gina martin adams with us this morning from wells fargo. help us with that, adam johnson gets us started on focused onwe are u.s. consumers. i know we only -- always a two thirds but that is only if you add in health care. commerce department reports retail sales and macy's is kicking off several days of department store earnings. that happens later today. gina martin adams advises the institutional investor clients of wells fargo. you are telling clients to underweight retail. >> yes him for a number of reasons. pretty terrible earnings momentum revision all year. a pop asay be said for companies are said to beat expectations. expectations are so low. expectations i think there are still too high for the fourth quarter forward growth. the consumer quite frankly usually follows housing. had incredible housing activity last year. this is creating some deterioration. >> continue. here is the deterioration of macy's. is there any other chart like this in the world? this is like a home run. look at this. >> $10 in 2009. >> a pullback. >> one of

. >>> back to the markets, gina martin adams has been a strategist with a year end s&p target for 1850. which warnings signs should investors be paying attention to? gina's back on power lunch, good to see you again, welcome back. >> thanks for having me. >> one of the latest notes that you put out pointed to stocks and the flattening yield curve. and that that's something that verss should really be taking a look at. why? what does tell you? >> you know, first let me just clarify, i consider myself to be mutual towards stocks, i know in the context of very, very bullish outlooks we look like we're bearish, we're not. we're thinking look, we probably enter an environment of policy uncertainty over the next six to 12 months. and the flattening yield curve supports that view. typically as the fed gets geared up and move the short rate higher anyway, the long rate has actually moved lower. and we've seen the yield curve flatten so far this year. similar to the way it has done over the last 30d years at this stage in the cycle. that doesn't necessarily mean it's all over for the equity mar

gina martin adams has been an exceptionally cautious bull. so many doubt this equity market. 6:00 hour tomorrow. good morning, everyone. tuesday morning, "bloomberg surveillance." welcome all worldwide to our world headquarters in new york city. our guest host this hour, tobias levkovich of citigroup. olivia sterns has our company news this morning. >> sprint's new ceo was telling employees to expect more cost cuts. he says the committee will complete aggressively for users. customerst monthly every year since 2007. speaking of finding more customers, electronic arts is extending its subscription services to more companies. ea makes the game medal of honor and other video games. the company is now available in new zealand and western europe. twitter paid $134 million for social data provider mip back in may. the acquisition gives twitter more control over information gathered from content on its network. that is the latest company news. >> there we go. it is time for our morning must-read. >> i have one that really jumped out from the "wall street journal." martin feldstein,