etf analyst.is our eric, talk about overall etf versus s&p and what the performance has been over theast year. eric: if you look at retail etf's, they are a great case of how you need to watch your wait. waiting onssive amazon, home depot. this etf is up 9% this year. it is up at 10 the past three years, beating the s&p by 30%. the other one, the more popular one, equal weighted, urban outfitters, men's wearhouse get , thatme waiting as amazon one is more in line with the s&p, but it is down 6% this year. depends on how you want to play retail. do you want the big ones to dominate? you live and die by amazon and walmart, that's fine. ifx: will macy's be offset amazon declines for some reason? eric: a little. but i agree with you, if you look, amazon has been the stud in a few etf's and literally contributed more than any other stock, not only in retail, but also in internet etf's. fdn. that has been doubling the s&p, but then youazon, throw in ebay, netflix, a lot of companies, and this would be more of an e-commerce play. again, not perfect retail, so to speak, but all of this speaks

bond etf.at if i want to play a rising rate environment, is there a way to do this? eric: totally. one of the most popular ats is k re:. most people might have a financial etf but this one is highly correlated to the 10 year a regular stock in two yes because regional banks in particular get more of their revenue from lending out money. these are going to be most sensitive to a rate increase in a good way. we have seen 250 million go into kre in the past does go weeks alone. scarlet: have they lost money the way they have on tbt? eric: no, this is a regular stock etf. there is nothing weird going on and it is up about 5% since that meeting when the fed left the door open for a rate hike. alix: what do we need to totally avoid in the etf world if interest rates rise? eric: zero. literally the etf at the biggest duration, 26 years. these tract bonds with a coupon payment history doubt. payment is stripped out. past five years, this has been pretty popular because rates have crept down. does very

if you told every etf owner we have the right to suspend your etf and you will not be able to trade itg that suspension period and that could happen at any point in time and we're making that decision that would change the sense of liquidity around those etfs. >> do you make a distinction between high yield etfs which is something karl icahn has raised a red flag about and broader etf market including equities. what you were referring to was the equity situation. >> both. it affected both. period of time for which the equity etf was disconnected from its cash underliars was not that long but i think it's hard for anybody to guarantee investors it can never happen again or if it happened i want wouldn't be 90 minutes it could be nine hours, it could be nine days. we just don't know. >> to some degree you're suggesting it needs have a warning label. but why wouldn't you just say these things are bad things more broadly? if that's the case. >> i don't think they are bad. i never said they are bad. i said that they have risks and we have to understand risks. investors have the right and sh

etf's are up to nearly $3 trillion in assets.yman standing by for our weekly the dive into the etf market. julie: you can see the jobs number was not the only number released this morning. an etf survey came out and highlighted some major trends in the industry. over the be going numbers. he is our in-house analysts. who did they survey them over the looking to find out? eric: etf.com. for etf surveys done investors are sponsored by issuers. you question the bias. this is an objective survey done with advisers. advisers are heavy users of etf's. this is like early adopters. what ec is foretelling to what trends you will ultimately see carry on. julie: what stood out? eric: 99% of them plenty of increase smart grid etf's. beta etf'setf -- -- like index funds and are active. they smart beta etf is like an artificial intelligence version of a manager. capakes dividends or small and embeds them into the index. it's essentially a rules-based passive index. orwaits for securities select them by something other than market cap. that, if

the etf's with the highest in tesla are the alternative energy etf's.ative energy has a 9% waiting to tesla. over the past three years, this etf is up 80%. tesla accounts for 35% of that performance. i've never seen one stock have such a big effect on etf. if tesla is in the etf, that's good. alix: what are the flows like for that? one of just go by tesla? >> you do get other alternative energy stocks. it depends. gex is not a tesla play but ends up being one. ,et's say tesla goes down 700% down 90%, this would dilute that problem. when something is going great, you want a single stock route but the diverse projects you if the opposite happens. bitcoin has been on a bit of a tear the past couple of days. is there an etf that allows us to cash in on that? >> no. there has been a lot of misinformation out there. registrationetf in , the bitcoin trust. it has the ticker coin. the whole thing is ready to go. they are doing in the real way, tc approval.t f there are other products out there -- bitcoin gets investment trust. this is the one that is over-the-c

i would never bargain hunt with etfs. and instead, like the vast majority of the pros i like to look for misvaluations. stocks that are trading out of whack, with what we call the fundamentals that you often ask me about. typically, that means stocks are trading either too cheap versus the sector or too cheap compared to the market as a whole or vice versa. but it can also mean stocks that where they'd be valued in the private market or to what would be known of the sotp, the sum of the parts, or the what the company might be worth relative to commodity it produces. today we saw more of this mass scramble on every one of the different segments to try to figure it out what the value is. every method imaginable. you know what i think this session was a clinic for mow portfolios work. we'll put on a clinic right now. so let's start with the most important story of the day, the breakup between hewlett-packard at hpq inc. and the personal computing and the printing business. it was a slow to no growth amalgam of data storage a

a materials etf for 12 basis points, but the aboutst gold miner etf is 30 basis points.ie: so if you want to save money, you need to get specific. >> these are generally in core areas. cheapest etfhe from each area, you are looking at a well diversified portfolio of equities, bonds, reits, international, the whole thing for about nine basis points. so vanguard is in those core areas. it is in the outer niche areas where they are not. julie: how they are making -- how are they making money in these fee wars? vanguard has a different operating structure, so the profits go back to them. that is the reason why they are such a force. betty: thank you, julie hyman. still ahead, it is the hudson yards hustle. our exclusive look at who the international real estate has recruited as their latest tenet. ♪ . . from bloomberg world headquarters here in midtown manhattan, you are watching bloomberg television. i'm betty liu. let's start with the first word news. vonnie quinn has more from our news desk. avoid's -- agse 20 summit, two security force members and seven civilians have di

spider etf's, there are industry etf that go down to the next level and are little more volatile.ust all caps,, and large caps. are small caps, mid-caps, and large caps. that is sometimes a shocker. this one has been 6%. julie: there are other we tell etf's. how is that one different? make up 50%. you are looking at three companies making a third of the etf's. because amazon and home depot have been doing so well, this is up 9% this year. if you keep percent swing between these two etf's. it is a 1% weighting. toamazon and walmart start suffer, home depot rather, they are going to take our gh down with them. been there are dynamic shares some powershares. >> it uses fundamentals to screen and wait the stocks. you are looking at price earnings. it is almost a goldilocks version. amazon is just 5% weighting. what some people have been doing is going through to the internet ats because of the e-commerce. is are going to see amazon 11% weighting. there is also ebay, groupon, and facebook. that has been an alternative way to get into the retail price. julie: going into the holiday seas

so this is an etf with a basket of 64 oil and gas exploration and production companies.t's important because if you look at the major etf, 30% is exxon, mobile, and chevron. diversified. kevin: exactly. this is the way to play it. i came up with an option straight it's real simple. out to35 put all the way april of next year. it gives a couple of months to let the trade shakeout and let producers go bankrupt. we have seen 37 oil and bankrupt -- oil producers go bankrupt. that could be telling because wells are more efficient. julie: we do have breaking on cosco. , andding to the cdc outbreak of e. coli has been salad to cosco chicken and as of november 23, 19 people have been infected. people have been hospitalized, no deaths have been reported. rotisserieemoved all chicken from its shelves and the stock is taking a leg downward. we will bring you more as soon as we have more information. ♪ scarlet: live from bloomberg world headquarters in midtown manhattan, you are watching bloomberg markets. i'm scarlet fu. let's get your headlines on first word news with mark crumpto

outperform etf's related to energy.ingit speaks under the hood at the weightings of these products, even in the commodities space. we were- scarlet: one analystier -- indiohat you should by with the caveat that you do not -- he should buy and it with the caveat you do not look at your portfolio for 25 years. eric: sure. how great is it that a portfolio manager talks about such a long-held view question mark is right. 25 years, you're probably going would say etft? i investors would be in step with him. indian etf's have been on fire in terms of flow. even among civil country etf's they are the 10th biggest assets, they have taken in the second most money next to japan. they are why above their weight. there is nothing like a regime change to get some central -- single country etf's going. it has obviously gotten hurt a little bit. the data products you see people going into are the ishares and inda, that is the big one. it is at 65 basis points. the one that has them the best are the small caps. sometimes the small caps

that gradual view reflected in bond etf? >> we are seeing flows to aggregate bond etf's. they are still allocating money going in there. that also saw about 500 million. all of the different areas have seen uploads. >> run me through some of -- where some of the flows are going. a quiet trend is in maturity bonds. way to an old school play rising rates. 2017, they were actually etf's that matured a certain year. you actually buy them in a set. you put them in the years they have where the rates are higher. it keeps buying at a higher rate. it is plain vanilla. there is nothing funky going on. there are leverage etf's people will use. listen to the stat on the target bonds. they only had 1,000,000,002 years ago. it was only 10 two years ago. >> it makes sense that they go to the interesting environment. there is a hedged one. packaged the one trade for you. the pro shares investment great interest rate hedged etf those long corporate bonds and short twenty-year treasuries. institutions have been doing trades like that. essentially what you get is a duration of zero without

in particular. >> etfs need a warning label.arge segments of the etf population that behave is ways that were not intended to. part of the reason you're earning an etf is liquidity. you have to understand it may not be there when you want it and that is risk. >> you ghies are the etf shop, rob. >> i think that it would be good if he actually got some good information and did some analysis and did some homework on the market. this is a lrj and growing market and i actually would take the other side. i think the etfs have enhanced the liquidity in the market for people that need the liquidity. and we make this whole story about liquidity, liquidity. people should be investing and most people do for the long-term. these are not people that are going in and out of markets but they can go in in a product that is transparent, that is cheaper to use, that is better tax wise and it's diversified. so i would say it is checked all the boxes and i would contend it is very liquid. there are different types of etfs like different types of eq

the olympics water cube in beijing is made of etfe. etfe gave munich's allianz arena its shape- shifting appearance. minnesota's etfe roof won't be lighted, but the spaces around it will: givivi it a glow of changing colors, including vikings purple." ... viking video? ..." the 248,000 square feet of roof sit atop 10-story glass doors facing downtown minneapolis that open and close. in harsh weather: etfe provides a warming thermal effect, and what stadium builders say is an overall "feel". " ... 439 sot 2 having an etfe roof will allow minnesota fans to have the comfort of an indoor environment, while still having an open air feel year round. 46 ..."3 3 australia's taroroa zoo is celebrating the birth of one of the world's most *rare* monkeys.meet 'nangua'... named after the mandarin word for pumpkin. the bright orange francois' langur was spotted cradled in mother meili's arms on november seventh. he's the first born to father bobo... anan he'll look more like his dad as he gets olders and loses his orange coat.francois' langurs are

now, to get the cup and handle, the big bank etf wants to trade sways.ou can pull back which would create a sideways handle next to the cup that's already in the chart. and remember, based on what we saw in the daily chart, that's exactly what collins will expect to happen. if this etf trades sideways for a while and creates that cup and handle pattern, collins thinks it could go down to 28. that represents a 14% increase. that's pretty significant when you're talk an etf made up of the biggest banks. financials are the largest component of the s&p 500. this wouldn't be the gain you would get even with a fed rate hike. in the short term, the chart suggests the major banks might need to consolidate for a while. lower term, he sees the group headed higher. i agree with his long term forecast because the moment of fed raises rates, the earnings power for all these bangs gets much stronger. if collins is right in his interpretation of these charts, the big banks could trade sideways, you could go lower in your future before roaring higher long term. i think

and if this relative index breaks down, the big bank etf could follow it lower. meanwhile, the commodity channel index, that's called the cci at the board, which measures whether securities are the xlf has been overbought for nearly a month now. after yesterday, this index is still elevatat. but it's fallen below what we would consider overbrbght level. we might think that's a good thg. collins suggests the buying interest is drying up. of course none of these negatives have actually come to pass. but if they do, collins thinks it could end up trading sideways for some time. you have to be price sensitive if you buy it. in short, it's not looking as hot as i expected when i asked him to do this chart. given the fact that i think the banks are about to becomomsome of the sexiest stocks imagine buildidi. when you zoom out and look at the xlf weekly chart, then it starts to look a heck of a lot more positive. this is a picture of what collins likes. he points out it's moving steadily higher for two straight years until the big selloff last august, rate scare. howeve

david: we only use etf's, the only etf weirs is ecg. we own it. scarlet: it has been a rough ride. at what point do you have to say, i have to close this position? david: we just entered the position, we are only a few pennies the low-cost. is your redt flashing warning? david: one dollar. scarlet: look at the appalachian basin. that is not out of the possibility. david: there is a time when volumes rise. lng means items rise. -- means volumes rise. is a trade-off underway? we took a position, we think it is an entry point. in the next 15 years we will find out. : we will have you back in 15 years. scarlet: you might be stuck there for a long time. david: we took a position and we might be there for 15 years. joe: i want to talk about a hated commodity, a different story -- gold. a lot of people obviously loved it, there has been a few bad years for it. what do you think? david: we took a position in the gold stocks. scarlet: you did? david: they are under the cost of production. the russians are buying all of the gold produced and putting it in a central bank. chinese are buying g

holdings or possibly emerging market etfs? >> no, i don't think it's emerging market. you will see, we expect, some tightening up in the short end of the curve. that should put some pressure on the higher yielding stocks. i would say you probably likely will see more of the same through the first quarter, maybe through the first half of 2016, where they continue to lead. amazon is up 115% this year. netflix is up 150%. the s&p is up about 3%. the real risk is the contraction in the multiples of the high flying stocks. i don't think the market's going to take a hit on earnings growth but i think it's beautiful on p/e contraction because of the momentum stocks have been on a tear the last six years. >> we have obviously noted the two hedged etf products, that wisdom tree has, the dsj and the hdgg, both which hedge different currencies, the euro or the yen. at the risk of having you talk about your own book, do you think, though, those types of trades, focusing heavily on currency and the impact on overall market moves, are going

and i will tell you that these etf -- the whole cut, not just etfs, the whole system is a precipice to some extent. >> let me go back to activism and i will take you out tv and put it on bill acman. there are activists that are right and wrong. and bill has had great success at certain times but herbalife has turned out thus far not to be the same success and if you look at jcpenney you could see real damage that took place. do you worry about making the wrong decision yourself? >> yeah, i think we all make wrong decisions, however, i think in a certain way, over the years, i learned this. that if you where conservative and have capital, that is why i frankly got out of the hedge fund business. i did it for a while and actually, i was a good guy. i got been i got paid for being ethical because in '08 when everybody wanted money i didn't have to give it to them, because i had three year money so i did it. so i sort of made a deal with people. and i bought them out. it is one of the west buys -- the best buys i made. anybody who wanted money i gave it to them, i spent about a billion and

. >>> plus the cyber security etf is flat on the year. if we keep on getting hacked, why aren't stocks in the sector going up? we'll talk to the man behind the fund coming up on "power lunch." you pay your car insurance premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call to learn more. switch to liberty mutual and you could save up to $509. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. cto everything from surfers welcomingto seals.ul home attracting visitors

look at hyg today, the etf. that was down 1% today.ese deals are financed, not necessarily with high yield debt, but if that financing starts to dry up, then deals going forward are going to be more difficult. >> starting to see that happen now. >> there was yesterday an interesting bloomberg article about a carlisle deal with the bank debt was having trouble getting done. that is the first crack you see in the leveraged debt markets. >>> up next, crude is near decade lows. airline ticket price are rising. why are airline stocks stuck in a holding pattern? get it? jamie baker, the top analyst in the space will explain. >> "the hunger games" coming to an end. that could have lions gate shareholders starved for return. what could be the next catalyst for the stock. my language skills, i've read all of your lyrics. you've read all of my lyrics? i can read 800 million pages per second. that's fast. my analysis shows your major themes are that time passes. and love fades. that sounds about right. i have never known love. maybe we should wri

the etf was at 14.6, now it is that 16.7. that is the white line on the chart. up for the year. surprise. how did it rally? the currency got absolutely obliterated earlier in the year. as a strategist from lacked rock pointed out -- blackrock pointed out, they have been able to accelerate the speed at which the economy recovers. this is one example where devaluation seems to have worked. just to prove timing is everything, i looked back in history. year.tf tracked 49% last it jumped 139 present in 2009. since its peak in 2008, it sucked 72%. you would be better off putting your money into the s&p. itsince its peak in 2008, sank 72%. germany's dax index. it has been a weird year. it slumped into a bear market -- the white line, the dax. the euro is clearly the yellow line. since then it has rebounded 15%. what a year it has been. it rose, then sank by 24%. it basically is an inverse chart to the euro. the euro rises, the dax falls. rises.o falls, the dax that is what is giving investors hope. if there is a fed rates rise, we could see a stronger dax. over 70 shows that the asset

jon: most of the etf's out there are passive. would behe robos passive.the data says passive outperforms active on average and over time. erik: wide turn to a robo turnor instead of -- why to a robo advisor and set up putting 60% in two vanguard or into an index etf from, say, lack rock -- black rock? jon: portfolio creation is the easy part. anyone could come up with that. than that.ch more we give you holistic financial advice. we take into account your social security benefits, pensions, we tell you how much to save in your roth ira versus a traditional one. how much to put into your 401(k). we look into your bank account. if there is an axis, it will sweep it automatically into investing. we have over $3 billion under management now. erik: by the end of next year, you expect what? jon: let's say three times a week have now. thank you. jon stein is the ceo of betterment, a robo-advising firm. we will be back here with former defense secretary william:. -- william cohen. ♪ erik: welcome to bloomberg markets. ♪ from bloomberg world headquarters in downto

dollar etf, the uup, doesn't exactly hold true to that form.ollar/yen might be one of the trades to look at in your trades leading up to what happens for the 12 days of fedness and janet yellen and the fomc. we'll do this every day for the next 12 days. the first one is currency. tomorrow we'll look at another asset class and what could be a winning trade if history holds suit. go to cnbc.com/pro. subscribers can get the full story over there. guys, back over to you. >> celebrating fedness. thank you, dom. the bond market and rick santelli tracking the action at thec me. >> hi, tyler. we're idling a bit in the tris ri complex. if you look at an extra day of 10s, yields are virtually unchanged. one basis point lower than we settled on friday. when you open the chart up, that really says it all. we zoomed up pricing what the fed purportedly will do in mid-december all the way up to 235 and we've been in a tight range kind of diminishing some of the sell-off that push rates up but in a very lethargic fashion. it's all about foreign exchange. you h

the retail etf, seeing the best week since january after that big selloff last week. let's dig a little deeper and see what is working in the space overall. the s & p retailing industry group up is 30% over the past 12 months. it trounced the broader s & p during the same time. but here's where it gets interesting. the chief market strategist at jones trading points out that four stocks have accounted for 90% of that yearly gain. amazon, netflix, home depot and lowe's. so amazon which up is 128% over past year, account ford 54% of the industry group gain. 18%, home depot. that stock gaining 31%. netflix which up is 110% over past 12 months, 13% of that overall move. and lowe's added another 5% to retailing fees. they're up 29% in the past 12 months. if you add the next two biggest competitors, o'reilly and autozone, 96% rev tailing yearly increase can be chalked up to six stocks. specifically, stocks that reflect where consumers have been spending their money. internet services, home improvement and autos. what is absent from this? apparel. melissa, back over to you.

the retail stocks as measured by etf that tracks, the spider retail etf. that is down 6%. if you take a look within the holdings of that etf that tracks the retail stocks, a number of names pop-up as big drags and have big market cap along with them. walmart, $187 billion company. it's down 32%. a big drag for retailers overall as an industry group. dollar general and the dollar store side about, a $20 billion company. also dragging things down 7%. and then macy's, of course, we get that big earnings report tomorrow. dragging things down by 29% about, a $15 billion company. at this point, remember, all of this is about what's happening with the retail earnings coming up. they're going to provide a big picture. wednesday is macy's, thursday is kohl's and nordstrom and then friday j.cpenney and then octobr retail sales. remember, we're entering that seasonably strong all important holiday shopping period. these stocks are all going to be huge focus for those consumer spending fans out there. back to you. >> all right. thank you. general electric meantime, hitting a milestone

and 30% of the etf is exxon and chevron. that was a technical trade. and i want to make one point about exxon. what might have gotten investors kind of focused on that thing, the peak to trough earnings decline from 2008 to 2009 in xl was about 55%. the consensus for this year is exxon is down 50%. so people priced in the potential for the earnings decline and saw an uptick next year. you had a 4.5% dividend yield. at the lows. that sort of thing. >> and we're going into the defensive name. it is exxon and chevron moved the most and a lot of stocks have not moved at all. >> here's my question, carter. can you get a scenario where the energy names because they are readjusting and rebalancing to the lower price can rally off the bottom when crude oil prices stay lower. even fall further. >> that's also the disconnect because crude is not coming up. we have the pressure of the dollar or said differently, this rally in exxon and chef ron, what level of crude are they discounting at this point. >> it is not just the level of crude. let's bear in mind that o

dow transportation index etf. finally you talk about the booking sites like expedia or priceline, 2% to 3% lower for the same reason. as we talk about trades to watch, this is something to keep an eye on as everything continues to unfold, mandy, and this is just a real interesting move with regard to whether or not there are investors out there that are genuinely scared or whether or not this does bounce back. >> perhaps it was good we had the weekend as well to digest so there wasn't as much of a knee-jerk reaction. >> and you didn't see a lot of that flight to safety. we should point that out. >> gold is only marginally higher. >> it's very tragic what happened but right now the markets are still trying to figure out what's going on and that's going to be important at least for the next couple days here. >> thank you very much for that, dom. >> to the bond market we go. rick santelli tracking the action at thec cme. >> hi, tyler. most of the curve is unchanged. the short end maybe down a basis point. the long en

a new restaurant etf is looking to serve up some profits.e with the creator of the new product that tracks the industry. the squawk box main course being served right now. >> the most powerful city in the world, new york. this is squawk box. >> welcome back to squawk box here on cnbc. first in business worldwide. powerful city. maybe not so powerful teams across the board over the weekend. it was rough. mets, giants, jets. we'll have more on that later on. we're less than 90 minutes away from the opening bell on wall street. futures moderated a little. up just under 10 on the nasdaq. in europe things were going pretty well earlier but they have moderated a little as well. germany is up .9%. france up .4. the ftse is now actually negative and italy up just fractionally. >> we'll tell you about the stories investors will be talking about this morning. visa buying visa europe for $18 billion. in other news, the credit card issuers earnings missed by a penny. visa also authorizing a new $5 billion share repurchase program. continued trouble for

own the real estate etf.n times of domestic turmoil where the rest of the world is in much better shape where we were after the financial crisis, for example, then you do want to own a foreign company. s here the bottom line. always own a stock that's from a safe geography sometimes that means a foreign company, sometimes a domestic security, all american, depending on the outlook. i think you're going to want to go domestic at least for the foreseeable future. "mad money" it's back after the break. we live in a pick and choose world. love or like? naughty or nice? calm or bright? but at bedtime ... why settle for this? enter sleep number. don't miss the ultimate sleep number week going on now! sleepiq technology tells you how you slept and what adjustments you can make. she likes the bed soft. he's more hardcore. so your sleep goes from good to great to wow! give the gift of amazing sleep, only at a sleep number store. this week only, save 50% on the ultimate limited edition bed. hurry, sale ends monday. kno

own the real estate etf. and in times of domestic turmoil where the rest of the world is in much better shape where we were after the financial crisis, for example, then you do want to own a foreign company. re's the bottom line. always own a stock that's from a safe geography sometimes that means a foreign company, sometimes a domestic security, all american, depending on the outlook. i think you're going to want to go domestic at least for the foreseeable future. break. it seems that every year, we have to watch out for different types of germs. which is why it's important for your wipes to kill a broad spectrum of germs. lysol wipes kill 99.9% of germs, including 8 different types of cold and flu viruses. to help protect your family... lysol that. i asked my dentist if an electric toothbrush was going to clean better than a manual? he said sure. but don't get just any one. get one inspired by dentists. with a round brush head. oral-b's rounded brush head cups your teeth to break up plaque and rotates to sw

a nice short. >> the leading stock in that etf.lburg, thank you very much. >> thank you, sully. >> for more segments like this with direct recommendations, you can go to cnbc pro and check it out. >>> up next, more on oil, more on stocks. crude falling briefly below 40 bucks a barrel. it's above that right now. will it hold before the close? you will find out but only if you keep it here on cnbc, first in business worldwide. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this. i finally did it! ♪ ew, you did it all right. let sparkle paper towels clean it up. do the math - and you'll see sparkle costs less.

. >> what is that going to do to etf growth?mber, we could see more private equity ion.ress growth numbers are not looking good as it is. it seems like it will only get worse. >> the u.s. economy is growing. a baseline is consistent with revenue growth, what leads your topline sales growth, and sales growth is what is happening and higher earnings. earnings for 2016 will be $120 s&p 500 share. earnings left by 80% this year, so the profits of energy companies are down a lot. next year earnings will come back a little bit. >> why would they go up? >> the economy is growing and oil prices and revenues were at the rate of change that has been so dramatic break $100 last year and $50 this year. we will be around these levels. flat earnings.ively >> overall the stock market is likely to be growing in terms of value. what will outperform it not environment? some will be up, some will be down. >> a way to think about this is a bifurcated market. a split market. while the overall index will be flash, there are certain themes or splits i

erik: any quick thoughts on liquidity in etf's? a fast-growing asset within fixed income. around etf paranoia is a little overdone. partstill represent a low of the market. i think it is a well-designed product. the thing that you worry about and this could be longer term is that there is the fundamental mismatch between the liquidity offered by etf's. if you are owning an etf, you want not even minute by minute liquidity, but second by second liquidity. yet, the underlying assets are certainly not that liquid. right now, it is manageable. as those profits grow, that is something that the markets could be forced to deal with. david: next, we are going to bring you some of the highlights from today's program. ♪ david: welcome back to "bloomberg ." let's take a listen to some of today's highlights. the people who populate the fed today actually believe that if they can keep money cheap that itome along enough may kickstart the economy. trump is right and i'm glad that he is putting up a stiff arm and saying that the fed is out of

because what stands behind an etf are bonds that don't trade.t is larry fink and he is a goodbye and i like him, we're good friends but if he doesn't think they are unsafe, will he guarantee liquidity. so when people want to get out of the etf and sell the bonds set behind them, who the hell is going to buy those bonds? is larry fink going to buy them. that is my whole point. black mark is not going to buy them. >> between bill acman and larry fink, these are great friends. >> i never said anything bad about acman. >> well let me ask you -- >> but fink does what does he and he does a great job. he sells that stuff and it is a great job he does and he does just what he should be doing. his job is to make money for black rock and he does it. and i will tell you

julie: why the junior gold miners and not the etf itself? why focus on the juniors?: something we pointed out larger capg was the gold miners and g dx j, you would think trade in parity. in reality, they are applied volatility right now is at parity. it is very unusual to usually, a 10 volatility points read with gtx j being higher. .t makes sense historically two reasons. one we think is complacency. the other -- go ahead. complacency, and we think that could flip the trade around. the other thing is the indebtedness of the larger gold miners. julie: we have got to leave it there. we will be back. ♪ i just had a horrible nightmare. my company's entire network went down, and i was home in bed, unaware. but that would never happen. comcast business monitors my company's network 24 hours a day and calls and e-mails me if something, like this scary storm, takes it offline. so i can rest easy. what. you don't have a desk bed? don't be left in the dark. get proactive alerts 24/7. comcast business. built for business. betty:betty: live from bloomberg's world headquarters h

some criticism over the performance of etfs that day.he fact that when the new york stock exchange halted trading or suspended trading in some stocks, the etfs based on some of those underlying stocks were not halted. he said that etfs in europe didn't have the same thing. that it's a market structure issue. and that the exchange and the s.e.c. and blackrock are all looking into that. that's latest from the deal book conference. back to you. >> so no extra intervention on the etfs but extra intervention on the tax code? >> perhaps. we will see. >>> polaroid's parent company filed a patent infringement suit against gopro. joining us is jon fortt with more on that breaking story. jon? >> yes, cma marketing which has the exclusive long-term license to the polaroid brand is suing gopro saying that the hero 4 session, which gopro came out with just this summer, it is basically a rip off of polaroid's cube which came out 18 months earlier, january 2014. they filed this suit in new jersey. they include their patent, the d-423 patent. for contex

there is a sector etf that tracks the minors. ,t is trading at a record low created back in 2006, lowerhat it only three of the today'srs are higher in session and the single worst performers, largest producer of iron or in the united states, off by nearly 13% today after saying it will idle its plants -- plans in minnesota next month at least temporary -- temporarily. in chinese fields, continuing overcapacity and oversupply in the iron ore market. some of the other worst performers in the etf really spread out across a host of different types of metals. you are seeing prices fall today . you have also got peabody energy. coal is represented their and other types of metals as well. david: julie, thank you. marriott has agreed to by starwood at a deal valued at $12 billion, to create the world's largest hotel company on bloomberg this morning. stephanie ruhle david west asked why he thought this was a good deal right now. >> we watch the continuing evolution of the marketplace. agentsbout online travel request -- acquiring other companies and how google is using hotel finder to mak

a number of prominent hedge fund companies hold this etf.attering we have seen in gold prices. holders,s you the top one of the big investors in gold , he still remains one of the big investors even though he has been pairing his holdings. he decreased his holdings by one million shares. you have some other big companies, well-known hedge funds. there thatent names have taken a beating on gold thus far this year. we've also been watching the miners. many falling along with the gold prices. falling. goldcorp also a company called royal gold based in denver, this company falling 14% today after it reported a quarterly loss. revenue trailed analyst estimates. not surprising given what we've seen happen to gold prices. david: julie hyman at the markets desk. now to the nasdaq were abigail doolittle has the latest on two big tech movers. abigail: this is one of the big earning stories we've been watching today. plunging fire eye after the company missed revenue and billings forecasts. the company cut its full-year revenue guidance. factors blamin

bk goes to the 20 year etf. i actually thank that the tlt sets up okay in the near term.aise rates, and i think they are backed into a corner at this point, you are going to see the tlt is going to rip. when you think about it, if you take the sort of environment we have right now where there's global fears, where did the tlt go in late august? went to $129 or something. it's oversold here at $119. i'm not certain the fed goes. could be a buy at $119. >>> sun power shares managing to stay afloat as rival stocks get crushed. ceo tom warner joins us on set after the break. exxonmobil down more than 10% this year. one trader betting the pain is just starting. >>> we have a news alert on loan depot which was supposed to price its ipo night. it will not report its offering as planned. loandepot not going to price its ipo tonight. a trend we've been seeing the past couple of weeks. >> thank you. >> solar stocks getting slammed today. that is nothing new. sun edison and solar city getting crushed, down more than 45% in the last month. one solar name has risen above the others, s

gift cards to give people stuff and etfs. how will that work? >> we created a prepaid card, goes on a specialty rack for gift cards. we've got it testing now in n 00 storeses we did a lot of consumer research. you go to a rack, buy the card, give the money at point of sale like you do for a gift card. that card is now loaded. it directs you to a websiti, a stockpile website, ingenious website, it allows you to register in a matter of a couple of minutes. that $50 worth of stock you get to buy. if you think about stocks, a lot of them are high priced, a lot of people don't know how to buy stocks or buying $800 stocks doesn't work. buying partial allows us to use a prepaid card. the research told us two things. but 30, 40% of the people are really uncomfortable with tradininthe stock market, dodot know how to do it, can't figure it out. there is a big self-use component here. we think a whole bunch of people will get comfortable with stocks because of what we're providing. and then the second one is, gifts for kids or family members, younger peopl

etf is playing a role in where do we end up as an industry.ur expectation for where global yields go from here? the fed is the dog, and you wonder what its tail will be looking like. tail.g is wagging the as draghi sits and looks of that conundrum, how does he manage what is likely to be an incremental push higher on bond yields at a time when he doesn't want that? he is being pushed around by what the fed will do. stephen: it's interesting -- the idea that these bond yields can diverge is very challenging. when you look at the paper, the correlation is high. clearly he is going to be very concerned about that, if bond yields due back up as a result of what the fed may or may not do in december. interestingly, you look at treasuries now, 2.35% with most people expecting a fed hike, it is hard to see huge pressure. there is some pretty significant structural forces that i think will cap year-end bond yields. the rest of the world is still using, the fact that you had this huge bid for collateral. all this changes the need for high-quality asset

emerging markets if you take a look at the etf gaining over 4%. just to put that move into perspective there have been only five occurrences sense the etf's inception when em stocks gained 4% or more in the month of october. but data suggests that the rally may not continue. in november and december, emerging markets trading positive only 40% of the time with an average return of just 1%. so what could hurt emerging markets' stocks in the last two months of the year in td securities says there are three potential headwinds. first, any negative surprises out of china as we saw in the october pmi number which shows the manufacturing sector remains in a tough spod, a renewed drop in commodity prices, and the looming fed rate hike. the markets seem to be discounting the likelihood of a hike this year. there's a 50/50 chance of a december rate hike. that's why this friday is important. a strong job reports could mean more chatter of a hike. >> thank you very much. sara, back to you. >>> -- getting off to a good start for the bulls. stocks trading aroun

thes pdr retail etf is up by over 1%. track for a fourth straight day of gains and crossed above the 50-day average price for first time since early this month. we've seen a lot of weakness as of late. among the leaders, guess, sears, burlington stores, finish line all up between 2% and 8%. of course, this is interesting because are traders getting p positioned for some kind of buy? the rumor event for the season. we'll see if it pans out. >> sears up 8% on the day. you don't see that very often. thank you,.com. let . >>> let's go to gold prices and jackie deangelis. >> gold down a little less than half a percent hanging out at the $1,070 area. it's a critical level of support. we had expiration yesterday, geopolitical issues causing a little volatility. for the week we're about flat. for the month, remember, we're down almost 8%. dollar strength if it continues to persist is going to be a problem not just for gold but the other metals and commodities as well. >> thank you very much. let's take a look at the markets now.