's compensation. but, a voter initiative could change the law. that is your business flash update. up, on bloomberg technology, stitch fix ceo on how her business has been impacted. do check around coming up later. this is bloomberg. ♪

romaine: welcome back. ofe for the cheese course

the show where we bring in joe weisenthal to sort of wine things down. an amazing day today and really over the last couple of days. this rotation back out of cyclicals giving people a little bit of whiplash here. joe: absolutely. obviously, the headline indices were awful today, worse than the middle of march. some of the sectors that people have started to pile into really got clobbered today. down 9.5. sector, financials, down 8.2%. real estate down over 6%. these are the sectors that took the longest to rebound and they got hit back pretty fast. perhaps it is because people have piled into them so quickly over recent days. caroline: i like that it is the cheese course. quite often, you guys have cheese before you even start

eating. i am loving that we are thinking french, going back to passing the port. tell us what we look ahead to for tomorrow. joe: the key thing to bear in mind, as the rally goes further, the bar of what we need to see in the real economy goes higher to continue to justify the overall trend. i would say there is really two trends we need to continue to see. we need to continue to see economic activity continue to recover, resembling normal. there are real-time trackers. i love looking at the opentable data because that is sort of the quintessential precrisis thing, dining out. and it is improving. and i like to look at case counts. that may be catching people's attention. as people go back into the world and resume normal activity, we are seeing case counts pickup.

what we really want to watch, are those case counts starting to inhibit the recovery and return to normal? arizona is getting a lot of attention. a lot of the arizona dining activity. they have had substantial spike in cases. texas as well. as people realized that the numbers are not going down, will people start to hit the brakes a little bit or slow down a return to normal? i think that is kind of what we are seeing in this market, that maybe people got a little bit complacent about the steady glide path back towards normality. caroline: fascinating. what is normal anymore? who knows. joe: that is the other problem. caroline: joe weisenthal, always keeping us honest. thank you very much.

that was the cheese course, now you are on to your hard-core liquor. "bloomberg technology" is next in the u.s.. romaine: this is bloomberg. ♪ you doing okay?

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♪ emily: welcome to "bloomberg technology." i am emily chang in san francisco. now, not just president trump, but his opponent taking on facebook. vice president joe biden sending an open letter to facebook: on the social network to fix itself in the midst of growing controversy over how to handle political speech on the platform. more on that in a moment. first, market turmoil. u.s. jobless claims continuing a