dave wilson is looking at the winners and losers for us. what do you see? dave: mostly losers.x that tracks meme stocks and all but four of them are lower in today's trading. gamestop is down as much as 11% today. amc entertainment, down more than 14% at one point. we are seeing bigger losses for smaller companies that kind of fit into this meme stock category because they been promoted by amateur traders on places like the reddit forums. if you look at the russell 3000 index performance, what is notable is, there is amc as the best performer of the year. those numbers are like a moving target with today's swings in the shares, but if you move down, gamestop has the third biggest. amc got to stay in the smaller russell 2000 index because the surge came too late for the cutoff for the folks that calculate the index, so it is by far the biggest company in that indicator. gamestop was a part of the larger russell 1000 at that point. there are a whole lot of people trading and it shows up in the numbers. you get a sense of just how much volume has been generated by the smaller trad

let's bring in dave wilson for some insight. guess this was a big surprise to everybody just how fast ad revenue could recover here. dave: absolutely. consider the company had an adjusted profit in their latest quarter, when analysts were expecting a loss. net loss was 45% narrower than analysts expected on average of bloomberg surveys. the number of daily average users ahead of projections. on top of that, you have the ceo talking about what he calls stabilization and early recovery in snapchat's story. that is how we got to know the site, those stories that disappear in 24 hours. it is not just snap responding to the results. you certainly see it in its peers as well. twitter had numbers out yesterday that went well not only for the second quarter but also third-quarter sales forecast beating estimates. we get the results from facebook next week, so as we go through those, there is sales growth galore at snap. the company is looking for 60% growth this quarter, which is really in line with what we have seen. matt: i cannot beli

dave wilson now with us on the equity market.n about nasdaq 415,000. you are looking at the shifts that has been made as we go into an end of summer view. dave: we are talking about the u.s. versus the rest of the world. some people will say u.s. stocks eked in february -- stocks peaked in february, but if you look at the u.s. in a global context, you get a very different story. what we are looking at here is the s&p 500 relative to something called the s&p global ex-us broad market index, so developed and emerging markets outside the u.s. you saw that ratio between the two indicators dropped about 10.5% from a high-end september to a low in february, and since then, it has made back the entire decline. it set a record two weeks ago. it set another record on tuesday. tom: full breadth into that. all the gloom crew this morning is talking about a lack of breadth out there. if this comeback back in america really the comeback of amazon, apple, and the rest of the high flyers? tom: you can argue that -- dave: you can argue that to s

dave wilson examines for us. is a potential complication for a deal that was just reached a couple months ago. kansas city southern excepting a takeover offer from canadian national, which beat out canadian pacific. now you have the prospect at the biden administration will take a tougher approach to regulating the railroad industry. the wall street journal cited someone familiar with the matter saying there is an executive order coming down the line, they would be all kinds of provisions in terms of the surface transportation board to combat what they call consolidation and aggressive pricing in the rail industry. ocean freight is part of it as well. with the railroads, you have seven of them that control the u.s. market. in some cases, they have regional monopolies. if you look at the overall market share, you would say what is the issue? it is more about the local concerns in terms of what is ahead for the industry. that is where things stand at this point. today, kansas city southern came out and said august 1

dave wilson notes this. what do you have? had quite the reversal in the last few months. it is something -- pointed out the other day, looking at exchange traded funds. i went to the underlying indexes. saw the russell 2000 move up 44% relative the s&p 500 and the space of about a beer -- relative to the s&p 500 in the space of about a year. we are really back to where we were in 2018 2019 into 2020, with the larger companies ruling the roost, so it is the s&p 500 again showing relative strength. tom: it is relative strength, but relative strength compared to the last time they had relative strength. is it for real? dave: you had a lot of back-and-forth lately, and we have seen a whole number of changes. think about a few months ago, we were talking about the cyclical stocks, the ones most affected by economic growth leading the way. we have seen a swing back towards the big tech companies, the ones leading the market for years. you could argue that with russell and the s&p 500, it is indicative of bigger shifts in the market

dave wilson is taking a closer look. you focus in on the second quarter for ge, adjusted earnings, revenue beating average analyst estimates. the key thing is a measure called industrial free cash flow. percent of their revenue came from their industrial businesses. when you talk of free cash flow, that is money they can use to pay down their debt. they have increased their estimate by a billion dollars for the amount of industrial free cash flow they will generate this year. now looking at as much as -- the aviation business is the key to all of this. jet engines. if you follow the chart of changes in that business, in essence you are following the course of the coronavirus pandemic. we know things fell out of the second quarter of last year. beyond that, you look at the broader business. you see all the different segments within the industrial operations showing growth, whether you are looking at revenue, profit margins, or orders, which rose 33% across those businesses, led by gains in the power generation area. aviat

dave wilson has a look at their strong quarter. hat toy makers have made in the past years is getting involved with television, movie, the tie-ins that go along with that. great when you have movies, not so much when you don't. in the latest corner, earnings were more than twice the average analyst estimate. on top of that, and that income beat the average projection. revenue was 12.5% higher than it anticipated. hasbro has a number of categories. the franchise brands, magic the gathering, nerf, play-doh, up 72%, the fastest growth among their brands. that said, tv and film and entertainment were up 42%, the segment that fell off a cliff last year because people were not going to the movies in light of the pandemic. the franchise brands, the biggest piece of the business, but tv is catching up. when people see this out of hasbro, they look forward to what is coming from mattel tomorrow. you can see, hasbro playing a bit of catch-up in terms of stock performance. matt: baby yoda versus barbie. they are making a lot of money. what wil

dave wilson is here with the breakdown for us. : we are talking about a settlement involving johnson and johnson and the three distributors who dominate the market. amerisourcebergen, mckesson, and cardinal health. this has been a couple years coming. there was a 25 billion dollar figure thrown out in october 2019 when there was an initial agreement with four u.s. states. now you are up to five states. johnson & johnson last year agreed to kick in another billion dollars. you see how things line up. distributors paying $21 billion total over 18 years, most of that in cash but some in product as well. j&j, $5.2 billion over nine years. we are talking about a multiyear settlement. these companies generate enough cash that they can handle those kinds of price tags. j&j last year, earnings before increase, taxes, amortization, $54 billion. put the two together and you are talking about close to $15 billion. the money is there, so it's a matter of settling all of these cases tied to the half a million or so opioid debts over the last 20

dave wilson is here to tell us why. it has to do with earnings. o is actually the best performer on the day in the s&p 500. they came out with results for their second quarter. we should point out, does not quite follow the calendar. 21% growth in sales for the quarter. even if you back out currencies and dealmaking, you are still left with what they call organic growth of 13%. that revenue, as well as earnings, beat average estimates by the most in more than a decade. it was driven by a rebound in the beverage business, here in north america, and also by growing demand in the rest of the world. let's face it, at least in the u.s., people are going out, going to bars and restaurants, sporting events, concerts. as a result, that away from home business, which is a big piece of pepsico's beverage operation, you are seeing the recovery there. not so much for quaker, the serial maker. relatively small piece of the business, 3% of sales, but people are eating out more and therefore not so quick to make their cereal at home. at the same time you are seei

for more we are joined by dave wilson. ing these stocks getting hit hard because of concerns about covid, but it feels pretty normal walking around new york city. dave: these companies have to deal with a whole lot more markets than new york city. that plays into what we are seeing in today's trading. whether you are looking at the airlines or cruise lines, even aerospace companies. boeing heading for its biggest lost since october -- loss since october. there is a concern the delta variant is having on this group. look at it in context, looking at the u.s. jet exchange traded fund, one way to look at the airline industry. it is actually doing worse now this year than a group of stocks tied to the stay-at-home trade. the shoe is on the other foot at this point, in terms of these groups performance. amber: maybe we should zoom out. on a day that we are seeing a wholesale washout of sex there's, what does this -- sec tors, what does this tell you about a downside move? a week ago it seemed like we would have a correction, but

dave wilson keeps going. jonathan: dave wilson keeps going. how long for?: like three weeks, at least. jonathan: you think it is overcome alisa? -- over, asa? -- over, lisa? lisa: yeah, i think it will trickle out. jonathan: on radio, on tv, this is bloomberg. ♪ erg. ♪ jonathan: for our audience worldwide on tv and radio this is "bloomberg surveillance." alongside tom keene it lisa abramowicz i'm jonathan ferro. waiting for equally -- waiting for economic numbers in america. yields are higher by three basis points on 10. it is the wrong side -- the wrong kind of upside supplies -- the wrong kind of upside surprise on jobless claims. waiting to see if we get a revision. the wrong kind of upside supplies. 400,000, the median estimate 385,000. gdp, 6.5%. downside surprise. 8.4% median estimate. tom: will have to watch the market reaction. two important data points. two weeks in a row of challenged claims. you heard me say the chart is elegant, it is not elegant anymore. a revision off of 419,000 last week is important. good morning david rosenberg and others c

dave wilson is looking at that rotation. dave: absolutely.n see it across a number of groups in today's trading. consider the u.s. listed companies based in china, you know, they certainly have issues with the chinese government cracking down in a lot of cases. you look at the transportation stocks, they have fallen, railroads notable. an executive order is coming from the administration that will focus on competition and pricing within the railroad industry, as well as ocean shipping. homebuilders are lower. we have seen that group benefit from what has happened with the housing market, today, not so much. even though interest rates are falling. and semiconductors, chipmakers, they have done relatively well. and there has been global shortages, especially in the auto industry. and you look at smaller companies, they have fallen behind of the larger ones. you look at the russell 2000 index, you can see that. down this week. as a result, it is trailing the s&p 500 now in terms of year-to-date performance by the widest margin in 2021. and you l

dave wilson, thank you so much. julie of bloomberg intelligence, great to get you on.e you on a lot more now. i'm sure we will be talking a lot more about this part of the market then we have in the past. -- than in the past. this is bloomberg. ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. mark: i mark crumpton. -- i am mark crumpton. israel offered booster shot to people over 60 who have been fully vaccinated. that makes it the first country to offer some -- to offer a third dose of the pfizer vaccine to citizens on a wide scale. it comes when infections are rising. neither the u.s. for eq have approved coronavirus booster shots. it is not yet proven that the th

with more is bloomberg's dave wilson. tell me what we know. : five nine is a company that helps businesses deal with customers. the artificial intelligence helps them deal with which devices they are using, which languages they are using, and being able to respond to people in kind. in terms of who they are going up against, you've got rivals like ring central and larger companies cisco systems and amazon also in that business. we are seeing all of those shares fall in response to this deal. for zoom, it is a matter of defining what they are going to be as increasingly people go back to the office or go back to school. they certainly have the currency to do that in their share price with an all stock deal, considering it is up tenfold from where it went public this a little more than two years ago. the other challenge is figuring out how they are going to grow. analysts expecting things to peak in terms of where people -- analysts expecting things to peak -- expecting things to peak . alix: i feel like the conversation even a month and a half a

more on these moves and the records we continue to see, let's bring inr'7i1ráq'ior stocs editor dave wilsonoday, amazon was on fire, and it continues today. dave: absolutely. apple, microsoft, amazon, google's owner off about all at records -- owner alphabet all at records. investors haven't backed away from those companies, even though in the past there, they favored the more economically sensitive areas of the market. there are 10 stocks in the index, and two of them are chinese companies specifically. alibaba group holding, and baidu, those companies have been caught in the declines among other chinese listed companies here in the u.s., simply because the government is being more restrictive. we have seen a real divergence between those chinese tech companies and the u.s. tech companies. guy: is there an expectation that that is only going to widen out further. we talked about this yesterday, may be rotating into u.s. names, and that is propelling things. the bond market is probably having a sick can influence here as well. dave: absolutely. it is all about growth for these types of comp

bloomberg stocks editor dave wilson is looking at the moves. are we buying the rumor here, dave?is clear that people aren't buying it so much. it is a report that the company is considering going private, having this come out less than a month after its initial public offering certainly gets your attention come up with the stock has backed off where it was earlier today, in part perhaps because didi told reuters that the report isn't true. so what you are left with is the stock that has will he taken a hit after rising in the first couple of days. you had that government open up a regulatory probe over in china. data security, the government yanking the didi app off of the app stores. so they have been through the ringer. you look at the biggest companies to go public in the u.s. this year, and didi stands out because it is lower. south korea's e-commerce company higher, and here in the u.s., bumble and scholl technologies as well. alix: it is going to be really interesting to see how that one plays out. talk about an amazing turnaround for investors. at least going private would

dave wilson, a couple of weeks away from these names.in the strength of tech stocks, and it is something that jumps out when you look at the nasdaq 100 index relative to the s&p 500, which michael shaoul at market field asset management did in a report yesterday. you saw the ratio get to a record in february, so that is really when the tech stocks peaked. it came down into the middle of may, and since then it has been up about 7%. the way that he is looking at it , there will be no room for forgiveness when it comes to tech earnings simply because you have seen this renewed strength in the group. actually, if you move beyond this comparison and look at the s&p 500 information technology index, you find out that, based on historical earnings, it is the most extensive it has been since 2004. if you look at it based on projected earnings, it is a little more reasonable, but still on the high-end relative to the rest of the 11 main industry groups in the s&p 500. it has been in the high 20's for about a year now. lisa: a lot of people have p

dave wilson, thank you.pecial report is coming up next read i'm sure that's why you are tuning in now. the fed decides as the decision looms. this is bloomberg. ♪ ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can liver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's golo. golo helps with insulin resistance, getting rid of sugar cravings, helps control stress and emotional eating and losing weigh

here to walk us through what we are expecting, bloomberg's senior stocks editor dave wilson. : there was a report yesterday out of morgan stanley wealth management focusing on technology stocks in the s&p 500 in terms of forward sales. in other words, looking at earnings projections over the next 12 months. when you run the numbers, you find out that a price to sales ratio based on those projected revenues, that's basically the highest ever. in fact, the outlook has gone above the peak from march 2000, around the time that the dotcom bubble of the 90's was -- the 1990's was speaking. getting back to where it was into thousand, the s&p 500 has been there off and on for years, so it is a matter of tech in that sense following the lead of the broader market and moving up that valuation peak. but what is interesting is if you look forward, analysts aren't anticipating the kind of revenue growth that we saw in the first quarter. you can say that is true for the s&p 500 as well, but if you were to make a comparison quarter by quarter for growth rates, more often than not, tech is ac

dave wilson here with a story. energy, performers up 45%. e s&p 500, that first half game, 42%, that was the biggest since the s&p 500 energy index was created back in 1989. you really see on both sides of the atlantic today, with the energy is the best performer not only in the s&p 500 but also in the stoxx 600. so much of this ties into what is happening with opec-plus, the group getting together and deciding what to do without putting possibly a smaller increase as people were anticipating 400,000 barrels per day per month over five months, stepping it up. you definitely have that in the mix. let's face it. energy stocks have really been in favor this year after having been out of favor for years. and yet, they still haven't even kept up with the pace of increases in crude. take a look at the s&p 500 energy index, it is up 1%, and crude is up more than that. guy: is that gap, should we call that the -- gap? dave: you might very well do that. as much as these stocks have done well, there is a certain percentage that is not interested in fos

dave wilson digging into that on the stock of the hour. what is happening? es are just above the low they set last week. i should say the american repository. it is $4.4 billion initial sale from a week and a half ago and it has been one thing after another. first the government investigation of data security, then the didi app gets pulled out of the app stores, now you have 25 more apps that are gone. you put it all together, i mean, it is clear that this company -- if they had perhaps gone the way of bytedance, especially the wall street journal saying they held off on their offshore sale, basically the focus on data security which we have reporting on might very well have been a different story. but we are seeing losses for a number of chinese companies that have come public in the u.s. this year. didi not alone on that score. you think about tencent, music entertainment, the chinese government is going to force them to give up exclusive deals for their streaming service with music labels. you put that altogether and it is part of the bigger picture. you c

a simple question about apple in china, and for chinese stocks, dave wilson, it is not going well. not. if you really want to see how badly it is going, just look at these online tutoring companies. tom: that all use apple computers. dave: they might well. consider that those stocks come of american depository receipts on friday considering government action against the industry. they basically said these companies can't be profitable. they have to be nonprofit. there are a bunch of other restrictions to put on the industry, but really it is taking the heart out of the business for these companies. it is part of a broader trend among chinese adrs. bny mellon developed decades ago indexes to track adrs. we are talking about the china adr index, down 46% relative to the s&p since february. lisa: this to me actually made me think of you over the weekend because the issue was a lot of the chinese officials were concerned about how much parents were spending on their children as they -- as a deterrent to having more of them because of the population. the pressures were too high on the k

dave wilson, our stock of the hour. f the other names that are separating here over the crackdown on regulatory issues. dave? dave:. absolutely. front center in terms of the decline but we are also seeing the investment banks that led the company's $4.4 billion u.s. initial public offering last week. specifically goldman sachs, morgan stanley, jp morgan. they did not make all that much money in terms of revenue from this deal relative to other initial public offerings. you talk about 2% of the total rate, that is how much they end up with. not a lot to put aside for future litigation. these three firms have been at the forefront when it comes to investment banking fees, last year, this year pulled off altogether. you're talking about a top three among u.s. investment banks. so, they do have a little bit of reserve to deal with whatever fallout there might be from the sudden reversal thanks to the chinese government and its efforts to look at the network security and then pull the app from app stores. you look at investme

bloomberg's dave wilson is looking at the shift in her strategy. let's start out by focusing on the numbers here. you look back maybe six months ago, that spark innovation exchange traded fund had chinese stocks, now down to less than 1%. and it is not just art innovation. you have seen that in the next-generation internet, down to 5.4%, lower than anyone based on our data since october 2014. it is not all of the funds. one still has around 18% of its assets in chinese companies. nonetheless, there's a clear trend. aargh innovation had poor -- arc innovation had poor companies they were investing in area they have completely sold out of by due and tencent -- out of baidu and tencent. they have cut their stakes in other businesses by about 3/4 from where they were just a few months ago. you mentioned the idea of a valuation reset that was raised yesterday on a seminar with investors. let's take a look at what some strategist call the back stocks. baidu trading at about 22 times earnings, about half its peak. tencent holdings, that's based on their ho

dave wilson there. coming up, great-west lifeco inc for more than $3.5 billion.share. we are discussing that with ceo paul mahon. this is bloomberg. ♪ amber: this is bloomberg markets. we've got our eyes on great west life co. making another big acquisition in the u.s., this time for credential financials. retirements is the second time we have seen a major acquisition in this area of the market. let's discuss this strategy and rationale. we've got paul mahon, the ceo. let's start with how the deal came together and what is so attractive about the u.s. retirement segment at a time where the others -- we are moving away from it. paul: thanks for the question, it is a good one. we look at the u.s. retirement market is the largest retirement market in the world. there are 140 million working americans. there are $47 trillion of assets. the fine contribution savings roll into taxable savings. we view a leadership position in this market as a key opportunity to draw growth in the near term as we bring these companies together for value in terms of synergies. but also

dave wilson has been digging into those moves in the stock market. what have you got? a company like bytedance, the owner of tiktok, that decides not to go public because it was going to focus on data security as the chinese regulators wanted it to. then you have didi global, where the issue of data security emerged just a couple of days after the company did its $4.4 billion initial public offering here in the u.s. you saw losses after that. friday destocked tried to bounce back, but today it is down again. didi saying other 25 apps were pulled from app stores at the request of regulators, so that is after its main app was taken off of those stores last week. you see it is not just didi that his suffering as a result of this, but other companies have gone public here in the u.s. that are based in china, notably rlx technologies, which is in the e-cigarettes business. you certainly have a decline across this group. guy: u.s. banks are going to be reporting. i wonder how many questions will be asked about this subject because u.s. banks are making significant amounts of

dave wilson is here with some of the details. j&j has three main segments, and they all showed growth in the second quarter, but the one that really jumped out was medical devices. a year ago, people weren't getting surgical procedures done and other types of medical care because of the coronavirus pandemic. this year, very different story. as a result, you saw sales in that segment up 63%. compare that with 17% for the pharmaceutical business, led by the immune therapy so lara -- immune therapy. zyrtec and band-aids going well for them. that translated into higher revenue overall and higher earnings than analysts were anticipating in the bloomberg survey. earnings-per-share, $2.48, well up from what we saw a year ago, and revenue over $23 billion, and the company raised full-year projections for both the top and bottom lines as well. clearly an issue for j&j is there covid-19 vaccine. they only did wonders for million dollars of revenue in the second quarter from that shot, but they are looking at $2.5 billion for the year, which

dave wilson is looking at that, and netflix after the bell today. : ibm's results are really a signal of the shift under the new ceo to cloud computing, specifically the hybrid cloud which combines ibm's network with customers' own network, so you have storage sort of in-house and then outside through ibm. considering it is going up against the likes of amazon and microsoft and google, it is really holding its own. cloud revenue up 15% over the last 12 months, and actually, translating into the top line growth at 3.4%, the best in three years in the first time we have seen back-to-back increases in sales. so certainly things are looking positive in that regard. beyond that, it is buying red hat, spending $33 billion. they bring in that company with revenue up 20% on the quarter. when you put it all together, ibm definitely moving in the right direction. they were more profitable in their latest quarter. they cut their debt by $6.4 billion this year, was about half of that or so coming in the latest quarter. so things are going well for ibm. then you

matt: dave wilson talking about the inflationary story at the corporate level.et into intel earnings, after the bell today. we may have already gotten a warning from texas instruments on how those numbers will play out. ti, yesterday, gave a revenue forecast that disappointed some investors. like other chipmakers, ti has posted massive revenue growth boosted by demand that we've been talking about on this program for months. the run-up has caused speculation amongst analyst investors that some of the orders reflect panic buying from customers who are anxious they will not be able to get enough supply in the future, and demand caused by the pandemic is also seemingly boosting production across the industry. the worry, of course, is that with so much demand and these bottleneck issues, you ramp up production to the point where you are making far too many chips for global demand. amber: you get a real mismatch. you have the demand but not the supply. when you have the supply, all of a sudden your demand falls off. it's a real story about the psychology of inflation

dave wilson is with walk us through the details of why the market didn't like the numbers. you have to look at what has been happening in the chip industry this year. we have seen delays get longer and longer between the time that customers order their semiconductors and the time they arrive. the beginning of the year, you were looking at basically 13 weeks. now you are closer to 20. the way to has played out at texas instruments is that the pointed out when they discussed their second quarter results that lead times are up for a growing number of products. in terms of inventory, 130 to 190 days, so roughly four to six months. at the end of the quarter, at 111 days, so they can't even keep kind of chips and stocks that they want. it is really indicative of some of the broader industry. if you were to look at the third quarter forecast, you would say they are pretty much in line with estimates. revenue, if you take the midpoint, it works out to $4.58 billion, just below the average estimate on the bloomberg survey. there's real concern about whether what we are seeing in the

our senior stocks editor dave wilson joins us now. he's been running the numbers. you are looking at $492 billion going into u.s. etf's so far this year. to put that in perspective, the record for an entire year was $497 billion last year. put the two together, you are talking close to $1 trillion. you want some perspective? that is how much, and terms of assets, u.s. etf's had in total back in 2010. the numbers are just staggering, and there's a clear preference at this point for etf's as opposed to traditional mutual funds, where you saw $500 billion flow out last year. so the idea of having that day-to-day ability to trade, minute by minute, actually. it is certainly winning out, and in terms of who is winning, it is vanguard this year with inflows, specifically into the s&p 500 total stock and total bond etf's. those are three of the four biggest in terms of inflows, the other being an ishares fund run by black that tracks the s&p 500. but when you put those two firms together with state street, you are talking about 80% of the assets in etf's, and at invesco an

bloomberg stocks editor dave wilson has crunched the numbers on how they affect the market. $9 trillionting today alone. is this going to have a massive read across through the entirety of the market? dave: the bigger question is whether, even if the numbers are positive out of all of these companies, starting with apple, microsoft, and alphabet after the close today, what is it going to mean for the broader market? the s&p 500 really hasn't much in the week so far, so the question becomes what happens by the time we get to the end of the week and all of these companies have reported. looking at the history of when all five companies, including facebook and amazon, have reported in the same week, it is a relatively small sample size, but it doesn't necessarily bode well for gains as the week goes on because three months ago, you find out that the index fell each week when you had all of these reports. so you have all of this focus starting today. the bigger question is what it means for the broader market. dani: we really -- alix: we really appreciate it. we are going to leave it there.

dave wilson has a preview. what should we be looking out for? g for growth, that is really the key as far as facebook goes. you've got analysts talking about earnings-per-share being up more than 50%, revenue being up 50%. those are the average estimates of the analysts we have surveyed. to think about that kind of increase in a company with a $1 trillion market value really does jump out as something to watch. beyond that, you look at what social media companies have in doing in terms -- have been doing in terms of the results for the latest quarter, and there has been a lot of revenue growth. 50% doesn't even measure up to what we have seen out of googles owner alphabet. twitter up 74%. snap almost tripled in its latest quarter. that is the owner of snapchat. facebook is sort of in the right place at this point in terms of advertisers being willing to spend to try to get a hold of consumers as they returned to the world outside as the pandemic at least on some level starts to fade. alix: what is priced in? all you need to do is look at apple's

tom: dave wilson, thank you so much.h into a wilson extravaganza. i look at where we are. you have given up equities as well, but the vix from a 25 in the sweat down to 19.5. jonathan: it is always about the forward look, though. i went through the coca-cola release, the business environment update. global unit case volume benefited from the ongoing recovery in many markets. then the second part of this paragraph, partially offset by a resurgence of the coronavirus in several markets. for a company like coca-cola, this is about the away from home channels improving in a way we anticipated. whether we start to go backwards in some markets, that is going to be key. we talked about how policymakers respond to this. we had some reporting from our team on the west coast about apple delaying the return to office. then we need to talk about how consumers start to respond to this as well. the return of masking indoors in l.a. county, what that does to people's enthusiasm to get back out there. going to be very interesting to foc

our senior stocks editor dave wilson is looking at how this is all playing out in the markets.this just going to be massive divergence between the u.s. and china tech? is that how this is all playing out? dave: it is really a matter of whether you cross borders, in a sense. if you look at the nasdaq 100 and the u.s., it is doing just fine. you can say the same for a mainland focused indicator of tech companies. whether you look at hong kong were something like the nasdaq golden dragon china index in the u.s., that is where you get the crossover. chinese companies with their main listings in the u.s., that is where the weakness has been, and it is showing up in both of those indicators because you have a number of companies that, even if they have their main listings in the u.s., they also have listings in hong kong. it has been an increasingly popular secondary market for a lot of these companies. beyond that, you look at what is hurting the nasdaq golden dragon index, and it really is those companies based in china with american deposits received in the u.s., their main listin

dave wilson mentioned it about 10 minutes ago. they've boosted the view on staples, and when things get tricky, get boring, and staples fit into that. tom: there's a lot of different correlations going on right now. we heard yesterday of the gold-bitcoin link that is not so tight right now. kailey: i want to know a bunch of people not sitting on a pile of cash, wanting to buy this dip in the equity market and having to sell their bit going to do it. i think it does raise the question of whether we're going to see a dip in the equity market that is in bought. it just seems like over and over again, it is buying of the dip. is that narrative ever going to change? maybe not. tom: key support for bitcoin this morning. we have to set up the rest of the hour before we get to the markets with alisha levine -- with alecia levine -- with alicia levine. it is four humans into space. we haven't done that in a while. jonathan: are you willing to call them astronauts? you are hesitant. you go past the line, you have done it. tom: i've not done

david wilson is channeling another wilson. dave: that would be mike wilson. pretty common name, tom, unlike say keene. i digress. it is all about quality. at least, that is how mike wilson sees it. initially we have seen a recovery. if you look at the msci index based on return on equity, earnings growth, debt levels, it has had a bit of a comeback after a year-long decline. the s&p 500 versus the russell 2000, the msci quality index versus the russell 2000, we have seen a comeback led by tech stocks. they certainly fit the category. looking for a broader move in quality, specifically some of the slower moving companies. you think about health care, consumer staples, real estate, phone companies, those are the kind of stocks he he's doing well going forward because he's concerned about slower growth perhaps in the economy. the nature of the recovery shifts away from the faster growing tech companies. tom: we've got to leave it there because of the time and go to west texas now. jonathan: thank you, dave. tom: bloomberg technology's emily chang is in van horn,

keeping her mouth shut until there are more facts on the table customer demand pales back, chris wilson, daveo respond to that. she did not just make a minor misstep that was like 15 paragraphs of her going on and on about why we need infrastructure spending when people still have no idea what has become of their lost relatives. >> it's tragic and i'm the democrat on your panel part is not a good idea to speak about climate change in the same sentence of talking about this building collapse we don't know the answer. secretary granholm said it's too early to tell what were the root causes of this. we are piecing more and more together saw information by an engineer study from 2018 showing massive issues with the infrastructure of that particular building. you talk about rebar you talk about concrete in your opening, kennedy. again i think it was a mistake to in the same sentence talk about climate change, despite the effects were seeing across the board in this country. but actually show some heart for the victims, focus there and then make the case here in for structure bill. kennedy: yes. an

it was some sort of night, was wilson to dave and i was it effective? i think it depends from province to province when it actually starts to be honest that not short started in all of these. so he won provinces $31.00 out of the $34.00. ready are going to have this night time curfew. a lot of the fighting has always in this war taking place at night. the government can control things where they can see what's going on in that district. centers during the day and have no mental control in many places. but in contested areas, the taliban often owned the night. certainly we have some reports from overnight in the last night we the african security forces saying that they killed 25. tell about in helmand. that's one of the places that's going to have a curfew. that was it in an african strike, but also in cobble province, there are reports there and remember, cobble is not subject to the few that 5 intelligence officers were killed. they were killed in the province just north of cobbled city. i can tell you, although we have those reports, they can please

day wilson has the details. daveare talking about here is blackstone buying a 9.9% stake in aig life and retirement business for $2.2 billion. on top of that, they will manage assets for that business, starting at $50 billion, moving to something like $92.5 billion. the other piece of it has to do with affordable housing, as aig describes it, multifamily developments. blackstone buying these properties for $5.1 billion. it is understandable. blackstone is basically a real estate firm at this point. that is the biggest chunk of their revenue, more so than private equity, more so than other businesses. it's a matter of expanding into an area where they have concentrated over time. in terms of aig, they are looking to separate their life and retirement business, targeting an initial public offering. the ceo said in may it was the optimal path forward for that business. they want to focus on property-casualty. they want to attract alexa blackstone.interesting to see the comparison between the shares. aig has never been t

wilson. what do we have? daves the comparison between the s&p 500 and its 200 a moving average. it is above that indicator for more than a year. stephen sutton meyer at bank of america ok look and saw what happened historically when the s&p 500 stayed above the 200 day indicator for the entire first half. eat some 34 cases going back to the 1920's when that happened, and only 13 of them actually managed to stay above the moving average for the entire second, so you have the potential for some dollar weakness. tom: so i should go to cash? dave: i am not going to tell you what to do, tom. tom: got it. thank you. anything else you would like to add to this? dave: the average is 13% higher. that is how much the s&p 500 was about this moving average because if you look friday, it was also 13% higher. that has kind of held up. that's the question of when things catch up between where the s&p 500 is now and what the trend has been over time. lisa: i was noticing in the "wall street journal" oracle this incredible x -- ar

david wilson with his stock chart, interesting on commodities right now, right? dave: absolutely.g about relative valuation when you consider projected earnings across developed markets, so looking at the msci world energy and metals mining indexes. it is a pair of indicators that suction cited -- that sucked jen cited. -- that sucked jen -- that socgen cited. you are seeing the energy stocks n1/3 cheaper -- energy stocks 1/3 cheaper than the msci world. we have seen oil prices go up. we see earnings estimates go up. as a result, the stocks get cheaper on a price to earnings basis when you look forward. that is what is happening to that group in relative terms. when you go to the metals and mining stocks, you are talking about a discount as much as 54%. in terms of history for the energy stocks, it is the biggest discount since 2008, and we have data on the metals and mining group going back to 2010, the lowest ever, so possibly 2008 as well. it just goes to show you how cheap these companies have become in relative terms, and terms of being able to buy here. lisa: we are getting

david wilson with us in the heat of his earnings season. what do you have? davealking about companies that do the most business in china. you figure that with the chinese government cracking down on u.s. listed shares, that you would see declines in the u.s. companies that are dependent on the chinese market, but it is just not happening. it is something that liz ann sonders at charles schwab went to doubt any twitter post yesterday. -- at charles schwab pointed out in a post yesterday. if you look at the most percentage of sales in china, it is up 40%. you haven't seen the china sales exposure index as it is called really come back to the pack, even with everything going on lately involving china. tom: too short a visit. do it longer tomorrow with amazon. liz ann sonders will of course mention the late martin zweig, who said don't fight the fed. always with the most important question that stops the press conference, michael mckee. is the market fighting the fed here? our market participants fighting chairman powell? michael: no, the market is going along with c

wilson is good enough to know that a sample size is 30. anything under 30 data points, you go maybe. he goes this morning where few are read. daveample size of five, but there was a twitter post yesterday looking at weeks when the big five of technology all reporting, as is the case this week. we got facebook tomorrow, amazon on thursday. that has happened five times since 2015, and every time, you have seen the s&p 500 either fall or not rise. the last time was in april, and it was up 0.02%, and that is about as little as you can get. so it is not like the fact that we've got all these numbers coming out is necessarily a plus for stocks. tom: folks, the profanity from our headline team when they are putting this stuff out, they are lightening speed. david wilson has actually led all this coverage. the come out with earnings. we all see that. then there's top live, and then there's the conference calls. or the conference calls important to you? dave: they are because they fill in some blanks in a lot of cases in terms of how companies are looking at their business, what they are anticipating going forward. that is really the key

wilson is still with us. you have been doing this for 30 years. flat out, we have never seen this before. daveessarily go that far because we have seen it to some extent with chinese companies come over they have gone public and then pulled back and been taken private. you have to bear in mind, weibo here in the u.s., you've got to wonder, especially in light of dede, whether there ash in light have -- in light of didi, whether they will be more deciding to go private. (announcer) back pain hurts. you can spend thousands and still not get relief. now there's aerotrainer by golo. you can stretch and strengthen your core, relieve back pain, and tone your entire body. (man) and you're stretching your lower back on there. there is no better feeling. (announcer) do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me. it works, 100%. (announcer) find out more at aerotrainer.com. - [announcer] imagine having fuller, thicker, that's aerotrainer.com. more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtran

wilson here to save us. a little spat within the family. always cheerful on growth and value, but with a geographic bent. dave: i will do my best.at upper bridge capital looked at the u.s. versus europe in terms of valuation, specifically forward price-earnings ratios. jonathan: interesting -- tom: interesting. dave: what he did was broke down the u.s. and europe into growth and value using the russell index for the u.s. and the euro stocks total market index for europe. when you run the numbers, you find out that growth stocks here in the u.s. and in europe are pretty much the same in terms of their valuation based on forward pes. the reason why u.s. stocks historically have been more expensive than european shares arguably comes down to what is happening on the value side of the equation. something like 18 times projected profit for the russell 1000 value index. looking at the euro stoxx counterpart, it is more like 12 times. so you've got about a 50% gap between the two. that in large measure explains why that disparity exists. tom: really important, folks. you and i have talked about this. value always needs a catalyst. what