i think doctor doolittle more than makes up for it by his anti-speciesism. >> doctor doolittle in the essay, he goes over and over again and -- he figures out what he needs and sort of forms webs of rescue for him. >> yes, he can talk to nonhuman animals and that is really the plot of all of the stories. everything turned on this one trick that he has. it's good science fiction we alter one thing and then everything else follows from that. >> so it struck me reading it. in the last couple of years we have had a number best-selling books and some of them very good. for example, about called beyond words by a wonderful marine biologist. called soul of the optimist by montgomery who was a wonderful science writer and they are focused on animal consciousness. and as carl says, no animals care about their own life. they want to increase their own life and the care about it further in their own life just the way you and i do. and of course, there is a check for this kind of a plea at the center of these books for us to understand that we can't just be wiping these creatures off the face of

i'm abigail doolittle.s is "bloomberg best," your weekly review of the most important business news analysis and interviews from bloomberg television around the world. the week began with a strategic signal from u.k. prime minister theresa may, who promised to inject new blood into her cabinet at the start of a critical year for her government. the reboot went underway monday. >> new year, new cabinet. yes, after losing three ministers last year, prime minister theresa may kicking off 2018 with a cabinet reshuffle. >> the main thrust is about bringing in new blood, more diverse, more dynamic, more youthful slate of new mp's. this is all part of theresa may trying to grab turf in the party from jeremy corbyn, saying we can do diversity, reach out to the youth, recapture some of those votes. >> theresa may's cabinet reshuffle didn't go quite as planned. the prime minister's office flagged yesterday's events as a refresh of her top team, but things went off script. jeremy hunt, then justine greening were locke

doolittle and read all the books. i have not seen any of the films thank goodness. [laughter] >> they are pretty good. that one. >> if you really love a book but anyway doctor doolittle did influence me to value animals i may not have gotten. he is actually censored in a lot of libraries because of racism but that is just a symptom of the 20s. when he often wrote to the books. everybody was racist at the time. but in a very gentle kind of way. so i think he may set for this for the anti- speciesism. >> but he does go over and over again into troubles the animal save him and they figure out what he needs and give a rescue. >> he can talk to nonhuman animals and that is the plot of every story that turns on this one trick. it is good science fiction when you only alter one thing everything else follows. >> it struck me reading it the last couple of years we had some best selling books like beyond words the soul of the octopus focusing on animal consciousness animals care about their own life and care about furthering their own life the way you and i do.o. but there is

vonnie: abigail doolittle joins us live to weigh in. to get this kind of call on the first trading day in january. abigail: relative to what gene munster was just telling tom, the mom demographic. it's coming out of the blue but it's not new. around this time last year there was lots of speculation that amazon might take out target. that time target shares were about 30% less. it's almost hard to see why amazon would now be interested in target at a big premium. another piece of the call beyond the demographic, all of the stores. if you take a look at one of the bloomberg,in the what we are looking at in yellow the amazon distribution centers. not many relative to the pink dots. bloomberg, even some on hawaii. even some on hawaii. all of these target stores, that would be a big physical imprint for amazon plus the logistics. a 30% premium and those speculations last year was ahead of the whole foods acquisition last year. $13.6 billion. the company's largest ever. can they integrate both. plus the amazon whole foods acquisition that was

abigail doolittle joins us to break them down. what have we learned that was so bad?: it was about the company saying there headwinds for this year are continuing into this year. if you recall at the end of last year, investors were expecting a hurricane bump at the end of the year. that didn't happen. the stock fell after they reported this third quarter. they did not get to the hurricane related bump. it was neutral to negative. relative to the overall headwind, we were just talking pressure., pricing there are too many cars out there, too much capacity. they were able to get rid of their cars after the hurricane. even though, there is too much capacity out there. there is a sense that may continue into 2018. i think there was an internation that travel one of the strong this year. not clear as to why that will be, and many saying the tax cuts will help consumer spending. and oblique statement -- an oblique statement. shery: could this be a reset moment for the company? abigail: it could be perhaps. they are resetting the idea that 2018 could be difficult, that ther

shery: abigail doolittle with the latest.bigail: the rally continues not just across the globe but the u.s. as you just mentioned. we have the major averages nicely higher for the fourth in a row. we have a new set of record highs for the dow and s&p 500 and the nasdaq. the s&p 500 and the nasdaq on pace for their best weekly gains. i just read something very interestingly on the idea that perhaps this has to do with relief that the tax reform bill did actually go through and as expected to stimulate the economy. as for some of the top percentage performance for the s&p 500, we're looking at cvs up 4% as shares were upgraded to overweight. the firm sees the stock up as much a 61% in a bold case after the at the deal once it goes through. news corp. up 3% after a discovery and offshore guyana. the department of labor's guidance is a positive. 2.6% asparts company up it started with a new by at longbow. let's take a look at two of the cryptocurrencies. the of gains for bitcoin come up 10%. , upe have gains for bitcoin 10%, but

let's check in with abigail doolittle for these record highs.very nice gains from the major averages. dow on pace for its third record high in a row. the s&p 500 and nasdaq putting in record highs each day this first week. we are looking at a bullish 2018.a bullish start for the best week for the s&p 500 since the summer of 2016. itimism around tax reform, is not going to back down. relative to the weekly gain, take a look at this. the s&p 500 up 2.3% on the week. 500' best year sinces 2013. 2016,back to december of matching the weekly performing -- matching the weekly performance. 2018 off to a bullish start. it's all about big tech and the internet companies. facebook, amazon, microsoft, these are the biggest points to the s&p 500. for the most part, not a lot of fundamental news. this seems as investors want in more of what happened in 2017. up.500 last year investors piling back into tech, but not so much for january. the top percentage groups for the s&p 500, advanced micro devices up nearly 16%. flaw, scan and up 13%. macron up 12%. then t

bloomberg's abigail doolittle i'm sure you have lot to talk about this year.la reports fourth-quarter sales and production later this week. will it shed light on the model three production --this is bloomberg. ♪ emily: chinese internet entrepreneur has defied orders to return home. attackcame to help company he founded resolve crushing debt. he says he needs to stay in the u.s. to work on his electric cars start up. he expanded into smart phones automobiles before coming under increased criticism from authorities. the chinese regulatory commission issued an order for him to return by the end of 2017. instead, he and his brother and wife have been empowered to handle affairs with the shenzhen listed firm. tesla is keeping wall street guessing about sales of its model three sedan. the electric carmaker may have delivered four times more model threes and it did in the past three months. other analyst say it may have increased by a factor of 40. our correspondent who covers all things tesla. have non-employees started receiving their cars yet? >> yes. and if you s

let's bring in abigail doolittle in new york. and in san francisco, cory johnson.hat are the highlights? cory: intel's results yesterday really driving the markets in a big way. we talked about it last night. this big move from the data center business -- we have been talking about it for years. but the move showing up in the results of intel. and we are seeing it with microsoft and so on in the cloud area, driving intel. intel seems to be driving the entire market. today, a 10% gainer and a big move for all of technology. emily: meantime, apple not having a great week. perhaps its worst in several months. there was a bt ig report warning about sales in the spring, saying apple may guide revenues lower for the current quarter. abigail, what is your read on this? abigail: we have been hearing reports along these lines quite a bit recently, the last year analysts saying demand for the iphone x would not be as strong as investors would like, and that that could weigh on the march quarter. bernstein saying that march quarter is probably too high relative to consensus o

abigail doolittle with the second hour. vice chairman, we will get his outlook on the fed and central banks ahead of janet yellen's final fed meeting. this is bloomberg. ♪ vonnie: lightbank in new york, i am vonnie quinn. mark: from london, i'm mark barton. this is bloomberg markets on bloomberg television. they progress in business in the americas -- the chairman spoke to bloomberg's francine lacqua in madrid. taken from 40% to was to 17% this year, and on strong topline growth, doing things really the right way for customers, loyal customers, digital really well on digital. good performance in brazil. mexico also. actually, all of latin america has done well. francine: are you worried about protectionist measures taking force in 2018 after we have heard noise from president trump? to this thelook actions, and what the u.s. has done in terms of the economy is pretty good. the tax bill is very encouraging with us and others who will put that back into higher wages and more lending to customers. the new administration has al

abigail doolittle with our stock of the hour, thank you. mark: let's stick with m&a today.est in a biotech blood battle as sanofi beat out novo nordisk. it gives sanofi a blockbuster drug for a rare blood clotting disease. the french drugmaker has agreed to more than $16 billion and acquisitions in the last week, dwarfing past years of deal activity. joining us now is bloomberg's managing editor benedict campbell. active onofi being so the m&a front in the last week? benedict: it's been an active week and this is interesting from a company that has been quite absent from the deals in the last couple of years people. they tried their hands at transactions a few years ago and now the ceos coming back to deliver this knockout punch had bid foro who this asset. not a very well known company. a familiar area of rare blood diseases and novo came with a relatively low bid, which they said they did not like. that left the door open for sanity who walked right in this morning with a much higher bid, ablynx not surprisingly decided to take. this is exactly a week after they spent top

abigail doolittle is in new york. what brought this on?bigail: with the six-day winning streak and the record ,ighs for the major averages just a bit of a breather. after the big gains, investors stepping back a little bit, especially before earnings season kicks in. that being said, we saw a real theness in the chip sector, worst two-day slide since beginning of december. report out bearish of china on mobile phone shipments in china. that caused pressure. in one ongoing concern around the chips could be the fact there has not been a record highs since 2000. if we happen to the bloomberg 8808, this is #btv the stock over the long term. we see that it is trying to bust above that last record high. unlike the major averages, not a record high. by someed to be a tell of the most sophisticated investors in the world. this could be a towel on some weakness ahead. emily: anything intervening to the weakness? abigail: certainly for the nasdaq. ebay down in a big way, its worst day since october, 2016. amazon growing by 300,000 small and medium-s

abigail doolittle is in new york. what brought this on?bigail: with the record highs we have seen for the major averages this year, last year, the averages since 2016. after the big gains, investors stepping back a little bit, especially before earnings season kicks in. that said, we saw some real weakness in the chip sector. down for a second day in a row row, the -- thin a worst since december. there was some pressure. ongoing concern around the chip could be that there has not been a record high since 2000. if we happen to the bloomberg and take a look, this is the stock over the long-term. we see that it is trying to bust above that last record high. unlike the major averages, this is considered to be a tell by some of the most sophisticated investors in the world. if we see weakness for the chip sector, that could be a tell of some sort of weakness ahead. emily: anything intervening to the weakness? certainly for the nasdaq. ebay down in a big way, it's worst day since october, 2016 -- its worst day since october, cee nasdaq. 2016. by

let's get a check on markets with abigail doolittle.bigail: we are looking at gains in record highs of the major averages. all three solidly higher. dow and s&p 500 of rate is out of six days. putting in all-time highs. the nasdaq is leading the way, with the s&p 500 in a moment. yield upthe 10-year 4 basis points. we hopped to the bloomberg. a great way to see was happening. we see that nine of the 11 sectors are trading higher. up top, health care of 1.5%. helped up by the drugmaker having a strong quarter. biotech helping the nasdaq. second is information-technology, up about .9%. explaining the of performance for the tech sector on bottom real estate and utilities. those are great-sensitive sectors. their dividends look less attractive as yields rise. they are the only one falling on this day. 9%, on pace down since the worst day since 2016. the wall street journal reports steve when has exhibited a pattern of sexually harassing women. he is also the finance chairman for the republican national committee. wynn has the night allegati

falling on the day are many abigailshares, and doolittle joins us.nies have become the new villains here. this really has to do with president trump at the state of the union, talking about the idea that drug prices are too high. let's listen to president trump. >> i have directed my administration to fix the injustice of high drug prices, one of my top priorities for the year. julie: -- abigail: to your point, around in the villain role of wall street companies. in terms of the biotech companies, whenever drug prices come into the conversation they take a hit. if we help on the bloomberg we can see what is happening not for --r gilead sciences sciences, but for other big names as well. sciences see gilead higher, higher, higher and it than really taking a hit. shares were also higher on the amazon, berkshire hathaway health care consortium. some of the other big names in the mbi overall are affected. shery: with midterm elections coming up i can imagine this would be an important issue. abigail: and for president trump its very important. because ri

abigail doolittle is here with more. >> major averages trading higher and record high for the dow and&p 500, not yet for the nasdaq but the three major averages on pace for weekly gains, the fourth of week in a row. nasdaq is leading despite the fact it has not put in a record high, much to do with the chip space. up 2.2% after its worst two days of the year, helped today by intel, up 9%, the highest level since 2008. they beat fourth-quarter estimates. optimistic for the current quarter, especially there could be released around the design flaw is not weighing on the outlook to -- outlook. 3.8%, helped by the intel forecast. another stock trading higher is twitter, up 5.4% at the buyout speculation rumors are hitting trading desks. an unconfirmed report that twitter could be bought by salesforce. -- twitter trading sharply higher. gains for stocks despite the gdp miss, this is 9372. white, atlanta fed forecast for gdp and in yellow the actual print. over the last several quarters, actually gdp print has been the forecast but this time not so much. a print of 2.6% growth in the fourth

abigail doolittle is with us as we are halfway into the trading day and stocks reach record highs yet again. >> the rally simply continues this year. take a look at the s&p 500, dow, nasdaq. major averages up more than half a percent, the dow up more than .8%. continued optimism about the effects of tax reform as earnings season gets underway. earnings on a year-over-year basis will grow 11.8%. it seems investors are feeling good about the current situation . as we have weekly gains, the best since last week, two solid weeks in a row. the dow almost 2% on the week. lots of bullish momentum. -- fromke a look at the a point and percentage standpoint. biggestp top 1.8%, the boost for the s&p 500. this as suntrust has raised its , saying $1400 per share shares are fundamentally very attractive. microsoft also higher up. one of the top boosts as bullish comments saying pc shipments have positive readthrough's for microsoft. as for the percentage performers, take a look at the retail space. up, jpmorgan changed to overweight. the stabilization of bricks and mortar among other factors. targe

hopefully take me off. >> knight will appeal to private first class doolittle, head of the unit, to begible for programs. they range from attending church services to various classes. >> they get to a point where they're tired of being in the gang lifestyle. i want to better myself. but the problem is, there's so many little things. gang members like to go to "church." now they can discuss "family business." whether it's planning to assault a deputy, whether it's planning criminal activity outside of here. so we have to minimize that by having keep separates. >> keep separates are part of a system the jail uses to prevent known enemies from being in the same place at the same time. >> and it's not just to keep separate from another rival, it's to keep separate from another fellow gang member who may be trying to plan something. >> since gang members typically accumulate numerous keep separates, it's difficult to place them in different programs with other inmates. >> tell me in your own words what it is you're looking for. >> i'm trying to get off the gang list. because i don't affilia

abigail doolittle is with us. a turnaround for one index. for stocksvolatility in the u.s. and 2018, the nasdaq on pace for its worst day of the year. makes trading action. dow is higher. all three main drivers earlier with all-time highs -- major averages earlier with all-time highs. mastec down by more than .5%, its worst -- nasdaq down by more than .5%, its worst day of the year. looking at the nasdaq, some of the bullish action. lower.taking it it may have something to do with commerce secretary wilbur ross'comments in davos around trade that has spooked investors. we see a dip in the nasdaq. some biggest losers in the nasdaq, relative to a percentage performance, american airlines and texas instruments down more than 10% -- 7%. texas instruments beat estimates, a mixed quarter, sales outlook is dragging. apple and intel is lower. apple down 1% after someone said the company may have to lower its march outlook. that seems to be dragging down shares with intel down in somebody with texas instruments. , not a see across assets career risk on or risk off picture with the 1

isnie: abigail doolittle with us because we're halfway into the trading day.he final trading day of the first weekend 2018. >> happy about what she just mentioned, the cold weather will ease after january 8. natural gas down about 3% on the news on the big cold weather we have had an moving forward we hopefully will have the thaw. why natural gas is down. major averages, we see a rally, major averages up for a fourth day in a row, more record highs with animal spirit stirred by enthusiasm for tax cuts. saidtay capital, david that the euphoria does not in well as he sees a 10% correction at some point in the first quarter and katie, at the tig believes there will be eight to week 24-week fullback -- two pullback.ur week best week for the s&p 500 in a year. sector wise, more sectors are higher than lower. tech up talk -- up top. energy down with natural gas decline could be a piece of it. the tech winners, there does not appear to be anything to fundamental behind this, more investors wanting in on more of yearhas been the case last , tech the top sector for the

abigail doolittle is here with us now. abigail: it's the u.s.sion of the stock, the canadian ticker is we, not surprisingly. the biggest by market cap medical marijuana company, just insert your around what jeff general, the attorney is doing resending this obama era policy around the legalization of marijuana. it's actually the resending of a memo maybe -- basically giving attorney general in states the ability to enforce the idea that hot is no longer legal there. so lots of war consumers and officials. joe: so the stock has been on an incredible run, up tenfold on the year. the company's canadian, as are most of the listed marijuana stocks. is a lot of the premise the idea that they will be the leaders in the u.s. as relate -- as regulations here get relaxed? sane is likely to be $50 billion market, and not all companies are u.s. there is canopy growth and we have some other pot related stocks. scotts miracle grow down 2%. joe: the urban white picket for growing marijuana, that's pretty amazing. abigail: constellation stocks are down as well.

it's time for our sector spider report with abigail doolittle.we take a look at the 1%, theis up more than top sector for the s&p 500. on paper, it's best day in a month. some of the gains may have to do with writing yields. more than likely, these big banks trading higher on the day. goldman sachs is saying banks and consumer finance are likely to outperform in 2018 as tax reform, tax cuts start to seep in. the possibility of rising interest rates, deregulation a lot of bullish action,. #btv 4861.hs, mrs. g up top we are looking at jpmorgan citigroup, along with bank of america. in white, we have goldman sachs. goldman sachs is underperforming, trading business last year was very difficult. when you see a big difference in performance, the other banks up more than 20% in the last year. goldman sachs just 6%, it may suggest some ketchup potential. something to keep -- some catch-up potential. something to look at. julia: up next we ask bob new delhi about general electric. they stock up more than 6.5% in the first week trading days of this year.

. >>> the fire broke out 6 am at the iron and metal company on doolittle drive in san leandro. alameda county firefighters say no one was injured. there is no word on a cause.>>> in the wake of the wildfires california insurance commissioner hoping to get laws passed to protect homeowners. he wants to protect more homeowners from losing their insurance coverage because of the wildfire risk. 3.6 million californian homes are in areas identified by insurers as being at high or very high risk. in counties designated with the highest risk's office saw 15% increase in non-renewals while others solve their premiums skyrocket.>>> iconic theater in morocco shutting its doors this weekend. there is still a glimmer of hope for the old building.>> reporter: is the credits roll inside of the new theater the moviehouse prepares for the final act.>> i watch a lot of movies online. i love going to this theater.>> reporter: the owner says the 61- year-old building is showing age. and needs repair.>> exit doors and lighting in the theater. and roof issues. >> reporter: it opened in 1957. in the

abigail doolittle has been watching the resumption of the rally. abigail: the pulse is bullish. we have record highs and session highs. the nasdaq is leading the charge, below its all-time high, we will see if that changes by the end of the day. the nasdaq earlier this week daysile, closing down two for the first time in 2018. overall a bullish tone here. up four basiseld, points. the havens bonds are selling off , completing a risk on picture. a team of strategist said bank of america-merrill lynch say the bonds selloff might be a little bit stretched. we are looking at the 10 year yield in relation to the 200 day moving average, and it has gotten well above the 200 day moving average by about 30 basis points. it tends to move back down to the mean then. so in other words, the 10 year yield might fall back down 2.3%. in that case, bonds would be rallying and it would be a risk off tone. but today, risk on. let's look at two of the major winners, intel and abby. afterat its highest level beating estimates. they gained an optimistic outlook for the current quarter for the full ye

in new york, abigail doolittle. bloomberg news. that is abigail doolittle on u.s.earnings season as it continues. let's bring back kay van -peterson. let's start with this quick chart. the percentage of s&p 500 members at 52-week highs and over 45% ofowing s&p 500 members are at their 65 day high. january,t even into that they are trying to rewrite and revise their outlooks when it comes to goals and targets for u.s. stocks for this year. do you see the correction that we saw this week as a healthy correction and you continue to buy into these steps or do you think some of the political, structural issues going on and the u.s. will start to derail this? kay: i think a few different things. mentioned, alluding that you can expect more political headlines as we get to midterm spirit that is something to bear in mind. going back to our talks on china. a lot of barking and a lot less biting. bet is one thing that will tactical noise. yearnderlying element this that will be different from last year is broader and much deeper u.s. dollar weakness. that is supportive of e

abigail doolittle with our stock of the hour. thank you.et is beating class food chains, helping the 75% since 2014. today, they are adding more recycling. theing us from chicago, mcdonald's cheap supply-chain and sustainability officer -- chief supply-chain and sustainability officer. there's a lot you can recycle from a mcdonald's meal. >> first of all, thank you so much for having me on your show. today, we are making an announcement in two areas, improving our packaging and reducing waste. by 2025, 100% of our packaging will come from renewable, recycled or certified sources. we will have recycling available at all of our restaurants. why now? mcdonald's has the opportunity and the responsibility to use our scale for good to address environmental challenges. our customers care about it. the top environmental concern they want us to address is packaging waste. this is about as being a better mcdonald's and doing things that both us and our customers care about. vonnie: you always cared about sustainability. why a bigger marketing push no

doolittle, thank you for that report. year fora pretty rough uber.critical problem in its foundation. now former ceo, travis kalanick. the latest edition of bloomberg businessweek provides the inside story of kalanick's hard year. joining us to explain, brad stone. the title is the fall is darker than you think. that is terrifying. brad: travis kalanick is still on the uber board and is a billionaire. it's probably a soft landing. we reported aggressively on the -- wel at over last year didn't take into account what was happening behind the scenes. the company had a terrible image problem. when trump was elected and uber did some things around joining the trump advisory council, it came pouring forth. the deterioration on the travis didand -- some things, arguing with the driver, personally try to make thing, thise third was really a revolt from inside, the management team and the board turning against travis. he wasn't a seasoned enough ceo to take the company to the next level. theie: kalanick joining business advisory council didn't help. >> that'

vonnie: abigail doolittle, we will be keeping an eye on it. mark: merger madness.n markets buzzing with a flurry of deals today. nestle selling its confectionery unit to ferrero. buy ubm fortalks to $4.5 billion. let's start with gkn. to begin bid negotiating. >> the hostile bid is taking it to shareholders. they are telling gkn shareholders that they are not that concerned about the management. they got a new ceo last week. they have made this offer. have a, and u.k., you month between approaching a company in making an offer -- usually, in the u.k., you have a month between approaching a company and actually making an offer. they seem to be making the play to investors. they have a history of doing bids. they buy businesses and turn them around. a and a decade ago, informe ubm were in talks. why would it work out this time? >> they have streamlined some businesses. they are coming together to be the rival -- it doesn't seem like a hostile offer. -- anan agreed agreed transaction. shares were rising. that deal is a friendly deal. melrose, it's not as big as craft

doolittle joining us with more. >> it is going to be pretty amazing. the selloff it is the first synchronized selloff my having their worst day of the year. last week the nasdaq. we are seeing more volatility for the three major averages. indexe the semi conductor down as well. a part of this could be repricing a risk. a lot of investors and strategist talking about the idea we could see market selloff. if we hop into the bloomberg and take a look at a three-day chart , we are going to see a significant climb back to levels seen in 2014. yields pressure stocks when they arrive unexpectedly like this. up, thatar yield back could create more repricing of risk. shares of apple down 8% from the recent highs. they report on thursday. >> thank you for that update on the markets. >> coming up, our special state of the union coverage. this is bloomberg. ♪ >> it's 11 a.m. in new york -- francisco, 2 p.m. in new york. i'm scarlet fu. >> and i'm julia chatterley. welcome to "bloomberg markets." scarlet: live from bloomberg world headquarters in new york over the

abigail doolittle joins us. the stocks are reacting poorly to this news.s fledgling industry is hitting a blip -- brick wall. this doesn't have to do with law, but president obama signed a memo that allowed the legalization of marijuana in several states. jeff sessions is saying that will go away. look at these declines. the biggest marijuana-related company is down 6%. take a look at miracle grow. they have a fertilizer for marijuana. the shares are down sharply. david: i thought it was long fertilizer. abigail: it is a pretty big industry at this point. david: the government saying, we are not going to enforce the law. attorney general jeff sessions is saying now, well. how big are these companies? inco: it was $6 million 2016. it is expected to be $50 million by 2026. of california launched a legal marijuana marketplace this week. california is the sixth largest economy in the world. it is expected to generate three point $5 million of marijuana sales in 2018. three $.5 million of marijuana sales in 2018. medical use, at cannabis, this is the breakdown.

abigail doolittle is here and we are a little mixed. nasdaq is down ever so slightly but earlier, the nasdaq had also been slightly higher. looking at another round of record highs. hope surround tax reform and the earnings season really kicking off on friday with some of the big banks. investors on hold, taking a breather. highs, relative to checker -- sector composition, tech lower as well but one of the best sectors on the day, health care. almost 5 --tific up up for the half percent. -- 4.5%. johnson & johnson up 1.9%. investors liking what they had to say. retail, a bit of a mixed picture. season, butiday urban outfitters, not so much, down 5%. that is below what they had guided two, before and we also have under armour down 4.4%. on brandside ahead risk and i know you love charts. check out this chart on the s&p 500. this is the rsi or momentum indicator on the s&p 500. when it goes below 30, that suggests the market is oversold. we saw that back in the mid-90's, for the most part in between those two levels, hitting levels we hav

abigail doolittle joins us. : they beat sales, but they were disappointed at the forecast here they areting another decline for motorcycle shipment. if we go to the bloomberg we can see how ugly this is. this is a link within the bloomberg intelligence area of analysis on harley davidson. this is 2014, and we see global shipment of motorcycles dropping and dropping. now they are forecasting that the global shipments will come in somewhere between 231000 and 236,000 motorcycles -- 231000 and 236,000 motorcycles. it has to do with millennials. they are not into writing motorcycles. vonnie: it seems like it was like that for a while and then there was a turnaround. what happened? :bengoa: morgan -- abigail morgan stanley is still optimistic. the decline has not debated in sales. to the stock, while some investors and analysts are hoping for a turnaround, if we hop back into the bloomberg, we will see a big piece. stockte, we have the where we see a bumpy downtrend. we see shares have been trying to climb out of november. short interest at a record high at about 18% sibley getting this righ

abigail doolittle has been tracking the action. not big gains are necessary to get to that record. abigail: the rally continues. eight days are looking at gains averages.jor a lot of optimism around tax reform. results for the big banks, but the effect on the markets overall is a tailwind, especially with jamie dimon talking about how it will be a positive for the country going forward. where there is not a lot of optimism is facebook. we have an intraday chart of facebook cover which i can pull up. it is right here. there we go. facebook is down 4%. his worst day since the end of november after the company prioritizehanges to not brands.family, mark zuckerberg says people might disband less time on the changes,ecause of the but the time will be more valuable. investors are a little shocked by the declines. the s&p 500, looking at some of the department store-related rbc and jpraded morgan went overweight from neutral. citing tax reform, brick and mortar stabilization, and other factors. this is giving a tailwind to the entire department store space. let's look at the 10 year yield

abigail doolittle is here to chronicle some more records. abigail: we are looking at small moves and mixed trading for the major averages. we do have all-time highs for the three major averages. this follows similar action anticipation of the short-term funding plan being passed by congress to keep the government open until february 8. some asking what could possibly stop this bull market but let's ask what is the tailwind? let's hop into the bloomberg to see one potential answer. this is a look at the earnings picture for the all world equity index. for several years, it was flatlining. that led into the correction that we saw in early 2016, that's turning to climb in 2017 and take a look at the spike early in 2018. lots of analysts boosting the profit outlook companies based on that tax reform, especially here in the u.s. this could be a tailwind for the record highs that we have seen for the markets, more recently as valuation becomes more reasonable. let's take a look at two winners laggers.acquers -- netflix up nearly 10%. they also boo

is it due to -- eliza doolittle has the details. it may be a case of expectations.er the last two years have tried to stage a turnaround. at the end of the year, there was more success. there was light at the end of the tunnel with a strong thanksgiving holiday shopping weekend. we can take a look at how this looks in the chart. the big downtrend is with sellers in control of the shares and at the end of the year, investors thought the turnaround was happening and the downtrend was broken. today, absolutely getting crushed and the downtrend is almost back in place. ofy were up 1% for the month december but the real issue was victoria's secret down 1% with lots of issues from product mix to shifting consumer preferences plus the malls. lots of concerns here and investors are not liking this. there was a relatively high bar expectation for what they would do over the holidays and it did not come through. vonnie: can the company pull off a turnaround this year? tell, based on everything we are talking about, it's unclear what they can produce. there are some investors

let's get to abigail doolittle.bigail: we are looking at a small miss for the nonmanufacturing or servicesism -- at a small miss for the nonmanufacturing or services ism number. again, a bit of a mess on the services via sam. anything above 50 days economic expansion, so not a huge mess. again, a bit of a mess on the services ism number. overall, not a huge influence. games once again hire for a fourth day in a row with the dow, s&p 500 and nasdaq set for record highs, putting in another round of all-time highs today. take a look at dow transports, leading the major averages about .6. the animal spirits seem to be stirred and on the week, big gains. 4804, theset g #btv are the weekly games or declines for the s&p 500. , the best game going all the way back more than one to last december after the election. the year starting off with a bullish bang. said noago, one person matter the negative news, citing president trump talking about nuclear war, the market still goes up. it will be interesting to see whether that ha

david: bloomberg's abigail doolittle is here. very small moves for the averages.he doubt, s&p 500, and the nasdaq seeing more games than losses. the nasdaq up slightly. all three major averages have already put in all-time highs. extendingat is through, but more so it seems as if investors have the breather. , this iscro standpoint g #btv 9014 in the bloomberg terminal, and it is the merrill lynch global financial index, a cross as a way of looking at risk. 2009, just in 2008, to put it in perspective, it was sky high, but now it is way low. investors from a micro seeming allre not seein that worried. some may suggest the sentiment could turn, but right now, the are not really seeing that so far. where we are seeing pretty big declines -- some of the restaurants and entertainment related shares. theydown nearly 21%, and own -- is basically a chuck e. cheese for adults. they put up a same-store called for fourth quarter to date that is down. you can see this is waiting on the entire restaurant space. david: it is a pretty ugly board you have got up there, abigail.

hour.t this let's go to abigail doolittle for a check on the market.ains fore have solid the s&p 500 and the nasdaq. another all-time high for the s&p 500 on pace for a record closing high after a little intraday volatility earlier as part of the nasdaq, slightly lower following what we saw yesterday. having its worst day of the year. gains today but the dow transports once again underperforming one port -- down 1.2%. the worst three days of the dow transports since july of last year. take a look at american airlines, and delta. american airlines today reported the stock down 2.6%. are raised the forecast and also talking about the idea that they will be able to boost fares. yesterday, united continental said they were willing to match fares. a little bit of a diversions between the views of the two airlines but nonetheless, investors not liking the possibility that fares overall may not rise. we could see another price war similar to what we saw last summer. helping the dow outperform, take up 2% or 50%ing gain on the year. this of course follows pres

julia: it is time for options inside with abigail doolittle. >> kevin, great have you with the -- withtudio. >> we are getting an underpinning on what will happen with the tax cuts reform and what will happen and that will trickle through corporations in the individual spending habits on the retail side. that willuestion happen is earnings. what do they do that guided this season. we see the volatility is relatively muted heading into the earnings season. that is really pricing perfection. this earnings season, we see it happening with target. there is a sense of complacency. not hearing them talk about complacency and what happened last year. what could rail off of it? in your work, what is the wildcard? >> it is predicated on the dollar, down last year at 10%. thes not uncommon to see --lar emerging markets, they need a weaker dollar to benefit. gdp will help stimulate that if the worldwide economy is stronger against the greenback. >> interesting indeed. turning to your trade, you offered this on amazon. you are back with another amazon trade. >> i hope everyone listened on septembe

here.l doolittle is treasuries having a massive impact on equities today. abigail: we have declines. we have a sea of red on the screen. on pace for their worst day since the end of 2017. earlier at the lows on pace for the worst day since the middle of november. right now this trading action does not have the feeling of turning green by the end of the day. charttake a look at a that may suggest that we could see some sort of pullback. it's the spread between the s&p 500 and it's moving average well above. conditions could be overbought. it's about 10% above since 2013. that may suggest we are going to go back down. it could be bearish. take a look at the stocks down 1.6% after yesterday's big incline. could be worrying to investors. the stock has not put in an all-time high since 2000. weekly intel on what's ahead. hell -- tell on what's ahead. this is a five day chart of the 10 year yield. had a big backup in rates over the last five days of about 14 basis points. we saw a similar five-day move of last year. it will be interesting to see how this happens.

abigail doolittle joining us. this is nothing new. the size of it surprised people.u are right. the charge has to do with the portfolio of long-term care insurance and they did talk about it in that kitchen sink analyst day last year when they lowered numbers and cut the dividend. they are doing everything to turn the company around. at that time they said it would be power -- more than $3 billion. now it is a $6 billion. it brings up the question if the companies being managed well and the new ceo is the man for the turnaround. does he know everything that's happening. on a call this morning the ceo mentioned that the company is looking at all options including the possibility of a breakup. cnbc saying that the likely outcome and an announcement could come as early as the spring. inid: it's pretty early on his tenure. we have had some surprises already. those were perceived as cleaning out so he could move forward. does this really raise longer-term issues? abigail: it's hard to say. the ceo did a good job of turning around the health care unit so there's a lot of c

we are 30 minutes into the trading day already and abigail doolittle is here.arkets not reacting too much to this third day of shutdown. abigail: looking at small moves for the majors. we have the s&p 500 and the nasdaq ever so slightly higher and putting in new all-time highs and the dow down very slightly. of ate the third day government shutdown, investors not seeming to care. yet another round of record highs for both the s&p 500 and the nasdaq. david over at mainstay capital says that they are desensitized to drama in d.c., but the conditions for markets are over. that may suggest a 5% to 10% pullback is ahead. if we happened to the bloomberg and take a look at g #btv to a 83, the last shutdown was in 2013. at that time, the s&p 500 did drop about 5%. the rsi or momentum indicator had been overbought. at this time, we have the s&p 500 5% above its 50 day moving average, suggesting conditions are overbought. take a look at the rsi above 80. katie stockton, the head of technical analysis, saying sentiment is overbought. she sees a 5% pullback is left. it wil

abigail doolittle, thank you so much for that stock of the hour.eralk company, amazon shakeup of the retail landscaping may not be over. that is according to one well-known technology analyst. the internetsaying giant could acquire target, noting that both companies focus on mothers and families. he talked about the potential synergy on bloomberg radio your -- radio earlier today. is aazon views the future combination of mostly online. but some off-line. i think adding that 470 -- excuse me, 1500 stores that target would bring in, that would be valuable. shery: predicting amazon's next deal has become a common theme for analysts. had -- is not commenting. here with more details, spencer soper. would -- is target a good off-line partner for amazon? spencer: it is a bold prediction. it is just that, a prediction. what it highlights is the main weakness that amazon has now in its fight against its biggest rival, which is walmart. theon does not have physical store presence. it purchased whole foods, it got 400 to 500 stores there, that is 1/10 of the

stocksined by our reporter, abigail doolittle.omberg rallying but still off its peak from a few weeks ago. tell me what happened. >> lots of volatility for bitcoin. you are right about that for sure. last month, we saw lots of volatility. put in ange after it all-time high of 90,500, swooping below this tells us 11,000. there is uncertainty about what is next. the bulls will tell you it is the thing of the future, at least blockchain, you have to be in it. the bear is saying it's a bubble, there is mania. lots of uncertainty the wide range in bitcoin last month, we are flashing that uncertainty and we are seeing at in 2018. yesterday it was down 5% on the day, today bitcoin is basic the flat. and after that bullish report about founders, we saw it up as much as 12%, finishing higher by about 8.5 percent, so the bulls taking it, but relative to this kind of marketplace, it is pretty handy to take a look at the technicals. where looking at a chart trying to tell where the buyers and sellers land. this is a six-month chart. over the