joining us for more is julian emanuel of ubs. julian emanuel: we think we will. we have.s, we have had a series of one-day wonders, where back in , theyou had the fix up 50% fbi director was let go, it came back. we think when you look at it, the catalysts are threefold. you've got to deal with the budget, you got to deal with the debt ceiling and then there is the fed. as we said earlier, that will develop in terms of discourse. a lot of the potentials here is if the fed does insist on hiking and ubs time in 2017 believes that is the case, the markets may not be prepared. alix: when people talk about why they like u.s. equities, they talk about the underlying micro fundamentals that when you talk about volatility, it is the mac wrote but the macro is not leading the micro or individual stocks. why is that going on the downside or upside? julian emanuel: you are at a point where, if we were at 17 or 16 times failing earnings as opposed to 20 times failing earnings, almost 19 times forward, or at a volatility level more consistent -- not even necessarily the average callin

we did see a gain in stocks going into earnings season as julian emanuel pointed out on bloomberg daybreak. what about the earnings today? we got some highlights in retail. retail reports late in the season. ralph lauren out with numbers and each managing to get more customers in the store paying full price. that has been a challenge for retailers. they have remodeled some stores. ralph lauren has a ceo that has been changing the strategy. both companies saw declines in sales. in the case of kors, those shares are seeing a pop today. up to thewe are close. those shares are up 10% and coach is getting a lift as well. we are watching some specialty pharmaceutical companies that have reported their numbers. we've got valeant pharmaceuticals. numbers thatt with are better than were estimated, in particular for top-selling drugs. those shares up a percent. o cuts to account for removal of its opioid drugs so those shares are taking a turn lower. another move in health care, a big one in the form of fiber of jen. ogen.br the company coming out with some positive results for its treatment for a l

jeff curry from goldman sachs, julian emanuel.n and new york, this is bloomberg. ♪ who knew that phones would start doing everything? entertaining us, getting us back on track and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save when you choose by the gig or unlimited. call or go to xfinitymobile.com. xfinity mobile. it's a new kind of network, designed to save you money. cargo this is "bloomberg daybreak." am caroline hyde in london. let's check out the equities. we could see green in the united states. futures are tentatively close to the record highs. the dax is off by .4%. german production falling in data today. and one of the key loggers on that particular index say they will be splashing cash in the u.s. the ftse 100 up .2%. at the highest in two years in the japanese index. let's switch up against. the euro is shaking off the g

. >> for more on the trouble in the transport, let's bring in julian emanuel it's great to see you. >here. >> you are worried about the transports and where they are relative dow >> i agree with everyone, first of all, it is not the tell that it used to be. but the fact is, is that you know, in the market, where essentially, the entire market is as strong as it is, for a broad-based transport index to be approach iing the 200-moving average from the upside low er i a cause for concern. there is a sort of potential explanation hear and again, we've been on in recent months to talk about it you've had an oil rally. okay and when oil basically went from 42 to touching 50 this morning, it's perhaps natural to expect in a world where etf activity dominates single stocks as we know as it has that these stocks may be pausing as munroney rotas back into energy >> you have been on the trade of energy now in the past month, equities are up 2% there abouts what has oil done in the past? mid 40s, low 40s up to 50? >> 17% before pulling back over the last couple of days. >> why aren't we seeing th

after the bell we'll hear from nordstrom and snap >>> let's talk markets for now julian emanuel is from ubs of course our guest host this morning is guy adami cnbc trader. let me start out with you, julian you're convinced that in the short-term we could be looking at choppy sailing. >> yeah. if you look at it bayically over the long-term what matters to markets are earnings and the economy. both of which are doing pretty well it's taken us to where we're at around 19 times forward earnings which is reasonably high evaluations. but in the short-term, the last 48 hours have reminded us that publics can matter >> not in a meaningful way >> when you look forward, it's likely that the debate as your reporter stated earlier is going to intensify coming into a time of year, september is traditionally going back to world war ii the only month of the year where you have negative returns. so we do think there is a chance for a pullback in here >> karen >> i don't really see a pullback of any significance really coming because the earnings are doing so much better there are so many investors sitt