ed hyman, chairman at evercore isi.y with us for this rare interview. ♪ matt: from bloomberg world headquarters, this is bloomberg markets. i matt miller. want to kick it off with headlines. y: first off, we had to pope francis. he has a message for donald trump. anyone who wants to build a wall along the west border with mexico is not a christian. the pontiff says christians build bridges, not walls. donald trump saying it is disgraceful to push in a -- question a person's faith. john kasich says he is not staying in south carolina on saturday night. instead, he will head to vermont and massachusetts. both states hold their primaries on march 1. buyingrico says it is blood from the red cross after the federal government said u.s. territories affected by the zika virus should limit the use of locally donated blood. the fda directive applies to puerto rico, u.s. virgin islands and american samoa. google, facebook and other tech companies and supporting apple in its fight against the u.s. government. apple has rejected a

julie hyman. julie: that's a lot of pressure.taking a look at today come as we talk about the yields in germany on the 2-year note going more deeply into negative, i'm looking at the yield curve and thethe u.s. narrowing of that yield curve. typically, it widens when you see the difference between the tenure and the two-year -- 10 the white linear is the yield curve between the 10 and two. -- this goalne is line, their net interest margin narrows. the differential between the money they are borrowing and lending out, that is compressing. that is not good news for the bank when you see this yield curve narrow. there are different ways to measure the yield curve. i picked one of them. we've seen banks really come under pressure. betty: drawbacks from the rate hike. all right, mark. mark: i'm obsessed with the world economic surprise indices. this chart shows citigroup's economic surprise in the seas for the d10 and the united states. the g 10se indices for , eurozone and the united states. all three are below zero. the united state

you so much, julie hyman.eserve rates for banks, employing a traditional tool for a weakening currency and slowing economy. mark mobius has been investing in emerging markets for more than four years and is considered an expert. scarlet: earlier francine lacqua spoke with mark mobius. mark m.: i think they have done a good job communicating, but being a command economy, sometimes it is very difficult for us to understand what the the top.s from those commands are clearly laid out in the program of the communist party, if you read those, but the details are very important and that is not read very transparently. the volatility in chinese markets, are you still a buyer of chinese stocks? do you understand what the endgame from chinese authorities is? very selectively from china, and in fact, all emerging markets. you have to be very selective. onncine: what is your take emerging markets? people say, look, they are cheap. but there is no growth coming in from anywhere. mark m.: it depends on where you are looking

julie hyman has the check. up off the lows.the dow is down 288 but earlier it was down more than 300 points. indeed, a little bit of a leg up as we head to the close of trading. this is the first back-to-back decline for the s&p 500 since the beginning of january come even though the beginning of the year felt so rough, we have had actually seen a lot of consecutive declines for the market. oil is a big part of the story today as we continue to see it move lower as well. down to its lows of the session. 5.4%. below $30 a barrel. we will get the inventory report tomorrow. chevron, remember, it's debt is being downgraded. exxon mobil is out with earnings that beat estimates but the default year-over-year. hard,r group hit technology could this has been happening a lot this year. most of them showing some strength last year but leading the clients this year. amazon.com in particular is off by 4%. we have been watching yahoo! in the past two moments on reports is consideringy putting itself up for sale. it will be reporting earning

now, julie hyman at the market desk. julie: really bouncing off the lows of the session in pretty dramatic fashion. we have seen this out single , whichthis volatility really characterize our recent trading, and i also wanted to look at some of the other asset classes to see how they are trading. we are watching oil prices, as well today, as we have been talking about, because we have seen them track with stocks to some degree, but we are not seeing much of a recovery in oil prices, a small bounce, but the bounce in stocks is much larger, the dow still down. looking at the 10-year, the seymour treasury yields, we see 1.72%, the lowest in more than one year's time on the treasuries, so interesting that even though we are seeing somewhat of a recovery in stocks to some degree, yields remain lower, with a lot of pessimism out there. david: julie hyman, thank you, at the markets desk. at bloomberg news, i want to talk a little bit about what we at sevenm gary cohn, he was talking about with emily was valuations, and i wonder

julie hyman has been looking at the headlines.ss comes as the company cutting costs and trying to boost returns. they've been in argentina for a long time. it was the first non-us branch. a monumental shift for citigroup. julie: the stock is down 24% and we've seen a lot of banks be hit this year, bank of america is down to the 5% over the past 12 months. a lot of the underperformance concernsthis year on -- take your pick. the flattening of the yield curve on exposure to debt and the natural gas industry. there are some particular issues that some of the banks have in terms of structure, so it's like that is what this is going to address. my guest broke the story for bloomberg. was this surprising? it was surprising. citigroup has been in brazil and argentina for 100 years. ofy have been getting out retail branch networks and selling them, but they have been much smaller countries, places the legacydon't have they have in brazil and argentina. that mean i can't get money out of a citibank atm in brazil? now, butu can right presum

julie hyman has the latest. it looks like all the major indexes are down. julie: with all the stronger than estimated jobs report, a great number even if it was not better on the nonfarm payrolls number. we have seen stocks fall in the wake of that. we have been seeing the chances for interest rate increase priced in the market go higher. the nasdaq has been the laggard of the day down 30%. here is the nasdaq 100, down more than 3%. it has been accelerating and deepening its declines throughout the day. in terms of worst performers in that index, tesla is leading declines. cut its price target to the lowest on the street, $160. it is right around that level now. the analysts pointing out there are rising costs for the company for things like labor as well as r&d. also lower gasoline prices make it less attractive for customers to buy an electric vehicle. netflix also tumbling today. it is reflective of the performers from last year, underperforming this year. adobes systems down as well. we had negative results from a smaller software company putting pressu

thank you so much, julie hyman.a volatile january more investors are becoming gold bugs. alix: as you can see, gold is doing a lot better this year than stocks in the s&p could let's bring in the etf analyst eric balchunas. what is the best way right now? comes to gold, it is a commodity and store and have physically backed. almost all the assets prefer to be physically stored. big one, took in 2.5 million of outflows. there is the iau. that does the same thing but instead of charging 40 basis points, it charges 25. iaustores it in london, stores it in toronto, new york, and london. and this is for the paranoid and i just the fearful, etf securities swiss gold shares. gld, except it is stored in switzerland could believe it or not, that was a billion-dollar etf idea because people concerned about that, not only that, but to be the gold bugs, they had random checks on the gold to make sure it is there. alix: there was lots of controversy a few years ago. the question, is the gold you think you own actually there? if

julie hyman -- alix steel. julie hyman has the latest.companies out with earnings. in company overall came ahead of estimates, but specifically a -- it looks like cardiac rhythm management sales were up 1%. product launches were delayed. a mayor stores bergen, for its part, cutting the backend of its forecast. it looks at that is what is to blame for his decline. 2016 earnings-per-share forecasts trailing estimates. are of the health insurers seeing gains, but they are relatively small. as for the large-cap drugmakers, we see them declined, actually. there is talk about pricing, and even though money of the larger companies have not been targeted by congress or other critics of the drug pricing practices, we've not seen them under pressure. scarlet: what about valeant specifically after their tough day? companye heard that criticized by congress, yet shares are up, up by about 4%. of course, they have not done well leading up to this. they have been battered by all of these concerns. it is interesting that even as they are at the center o

let's head over to the bloomberg terminal with julie hyman.ie: there are some analysts who are coming out with a sell rating or an underperform rating to put it another way, and initiation of coverage, over at wells fargo. this is in regards to valiant valeanteuticals -- pharmaceuticals accounting being under question. have seen a big drop in market value of the company and we are expecting to get fourth-quarter earnings from valeant but the shares are selling off at 8% in today's session. we spokewent down, and --with analys analyst who says their shares are off by 4%. and trinity industries has a forecast out that is below estimates. it sides a weakening in the industrial economy. byir shares are tumbling 22%. they are pulling down their competitors. having an effect on many railroad and railroad manufacturers. matt: those are big hits. thanks for that, julie on a check on the markets there. in the last hour, the department of justice has filed a new motion that would force apple to comply with a request for user access on those iphones. thi

thank you so much, julie hyman.racy: deutsche telekom raised its dividend for the first time since 2011. gives you a boost and mobile phone markets. guest joining bloomberg surveillance to discuss how they planned to keep momentum going with their u.s. unit. guest: we have a great is this in the u.s.. the revenue is going up and flowing. we have no urgency to do anything in the u.s. we had great proposition in the market and no plans to sell the u.s. at that time. but we said if there's an opportunity to grade something beyond what we can do organically, we have an outstanding business these days. >> when you look at europe, it is falling apart and growth is not as strong. why not sell some of your european assets? guest: i am not that pessimistic on europe. looking at the markets, our stable in a competitive environment and same for the european entities. that, even in the europe environment, we are flat people reason is appreciate the huge investment we are putting into infrastructure. see a good performance here

david: that's julie hyman at the market desk. let's go to mark crumpton at the first word news desk. to south it is on carolina and nevada -- those are the next steps following tuesday's new hampshire primary. donald trump was an easy winner kasich, aovernor john surprise second-place finish. trumpet sounded a familiar team -- the milieu theme. to makep: we are going america great again, but we are going to do it the old-fashioned way. we are going to be china, japan, beat mexico at trade. we are going to beat all of these countries that are taking so much of our money away from us on a daily basis. it's not going to happen anymore. beat bernie sanders hillary clinton by 21 percentage points. the race was called almost as soon as it was closed. >> together, we have sent a message that will go from wall street to washington, from maine to california. primary is in south carolina. republicans vote february 20th and democrats on february 27. u.s. senate is expected to vote on new sanctions against north korea after last week's mitch

let's head to the markets desk where julie hyman has the latest. julie?yeah, today with the sector spider report -- spdr report outperforming tech. a 3.5% gain. there is not a specific catalyst. large cap biotech is coming back. this is one of the groups that has done very poorly this year. are leading the gains today. where wenother group see some strength. and we see these smaller biotech doing well also. there was the meeting for the american association for the advancement of science over the weekend. results presented, talking about treatments for engineered t cells to target different kinds and cancer. the companies associated with these treatments have been doing well today. again, these smaller biotech stocks. biotech has done very poorly this year. on the screen that i have of all etf's, thisr spdr one is the worst performer. just as we saw a rocky performance last year. the balance we see today looks to initially be just that -- a bounce from the lows where we were last week. right, another hour and a bit to go in the session. coming up on "bloo

let's head to julie hyman. you are starting with hospitals?ulie: community health has been leading a decline in hospital stock. company reported an unexpected fourth-quarter loss. analysts had been looking for a gain. if you go back, shares are down 80% since the record high in june. trading at the lowest since 2008. we have been talking about a lot of companies hurt by warmer weather over the last quarter. interestingly, this caused it to not be as dramatic of a flu season. so the company's admissions were down 3.6%. the shares are plunging. some analysts are saying it is not just about the flu but also about the company's cash position and other internals. take a look at the bloomberg here. i have plotted that year-over-year decline in hospital admissions. this is the orange line for community health. it is the third straight quarter that it has seen the decline. is doing worse than peers over the last couple of quarters. also on the movers list, we are watching gold miners. gold is pulling back today as we see a more risk on appetite. gold

on the markets desk, julie hyman has the latest long session lows. investorsloff today, seem to be feeling uneasy about here. accelerating, as david says, the lows of the session, the s&p in the dow are down considerably as well. close toq looks pretty entering a bear market. take a look at the bloomberg on an intraday basis, going back about one year. this is last july. the high of july 20, the high on that day. tract to the lower today you have a decline of 19%. on a closing basis it doesn't look like it will enter a bear market today, but it could certainly happen soon because technology has really been leading the decline, not just today but this year. look at the heavyweights, many of whom did well last year and are now pulling back this year. facebook, microsoft, amazon, all sharply lower. we have seen this theme again and again. banks, similar situations. the financial index is the worst-performing group of the 10 groups within the s&p. once again today we are seeing declines and have an talking a lot about what is going on here. lisa abramowi

betty: thank you, julie hyman. could be big changes in store for the nation's air traffic control network. under a proposal out today, the faa with the overhaul. the job of guiding planes would be put in the hands of a new nonprofit. airline passengers would not be able to talk on their phones while on the air and some baggage fees would be refunded if the bags are not returned. joins us now from the hill. congressman, thank you for joining us. this is a pretty big revamp. how do you plan on getting this through congress? >> thank you for having me on this morning. we intend to introduce the aviation innovation reform and reauthorization act. it is a challenge, but this is a transformational bill. it will separate the regulatory and safety function of the faa and leave it back in government where it belongs and taking out of government air traffic control and turning it into an independent nonprofit corporation. we believe this will allow them to deploy the technology for a 21st century management system of our avi

julie hyman has to latest.ow that investors have had time to digest the fed minutes we're seeing stocks hold steady. how much change in the buying we have seen throughout the day. a little bit of a leg up from where they were before the minutes but very similar levels here. all three major averages continuing to rally. nasdaq has been the underperformer all year, a performer today. treasuries, we are seeing yields go higher as people sell treasuries and a little bit of a hiccup here in the increase in yields since the minutes came .ut but still 1.82% it was 1.84% for the minutes came out. i wanted to take a moment as was pointed out on bloomberg, how rare it is to see not just the three-a rally but a three-a rally where the gains have been 1% or more on each of those dates for the s&p 500. she built a custom index and this graphic she kindly shared with me. instances, three sessions in a row of gains of at least 1%. here is the time we have seen 2 instances. this goes all the way back to 1990. it has only been

julie hyman has a check of earnings. julie: let's start with fitbit.his is a pretty terrible example of an earnings report. shares are down the most in a single day ever. level, itose at this will be a record low for the stock as well. the company forecasting revenue and profit that fell short of estimates, facing more competition from companies like apple and samsung. xiaomi is also seeing new watches introduced from other companies. there are questions about the people who buy fitbit devices, how many of them hold on to them and still use them after a years time. also some analysts are saying that the declines we have been seeing are tied to the expiration of the lockup on a secondary offering. that could also be putting pressure on those shares. we are looking at frontier communications. that company is in the process of buying some landline assets from verizon. that is something in the background of what's going on with this company. it did post an unexpected gain. earnings coming in at five cents and the estimated loss was three cents. come in sli

alix: thank you, julie hyman.hs wants to create a new etf that would be based on a famous research report. could this be a game changer? how would that even work? reporter: right, so goldman sachs filed. it's interesting because it is called the goldman sachs and hedge funds -- goldman sachs vip etf, and that's the same language they used in another fund where they look at the hedge funds, the 50 stocks they are most committed to and you have read those reports. it's not like that is a new concept. there is another etf called guru that does something similar. the interesting thing about this is there really has not been any wall street banks that have gotten into etf's, that had tagged etf's to their own research report. goldman in particular, people read everything that they write. they are playing to their strengths. so, that is why it could be a game changer. this is also a way of monetizing the research as well. for that research, the investors do. does that mean that they could charge a lot in fees? perhaps.

julie hyman as your market check. have had this rally once again continuing, extending in today's session, all of the 1%.r averages up 1.3 of discretionary, financials, all helping to contribute. i mentioned in the trajectory of the s&p throughout the day -- if you take a look, you have that gap at the open, and then a relatively tight range to the day, near the highs of the day interestingly. it has led the games, just as it has led the losses. and then in terms of some of the other individual stocks, they are doing well in a percentage basis. you have commodity producers. many of these have been battered. there is a rebound effect. speaking of oil, we have had oil bottoming out around february 11. it is not rising ever since, but certainly on an upward trajectory. the other big market story has been the british pound after london mayor boris johnson said he was support a u.k. exit from the euro vonnie:. to -- from the euro. thank you. let's go to bob bench. listen, the major averages are we're alln 1% and fine. ther

over to the markets desk where julie hyman has the latest on stocks.nding to the week. it is an up week for stocks, but we are seeing a mixed picture as there is more of a drift in the market. the nasdaq leading the gains continues a cap bounce back. the s&p and dow remain lower. course of the day, we have a tight trading range. we recovered some of the early losses but it is still very tight. yesterday was the smallest trading range of the year, today the second smallest. this is an index that we created that measures the point swings. this is year to date. yesterday we saw the smallest in 2016 and today is the second smallest. we are searing a tightness of and it again on pretty low-volume for the major averages as well. alix: we are also waiting for the baker hughes oil rig count number, 541 last week. has not come out yet but that has been driving, in some part, the direction of crude. julie: we saw the weekly inventory numbers driving -- it looks like it might be coming down. in the meantime, prices are still below $30 a barrel, down 3.5% today. t

julie hyman has a check on company movers this afternoon.ulie: myelin is the worst-performing stock in the s&p 500 today. there's another drugmaker doing poorly. s.side genomic we've been talking about mylan and their acquisition of meta. trialmpany is sending a of an expandable cancer lled jacophee.jack one of the other companies we are watching his international flavors and fragrances but that stock down 14% after fourth-quarter earnings missed analyst estimates. the company is preparing for even more challenging conditions this year. we're also looking at the insurance today. the pain in financials not limited to banks. potential coming up with earnings that missed analyst estimates. prudential. the company said earnings were $1.94 a share, missing the estimates by $.36. national and u.n. m are also falling today. aig reporting after the close of trading. let's take a look at big power companies. there was a power auction in new england. arrived at were much lower than had been anticipated. we are seeing many of this utilities declining t

betty: let's get to the markets desk with julie hyman.'m going to start with who is going up -- google. it is a big part of the story today even if it isn't affecting the overall trade. alphabet shares moving higher in the better than estimated earnings report. apple is moving lower. take a look at my bloomberg terminal. this in real time. here is the $500 billion line. shares are falling today. what's interesting is that apple sales are still more than three times the size of alphabet sales. but as we know, the market looks at future growth and that is why it values companies be way it does. isinteresting that apple still so much larger. let's take a look at the oil related shares. we have a earnings for bp and exxon mobil. profit fell 91%. exxon is down as well. chevron is also feeling the pain. and another situation where a single company appears to be falling -- ubs has brought profits down by 47%. so it shares are down 9%. earlier we looked at financials and it showed that financials are one of the biggest drives on the s&p 500 today

to the markets desk, where julie hyman has the latest.u got through that smoothly, pleased to say. let's talk about the month of the s&p 500. today we are seeing it give up gains. it is still hanging onto a slender margin, breaking his losing streak. if you look at what gained the most in the month of february, free forresting to me, mac moran, copper and gold, had been doing so poorly, and the magnitude of the bounceback is so good after what had been a terrible year. michael kors showing a big bounce back on the strength of its earnings. adt agreeing to a buyout, helping those shares. on the downside it's pretty much all commodity related. not just commodity related. it's the companies -- matt:matt: apple takes its fight with the fbi to congress tomorrow. in the general counsel are set to square off before the house judiciary committee. in testimonies committed for the that the fbi "is asking apple to weaken the security of our products. hackers and cyber criminals to use this to be cap on our personal safety and privacy. it would set a

time now for the options inside with julie hyman.a: joining me today momentum stock strategist, joining me from this cboe in chicago. volume is a little lighter but we do have this two day rally and a think a lot of investors and traders want to know have we seen the bottom put in for stocks? david: i'm going to go out on a limb and say no. this rally we have on light volume, we came down below the level we saw on january 20, got down to 1810 and now we are creeping upward. we have not really found out where the big shorts are camped out. highu look at the february of 1947, there will be some action up there. up you could take this thing to 2050 and there's going to be someone waiting to slap it back down. julie: we have had some of the same concerns in the markets -- lower oil prices, concerns about chinese growth and european banks. has anything fundamentally changed on any of those points? .avid: i think so i think the european banks are a bigger problem than they were a few weeks ago. we were all distracted by oil but we found ou

you so much, julie hyman.nk of japan has negative interest rates, speculation on whether the federal reserve to do the same. only last week stanley fischer said that negative rates had been pretty effective, more so than he expected. wrote aboutaggs this very subject for bloomberg news and joins us now. we have seen analysts saying that negative rates could be the real deal, so take us through it. alexandra: they were thinking about this back in 2012 and the fed roundup deciding to do qe or by bonds. back then people were really worry that negative rates would make everyone can call their money from the banks and just get a big fault and put it all in there. but europe has introduced this, the bank of japan just introduced this, and it hasn't been happening. the idea is that the effect wasn't terrible, so they might consider it? alexandra: it's really funny, in aptions market complicated way is starting to price and potential for negative interest rates in the next year. that's by the end of 2017, i guess. tha

to head over to the market is where julie hyman has the latest.at the effect of oil prices on the market. julie: the ripple effect we're seeing. we have been going toward the lows of the session, the nasdaq is the underperformer here, down more than 1%. all three major averages have been working lower. it does look like this have coincided with a decline in oil prices. yellow here and has been drifting lower throughout the day. deals save itbout neither of them have been positive for oil prices. with this latest leg downward, we have seen stocks follow suit. something folks have been talking about is why you have seen that high correlation. heavilys not the most weighted group in the s&p 500, a number ofook at different things. we've talked about high-yield debt on energy companies and he was exposed to that. placed out on was being bloomberg is the spread high yield and we are seeing is highest on record, the point -- nearly 10% of nearly 10 percentage points. it is an astronomical decline. we have seen more and more debt considered distressed, n

bloomberge go to the terminal with julie hyman. julie? julie: we have a little bit of using this because of a back-and-forth we are seeing. it has really been changing very frequently today. if you look at the s&p, for example, we see an awful lot of town seen around. it has been in a very tight range. it has gone up and down the line at least half a dozen times during this session. if you look at oil and stocks today, you can see to some has fared much worse. earlier today, it was faring much better than stocks, now it is doing much worse. 2% -- 2.2%.own do we thinkhat cause of that reversal, julie? julie: it is unclear. there is a sort of this directionless feeling and we do have a job report tomorrow, so that could indicate the direction of the stocks, that we can't thank the dollar for the oil downturn because the dollar is still weak. i should say is lower by 6/10 of 1%. now we do have a lot on the corporate front in terms of earning reports today. we have royal dutch shell out with its earnings and it had a smaller earnings that we

julie hyman at the markets desk.on this tug-of-war in this market, i want to bring in all of her. we had doug ramsey on earlier who said we are halfway through this their market. a little bit of a relief. the bear in the north, he calls himself. betty: exactly. what are people saying to you? it is: the relief rally, not putting confidence in two people. some are saying if you want an have that on, you deutsche bank saying they are going to buy some bonds and do a credit repurchase program. what happened today was we got in this morning and there was talk about deutsche bank, financials, people really putting arms in the air wondering how bad the situation is. as that has settled, and people got sober about it, you saw the financial index rebounded a little bit and as you pointed out, financials and tech companies, the biggest losers. a third of the benchmark index. if you look at financials, it is clear they are following the same path. betty: they are sensitive to interest rates. interesting, now nobody, 0% expect a

bloomberg's julie hyman has more at the market desk. julie: just to say a word about viacom, i don't think that was entirely unexpected. actuallyey have underperformed to some degree. they are still higher on the session, but as you mentioned, a sharp leg lower. stocks have had a germanic turnaround to the upside as we have headed throughout the session. if you look at my bloomberg, we have looked at this chart so frequently. this is the s&p 500 versus oil. oil has been higher for much of the day and stocks are only now catching up. an entire correlation? that could be up for debate. we have come down just a little bit in terms of this correlation but still there the highest it has been in about two years time. if you look at the groups contribute most to the gains today, it is actually not energy. aterials are up the most on percentage basis. interesting that it is not necessarily energy driving some of the gains. given very interesting how dominant the dow has been. the gains are mostly coming from a few stocks? i'm going to call up f

need to go over to julie hyman. julie: we are seeing a bounce in stocks from the lows of the sessions here all major averages are still lower, but a dramatic pairing of the losses which, not that long ago, were lower than 1%. we did get the weekly crude inventories report. distillate, hope that there will be a future drawdown in crude as well. we saw oil prices move lower after that. ago -- and ahile little while ago, moving to unchanged. the other market movement of the day has to do with the british ground -- british pound. it is moving lower compared to the u.s. dollar. volatility surrounding a possible u.k. exit from the euro. if you take a look at the history and look at the range of the pound in previous times of 2008,ng crisis, 1982 and that is what some traders are looking at as guidance for what could potentially happen this time. alix: let's check in on the bloomberg first word news. mark: chris collins of new york and duncan hunter of california are now on board. hunter says we don't need a policy hawk as

julie hyman has today's options.ie: joining me is tim, the lead options strategist at delta derivatives. he is out in chicago. all of volatility is continuing today. it's seems at the beginning of the jt -- day today, there was another wave, and perhaps dramatic, of pessimism here spurred by the bank selloff. why are we seeing a little alleviation here as we head toward the close? >> very interesting we went down almost exactly what -- honest exactly genuine 20th. think we'll need to see a break of that level significantly to get the nervousness of. six certainly heightened but nowhere near the august and september highs when we saw the market, actually little higher than we are now. julie: remarkably low yields. 1.6% on the 10 year. the options tied to the rate's market, what kind of action is being there? >> absolutely. and we are seeing a lot of feelings being put in here right around, 1.5 and 5% on the 10 year. at some point, the bonds may flip over into the higher yield, higher-quality stocks, given the fact of

for more on the stock, let's check in with julie hyman.looking at it from the stock perspective indeed. shares falling along with the rest of the market. down about half a percent. the shares have fallen over the past year. not a huge decline, but a decline nonetheless. if you look over the past year, that performance is better than a bloomberg index of american restaurant peers. the index and green had fallen more than yum! brands. i'm looking at analyst recommendations for the shares. there is a lot of beige on this chart. most analysts are advocating a hold strategy on yum, waiting to see what the spinoff is going to yield. i wanted to look at how other restaurants have performed over the past year and what it says about what restaurants have done well and what have not done well. the index is down 15% over the past year. , bigof the performers companies like starbucks, mcdonald's, domino's have done well. there is room for outperformance or there has been in this particular group on the downside. we have noodles and company and the sma

let's get a check on the markets with julie hyman. julie?i want to talk about emerging markets. there is a rising tide of strategist calling for a buy recommendation for emerging markets. the latest to make this call -- research affiliates, which is a , a firmsor to pimco that manages a couple of pimco firms -- one man there, the officer saysent "emerging markets is quite possibly the trade of a decade." among other things he is looking for evaluations. i made a chart of the price to have seenatio and we it has declined -- right now is 11 point three on a trailing basis. in particular, brightman is p/eing at the schiller ratio, and i could not cyclically look at that, so i e ratio moree p/ generally. some managers are more bullish on emerging markets. if you look at that index over the last five years, you will see it has been a rough ride over the -- it has been a rough ride. or over the last year where it has been down. by size ine funds the united states over the past year that follow emerging markets have not done well. take a look again

you will head to the markets desk where julie hyman has the latest. the rally continues. not as strongly as it has in recent days. we are now seeing a mixed picture for stocks. earlier, futures were indicating a higher open. it has lost some steam here. the only major average actually holding on to gains in stocks. to brandon's point about correlations breaking down, even as we see stocks muddle along, oil prices remain on the march higher. here they are up by about 3%. we have the american petroleum institute reported yesterday that crude supplies on especially fell by 3 million barrels last week. we will get government figures on those supplies at 11:00 a.m. and i will bring them to you. thaturvey is forecasting we will see an increase in supply. this could potentially change. if you look at imap on my bloomberg here, you see a mixed picture here as well. this is a different scenario than we have seen in recent days. energy stocks are actually lower, and consumer staples and discretionary stocks are down. seeing strength and technology. ibm is upgraded to overweight ove

let's head to the markets were julie hyman has e

it is time now for the options inside with julie hyman.ie: joining me is dan, managing director, joining us from chicago. so dan, as i was talking about earlier in the market up date, it feels today is -- what we have seen for the year. the same playbook we have seen thus far in 2016. >> it is possible but it is interesting. it is a little bit different from a short-term perspective when you look at what is going on in the volatility space. interesting there is a little bit of a foundation or at least a holding had earned for the last days. carol: what are some of the signs you are looking for the market that maybe we will not see a resumption? >> a couple of anxiety looking market is attained in the last three days and second of is still als like it little bit higher short-term. we are buying squalls as opposed to selling, it does feel like needs to beit neutralized. >> one of the other things we ise been talking about today the correlations, that we see oil in stocks moving so much in tandem and now we're seeing a decoupling of that. is

let's get to julie hyman at our markets desk.echnologies received a offer from honeywell for $108 a share. the two had been in talks, and now united technologies is rejecting that offer from honeywell, saying it is woefully undervalued. but technology shares are halted at this time, before they were up about one third of 1%. we are not seeing much reaction going into this headline. we will get updates to you as they come in. alix: thank you. much more coming up. we will be right back. ♪ alix: it is 2:00 in new york. tracy: welcome to bloomberg markets. ♪ >> good afternoon everybody. tracy: here is what we are watching this hour. >> we start with the u.s. economy expanding in the fourth quarter war than previously thought. did a grow in the wrong places? there are still plenty of tools for china to stimulate growth. is evaluating the yuan one of them? >> chris christie coming out in support of donald trump. it raised how much of a boost before the candidates are ready for super tuesday? we are going to head over to the markets des

for the wii, let's head to the markets desk where julie hyman and has the latest. julie: a stumbling end for a strong week for stocks. the nasdaq has been the outperform performer today, very little change. this is over the course of the day. you will see a very tight range here in trading. dipping at the open. the range mostly throughout the day. the other thing we are watching is we continue to see low volume. these of various groups on the s&p 500. not a lot ofl sharp catalysts and news out there trapping trading. carol: once going on in terms of other asset classes? julie: it depends on what you're looking at. it has than pushing down energy stocks in we have seen directionally, the correlation today. we have oil down 4%. still trading. we saw it actually shrinking. we saw a little bit of an improvement in oil there but it was not sustained. not seeing much action in the tenure. finally, gold prices. bit catching a little today, up about .5%. it depends where your looking. but really, in stocks and treasuries, there's not a lot of movement. carol: thank you so

julie hyman has marked the market desk. that little attempt at a recovery that we saw a little earlier in the session read all three major averages are now turning lower here. indeed infected in part by what is going on in europe with the banks. look at the bloomberg for the imap here to look at what sectors are on the move and what is weighing on things are now. telecom down the most. it is not that heavily weighted. energy financials, consumer discretionary that are causing the biggest declines today. shares were lower, even when oil prices were higher. now, oil prices have given up the gains as you look at where oil is trading right now. we are seeing not a big decline, but none the less, giving up those gains that we saw earlier. we are seeing the big stick up once again. vix pick upeing the again. thes not just volatility in united states. the get bloomberg once again. we are looking at the move index. bank of america maryland market risk index. we are seeing that here the bottom chart is the msci global index. the wor

scarlet: julie hyman has been tracking the losses.s that to deepen for the entire session. trading pretty much at the low here. take a look at the bloomberg terminal and the energy source that we have been talking about all day, it's not just energy financials. consumer staples, all of them down 1% or more. this has to do with earnings and specific groups. it has to do with oil prices. 30.29 a barrel. we're looking at the oil and the s&p the last month. days or theyen have threatened to decouple but it has not quite materialized for any length of time. energy stocks on the account for 6.5% of the s&p 500. it feels like much more because oil seems to be this proxy for all kinds of worries. when it goes down, it seems to drive everything. alix: that does not make sense. it's not a typical correlation. we do have some positive stocks today. do been talking about google all day. been talking about google all day trading at a record that led me to check on at the high low. 52 week high versus the 52 week lows. when have the selloff, as sto

julie hyman has the latest. where are we? highs of are at the the session, or very close to the highs of the session. for the third straight day, a gain of more than 1%. only happened 15 times. this is the 15th time that has happened since 1990, when we have had three straight days of 1% gains or more for the s&p 500. it is quite unusual. it is happening an environment where it seems to be a rebound/recovery kind of affect. there is no big macro headline for the past several days spurring the rally. we have not seen a lot of the cyclical groups leave the rally. energy is the best-performing group. technology, materials, industrials -- have been some of the leaders. let's look at what has led over the past few days. finances have gained the most in financial terms over the three-day period. the only group a little lower is utilities. brendan: that is equities. where are we with everything else? julie: a similar move depending on where you look, particularly the bond market. ec see a move into stocks and out of u.s. treasuries.

julie hyman has the market check.and it is not abating as he gets closer to the closing bell. i have not mentioned volume -- volume on the s&p 500, for example, 36% above the 100-day average. not only do you have the selling pressure, but it is on heavy volume, and as i said, no relief in sight with just 10 minutes to go until the closing bell. the nasdaq is leading to clients today, down 3.4%. that has really been the story all year -- all year -- this little more than a month we have had of it. if you look at the year to date returns, the s&p down a percent, the dow down 7%, and the nasdaq down 13%. -- has beennce leading the losses since 2015. it is happening today. -- biggest declines microsoft, facebook, apple, amazon -- all of them under a good amount of selling pressure. we have some smaller companies out with earnings that are causing large declines in those individual stocks, and that seems to be casting a pall iraq the industry. -- throughout the industry. salesin plunging after a forecast that missed estima

julie hyman has the latest on personal income and spending. julie: those are coming out better than estimated. ,ersonal income rising .4% estimated by economists. .5%.nal spending also up we like get the pce deflator and pce core. pce is personal consumption expenditures, a measure of inflation closely watched by the fed. the deflator year-over-year is up 1.3%. the core number year-over-year is up 1.7%. getting incrementally a little bit closer to the 2% target by the fed. minutes we last few got a lot of economic data but the university of michigan consumer sentiment reading for february, the final rating for february, coming in at 91.7. a lot of data to consider, on top of the final read on the fourth quarter gdp coming earlier this morning that came in better than estimated. stocks are rallying in the face of that, but not by far a runaway rally. the nasdaq is leading on the outside. considering we saw a big rally overnight out of china as officials they are left the door open to more stimulus, the fact that oil is higher, in the face of al

julie hyman has the latest. big movers isthe intrepid potash. plunging there are concerns about the future business prospects. the company posted a fourth-quarter loss of $518 million. they are in talks with predators. chart,take a look at the this is the weekly price. this is an white. it's priced on a weekly basis. it does not trade daily like oil does. potash has fallen. it's down 40%. it just shows that we have seen this route across the commodity landscape. potash has been subject to that. you see the report back to some of the producers. western energy was down. the analysts say they are surprised by the forecast of low cash flow. the declineed about in production rates. this is something that southwestern talked about. signet jewelers has risen. they are assuring financing. they came under finance because of financing of jewelry purchases. 63.9 millionid dollars in interest. amazon is stepping up its move into the u.k. grocery market. they signed a deal to sell products from them. it's a crowded industry. after are plunging 10% morrison s

first come let's head to the markets desk where julie hyman has the latest. seen all this bouncing around in today's session. that is continuing right now. all three major averages now lower. the dow was higher not that long ago. the nasdaq has been leading losses. just as it has been all year. you can see the bouncing around that has occurred. stocks fell to the lows of the session just after the inventories report. then had been bouncing around ever since then. in terms of the individual , heavily tilted toward tech here. microsoft mouth about, amazon, all of them declining. amazon,soft, alphabet, all of them declining. wells fargo representing the banks here, which are also selling off as we continue to see the yield curve narrow. >> what is the effect on the oil prices? julie: the exact opposite effect of what you would expect. we saw it build and inventories that was double what was expected by analysts. yet, oil prices after initially dropping then surged higher, now 6%. there was an interesting story this morning pointing out there is still a lot of op

let's bring in julie hyman who can give us a little more context.o switch gears and talk about a different story. we have a bunch of breaking news affecting movers in the past few moments. i want to look at honeywell and united technologies. the two have had merger talks that honeywell is said to have made a proposal to united technologies and united technologies was said to have seen the issues as difficult. maybe you can look at my bloomberg or that. we have notere -- confirmed these headlines. we don't know if they are still on the table. that said, we saw a spike on the table. let's also take a look at the united technology shares. although those are holding up at a higher level, up by 5% versus where they were before. about one more breaking story affecting shares and that has to do with go-go, the wi-fi company. those shares are up nearly 13%. i have to look at the headlines american airlines dismissed a filedatory judges action against go-go. the shares plunged after american airlines said go-go's competitors offered a more , so thosee servic

alix: julie hyman has more.you, i want to start with a description of what these new etf do. they are on the actively managed side of the etf universe. that has been a growth area versus the index type of etf. how exactly do they work? what is the strategy? >> we took our time. it's been 14 months since we to think carefully about the right product offering for our clients. janus has a lot of business lines but our core has been fundamental stockpicking. we set down with the folks who run our small-cap products and that management team and asked if there was something in what they are doing. it has been successful over 20 years with five-star on. is there something we can replicate from that that might not give you the full active products set but we think of as enhanced beta? can we give investors products we believe can outperform market cap weighted benchmark on a risk-adjusted raises and do it at a lower cost? small what led us to jay and j smith which are the two etf's. it's about running companies in the s

sot: m hyman, 2000 oly gold medalist "i'm planning to go myself." she's searched it and shs still planng to to support friends who may be competing in the olympics. sot: misty han, 2000 olympic goldedalist "it isomethi to be aware of anto research, b i do thin th is not going toffect st of the athletes."nother friend of misty's who was plning to go has decided to back out, because she's planng to getregnant this year. sot: misty hym, 2000 olympic gold medalist "my friend doesn want take that ris the good news is when the rio s gin it wilactual be "winter" in brazil ando there should be fewer squitoes. we'll beroadcasting alofhe summer game---starting on august 5th. lot of dui arrests over supe bowl weekend. we'llot the numbers next at six and as you m expect a whole loof kids di't get to ass tuesday durg the brons viory pade--we'lte you reported! covering colado night: ferainvestigors are searching for is man--a former swedish hospital surgical tech cused of switching syringes. it's believed 28-year-old rocky allen has lefthe state. 's suscted oswit

need to go over to julie hyman.re seeing a bounce in stocks from the lows of the sessions here