joining us now is chad morganlander.et me show you the charred everyone's going to be talking about this morning. this is the s&p closing below its 200 day moving average. we haven't seen that in a very long time. the bottom panel is the percent of members above their 200 day moving average. how much more weaknesses there in stocks? >> you can see considerable downside shift within the financial markets on the equity side. what's odd is that you are not seeing this translate into the credit markets or the long end of the yield curve that much. you would expect with this type of selling pressure of the 10 year to be closer to a 250 handle, not to 75. 275. every time i am on i have been saying we want to be more balanced and keep our duration shorter in relationship to our benchmark. why? that would imply its fundamental unit it feels like it's a technical, not fundamental story. >> it is sort of both. let's go through this a bit. for 10 years we have had monetary policy here in the united states and across the globe below

with: and market outlook chad morganlander.his is bloomberg. ♪ ♪ haidi: we are counting down to the sydney open, and futures looking brighter to end up has been a topsy-turvy trading week. after remarks from president trump on tape, and on syria delineating tensions. u.s. stocks having a risk on session, with futures up at three tents of 1% in sydney. betty: and a risk on sentiment, you are watching "daybreak australia". on, presidentsk trump is saying is considering and investors say tensions are not going to escalate too far. we await word on what that action will be on syria. us, is it healthy that markets go up and down on any kind of headline? it is so headline driven these days. chad: and you have it coming via tweet based on erratic information. but come up with that said, you do have economic predictability. not only in the u.s., but the eurozone and emerging markets. betty: what do you mean by economic predictability? you have credit growth that is predictable, as well as the european union and within china and the eme

. ♪ barty and have james chad morganlander joining us on bloomberg. ♪ jonathan: from new york city i'm to "the open." ♪ jonathan: coming up, gdp is better than expected, pushing inflation toward the fed's goal. kim jong-un crossing the border to declare an area of these with the south. and proven them on, amazon and microsoft and intel, all reporting solid results this morning. in the market, the story as follows, 30 minutes away from the opening bell, futures doing nothing. fx market, with a stronger dollar story and a lot more against the pound. treasuries moving by a single basis point at 297 on the u.s. 10 year. topping estimates, but calling off from the previous quarter. the report with the latest, though recent trend from around the world. and this economic global growth narrative is still intact. >>

time to buy in let's bring in the trading nation team for more craig johnson and chad morganlanding acrossing manager you like the financials here, and what name looks best ahead of the trio tomorrow >> so neutral financials right now. watching the 2 to 10 spread. it needs to widen out and then it's a healthy sign. financials work, that's a great sign for the overall market. look at the chart i brought in today. this index has pulled right back to the uptrend support line off the 16 lows, and for us, just a pullbackin and retest of support rsi improving. that's encouraging the other stock we brought in is jpmorgan, 12% of the index, and, again, pulled back to support, retesting it, looks like it's holding it, looks like it's a buy-in from our perspective. interesting to watch the financials lately, tied to what's happening with the yield curve, whatever comes out in terms of economic data, headline risks around the trump tweets and geopolitics. are the fundamentals going to matter, and if so, what are you looking for specifically inside the earnings reports >> so we agree with craig t

we bring in krig johnson, and chad morganlander with the washington crossing advisers craig, startinguse correction territory gets people's ears wondering what's going on with the stock the biggest, if not the biggest in the s&p 500 what do you see in the charts? >> looking at the charts here, we have a daily chart going back several years. two things observe first, look at the upfriend support line, off of the mid 2016 lows we are retesting that now as well as the 200 day moving average on the shares also, so a break below that's 165 area violates not just one, but two technical support levels and leaves the next area of support at 154, which was the lows seen in february of this year now, we had a chance to chat with mike and he was surprised the negativity was not baked in with the iphone numbers. surprised it's off the way it is >> confirmation of what people thought that slower sales from taiwan semi? >> yeah, but it's about forward sales within the emerging markets, within china. that's the concern what is baked in is the future forecasted growth of this year and next year, but