is it time to start betting on some non-fang tech zone? no fang zone? >> a food job with all these great, great for a tuesday, mel, well done. yes, there are names you can invest in, in the no fang zone. i will give you a quick three. red hat has been a name they just signed, another strategic line with amazon web services a. big valuation. doesn't patz. they have a meat. who you know who else has a meat? adobe. they're reporting june 20th. the pattern has been, they report. stock sells off, buy the sell-off. it's worked for almost two.5 years. i like adobe. the last i think will be purchased too imthis year. xylinx and i think they set up for a name that could be purchased and the premium could be anywhere from 30 to think%. >> we talk about a lot of these names. i this i what we are trying to do is identify with there is gloet and valuations. sometimes you don't have it all the time. you think about the fang stock, i know it's no fang, i will intentionally. i think there is more growth. i would argue chinese tech outperformed u.s. tech. i would make a

china's fang, or maybe we should call them the red fanb.hey have averaged 50% on average for 2017. how much do these fast growing american companies have in common with their american counterparts, and are any of them worthy of buying or are they too risky to invest in. we'll start with alibaba. which is the amazon of china. alibaba has a growing cloud business, this company is essentially the human face of china's digital cultural revolution, led by it's founder and chairman jack ma who is as humble as he is bill lant. all allibaba opened up at 98 and change. we're pulling back to just under 94 bucks. however it quickly fell out of favor, alibaba pulled out of the 50s at the end of 2015. that was a fabulous buying opportunity. next up there's baidu, who is the unchallenged king of chinese search. in retrospect, that was not a great business decision for alphab alphabet, but there are more important things that profit and loss. china is the largest company in the world and it's got the largest population of internet companies. as the china

>> it looks like a list of fang -- >> it's like facebook, amazon, alphabet -- >> tesla. >> tesla. and some media companies, comcast is on it for the first time. >> first time. thank god. >> nice part about the list is it looks at billions of actions of users, whereas other lists that might just be based on surveys, we actually see are they looking up jobs, looking up jobs and are they looking up employees and were they staying at the job once they actually get it. we're trying to figure out where people are telling us they want to work. >> can you figure out where people don't want to work? >> we can see what companies are on the list and off the list. for instance this year you saw a big drop in twitter but see jpmorgan got on the list for the first time. there are a number of companies that are doing really welcome paired to their competitors and it's because they are investing in talent, they're out there,

it's not like 2015 where fang was the difference between an up and down year. so, yes, it's going be that way if it keeps this way. you may say, oh, that's what all gross markets are like. >> you notice the spread is getting wider as the year goes on. >> absolutely. so most stocks are -- i'd say at least half the tocks are participating but they're adding gains at a much faster pace. absolutely. if banks stocks stay on their heels and energy stocks can't stay, you have too much to stay supported on this level -- on this basis, especially when the very largest tech stocks are no longer cheap. they're no longer like you can say apple looks cheap or facebook for that matter or alphabet. >> they keep asking why they continue to be in such hot demand right now and the answer turns to earnings. they're posting very solid double digit revenue and solid growth including amazon. here we are again demanding the fast high growth kind of companies above everything else and at the expense of everything else in that situation. >> exactly. tell spite the fact that the first q

they don't just limit theirselves to fang and friends. that would be a good show, fang and friends. take that down. they seize on biotechs that have any sort of potential good news ahead, insight, incyte that had good news. and one growth name you better get used to hearing because people will start regarding it as a horse in a two horse race. what race is that? walmart versus amazon. the giant discounter where over a million people go to shop, surprise. where people go for their online business and never bad when the brick and mortar retailer reports a stunning number. the rest of the market picked up steam when interest rates and oil went up. they broadened the rally to some trash banks, not that many, oil stocks, not that many. i wouldn't get your hopes up on those with one foot out the door. the home builder has a second wind. rates are so low. we spoke with two of them in the last 48 hours, they're swimming with orders. the record of comebacks i studied, they say yes. on day three people typically turn to industrials and spending stocks and thinking things aren't as dire as the

trash, which is -- those are the lowest-performing stocks relative to the fangs. and a number of though whether it's the h of hall burting or a of -- >> what is the "s"? >> hey, it's like -- it gets two fists. >> exactly. but herein lies the point. kourtney saw opportunity. >> i bought akami. i had on my list to buy steel. >> did you? >> and i -- that's for a trade, because it's oversold. i had a bit in below the market today, and i got hit, so i own a little steel now. >> and transocean, by the way, was the t. energies occupies a piece of the underperformance. >> professor shiller came on and said i think it's time to get into nvidia? that would be something. that is something that's coming. this is a juggernaut. that's the one that does remind me of the 08d days. i do love it, but it's one that i think i struggle with fang. >> let me ask you a fundamentally simple question, jim. how do you feel about the market? do you feel okay? >> i feel okay. i really do. i just feel like that -- look, if i liked europe, there's a lot of companies levered to europe. i'm seein

but we're trying to explain why we spent so much time on it and it is not fang. the stock keep climbing on is it done? if you bought auto desk on my recommendation you are up 34% in less than four months. i wouldn't want to ring the register on that position. would i take more profits? well, auto desk is hitting its pargts. piracy crack down is working. it is on track to be a compelling growth story. at these levels the stock is expensive but it trades at more than 12 times sales which is getting to nosebleed territory. if the story falters for any reason, i can see the slok getting slammed. i think the story remains too unherlted and will pick up add heernts who are figuring out how big it can be, even if it is -- only it wasn't as good as at 83. i love it to fill that gap. here is the bottom line. i am still a huge fan of the stock of auto desk and the company. but if you bought the stock after i recommended in february, i'm blessing taking some off the table. given the long-term growth targets i would hold on to the rest. for hose who don't own any, when we ge

they talk about the fang. facebook, amazon, and others.s has risen so dramatically that it is equivalent to the amount of gold mined within one year. it is staggering. the question over whether apple watch is a dud remains to be seen. there are cheaper versions. even at the petrol station. there are cheaper versions, loads of different ones out there and the thing about the apple watch is that it is quite expensive. like most apple products. it doesn't necessarily offer you anything new. the big question is, and the reason why the apple watch is so controversial is does apple still have the ability to innovate? has it come up with new products? new innovations that have pushed things? it isa innovations that have pushed things? it is a bit ofa innovations that have pushed things? it is a bit of a gimmick. it's quite annoying because people are co nsta ntly annoying because people are constantly on the hour. on their phonein constantly on the hour. on their phone in on their watch. does that get on your nerves? are you ever come across the

we call it fang, apple, microsoft, facebook, amazon.f you had to, which would you drop and in which order? what did you learn from this exercise? >> i learned a lot of people would drop facebook first. i am not sure whether to believe them. almost 60% said they would drop facebook first. i don't know if they are just saying that and they are completely addicted to instagram and facebook. google won for they would drop that last and google and apple and amazon were pretty close there. i can believe that. >> i would drop google first. it has the most analogs. there is something else i could use. probably the last one i would drop is apple. >> because you love your consumer products. >> yes, i use them every day. >> john is right that google has microsoft and apple as contemporaries. it is easy to give up google. when the majority of people saying, they would give up facebook, that's like lena dunham or rosie o'donnell say they are going to moving into to canada. completely fake news. >> microsoft, maybe. i could get another word document.

. >> police say they're looking to find fang. they reported him missing to police since monopoly since morning. ls they did say thanksgiving is friends with jiel. the posters are toon their block. chooiz's family has been pleading, meeting with city laerds today sdprg help. they say someone had it towed from one location to another before investigators got their hands on it. >>> well, the investigation into monday's suicide bombing in england is fast moving. a woman was arrested in connection with the attack and then released. they continue to focus on the command och of the atanger. next to the concert arene waw a green backpack with tags on it still. it appears to be the same backpack that three days later would carry the bomb. in the meantime, a growing memorial of the 22 people that died. hospitals inl ma manchester tre 59 people. >> i think one of the hardest things is looking after children we don't know who they were. i can't imagine what their parents were going through. >> they were rushed to that after that attack. pres

in his statement he took responsibility for his actions and apologized to his family and fangs. he said he will do erring to ensure that it doesn't happen again. >>> it was a chaotic scene at the texas state capital. two lawmakers got into a scuffle after one called ic e. agents to come. assault. there was audio on the cell phone video here. all of this came as hundreds of people filled the state capital to protest the new anti-sanctuary cities law. buy have to follow those laws and have penalties for those who don't comply. >>> it will be a quiet week. >> they're pushing back on mounting stories about russia which involve the president's son-in-law. news 4's tracie white has the story. >> the president's been said to be quite a noud by you will the questions announcing it. they're setting up a war room just to deal with that issue. the people in charge of that were supposed to be reince priebus, steve bannon chief strategist and jared kushner, his son-in-law and one of his closest vi kushner plagued by these questions about setting up secret communications with the russians. we

there is one fangs here in iran that is celebrating president trump's anti-iranian broadside, the hard-liners including the powerful revolutionary guards who know very well that closer ties with the u.s. would undermine their control. >> as for iran's arms program, scott, and specifically the development of a ballistic missile, something washington has condemned, the president told us if we need to test it, we'll test it. we're not going to wait for washington's permission. >> pelley: liz palmer for us in tehran tonight, liz, thank you. president trump's first national security advisor fired for lying to the vice president about his russian con tablght-- contacts once said that he had a story to tell. and michael flynn said he would tell it to congress in exchange for immunity from prosecution. we didn't get that. and so today he sent word he is invoking his right against self-incrimination. here's justice correspondent jeff pegues. >> reporter: in a six page letter to the senate intelligence committee, michael flynn's legal team says that he is the target of outrage us allegations that feed

let's bring in thomas fang, head of equities at ubs. are they engineering a deleveraging?intention is really against the stock market. ,he shadow banking, if you will to really get a handle on it. it has really picked up steam over the last couple of with, xi jinping meeting officials, and the intention might not be to have an effect on the stock market, but we are nonetheless,fects, and we are seeing this on the bloomberg, and you can see this has gone down in the last couple of weeks, following the crackdown by regulators, as have estimate,hina, by one billions erased from stocks and bonds since mid-april. would a continued selloff in stocks and bonds dropped china to change its strategy in any way? -- what a continued selloff in tocks and bonds get china change its strategy in any way? q1, thedon't forget, stock market has done relatively well in china, asia. robert ticking, as well. -- profit taking, as well. fell: if the market believe, then regulators might step in, or the government itself might get nervous. would you agree with that? no, buti would say looking at t

its fangs bared. iit is ugly on watch weaker. >> we have too many republicans involved. >> i came to washington to make a difference. and help implement the trump. -- sanctuary city issue, bill i've introduced with high friend david perdue of georgia, is sending a message to sanctuary cities who refuse to follow the law to keep violent, criminal illegal immigrants out of this country. and go so far to penalize individuals and businesses in their own jurisdiction who want to bid on a wall. we'll take that money, move it to another jurisdiction. lou: we've put up with that nonsense with the administration of president george w. bush, president barack obama. is there some reason to think that senate majority leader mitch mcconnell will support the legislation and it will be driven through to passage in senate and house. >> if i have anything to do with it it will. lou: i am asking for your judgment about mitch mcconnell, the leadership in both houses. >> i truly do. i tell you from people who vote in ala

here's the bottom line, fanning's back, by this time it's fang. and the story is anything put. all right, let's take some calls, we're going to start with matt in my old home state of pennsylvania where i was this weekend. matt? >> caller: boo-yah jim. do you see a positive investment scenario in the next future for ibm? >> i was doing some work on how 3m bounced back, how so many companies have bounced back after, travellers bounced back, ibm has not bounced back, it keeps going lower, that to me is a suboptimal sign, i did think it would hold around these levels, it didn't. it still seems to be going lower, it represents value, but it means more than value when it comes to tech. look at all the other horses that are going. you don't want to be left out of the race. i'm going to adam in illinois. >> caller: boo-yah, my question is about oclaro. >> you're rolling the dice when you go into optics. i should be an american tower, or i should be in xilinx, i should be in fiber because fiber has proved to be emfemoral. let's go to able. >> caller: a southern california boo-yah, bro,

as hard as it is to it believe, i've been in the industry 33 years, what i see and know now, fang stocksinds me of telecom, media and tell -- tell telephony. i don't think it works as prior discussion to income inequality. liz: can i jump in? >> sure. liz: absolutely, income inequality and maybe asset bubbles forming do you see that? by the way i'm not a negative person. the dow is up 78 for the bulls as we continue to rise and i think the economy is gaining some speed speed here. you sound more concerned than usual. where are you putting your money? >> i tell anybody that is long portfolio manager as i am you better be optimistic. i'm cautiously optimistic. i know over time people buy high and sell low. in managing my portfolio i help my shareholders to prevent doing that. it is difficult in so you can replicate that yield if you will today in high yield market, i point out superior claim to he can quilt. liz: okay. >> there is not a bodies locations in between price and value but we have a few we found. we had to look farther and wider. liz: we just showed many of them. we'll put them

. >> but these names that i mentioned, those five, whether they're the fangs or other wise can just continue to keep climbing as a result -- >> not alone. look at sales force, adobe. >> i named those. >> just beyond if we were playing nifty fifty games like in the late '60s, if it were just five stocks, i would be very concerned. the fact it's broad-based and every time you want to get bearish, i listen to wang's keynote address. he's the ceo of nvidia. he gave a keynote address that every person in the technology industry was glued to. it happened last week while everyone else was obsessed over james comey. he was laying out a blueprint. the things this company is working on and its expansion of its total addressable market. tens of billions of new opportunities for chips. that's why you're seeing a stock like nvidia do what it's doing, but not just nvidia, it's comprised of dozens of stocks that continue to make new highs because the tam getting getter bigger, so people are willing to pay an increased multiple when they're looking at a company that might have a whole new slate. >> i would

during fang. and then we had a vet and it took 22 month, we all lived. wasn't the end of the world. i do think that what those names have in common and it's not just google, it's a bigger group. they have absolutely no need whatsoever for anything that the white house might or might not do. however, the cherry on top is if there is repatriation and p if there is some higher consumer spending because there is even more tax reform, it would be good for those stocks, but i promise you, tim cook is not sit ng a room right now hoping crossing his first things that anything from the white house gets passed. >> nasdaq 100 has closed above its 50 day moving average for 113 consecutive sessions. if you talk about these stocks, tons of cash flow. the secular growth is what's keeping the bottom. if if you have option value on these, it rates move up, their cash makes them so much money and if taxes come back, they'll have more money. that's what's hold iing up a lo of these stocks as well. >> north america chemical attack is up three quarters of 1%. is yet again the outperformer. even with the

fang stocks have not done well this year, but what has kept the market upload has been tech him abouthave been doing well, graphics card makers, chipmakers. in the tech index, 84% of the companies in the s&p 500 tech index are up on the year. close to utilities as well, which has done well. i think part of that is the idea that the domestic trade was not as strong as people thought coming out of the election. you have that multinational exposure and that is where all the flows are going to. bank of america has a great report out this morning. i think 11 straight weeks of perhapsing into tech, over time, if that continues, that is an area that gets crowded. jonathan: is that a significant story, to play the international recovery? chad: everyone is looking for multinational exposure and growth. that sector plays into both of those avenues. techke large-cap old world . microsoft, oracle, cisco. we would also look at google. when you get into the other large cap tech stocks, growth rates are quite vibrant, but they have a modest the celebration on the top line and you could have a readju

melissa, quickly why all of these they call them fang stocks, amazon, google, facebook, they're competition benefits other. small business owner is advertising on facebook, sell on amazon, search on google. why all the new it being companies are thriving in the market. melissa: jonathan, the technology is certainly cool. have you heard the common thread through these two conversations? we talked about investors don't care about earnings, investors don't care about earnings. it is about are they going to grow, what is going to happen in the future? while it may be true and come true for companies like amazon, sounds very much like the last time the tech bubble bursts. if you look and take the eye off fundamentals, you say the future looks great, the future looks great. >> you're right about that, earnings don't matter until they do. march 2000 when the last tech bubble burst. melissa: right. >> when we had then we don't now, public euphoria. taxi drivers, uber drivers, talking about day trading stocks back in 2000? i don't think we're there just yet. plenty of money on the sidelines. the mar

. >> trading like a fang stock. >> so it's had a couple of things.asy money has already been made in apple. so if you're looking for an easy trade, apple is not it right now. that being said, it still has some tailwinds. we saw in the last quarter their services are growing at what the street would expect and what you would want to see. and maybe they have the iphone 8 coming out. you don't buy at all-time highs. but over this year there are going to be times we do a story where we'll say, is apple done, or rotton core, or something silly like that, and that's the day you buy it. i said the headline was silly. >> they reported on may 3rd and i said the quarter was not near as strong as the prior quarter. the highs we saw in april of 2015. has the easy money been made? i probably thought that the last four or five months and the stock continues to grind higher. now there's talk of dividends being higher. >> easy money or hard money? >> the easy money has been made. right now i'd say, does the stock have more room to the upside? absolutely it does. thi

that's your reality check, that we are not in a fang market. we're in a global breakout and economic data is confirming it, by the way. >> i was going to suggest when you discuss technology, maybe the reality check off some of these high flying stocks that have done so well. maybe the reality check isn't a negative connotation to it. maybe it's the reality of these stocks as mark cuban told "squawk on the street," can keep going up because they're at the forefront, applied learning webs artificial intelligence -- he said that, but he picked up the fallen angels. i mean, you know, the two stocks in particular, judge -- >> he talked about the alphabet and -- >> and gopro. >> apple. >> he jumped into gopro and as he said, i got flushed. i took a flyer on it, i got flushed. we've all done it. he made a brilliant trade apparently in twitter where he jumped on this just as they were getting that deal with bloomberg signed up and so forth and the video side twitter jumped on that news yesterday. so he bought the fallen angels in that regard, judge. he

. >> it kind of distinguishing netflix from the rest of fang, that are just conduits for ad revenue. lot smaller and a lot more specialized. that's the intent. i have always been impressed with the way hastings has a very clear vision of what netflix is, what he wants it to be and what it isn't. he tries to get around that whole oppositional view between netflix and the cable bundle. it is not really the story. >> he also names the competition by name. he said the word amazon. they want to be walmart. we want to be starbucks. we are specialty. they are going for everything. >> we want to be known for the best shows, for the shows that we always want to watch. we'll see how far that takes them. >> i wrote down what he said and the new one after "orange is the new black." >> '70s, female wrestling, big passion project. >> much more on the exclusive interview with reed hastings. we'll check back with the guys at code and steve ballmer sitting down with our very own john fortt. a lot more to come on "squawk alley." fidelity, where smarter investors will always be. relieve goods arriving

just when i was think, just when i was thinking of replacing the "n" in fang to nvidia. netflix stays. probably geese to 200. finally, as much as they've moved the defense stocks just aren't where they need to be yet despite many calls it's time to sell those stocks. i hear that cat call about the defense stocks almost every day. they have to keep soaring until people realize that president trump seems he wants to become the greatest arms dealer in history. he tells our allies they need to pay for for our defense. buy more from lockheed, northup grumman and united technologies and honeywell. au contraire. every time he hints he's not as committed to nato as our allies might like every defense minister starts thinking of ways to spend money here so let me give you the bottom line as long as investors keep getting it wrong, as long as they make mass misjudgments and short the stocks that should go higher there will be opportunities for us. and these opportunities can last for weeks and weeks as long as the catalyst remain in play. today's winners probably aren't done going

plus we get our fangs into the tech sector.scuss amazon's rally and we'll get some ticks as well in the sector at 8:30 u.k. time. this is bloomberg. matt: this is bloomberg markets. on the european open. i'm matt miller in london. let's take a look at how the markets are faring about 12 minutes into the trading session. not a lot of movement. you see the ftse bouncing a little bit, especially on weakness of the pound. we tend to see that. the dax also up about .2%. this is after a softer finish yesterday. and the cac, little changed in paris. nejra? nejra: i'm starting with a record high gaining some 3% after the moment. people familiar with the matter said american tower is exploring a bid. this is in a bid to expand in europe. their main shareholderer is considering selling assets as part of a americaner and according to these people this would hinge on that main shareholder first combining with at lantia. shares have risen about 31% already this year. then i'm looking at rockette internet increasing -- rocket internet sales.

it's not just the big fang names, it's across the board all way into the semi conductor world, but technology itself is leading. >> we mentioned, joe, 2400 on the s&p was a significant hurdle to get over. we closed above that and now we're at 2412. the significance of that? how much momentum do you put behind that? >> technical breakout, same thing that happened at 2300. got above 2300, really never fell back again. i think you're witnessing that right here. i think what's adding fuel to it is the amount of pessimism and negativity that we had especially last week when the markets were down 300 plus that one day. there were many who went defensively. i went defensively as well at that time. i sold some stuff, futureswise, to gain some protection. so i think beyond the technical breakout, you also had negative sentiment really build quick low and i think that's happening the message. >> the message, doc, in a vix that dropped below 10. it ticked above -- >> virtually lock step with that. >> what are we to make of that? >> well, we had a furious rally in the crude oil contract into this announc

if you go sector by sector, like you see the fang stock coming back, you see the semis coming back but not coming back to the extent they came in and the volume is not there. i don't know if it's over. i think like bigger picture i wouldn't make so much about yesterday or today just as a package deal. the vix down 8%, not a big drop for the vix considering how much it went up but i would call a time-out on anyone waiting to assign meaning to this. >> i know you said you're waiting for more clarity on some things to come out of d.c. in the way you're trying to run your firm. >> we try to be 100% invested for clients all the time and every day we come in there's something that we're interested in or companies that we're harvesting. today we're getting paid on a couple and that money has to go back to work. there's always a catalyst or some dynamic. like insight had something going on today, like that company that sells stuff like walmart. >> since you say you're getting paid, you're paying the piper on cisco today. >> i don't own any. >> you don't? >> c-i-s-c-o, no. >> i was told by some

i think you're seeing an increased concentration, whether it is the saying -- the fang pushing the nasdaq think it is of a broad-based index being more economically sensitive to small caps would be the towel in this case. the gdp numbers. thealler index compared to larger cups, more domestically focused. it would disproportionately affect the constituents of this index. julie: you are looking at buying of the puts. $1.34 -- $134. you see a downside of about three dollars or so on this? -- hic is another pickup cup type of trade. it is playing a small pullback. a protectionally in case something happens. all right, thank you so much. we will be watching that. julia: thank you. still ahead, tough day for retail. results from macy's and kohl's dragging down the entire sector. we will talk to industry expert gilbert harrison about how long this rout could last. this is bloomberg. ♪ mark: timeout for first word news. was hist trump says it decision to fire james comey of fbi director. the president said he was going to do it regardless of the recommendation from the justice department. trump:

she did go into detail about the other fang tors that she said led to her defeat. >> i highly recommend long walks in the woods. it is far healthier than screaming at your television set. >> reporter: clinton did not reflect on her failed bid at a gala event on planned parenthood but earlier in day she spoke candidly saying her victory was derailed by forces out of her control. >> it wasn't a perfect campaign. there is no such thing. but i was on the way to winning until a combination of jim comey's letter on october 28th and russian wikileaks raised doubts in the minds of people who were inclined to vote for me but got scared off. >> the presidential debate which she said focused too much on personality. >> i was waiting for the moment when one of the people asking the questions would have said, well, so, exactly how are you going to create more jobs. right? i mean i thought that -- you know, i thought at some moment that would happen. >> but that moment did happen, more than once. >> please explain to me why you believe your plan will create more jobs and growth for this country and y

. -- iare saying facebook should say tencent and alibaba are the chinese version of fang.hey make up the hottest stocks in that sector. they are investing into video content. we are talking about other widely anticipated earnings reports. tell us about applied materials and salesforce.com. su: both reported strong numbers. let's go to salesforce first. we saw the top price soaring the report. what we have with salesforce, they are seeing increasing demand, they're raising their fiscal forecast. revenue topped estimates. the game we are seeing after-hours, likely to extend in friday trading. applied materials, this is another success story. their positive earnings have a lot to do with increased demands. they definitely give a strong forecast. it is also interesting they make these chips that are in the sweet spot of a lot of tech products, whether it be screens, phones. this is a strong report that is likely to carry forward again. yvonne: thank you, su keenan live from new york. we will talk about alibaba's earnings later this hour. ramy: president trump puts on his dealm

and the fang stocks f you will, remind me a lot of the late '90s.u look back at the nasdaq, we've only regained those highs from probably march of 2000 here in the last 12 to 18 months. so, it was a very long time to break even. >> mark, brian sullivan jumping in here. very important point you're making right now. not to be alarmist. people were worried about the nasdaq in '96 and '97 we had multiple years of gain before it rolled over. the concern i have and we brought it up before is if all the machines are sort of buying the same stocks because their signals are the same and etfs are loading up on the same five or six stocks because that's what they do, to becky's point, what happens if the they all decide they're at 25 times time now to sell? does the home -- if they pulled this up, does the market have to be pulled down by them necessarily? >> brian, do you remember the term that wall street coined in 1987 called portfolio insurance? it was designed to sell futures and you could prevent a loss by continuing to sell futures. that worked really g

on to intervene and effective ways to prevent from joining gangs, to assist them getting out of a fang. one specific segment of our population particularly vulnerable to gang recruitment are the unaccompanied children known as uacs. 4624 uacs were placed in suffolk county alone making it one of the largest recipients much uacs in the country. while vast majority ever children are good kids looking for better life in the united states, they're young, unaccompanied, adjusting to new country and language seeking a sense of belonging. some to do not have the structure or support system in place to help their transition. due to these circumstances we've seen a small percentage. ucas fall vick to gang recruitment and gang victimization. vast majority of uacs live law-abiding lives vulnerability of some of these children creates a source of recruitment for ms 1. we must provide necessary support to these kids or ms-13 will. highlight ways the federal government can further as sis local government on this public safety issue i respectfully suggest the following. more federal prosecutors to pro

for the stocks, with the exception of facebook, the fangs outperforming once again. from new york city, you are watching bloomberg tv. ♪ >> this but it will go nowhere at all, and we are going to lose inadditional few months designing and starting to implement a growth strategy. i am getting more worried. jonathan: that was mohamed el-erian with david westin earlier. he is getting more worried. we printed a record high. the stock market is not worried. maybe we should be worried about washington. jonathan: a remarkable session. maybe in the worries are justified about d.c., but certainly the market is shaking them off once again. futures positive. stocks at all time highs on the s&p 500. we are higher by one third of 1%. bloomberg markets is up next. this is bloomberg tv. ♪ >> steven mnuchin is once again facing senators. he is taking questions from the senate to the finance committee, talking about the budget proposal as well as the administration's tax reform plan. at the same time in brussels, president trump is arriving at the new nato headquarters for the memori

what about the big fang stocks in technology, apple has been setting records, so has amazon and so forththey're down today. do you look at those as a one-day decline and maybe scoop up a few there? >> well, i mean i think the market is fairly valued to slightly undervalued. i think tech is doing great. yes, it might go down another 2, 3, 4%, but six months, a year from now, by the end of two years, i think you're still going to have some very, very healthy gains in the market, yes. >> professor siegel, given that trump is still our president for the time being, what kind of moves would -- could he also make that would have the same effect of reassuring investors about the agenda, and is it on him right now or is it signals that might come from congress that say they're moving this along? >> it is on him. well, we always hope that maybe part of his personality would change when he occupied the white house. people are disappointed it hasn't so far. someone 70 years old, it is hard to change a personality. unfortunately, some of these thanks may have happened and may have repercussions, but

people say hey anthony you cover the fang and when you think about the dominance of facebook, amazon,etflix as dominant as those other three? and i would say that people often discount the importance of global scale. so you have 150 million subscribers in three years and now netflix can afford to pay more, a lot more than hbo for example, for content because they're amortizing the cost of that content across a huge global scale. >> we've got to leave it there. thank you so much for coming by. >> really lucky because we're tossing to the president. but i was going to have a what app question for you and we would have played that. you're lucky. the president i think is ready to make some comments now. yep. it's already started. let's listen in. >> israel will do everything in its power, in order to assist you in this mission. israel appreciates america's leadership and your administration in the action you took in syria. there are red lines, as it happened in syria, that must never be crossed. there is a price that must be paid by those who violate the most basic values that makes us hu

>> i think you can broaden out fang to be secular growth stories and the argument there is if you don'thave great gdp growth you want those companies that can grow earnings a lot faster than what the economy is giving you. so, tech has been one of our favorite groups. i actually do like financials and the banks. i think, you know, reform is going to happen. at some point there's going to be consolidation down cap. you've got the bar set pretty low for these stocks. they've given back an awful lot but -- >> you think reform is going to happen and it's good for the mid cap? >> especially for the mid cap. because i think you do -- you're going to get a little bit of consolidation there in that you do have, i mean roes are so low that they've got to go trend a little higher with that you can kind of support higher multiples and then you also are going to get a little better earnings growth. the earnings season has actually been pretty good for that group. >> steve, joe, want to thank you guys both for coming in today. >> thank you. >> okay, when we come back, fomc voting member and dallas f