>> 30 minutes into the u.s. trading day. here are the top stories we are following. retail revival. shares of macy's soaring after they reveal their turnaround plans. still smacking. jm's tops estimates since buying hostess brands. the ceo mark smucker joins us. investing in energy. a conversation on the death of emp. that's our wall street daily segment and just a bit. ♪ -- in just a bit. ♪

i'm katie greifeld and welcome to bloomberg markets. you look at the markets right now and there is not too much to say. s&p 500 a hair higher. nasdaq 100, your big tech benchmark around the same story. slightly higher on the day. up about .2%. i through the bond market up there. the treasury yield higher by about a basis point. covering your its highs of the year as we count down to the fed decision. breaking consumer confidence numbers across the terminal right now. mike mckee is standing by to break it all down. mike: we have a little bit of a disappointment here from the conference board. we see consumer confidence go down a little bit, at least in terms of the headline number. the present situation --

basically all of them go down across the board. headline comes in at 106.7 after 110. 9. 147, down from 154.9. conference board expectations. people in the know watch the jobs numbers more in terms of the conference board. we see fewer people thinking jobs are plentiful. 41.3%. jobs are to get rise a little bit to 13.5%. incomes. people think their incomes will not be growing as much. 16.9% from 17.1%. those decreasing also fall 11.3%. people think their incomes will stay the same. the basic number everybody will want to see, at least those that are trying to make job guesses is labor market differential.

that is the employment number. the difference between the jobs plentiful and the jobs not soap on a full number. could have been going down a little bit now. still higher than it was a couple of months ago when we got those big jobs numbers for december and january. this does not suggest we will see a major change but it will figure into people's estimations for what we get a week from friday. we talked about this. it is not this friday. katie: it is next friday. mike mckee, they are not so focused on a single print. how do you think the fed is receiving this? the fears of sticky inflation here. is it may be good news that consumer confidence is going down a little bit? mike: i suppose you can call it that. people are not counting on the fact their paychecks are going to get bigger. overall, the fed tends to watch what people do, not what they say. we have seen plenty of instances where consumer confidence and

sentiment is down but people spend more money. the fed is hoping people keep spending and the economy stay strong. wages and inflation don't rise because of that. katie: mike mckee, really appreciate your time breaking down those consumer confidence numbers. on that note we are keeping a close eye on the retail industry. macy's announcing it will close 150 stores over the next three years in a push towards luxury. romaine bostick spoke to the ceo and he is sitting right beside me. what did he have to say. -- have to say? romaine: this is the culmination of a seven-month diagnosis of their portfolio and that diagnosis is any fewer stores. this company had 700 stores prior to the pandemic. that is down around 500 now. that will be reduced by another 150. they are actually going to improve some of their other

stores. they did not specify how many macy's stores would close but it's clear a big chunk will be macy's branded stores. they will increase the number of bloomingdale's stores and increase the number of blue mercury beauty product stores. this is a big push. tony spring's background was a bloomingdale's and he sees luxury as the future of the company. he said right now the biggest contributions to macy's going forward are going to come from two places, blue mercury and bloomingdale's. katie: we have a bloomingdale's across the street. focus on luxury. that is not the l.a. thing macy's is thinking about. -- not the only thing macy's is thinking about. romaine: we got a chance to ask. he very politely dodged the question, saying he was not going to comment. i reached out to one of the firms that has made a public proposal for the company. they declined to comment, saying they are trying to digest

today's report but they may have a comment in the future. we should point out with our cows have more of an interest -- arc house has more of an interest in the retail -- real estate side. katie: definitely an interesting story to follow. romaine bostick, really appreciate your time and reporting. a look at macy's currently up about 7%. shareholders clearly finding a lot to like. let's continue the conversation and take a deeper dive into the broader markets with joanne feeney, partner and portfolio manager at advisors capital management. let's start there with macy's. this turnaround plan the company announced clearly finding a lot of buyers when it comes to shares this morning. how are you thinking about it? joanne: good morning. macy's has been challenged by the shifting wealth among different cohorts of the consumer.

below are an consumer has been really challenged -- the lower end consumer has been really challenged. that lower to middle range consumer has been really pressured by inflation. they have been seeing that the macy's stores. i applaud them for trying to shift the mix towards more of the bloomingdale's, the higher end and towards beauty products with the blue mercury line. that makes a lot of sense to us. we prefer some other ways to really invest in where the consumer is going and what they have been struggling with. we can talk about those if you like. macy's seems to make a good move towards where the consumer is. katie: let's talk about where you see the consumer going. is it luxury or somewhere else? joanne: it is not a homogenous group of people. you have the lower end to midrange struggling with inflation and pressures on budgets. they are becoming more practical and how they spend their money. shopping at places like t.j. maxx.

that is one of our positions . or target, despite some other cultural problems is in the right part of the market for the consumer that is trying to save money. can you have the consumers that have plenty of money and are not really worried about inflation. they are the upper-middle-class the higher. they are the ones shopping at bloomingdale's or at some of the luxury brands. we think those will continue to do well. it looks like the economy is in good shape. we have a lot more people employed than we had before. overall, consumer budgets and aggregate are pretty healthy. that is why consumer spending has been so strong and why inflation has continued to be more persistent than what the fed would like to see. katie: i almost shudder to say this but when it comes to the retail industry you are taking a barbell approach here. joanne: i think that is what one needs to do in this kind of market. we are not so enthusiastic about employment at the higher end. we think there are ways to play

the higher end consumer. we like amazon because we do still see that shift over to e-commerce continuing. that was the big story for a number of years and people sort of are forgetting this which is continuing. the mix is shifting towards e-commerce and away from brick-and-mortar, which is another challenge macy's is facing. we think amazon is a good way to play consumers more broadly and lower end we like mcdonald's and t.j. maxx. we do see those budgets continuing to be constrained for a big chunk of consumers out there. katie: pretty amazing. i do so much of my shopping on amazon. even if i see something in person i will probably buy it on amazon. talk more about t.j. maxx. reporting earnings tomorrow. those are respected to arrive around 9:30 in the morning. what are you looking for? joanne: t.j. maxx has a great suite of different kinds of stores. their flagship t.j. maxx obviously is a favorite for bargain hunters. they have high quality products

in those stores. it is obviously hit or miss depending on the inventory but they benefit from two sources. if macy's is struggling than they are not selling everything they have and that dumps into inventory that t.j. maxx can pick up on cheap. then they turn around and sell it to their bargain-hunting shoppers. it's a favorite place to go to get high quality products at off label prices, off mainstream prices. that's a real advantage for a lot of the consumers out there. we think it continues. they have an advantage there and therefore they do well in recessions when consumers are being frugal. they also do pretty well throughout the cycle. they carry high quality products. katie: let's go to the conversation over what we have seen when it comes to the pricing strategies of some of these retailers. it seemed the retailers were focusing on price over volume.

not just when we talk about clothes but consumer goods, food, etc. you think about all the price hikes that consumers have accepted up to this point. do you think that pricing power still exists? joanne: i think they are running out of pricing power. we are hearing that from different retailers across the board and all the different segments -- in all the different segments. they have so much they can afford to spend. that is part of the whole picture of why inflation is slowing down. you can only push so many price increases under consumers. what companies are doing is trying to cut costs. trying to preserve their margins knowing they cannot continue to increase prices. we are going at it from the other end by trying to limit costs by technology changes that save them on labor. you walk into a mcdonald's and its touchscreen as opposed to having to talk to somebody to

put your order in. that save them on people. we have seen that method to preserving margins which is ultimately a good thing for the longer term for the companies. katie: sit tight. we will come back to you more to discuss. let's look at what's moving underneath the markets. single stock stories with bloomberg's emily griffey. tell me about zoom. i cannot seem to stop using zoom. emily: you are not the only one. zoom is trying to pivot from a covid company to one that really caters to enterprise customers. their earnings report shows they are having some success in that. the enterprise revenue increased 4.9% to 663 point $3 million -- $663.3 million. they had 20,000 corporate customers at the end of the quarter. this is a bid to compete with microsoft and other companies that cater to corporations. the earnings were pretty strong.

eps guidance beat the fourth-quarter revenue that an unexpected. they announced a $1.5 billion share buyback program. we have a lot of cash over at zoom. katie: people really like share buybacks this season. we sit back to back and we will be on zoom calls in each other's backgrounds. joanne: you have to blur your backgrounds. katie: i never do. coinbase is another big mover. joanne: this was the first time he saw bitcoin top 57,000 dollars u.s. dollars since 2021. this is often a rising tide lifts all boats. we see bitcoin move higher and then we see coinbase and other crypto-link stocks. not just exchanges but also microstrategy, marathon digital, riot all moving higher. coinbase up over 20% in the last two days. is there an exact reason why today we are seeing bitcoin up

over 5%? i'm not exact wisher. i don't know if anyone can really describe a reason to the optimism. katie: i'm going to say it is fomo. we have gotten through coinbase and zoom. tell me about lowe's. this was lower premarket but definitely rebounding now. joanne: it was lower and now up about 3% in the regular session. the earnings-per-share were better-than-expected. perhaps that is what investors are focused on. overall, it did paint a bleak picture for lowe's. the company said sales will fall further this year as consumers are holding off on home improvement projects amid higher mortgage rates. they are likely not going to pay for a bathroom renovation. this is a similar story for home depot which reported last week that sales are going to fall. perhaps investors are brushing

off concerns in the normal course of business for a company like lowe's that is so tied to the macroenvironment. that stock is higher now. katie: to the tune of 3% or so, deftly brushing off concerns. emily, thank you so much. coming up, the sweet sound of snacking. james reporting better-than-expected earnings. we will speak with mark smucker, the president and ceo later this hour. this is bloomberg. ♪

katie: let's welcome back now joanne feeney. so far we have talked a lot

about retailers, the barbell approach. let's broaden the conversation. you write about industrials and health care. they are not attracting the buzz. why you think that is? joanne: last year was a really tough year for both those segments because of the rising interest rates which made the cost of doing business considerably higher. a lot of projects got delayed. a lot of spending really got pushed out in both sectors. that headwind is likely behind them. eventually, interest rates will come down. when you look at the data from last year for the health care sector, their earnings fell 21%. this year earnings are expected to rise about 16% or 17%. you have a pretty big turnaround. part of the reason is because companies spend a lot of last year investing in reducing their costs, clearing out inventories

that had built up. this year they are a healthier place. even getting a little improvement on the cost and demand-side and you will see a bit of uplift. some of that has shown up in the stocks. at the end of last year when it first became clear the fed was done raising interest rates we did get a rally. we don't think we are done yet. we think there is more room for the broader group to outperform this year. katie: we want to talk about health care more. i find it fascinating that there's been so much buzz around glp and weight loss drugs. you look at the performance of the sector come up about .3% for the entirety of 2023. how are you thinking about some of the big disruptive themes going on and health care as an investor who maybe isn't that specific when it comes to following glp1 and investing in those named? joanne: they have certainly gotten a lot of attention. it's very specific to a few

companies. the concern is if you own these and there's a third or fourth player that comes through with a pill for the gop1s -- glp1's, that can change the view of the current winners. people trying to play what is becoming the current group of winners because of future innovation that is likely coming. what we liked and health care is to be more diversified. not only do you have the exit from the pandemic, which is incredibly disruptive with the vaccine production, with the viral treatment reduction, that effective lost -- reduction that effective lots of companies and it left a lot and a good place to further innovate or do m&a. you have pharmaceuticals you can play into. you also have the disruption in the device into a makers like thermo fisher. those companies really got hurt because of how spending was disrupted over the course of

this multiyear pandemic. those two are in opportunity -- those too are our return to normalcy. do you have medical devices like medtronic we like and the basic pharma's hurt because of the evolution of interest rates and the disruption in spending. katie: i agree that the m&a story when it comes to health care, if the ftc allows it will be really interesting to watch. you made an interesting point that when it comes to glp1's it is risky to play the winners. there is the risk of future innovation that could come and disrupt things once again. does that same logic apply to ai? joanne: yeah, katie. that's a great observation to make at this point. nvidia is clearly the winner in terms of providing these specialized chips, accelerator chips to enable the inference needed to apply to artificial intelligence models. when you dig into the

possibilities for disruption there there is a lot more information. we understand a lot more about how a company can design and then ultimately manufacture these specialized chips. amd will be the next main competitor for nvidia. separately, you have internally designed chips from google and common nation with broadcom. those chips -- in combination with broadcom. it is hard to imagine how you can get a major disruption in short order on the chips side of that world. nvidia does seem to have this locked up for a little while. we expect amd to gain some share as they roll out their specialized chips over the course of this year. we do expect some internal development to continue to nibble away. the essence of it is that pie is growing so rapidly that even if you had internal development like at google and broadcom and

amd taking share, there's an awful lot of growth for nvidia to continue to enjoy, as well as amd. we own both of those in our growth strategy. we have owned them for a long time because we see a duration of growth that is hard to find elsewhere in the market, even among infotech stocks. katie: the picks and shovels are the way to play that. really enjoyed this conversation. covered a lot of ground. that is joanne feeney, partner and portfolio manager at advisors capital management. up ahead, the companies making the most social buzz today and the social climbers segment up next. this is bloomberg. ♪

katie: time now for social climbers.

a look at the stocks making waves this morning. expedia cutting 1500 jobs, about 9% of its workforce. the online travel company reported disappointing holiday results and issued a weaker than expected outlook for the current quarter. next up, albertsons. the federal trade commission is suing to block a 25 million -- $25 billion deal between albertsons and kroger. they say it will lead to higher prices, store closures, and job losses. you also have altice. charter communications looking at a takeover of the cable provider. it is unclear if a formal approach has been made. we will follow that one. you can follow the latest company buzz on tren go on your bloomberg terminal. coming up, food giant james tops estimates in his first earning support since -- jm smoker.

we will speak with the ceo next. this is bloomberg. ♪ ♪ ing? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now. you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

katie: shares of the jif peanut butter maker and jm smucker are higher after beating estimates thanks to strong demand for its pet food and pantry staples. for more we are joined by bloomberg intelligence research analyst. this was their first earnings report since they acquired hostess. how is the integration going so far? >> it seems to be going well. volumes are at 4% increase in the legacy business, so that is pretty fantastic for the industry. the industry has been battling low volume due to price

increases, so the fact that they are increasing 4% on volume is pretty significant. katie: how does what we heard from jm smucker today -- they have a big portfolio. how does that compare to their competitors in this space we have seen thus far? >> basically, price increases were on the low single digits. most of the sales gains on the comparable net sales were driven by volume, which is impressive to see at the moment. katie: i feel like we hear about companies raising pricing but not exactly increasing volume at the same time. diana: that is very odd. we expect over the next 6, 12 months volumes might be increasing but not at this level. katie: i appreciate your time and insight. for more on jm smucker's

results, we are joined by mark smucker, the chairman, president, and ceo of the company. great to have you with me. jm smucker has been busy. you bought hostess, divested the company's canadian condiment business, sold one of the snack lines and certain pet food brands. when you look at the portfolio, is it set or should we expect more news from you? mark: we are always evolving, thank you for having me. we have done tremendous work to reshape our portfolio to get refocused on the brands that will drive growth. we were very fortunate to have the opportunity to add hostess through acquisition. we are very pleased with our portfolio now. as you just heard from diana, we are growing across all of our metrics, across all of our categories. we have a lot of optimism for hostess. if you look at uncrustables as a

key growth driver. as always we will continue to evolve over time. katie: let's rewind and talk about the catalyst for acquiring hostess. what was the logic originally? mark: our strategy is to lead in growing categories. we have done well where we can acquire leading brands in categories that are growing. hostess is one of those. if you think about snacking, it has continued to grow. indulgent snacking, sweet baked snacks, grows at a faster clip than others. adding to our uncrustables business, a higher protein offering, adding the hostess brand is the perfect complement to our snacking portfolio. katie: what else is in the pipeline for hostess? this is your first earnings

report since you acquired it, early in the process, but how will you keep the innovation going forward when comes to hostess? mark: we have been so impressed by their innovation cycle. they can innovate relatively quickly. they launched a new product last year which is like a chocolatedipped sandwich offering which has done exceptionally well. they really excel at seasonal and new flavors. our job is to combine the complementary natures of our business and continue to innovate in the way that they have already demonstrated they can. katie: i want to talk more about pricing. for a lot of the food companies, pricing is still an issue. i spoke to the ceo of mondelez last week, and they will have to continue raising prices on a lot of their products. the price of cocoa has been going up for a while now. when you look across your portfolio, are you having to

increase prices still, what is the strategy? mark: first of all, we take a very prudent approach to pricing. in our portfolio, across our categories, we offer a spectrum of values. we have brands that are more affordable, more premium. we have something in each category for all of our consumers. although we view we are generally in an inflationary environment still, we pass on price declines as well, which we did in the last six months on coffee. we want to make sure we are focusing on the consumer needs, being thoughtful when we need to take pricing actions. katie: that is an interesting point on coffee. would you expect to pass on more price declines on some of your other products as well in the future? mark: commodities are still volatile so it is hard to say at this moment in time what will happen. we really think about whatever hedge position is, whatever

physical costs are. we will move only when we need to, in a thoughtful and measured way. katie: let's talk about price versus volume. you are kind of an outlier in that you been able to increase volume here. in terms of continuing the growth, momentum when it comes to volume, do you view price declines as a necessary ingredient of that? mark: the volume growth has been driven by a couple factors. we continue to invest in our brands. we believe strongly that marketing is a key tool, communicating with the consumer. we recently turned on advertising on uncrustables, some great partnerships with some professional athletes. marketing is key. just as important is offering that entire spectrum of value to the consumer. whether that is a basic milk bone biscuit or a more premium long-lasting to, making sure

that we have offerings for all types of consumers is key to driving that volume growth. katie: this is the topic i'm really interested in. how do you increase this, make consumers buy your product more, which is always the goal? how big is marketing spend in that push? mark: it varies by category. we generally target 6% to 7% of net sales. we want to make sure our brands are relevant in today's culture. last year, we had a great campaign on jif where we involved ludacris, who is very hot right now with his participation in some films, the super bowl recently. making sure that our brands can live in the contemporary vibe that is today's culture really helps to bring those brands top of mind for the consumer, and they think of that when they go

to the grocery store and buy our products. katie: i have to say, ludacris coming out during halftime was a pretty good moment. as you mentioned, quite the portfolio. full jurors to smuckers, jif peanut butter. where do you see the most growth coming forward when it comes to that offering? mark: the fastest growing brands are uncrustables. we will continue to see double-digit growth on uncrustables. lots of innovation coming. a new plant in alabama coming online this year. bustelo will continue to grow significantly. if you look at our pet portfolio, double-digit growth on mewomix and milk bone in this last quarter. as we have been public, we have modeled hostess overtime at a 4% rate. we see opportunity, coming back to my initial comments, focusing

on brands that we know we can grow, shed assets that we thought would be more challenging to grow. katie: you have mentioned being able to expand in convenience stores in particular. which of your brands and products you think would work particularly well in that channel? mark: with the hostess acquisition, we inherited great ability in convenience stores, which we have had not as much impact in that channel in the past. we recently developed uncrustables that has a slightly longer shelf life. over time we think there is opportunity to leverage the hostess model in certain products like uncrustables, somebody to drink coffee in the convenience channel. likewise with hostess, plenty of opportunities to expand the footprint of hostess in a traditional grocery channel, as well.

again, the complementary nature, learning from each other will be key to growth in the future. katie: i am sure you haven't asked this question quite a lot in the last few months. i'm going to ask about glp-1's, in the center of conversations happening right now. how are you viewing that potential risk to your business going forward? mark: the most important thing is we are going to listen to our consumer. we are going to pay attention to what the consumer wants and needs. we have not seen any meaningful impact from these drugs on our business. as i pointed out earlier, the growth of snacking broadly, and more specifically on the way that indulgent snacking on our business is outpacing other snacking, continues to bode well for us. we will always listen to the consumer. we have options that are smaller portion sizes. we have options that have reduced sugar, across our

portfolio, whether uncrustables or even in our coffee portfolio, making sure we have the options available to the consumer and that we are ultimately meeting their needs. katie: really enjoyed this conversation, hope to speak with you again soon. that is mark smucker of jm smucker. let's get a quick check on the markets with abigail doolittle. abigail: small fluctuations for the s&p 500 even after that weaker than expected consumer confidence number, which he would have thought may have sent stocks higher. the pce later this week is important. russell 2000 getting a nice bid today. we continue to have a divergence in how small caps and large caps are acting. bitcoin at its highest level since december 2021. up 4.5%. lots of stocks going higher with bitcoin.

crude oil up .8%. let's look at brent crude oil. from september, the peak down into the israel-hamas war. implied volatility really took off at the start of that war. now we're at the lowest level of implied volatility. that situation is more priced into oil as we have this climb higher. as for the other indexes, norwegian cruise line soaring, the best day since 2022. their first quarter guide much better than expected. marathon digital, another one of those crypto stocks of its highs. today up 4%. workday is down 2%. subscriptions were a little bit like. unities software down 6.5%. their outlook just didn't meet

expectations. katie: you are seeing that in the shares right now. coming up, a potential disruption in chevron's plans to buy a booming israel prospect off of guyana's coast. we will speak to haag sherman, a tectonics financial ceo. it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david. connect with an advisor to create your personalized plan. let's find the right investments for your goals okay, great. j.p. morgan wealth management.

abigail: you are looking at a live shot of the principal room. coming up, interview with tom palmer, ceo of newmont. this is bloomberg. ♪ katie: it is time for wall street week. and the news of the day is exxon, exploring a bid of an offshore oil development in guyana that could hinder chevron's $53 billion deal for

hess. here with me to make sense of it is tectonic financial ceo haag sherman. i promise we would have a broader conversation, but i want to start with exxon's bid to acquire hess' guyana stake. do you see that being successful if pursued? haag: i don't know whether or not it will be successful but it has the prospect of derailing the transaction. it is not surprising necessarily that they are trying to exercise their right of first refusal but it is somewhat surprising as a former m&a lawyer that this was not addressed up front. this deal is pretty far down the road. exxon coming in and preemptively exercising their right of first refusal should have been something that was foreseen by the lawyers and executives at chevron. katie: chevron is adamant that this will not happen, that the

bid will ultimately not go through. zooming out, there has been so much m&a in the sector so far in the past couple months. exxon and pioneer, chevron and hess, and a very aggressive ftc taking shots across industries right now. when it comes to exxon's proposed acquisition of pioneer, how confident are you that will go through? haag: there are real question given the base and concentration in the permian, how active the ftc has been across industries. another want to keep an eye on is the merger of equals between chesapeake and southwestern, which will give chesapeake a bigger position both in the haynesville and marsalis. if you look at the dynamics there, 7% on a combined basis of u.s. production, so in the grand scheme of things, not huge. but like exxon and its dominant position, seem to be dominant

position in the permian, you have two other basins you have a dominant player with an aggressive ftc reviewing it. katie: when i speak to investors and analysts about this industry, energy in general, they say this is a sector ripe for consolidation, more of these mergers of equals. do you think the ftc stance will keep some of these potential deals on the sideline? haag: i think it really depends on how aggressive they are with these two acquisitions. if the ftc comes in and really attacks these two acquisitions, as it has in a couple of other industries, you might have a wait and see attitude on the part of the industry through the november elections, to see if there is a change in an administration, more constructive ftc as it relates to m&a activity. before you see that, you need to see how the exxon-pioneer,

chesapeake-southwestern transactions play out. katie: i want to talk about eog's since that is a name that you are positive on at the moment. eog's have been able to avoid m&a, unlike what is happening in shale. do you think it will have to eventually participate, or can it continue to avoid any m&a? haag: i think there is a magical number at around $50 billion market cap where you have enough scale to be relevant. the interesting thing about eog, it is a multi-basin player, not concentrated in a single basin. they have some decent offshore production, natural gas in trinidad. it is kind of a mini exxon. they have been focused on efficiency for a long while. if you are at that $50 billion number, enough scale to be relevant, and these are becoming

manufacturing businesses. but you also become an attractive target to be taken out by a major. i don't think they have to be as active on the m&a front. they may do so, but i don't think they have to be active to be relevant going forward. katie: enough skill to be relevant. i do want to zoom out. you sent over some thoughtful notes to our producers, talking about this death of exploration and production, oil majors pulling back when it comes to frontier exploration. you posit that is good news for investors. we will get to that, but first, why do you think that is happening at all? haag: if you look at the shift of energy, you have this great shift to renewables. this creates a spectrum in the industry where they don't have the long-term focus like they have had in the past.

investors want cash return immediately which means and exploitation of their existing portfolio, and then acquisitions that enhance their inventory within their existing portfolio. these companies are effectively being transformed into manufacturing businesses. the north slope, all of these great exploratory discoveries in the past, i don't think you'll see as many as those because investors will not have the patience given the headwinds against the industry in the future. katie: it sounds like an investor such as yourself, that is a dynamic that you are welcoming at this point. haag: absolutely. as you take more and more private companies which have been incredibly active, you take those out of the market, that is supportive of energy prices, supportive of the thesis of this is a manufacturing business. you want skill, efficiencies, you want to eliminate &a to be a

low cost producer. that is good for commodity prices. katie: i don't have a lot of time left. you invest across assets but also across energy, as well. when it comes to names such as exxon, chevron, they are treating a pretty big discounts compared to the overall s&p 500. we are at record production for several of them, they are buying back shares, as well, why are these companies not seeing a broader embrace? haag: markets ebb and flow. energy had several periods of time over the past decade where you see big declines in commodity prices. if you see this consolidation of the industry, if the chesapeake transaction goes through, it would become an s&p 500 company. i think energy will become much more investable for the general

investor. katie: really great conversation, appreciate your time. haag sherman, tectonic financial ceo. tomorrow, we will be joined by the ourcrowd ceo. this is bloomberg. ♪

katie: let's take a quick look at some stocks hitting highs today. autozone hitting a 52-week high after the auto parts retailer reported better-than-expected second-quarter earnings. netflix hitting highs today. ubs raising the target on the streaming giant to $685. paint retailer sherman williams hitting a 52-week high after it was raised to a bite. that is good for about .8%. coming up, the getup ceo joins uber technology and ed ludlow.

that does it for us. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

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>> this is bloomberg technology with caroline hyde and ed ludlow. >> i am ed ludlow. killing hyde is off today. coming up, rethinking any ipo in new york with its sights set on london as the fast fashion company faces hurdles in the u.s.. nvidia's supercomputer is hobbld