>> welcome to "bloomberg markets ," i am sonali basak. a new jobs report today. the election is nest week. and before the big fed decision next week. first we will get a check on the markets. we are bringing you a green day. in the s&p 500, .8% of a move higher. not on session highs right now but not far from them.

nasdaq out more than 1%. really snapping a week where you saw october end lower. november, only a day, starting higher. the 10 year yield is where i find the most stunning moves. actually higher on the day after the date of this morning. it is moving to about 4.34%. some midday movers on the equity side. we have abigail do little for that. abigail: take a look at the shares down three days in a row. down 1.7%. folks disappointed about the guy for the september quarter. sales growth coming in low to mid single digits. china weakness. let's put this in connection with the apple chart and see

what investors are telling us. we are seeing a serious message of selling. this is apple. this is a weekly chart to show more movement over a shorter period of time. the buyers are very much in control. the rsi is heading down. this is a weekly chart and suggests the drop is only beginning. in terms of a daily move it might drop down to the 200-day moving average or closer to where it was earlier this year at 200. the case could be made the entire rally could disappear. that is a serious uptrend break. telling you the buyer is not liking apple from a fundamental standpoint. let's take a look at the shares of amazon. up 6.8%. there is an earnings miss but a nice a sales beat.

it is the cloud growth of 19% that investors like. this a stock having a nice day. round to get of earnings. chevron and exxon -- turned lower but chevron holding onto its gain of 3%. citi likes the espb. plus investors turning around on earlier trading action. sonali: thank you so much, abigail. bloomberg spoke earlier with the blackrock senior portfolio manager, jeff rosenberg. he took a measured reaction to the jobs report. >> the number is overstated in terms of weakness and hurricanes. it makes it easier for them to deliver on the 25 cut which they certainly want to do. that is an important point to highlight. sonali: to talk about what this means for fed action moving forward we are joined by

bloomberg's michael mckee, always with a measured approach. how do you think through the near term moves and the long term moves? michael: longer term moves are up in the air. this report was distorted by hurricanes and the boeing strike. manufacturing payrolls were off by 46,000. we saw there were 44,000 people on strike at both boeing and textron. the unemployment rate, unchanged. for .1%. hourly earnings a little bit off because of the people who lost their jobs. the jobs they lost were mostly lower paying service industry jobs. it is hard for the fed to get a good read on this. the hurricane effects were large. sonali: if you talk to td bank,

they have said if you round it, it looks scarier. what do you make of that? michael: [laughter] you can always play that game. it basically came out at 4.11 4%. if we had gotten a .115%, it would have rounded up to 4.2%. it is so small it does not mean anything because the fed is looking for 4.3% for them to consider to change their minds about next week. at this point this report does not suggest any reason to do anything but 25 basis points. sonali: what will you be watching for? whether it is the election or what is happening at the fed? michael: we do not have to worry about them happening on the same

day. there is a big question about whether we will get the fed decision before we get a presidential decision. they cannot make any policy based on it because they will not know who won -- even if they know who won, what policies will get through the congress? as this point they sit back and watch and base their decisions on what the economy is doing. at this point it looks like the economy still in very good shape. sonali: we will watch the many moves. michael, thank you so much. for more on the day we are joined by blerina uruci, chief economist and t. rowe price. we were talking to mike earlier about the rounding of the unemployment report. he says you can play that game but it keeps you far away from where the fed would be concerned. do you have any concerns about

the data coming out today? blerina: exactly. i would echo this idea that it is hard. the information content in this report is not very large. even if you factor in the downward revisions to the prior month. what happened with weather effects and the strike affect has affected the seasonal factors. it is not giving us a very clear picture of the fundamental strength of the u.s. labor market. you add to that the very low response rates in this report, it is hard to then say let's un- rounded the unemployment rate to three decibels and the picture looks that much worse. i would focus on the fact we did not learn much from the pier will report other than strikes and hurricanes are affecting u.s. labor market data in october. sonali: how do you think about

the overlay of the u.s. election? that is directly impacting markets in real time and it is impressive to see the 10 year flow towards 4.35% on a day you essentially saw a lot weaker data than expected. the two year yield moved lower and the 10 year took off. blerina: with the selection, what we are focusing on is the fact it is a close election. no matter how you look at it. whenever we have elections that are this close and we are even debating is we will know who the president of this country will be by the end of the week next week, i think that leads to increased uncertainty and volatility. that is how we are analyzing the election risks. and we do think it has the potential to slow down growth. once that uncertainty is cleared

and it is an orderly clearing out that uncertainty, labor market strength should continue. we see the u.s. economy as resilient. there is a lot here to extend the business cycle. the election is a period of uncertainty with a resolution we should see employment growth improve by the end of the year. where does that leave the fed? they have to do monetary policy under uncertainty. the next couple of meetings they will stay the course. we know the winner of the presidential vote, we need to wait for how they will govern versus how they campaigned. the fed being a more cautious policymaker, i do not think there will set monetary policy in anticipation of what the candidates might announce but rather wait until q1 of next

year. monetary policy of this year, the fed has enough information to cut interest rates by 25 basis points at the november and december meeting. i do not think it has fundamental weakness to drive the fed to deliver a larger cut to the extent they were trying to play catch-up and were behind the curve in terms of easing monetary policy. they achieve that with a larger interest rate cut at the september meeting. sonali: the other thing i am curious about is the physical component. many investors -- the fiscal component. that money would take borrowing to continue to achieve. when you see borrowing costs potentially on the brink of rising, that becomes a question. how big of a role is stimulus

playing in the strength of the economy at the moment? blerina: i think there is enough support. the support from cisco in terms of credit -- the support from fiscal has been unknown for some time. what stands out to me is how high the deficit is as a percent of gdp. 6%, 7%, we do not see these types of deficits outside of recession. you could argue fiscal remain supportive of the consumer in the u.s. economy but not to expect another positive impulse on top of what is already priced in the market. whoever becomes president, i think at some point, we need to discuss what do we do about this level of deficit because it is not sustainable over the medium to long run. the market will sniff that out

ended will want the large deficits to be addressed. if it is not addressed, the weight will show up in u.s. treasury yields -- as an investor, with this amount of fiscal stimulus, you will demand a higher inflation premium and a higher fiscal premium to hold treasuries. sonali: we thank you very much for your time. dennis blerina uruci. she is t. rowe price's chief economist. coming up, apple shares falling after the company issued a cautious outlook. intel investors seeing a new wave of optimism after earnings. this is bloomberg. ♪

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>> they do not exactly own the company. it is all shareholders like you and i and investors. they are watching every little report. apple is a little bit -- i do recognize the problem of iphone being the major product. we are closer to a one-product company. sonali: that was the apple cofounder talking to bloomberg's "the close" yesterday. we are watching how investors are reacting to the earnings report and apple's outlook. we are joined by ed ludlow. the only person i want to hear from today. [laughter] it has been a long week of mac this is -- long week of magnificent seven earnings.

you are seeing a sour tone in the market. there are a lot of things to know about intelligence features moving forward. ed: it was not a clean-cut print. apple basically grew in every geography around the world other than greater china. there is a great focus on apple's performance in china because of consumer electronics as an end market, the iphone grew but we do not know if it grew in china. apple will continue to grow in the low single digits in the final three months of this year. the question still being posed is future growth. where is that coming from in the context of its service business is missing the mark. sonali: it is the worst performer in the magnificent seven. the best performer is amazon.

up more than 6.5% at the moment. what is the optimism and what does it for about their prospects next year? ed: amazon is the leader in cloud computing. 19% topline growth. that is a number of the market was relieved and happy about. they gave us a forecast for the final three months of the year in terms of revenue and operating income that showed a solid holiday quarter. even if cloud computing and everything happening with ai is the cash-generating focus. we know what the story has been all earnings season long -- numbers are large. if you show evidence you are making money from it, you are rewarded and that seems to be consistent in amazon's case. sonali: i want to talk more

about intel. the best day since the middle of september. what do we know about their turnaround story? it is interesting to see the reaction in the stock when there has been so much event-driven news around it. ed: it is an interesting, release-driven rally in the stock. the third quarter print was ugly because there were impairment charges. all the projects it has canceled as it fights to regain leadership in the categories of semi conductor where it has historically been strong. they gave guidance for the fourth quarter that basically was enough to show the market they might be turning a quarter. one negative is all we care about is these ai chips where nvidia is 99% of the market. amd has some. intel told us they missed the mark.

they will not hit their sales target, $500 million. one explanation is to have a later generation of the chip coming so customers are waiting for it. contrary, he said the software is not keeping up. for now, investors. sonali: thank you so much. a great interview. i suggest everyone look for it online. that is ed ludlow of bloomberg technology. markets are bracing for the u.s. election outcome. you can see those trades all over the place. our next guest shares his a strategy from an investor's point of view. this is bloomberg. ♪

sonali: this is "bloomberg markets," and i am sonali basak.

we are days away from the polls closing in the u.s. election at investors will be awaiting the results. the economy is perhaps the biggest issue among voters. consumer confidence has been wavering. for more on this we are joined by christian dery, the head of strategy at capital fund management. he joins us from london. there is a very interesting trade underpinning this market. there are a lot of trump trades. for example, in the 10 year. to see it hit 4.35% today. how do you think the traits will play out around tuesday? christian: thank you for having me on the show. there are two forces at work. there has been strong u.s. data that happens to have the same sign as a republican sweep trade. we have seen the odds increase

of a republican sweep. the price action has been similar to 2016, when trump won with a sweep. we are seeing bonds selling off and the yield curve steepening. if you look up financials for the month of october, they have done very well. in the sense of discounting the chances of republican win, the market is essentially reacting to that. sonali: what happens if you do not see trump win the election? what unwinds and how drastically does it unwind if kamala harris wins? christian: you have to focus on the outcomes. without a democratic sweep, which is very unlikely -- part of the reason for that is the senate math. it will be hard for the democrats to hold the senate because of the staggered voting and there are only 12 seats in play. they have to win nine of those

and the presidency. most likely we get a split outcome in congress and that is really more of the same. fiscal continues. austerity is a forbidden word for both parties. just baseline under the democratic platform, you get a fiscal deficit running around 6%. on the, said they swept, you are looking at 8%-10%. that is very stimulative in the short run and part of the appeal for politicians. sonali: what is a surefire trade either way? is there anything that looks underpriced price that might perform on the matter what? christian: for the medium term, the big macro issue is the fiscal backdrop. it is an unprecedented level of spending.

that has implications and it is inflationary. since front-end of the curve is pricing too many cuts. bonds will selloff. those investments still have a lot of potential. the underpinning is important. sonali: is there a sector you like best? christian: that will depend on the outcome. we are a systematic management so we run a diversified business. for discretionary traders, one approach is to wait for the outcome. if you get a red sweep, the basket of investments you will hold is obvious. similar to 2016. you can just wait. it is not like a payroll. these traits will extend for long periods of time. sonali: we have to leave her there but i wish we had more time. the most sound advice -- just wait.

that is christian dery of cfm. i am sonali basak. finally ending the week with green. a busy week ahead of us. get some rest. this is bloomberg. ♪ it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

>> from the world of politics to the world of business, this is "balance of power."

live from washington, d.c. joe: hurricanes hit the job market. welcome to the fastest showing politics. the monthly jobs report fall short of expectations. coming up we will bring you directly to the source. jared bernstein, will join us from the north lawn in just a moment. with insights from molly smith. we will go to school with julie pace of the associated press and how the agency will be calling races next week. we have analysis from our signature panel, rick davis and genies it out. >> stocks stang