julie: in new york, i am julie hyman. this is "bloomberg markets."lling 5% after the company says it is making major changes to the flagship social network shifting news feeds back to posts from friends and family and away from businesses and media outlets. it will likely see people spending less time on the website. it is interesting. it is something that users have been asking for. facebook short-term pain. taylor: an analyst highlighted that say this is a change that was built in. people wanted. good on facebook even though it might not necessarily be good in the short term for business. julie: one key thing is that it might mean less time spent on the website. chart of daily active users. it exceeded 2 billion in june, but that has been slowing you are seeing growth of monthly users going to 15% versus 16.5% in the fourth quarter of 2016. this is daily active users as a percentage of daily active users here at has also been slowing down. the daily use is not as much. mark zuckerberg came out and said that community feedback has shown that the pub

julie: i'm julie hyman.shares are sinking lower today on reports that the industry's founder is sexually harassing women, over a period of many years. steve wynn denies the allegations. the allegations here are certainly deserving, -- disturbing, to say the least, and have gone on for some time here. obviously, there is a certain reputation, but in this day and age, or any day and age, this behavior is not acceptable. i am interested what the reaction has been, both from win himself and-- wynn the casino community. >> first, we should say that he has denied this. that is his allegation. he is in the middle of a lawsuit with his ex-wife, elaine wynn, stake, is trying to get back voting control of her shares. he is interviewing some of this to her doing -- attributing some of this to her doing, which the wall street journal said nobody came to them with these allegations, they went out and found them. that is the first thing. the other major thing to note here, talking about the culture wynne casino industry,

. ♪ julie: live from bloomberg's world headquarters in new york, i am julie hyman come in for julia chatterleyscarlet: i am scarred through. joe: i'm joe weisenthal. julie: stocks are in the green but the dollar has had a rough ride. joe: the question is, "what'd you miss?" scarlet: gdp reports speedbump for the dollar. growth seemed out of reach in the fourth quarter. harassment allegations against steve wynn taking its toll on wynn resorts. the billionaire many is denying reports he sexually harassed a number of women. another pocket of winter weather is heading for the u.s. ironically, rising temperatures around the world may be responsible for an increase in the winter cold snaps. what'd you miss?

julie: from new york city, i'm julie hyman in for jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ julie: coming up, we look at a year ahead in fixed income as investors prepare for a new fed chair, jay powell. and tighten your seatbelts as the yield curve reaches its flattest levels since 2007. it's the last trading week of the year. as the year wraps up, we review the year that was 2017. we start with the big issue, or should i say the big issues of 2017. >> i think the fed is itching, wanting to raise rates for some time. >> i still think the reflation trade is there, but you are going to have some volatility around that. >> i think it has had an air pocket, but the reflation trade is still in place. >> we are pleased with what going on in the unemployment picture. >> job creation remains solid. >> the jobs number is a good number. >> i see the labor market as continuing to heal. >> there is room to maneuver, but we are a long way from full employment, and wage growth is a long way from where it would be if we were close to it. >> people have c

julie hyman is with us. we're halfway into the trading day. julie: we have not seen many selloffs over the past year or so. it has been 112 trading days since all three averages simultaneously fell by at least 1%. that is the 10th longest streak from the conception of the nasdaq in the 1970's. it has been unusual that we have not seen decline. it is the biggest decline today since august. it comes on the heels of stocks getting to's unsustainable levels, all that -- although that alone is not a reason for selloff we have been watching indexes needed a gun to record levels and the rsi. it signals the s&p 500 was overbought. then we got the today selloff after the big gain in stocks that was the biggest since september on friday. what is leading stocks downward? apple has been leading to declines. the shares are down 1%. yesterday there was a report that the company was cutting its iphone x production targets. today, the wall street journal is reporting a similar issue. we also have deutsche bank saying the new iphone models are too expensive to

i am scarlett fu. >> and i am julie hyman. it is ay day for deals, especially in the pharmaceutical world. celgen agreed to by. bloomberg glass light columnist joins us now with the latest. s latest column is biotech's $20 million merge he may end up being a dud. thanks for talking about this. in your column you lay out the reasons why these deals may not be home runs, or it is at least in question. explain your thinking on this? >> absolutely. for cancer deal drugs to track down cancer. it is juno's individual drug, behind two entries between other entries in the market. that makes for a competitive dynamic and class-wide difficulty. ese drugs are really expensive, and there are reimbursement issues, and they also have severe side effects. for the other deal, it is a lehman feel ya focus off biogen. that is a really tough market, and there are drugs coming out that may actually be able to cure lehman feel ya in some of -- lehman feel ya. >> why are they going into these areas of medicine? >> it is pricing power. you see that

julie hyman is with us. julie: we are seeing a record for the major averages to kick off the year.ontinuing the trends we saw last year. technology is leading. andwith a strong 2017 eight emergence for the second straight day and a repeat of the action late last year with the tech outperformance of the dow. other groups like energy outperform today. we have broken through a 100 and clement for the s&p 500 -- increment for the s&p 500, the fifth time we have gone through that level in the past year. 2400, 2500, 2600, hitting that in regular intervals as we see stocks hit record highs on a regular basis. technology is doing well and not just the fang stocks but the established legacy tech companies doing well. outperformsed to according to analysts, secular members that should enable share performance throughout this year while oracle getting an upgrade over morgan stanley, the endless their said the low stock valuation represents a tactical opportunity for old-fashioned earnings growth to drive the shares higher. rallying.micron another story we watched about the implications of the

julie hyman is here and we are back into positive territory. pause as all brief three major averages are higher and not only that, they are at records on a closing basis. also a broad-based rally despite being relatively modest. industry groups within the s&p are higher and the best-performing group is energy. oil trading at a three-year high in new york, wti that is. as we see the dollar pullback to some extent, part of that dollar weakness has to do with euro strength. part of it has to do with producer prices missing estimates so after that, we saw the dollar extend its losses. a combination of stockpile data as well as that weakness in the dollar helping combine to boost prices.l percentage gains and losses on a relative basis, the bloomberg dollar index over the past year, down about 5% and oil was not getting any kind of benefit from that until in november when it started to take off and now it is up about 20% over the past year or so. some of the out performers even within energy include stocks and some examples of the large-cap names th

julie: and i'm julie hyman.ecembererated and reinforced fed to raise several times.s that pushed the two-year yield over 2% for the first time since the financial crisis. here to discuss this is bob sinche. how significant is that for the two-year? robert: getting a handle on the two-year when you have a handle on the 10-year is getting pretty significant. not think the flattening of the yield curve is telling us all that much because we think the long end of the curve is being depressed by levels around the world. if you look at the real funds rate, it is zero. that tells you monetary policy is accommodative. measures to look at. the yield curve is less reliable now, but we will continue to about therns raised flattening of the yield curve and the handle and the two-year is significant in that context. julie: do you think we see more on the 10-year was at a head fake? in the short mark we hit to the take for the lows in 2014. i think that 10-year is -- was hit earlier this week. we may get a bounce off from tha

also with me as julie hyman. welcome back and thank you for helping me out.e big question to me is the biggest consensus trade of the moment is emerging-market. everybody seems to be piling in. my question is, where is the opportunity left? and luke, i want to start with you. do you see opportunity, and if so, where do you see it? luke: so i've been sitting in the emerging markets team this year. they are struggling to find the easy opportunities for sure. even in frontier markets on the edge of those emerging markets and the things investors are interested in, even that part of the area they have been reducing their allocation recently. so, you know, they are looking at venezuela, argentina. they are having a lot of thought about mexico and the elections, but not getting too involved in these assets until they actually get to attractive levels. and i think we see those emerging-markets spreads in the kind of 220 to 230 area, but a lot of that is venezuela. because those yields have just blown up over the last few weeks. so it's still an attractive area compa

julie hyman, julie.ecords early this morning and now all major 26,000s in the dow, earlier in the session up as much as 1.1%. is down.q take a look throughout the session. hitting the gain of 280 points. finally went negative to just about a half hour ago. of the catalyst for the downturn, you can find the same reason it was going up. some sort of shift in sentiment. typically, what this indicates is momentum. since reached the highest 1971 which indicates we are at an extraordinarily overbought .evel of u.s. stocks it is not mean it cannot stay at that level. it has been above it, but finally, something sort of gave here and tomorrow's session. oil has had a more modest run admittedly. you today, 5.7%. i was hoping for a chart so we could see a dip that it has had today. the various assets benefiting recently are now pulling back to some extent. let's look at some movers on the up and the downside. we have been talking about general electric, the $6.2 billion write-down related to the -- the insurance b

julie hyman, thank you.ields are easing after china refutes that its officials recommended a slowing of u.s. treasuries to bloomberg. stocks are also trading higher today. recovering from yesterday's yields, joining us now is jim polson. jim, were you surprised that it was only a 12 hour of fair yesterday morning, and we are holding to the highest yields? strong upsidee price momentum here on the stock market. it is probably going to take more than a temporary positive a single day. positiveuses -- such optimism, i think you are going to be seeing a lot of buying on the dips. i am more and more cautious on this market. high the strong price momentum is going to take it, it can certainly go higher, that is challenges forming for the stock market. we have the most positive investor optimism we have had in the entire recovery. and ill of worry is gone, think optimism is to bullish. we of course have rising yields, and it is not only in the 10 year, it is also in the five-year, two-year, cash rate. we have this

julie hyman has been keeping a watchful eye on the first 30 minutes. julie: stocks fell in the last week of 2017. we tend to see the so-called santa claus rally. that was not the case but we are seeing a rebound heading into 2018. it is not enough to bring the major averages to records. that enough to recoup the losses we have seen -- not enough to recoup the losses we have seen. we have seen this winning streak for you buy stocks. major ever -- for u.s. stocks. monthly returns for the dow in particular, nine straight months of gains, the longest monthly winning streak since 1959. we will see if that can be extended into january. modest gains but nonetheless gains for the dow. we got some truck makers getting upgrades from jpmorgan. in particular, baxter was also upgrading over bank of america merrill lynch. also an upgrade from wells fargo. all of this has to do with the outlook for these companies for 2018. we will dig much more into abbott and drugmakers in general, later in the program. retailers, watching those as well. nordstrom was upgraded to ne

julie: and i am julie hyman. what sector are you looking at?il: it is time for coffee for all of us. spider.or the flex big real estate sector. many of the real estate related companies in the sector have high dividends. drop, they look more attractive and therefore you see the boost. hour, the mallhe operator in the u.s. with a concentration in the northeast today, shares are higher. two held off with other investors to keep the company private. they all about 16.4% of the company. 28%, part of the and mortar. it is not unusual to see it happen with companies involved in the retail sector. talk see it happen with companies involved in the retail sector. talk about what we have seen. >> you are right there has been a trend of that just last month, australia see it happen with companies involved in the retail sector. talk about what we have seen. >> you are right there has been a trend of that just last month, australia which does gain in the u.s. was acquired. >> you are right about that. exactly. abigail, thanks. coming up, the market continue

julie hyman is here. the dow extending its record high but pullback everywhere else. dow is well off its highs. only up

let's get a check on where stocks are and how they are reacting, if indeed they are, with julie hyman. julie: we are seeing stocks of the highs of the session, but they have been gaining throughout the day, particularly in the past hour or so. all three major averages are now , i believe, at least at closing highs. we have not hit intraday highs for the major averages, but we have records on a closing basis, if we keep track of the gains we have seen today. they are fueled by some of the earnings reports we have been getting, and also the apple news coming in the past hour or so. the stock was lower, so it is not necessarily that it is lending itself so much to the gains we are seeing, but because of the size, any gain for apple is a gain for the market, but it was holding back earlier gains to some degree. now only of one third of 1% as we try to figure out what this repatriation announcement today means. the company will be paying about $38 billion in taxes because of repatriation here. isthe same time, apple saying it plans capital expenditures of $30 million in the u.s. over five

julie hyman? julie: for all three major averages.he milestone above 25,000, all of them at records here, which is what we have been watching for the first several days of 2018. all three days have been higher to kick off the year. a bit of a flip today, the dow the strongest performer of the three major averages of the last couple of days. on's talk about what's going with chips. it's an interesting and evolving situation here after the security flaw was revealed in some intel chips, the power pcs that allowed hackers to get in. a lot of analysts commenting, saying that it's not a bug or design flaw necessarily but they are scrambling to fix this. according to aria, the shares will likely face an overhang until late january when they provide their 2018 outlook. though the company says there will be no financial impact, some analysts are skeptical, including aria and an analyst over at mizuho. pointing out that nvidia could see a positive sentiment shift as a result of all of this. amd has been the beneficiary and the main competitor

vonnie: julie hyman, thank you.ere, thes finally biggest change in a decade is off to the new start but our -- our firms prepare for long-term impact? we had the president of the arbitration bar association, [applause] -- what are the major applications? >> a little flying under the radar for u.s. firms, there will be some thorny coordination issues between the rules of the eu and the rules in the united states. statesfirm in the united that trades european stocks or european bonds will be affected by these new rules and regulations. it is a big deal. vonnie: the parent of bloomberg news provides a range of services for firms complying with mifid ii. map, thereoint to a are many countries in europe that do not have the rules completely and affect. the green countries are fully transposed while the blue countries are still working on it. how long before mifid ii is completely in effect? andrew: i think it will take a bit of time, there are 1.4 million paragraphs of this rule. the compliance costs so far have been ove

vonnie: julie hyman, thank you.big week for tech as some of the biggest stars are slated to report earnings. we will hear from microsoft, apple, and alphabet. joining us is cory johnson. great to have you with us in the studio. what can we expect? cory: these companies have been driving technology. you cannot emphasize enough the role of these companies, google, amazon, facebook, and apple. this is a week when it is not about hype. it is not the consumer electronics show. it is not bitcoin. it is about the actual results. the curtain gets opened. i will talk to folks from these companies bloomberg radio and bloomberg technology. one thing to focus on is to use command on the bloomberg terminal. there is my terminal right there. we are looking at google. in the corner there, 4.3%. that is the average move in google after earnings per month. if we change over to amazon, we see that move is 8.4% after earnings. sometimes it is up. sometimes it is down. we know that amazon tends to move the market when it announces resu

let's get a check of where we stand right now with julie hyman with the latest. lie: we get to treasuries and a second end of the peeking into the green led by general electric. the s&p and the nasdaq remain in the red, breaking that succession winning streak we have seen for stocks here to kick off 2018. it's very much an interest rate driven story today as we see yields climb. that is definitely benefiting the banks. jpmorgan, wells fargo, and citigroup all higher. saying in animer interview with matt miller that they like financials and all the major markets. they should benefit from the increase in interest rates here. if you look at the tax picture for the banks as well, remember we have been talking about the tax hit that some of the banks are going to take here. many strategists are saying it's going to be short-lived. in the end, they will benefit in part from the longer-term effects of the tax cuts we have seen. citigroup taking the biggest hit thus far, at least in their reported filings. let's get to what's going on in the treasury market. we got the re

let's get the market check as usual with julie hyman. &p 500 and all major averages since august of last year. it seems as though the trigger is bond yields getting to elevated levels, elevated for four years time. that is perhaps the trigger. bonds continue their selloff as we see stocks selling off as well. triggering that they deal in the pharmaceutical, in the health-care industry. amazon, jpmorgan, and berkshire hathaway teaming up to offer health care for the 1.1 million employees. health care caused a cascade if you will this morning. if you compare what is happening with health care and biotech you lookh yesterday, here at the biotech index and the s&p bought that pharmaceutical index in blue, yesterday we have president trump commenting about drug pricing. today, there is no recovery. we saw the strap this morning when the headlines came out about this new health insurance venture. a little recovery and then right back to the lows. there is a lot of concern in the health care industry about what effect this country could eventual

vonnie: julie hyman is with us.radingthe way into a day, seeing a potential government shutdown at midnight. the markets not reacting that much. it's not particularly unusual. we have seen something of a market reaction in the past, but then a bounce back once the shutdown is set and down. the dow jones industrial is down by a quarter percent. the russell 2000 small caps, which have been lagging, is now trading higher and outperforming. 1%.ises by 9/10 of some divergence between the small and large caps. the history of what we've seen in past shutdowns, namely in 2013. it happened in the first portion of october. take a look at the bloomberg. .e have a chart of that time stocks and bonds circled in red, the 10 year yield in blue, and the s&p 500 in white. we see more dramatic of a move everythinghen resumed movement. yields go down and stocks go up following the conclusion of that shutdown. it seems to be viewed by most market participants as a temporary event that does not have a sustained effect on the u.s. econom

where stocks are trading right now with julie hyman. julie? julie: all three major averages did touch records earlier in the day, and my producer just telling me that the s&p 500 has not had back-to-back years in which the first two trading days were positive since 1987. take from that what you will. it is an interesting stat here. here is the s&p 500 on the day, looking for reaction to the fed minutes. we are not seeing much. we saw stock speak around 1:00 p.m. and coming off, still higher by about .5% on the day. technology and energy shares were leading games. -- gains. let's check on the u.s. dollar in the wake of the fed minutes. it actually took a bit of a leg the wake of the fed minutes, although we learned the majority of federal open market committee members still supported an increase in rates in december, which we got. quarter ofnow up one 1%, and rising for the first day in five. as for rates, let's check on those. the 10 year yield, we have been watching that come off the lows but not looking at much of a reaction. it is direction

julie hyman is with us halfway into the trading day.fter the bloodbath yesterday, may be an overstatement, how were earnings? >> relative basis, it was a bloodbath because of tepid action over the past year. the rebound today is becoming ever more tepid. fellh care stocks, which sharply yesterday on the news that amazon, jpmorgan, and berkshire hathaway were teaming up on a health insurance venture for their employees are the weakest group again today even though some health insurers are bouncing. aat is why the s&p is only of 10th of 1% while the dow is outperforming. the nasdaq up a 10th of 1%. this is a amid strong optimism on the part of consumers in the united states. excuse me. this is consumer confidence, the reading of optimism that stocks will rise over the next 12 months. this is a record high. thatf the market measures some analysts are saying is overstretched. getting back to earnings, number from electronic arts helping its peers. ea raising its fiscal 2018 forecast, relying more on the digital side of business and not the

julie hyman is with us. are halfway into the trading day, and julie is keeping an eye on the market action. julie: we are seeing a breaking of the winning streak to kick 2018. the s&p 500 rose for six sessions in a row and is breaking it in this seventh session. it tied the longest stretch of records ever to start a year, as we were seeing records not just for the s&p but for all major averages. a lot of commentary on stocks coming from the likes of jeff gundlach, that we could see a down year for the s&p 500. goldman sachs is also expression caution. we are seeing semiconductors take a hit after china international capital corp. cut its forecast for 2017 and 2018 mobile phone shipments in china. you saw the philadelphia semiconductor index lower as well as semiconductor equipment makers. that is dragging down tech stocks in particular. we are watching some of the blue-chip stocks, going in opposite directions. general election -- electric moving higher after warren buffett he would consider buying the stock

i'm julie hyman. scarlet: i'm scarlet fu. welcome to"bloomberg markets." lie: we are live in bloomberg world headquarters in new york. over the next hour here are the top stories we are covering on the bloomberg and around the world. tugboats, day three. lloyd blankfein says president trump's tax bill has brought the u.s. more in line with the world. highlights from our interview in just a mim -- just a moment. hedge funds are getting more involved in washington lobbying, not just on industry issues but on decisions that could affect their portfolios. details behind that action, this hour. plus i'm of the intel on intel. the chipmaker, after the bell, will the results reassure concerns about lingering vulnerability? let's check on markets with abigail doolittle. abigail, another day where we are seeing some with sawing -- with sawing -- be day: a top teacher and now we are looking at mixed action similar to what happened yesterday. we have the s&p 500 and the nasdaq lower, the dow higher all day, putting in another all-time high. the s&p 500 when it was up,

julie hyman is with us. we are having way into the trading day. has the bitcoin bubble burst? >> well, bitcoin is definitely lower today. i guess it depends on what your definition of a bubble bursting is. it is down 50% from its highs. if you take a look at major averages, we are still seeing gains. the dow, s&p and nasdaq flirtsing with record closes. the semiconductor index, many of whom's components have been reactive to bitcoin's moves recently are doing quite well today. it is up by 2% and actually at a record on a closing basis as well. take a look at the bloomberg. we have another look. it is here definitely at a closing high. it hasn't goten back to its interday peak at 2,000. in today's session, it is the chip equipment makers doing best in that index. they are all higher as they are competitors, asml in europe posted ruts that were much better than estimates. that is carrying them along. their gains are coming despite weakness in apple today. apple had some mixed analyst commentary where one analyst coming out with the highest target on the stream, 220, bank of amer

julie: i am julie hyman. >> i am scarlet fu. we are 30 minutes from the close of trading in the u.s. and stocks are at record high after they advanced a bill to end the government shutdown. >> the question is, what did you miss? >> lawmakers ending a stalemate to advance a stopgap funding measure that would keep the government funded through february 8. investors anticipate a stranger things bump. the program likely boosted subscribers in the fourth quarter. and angela merkel is one step closer to a fourth straight term. what did you miss? more on that main story. the senate moving to end the government shutdown after three days by advancing a temporary spending bill that would fund the government through february 8. still needs to take a vote on the measure and then it will move to the house this afternoon, and ultimately it will wind up on the president's desk for a signature. there doesn't seem to be any suspense at this point about the shutdown being ended for now. the question is what happens after that? pushing going to ke

julie hyman has the details. a lot to is spreading the chipmakers themselves.sml was the tender here that sparked the gates that we are seeing. the equipment maker be projections in the first quarter. i love this quote from an analyst in europe, saying it was a ridiculously strong fourth-quarter for asml. he said the semi conductor is still in rude health. take away from this is that we are still in the midst of this cycle. julia: super cycle. julie: if you look at the semi conductor index, it is a new intraday record. not quite getting there until today. to bloomberg intelligence and covers the check -- and they are a driver in this. 50% of asml machines -- the demand was coming from memory area that is a shift, of new orders of 50%. the new cycles started in mid-2016. they never thought it would come to an end, or wayne. judging from the latest report, that doesn't appear to be happening. asml --o what extent is they're all rallying. julie: it seems to be applied to all of the chip industry. they have an extensive machine called the extreme violet photography

let's go to julie hyman with the markets. lie: we are not seeing many signs of concern over this potential government shutdown. when we have the last government shutdown in 2013, stocks fell off to some extent, but they rebounded afterward. dow is lower today by a quarter of 1%. the s&p 500 index and the nasdaq are gaining ground. another way to slice it when effects of the shutdown is to look at the foot-call ratio on the s&p 500 index. people are buying the more bearinsh options. pretty much in line with the average is today. -- averages today. we continueg theme to examine is taxes. worldwide announced it was buying hotels. it is rising today after a goldman sachs upgrade, citing shifts in consumer spending, corporate tax reform, and rising inflation. this will be a direct and indirect beneficiary of tax reform because it is linked to consumer spending. we are seeing analysts raise estimates in a pretty dramatic fashion. tende earnings season, you to see analysts raise their estimates in gradual fashion. dramatic increase i

scarlet: time now for options insight with julie hyman. julie: joining me is kevin kelly.o see you in person. so it is the first trading day of the new year and everything is different, right? kevin: everything has totally changed. it is so surprising. changed fromeally last year. you see the skew is relatively elevated, people are still taking out a lot of portfolio ,nsurance on a tail risk side so a skew of 137, above last year's average. the extent 11% today not translating into people taking off the portfolio insurance. >> a lot of traders crossing their fingers that volatility will pick up this year and buying insurance, that eventuality. what are the things you are hoping will change potentially this year, one of the dogs of the dow last year maybe turns in -- turns it around. ibm. to finish lower in 2017. kevin: it got decimated against the broader market last year. decimated against the broader market last year. if you look at one of the dogs of the dow last year that did exceptionally well, caterpillar. looking at it, he turned around and had exceptional performan

i'm julie hyman. scarlet: i'm scarlet fu.e from the world economic forum in in davos area bill gates -- in davos. bill gates spoke to us about what he calls the stubbornness of malaria and his goal of lowering drug resistance to the disease. bail: -- resistance,t drug and we have drug resistance now so we are working with the private sector to get innovation there. the drugs themselves, we use these combinations in southeast asia. we have resistance there. peoplet the energy that put into these programs. one of the great ironies is that as you get malaria cases down, than a government will tend to move on a go on to something else and you will see a rebound. so for the last three years, lost of the bed nets have been wearing out, the last three years we actually have had the number of cases a lack. and in a few countries including nigeria the cases have gone up. you always have a little bit of variation in terms of the weather. the wet season is when mosquitoes proliferate in the next financial way, but the community needs to

julie hyman has that. julie: consumer confidence coming in ahead of estimates. reading, up above the one -- 123 that i can -- that economists had been estimating. we continue to see consistently high consumer confidence ratings. part of that has to do with the rally we have been seeing or had been seeing in u.s. stocks. a two day pullback in stocks, here in the united states. the s&p 500 is the worst we have seen since march. a lot of it does have to do with what is happening in health care. disappointing earnings as well, this morning. we've got this agreement between amazon, jpmorgan and berkshire hathaway to provide health insurance for those company's employees -- those companies' employees. it is unclear what the details of this health care plan will look like, what it is putting serious fear into the health insurance industry, especially because amazon is involved. as we have seen over the past year or so, every time there is a whisper of amazon getting into a new business, whether it you are talking about groceries or some other business, we have seen sto

. ♪ julie: live from bloomberg's world headquarters in new york, i am julie hyman come in for julia chatterleyscarlet: i am scarred through. joe: i'm joe weisenthal. julie: stocks are in the green but the dollar has had a rough ride. joe: the question is, "what'd you miss?" scarlet: gdp reports speedbump for the dollar. growth seemed out of reach in the fourth quarter. harassment allegations against steve wynn taking its toll on wynn resorts. the billionaire many is denying reports he sexually harassed a number of women. another pocket of winter weather is heading for the u.s. ironically, rising temperatures around the world may be responsible for an increase in the winter cold snaps. what'd you miss? it has been the dollar's worst start to a year since 1987 and could get a lot worse, regardless of whether the trump administration wants strong u.s. currency or not. the plunges preaching technical barriers that have stood as the proverbial last line of defense against the significant gap lower. ise to explain his global -- a global macro strategist. let's leave all of the back-and-forth and the

i'm julie hyman. scarlet: i'm scarlet fu. lcome to"bloomberg markets." ♪ scarlet: we are live in bloomberg world headquarters in or otherarea julie: top stories we are covering. u.s. stocks are recovering from their first retreat of the year, pushing back to record highs. surging energy stocks are helping lead the way. taxes backouse puts in the spotlight. treasury secretary steven mnuchin makes a surprise appearance at the daily press briefing to announce the next step to implement the tax code. and china creates challenges. we look at the world's second-biggest economy as it adds to bond investor worry. we are one hour from the close of trading. let's check on markets with abigail doolittle. that posit, was just that yesterday. pause, was just that yesterday. abigail:. take a look at the nasdaq, really leading the way. as julie mentions, record highs right across the board, relative to the new year they major averages are up seven of the eight days. so, lots of optimism ahead of earnings. julie also mentioned oil as a driver

julie hyman had the details. julie: we have a selloff for the second straight session.he selloff in the likes in which we have not seen. been 112 trading days since all three major averages fell by police 1%. we not quite there yet at this point. stocks have been bouncing around a little bit in today's session on this downdraft we are seeing. volatility is rising in stocks. but not stocks alone. this is as we see the 10 year yields reached 2.71%. the selloff in bonds is strengthening as well. here you have volatility months to date for stocks, the white line. bonds, the blue line. is the yellow. we have seen a surge in all three of them for the first time in quite a long time. we have not been seeing much volatility in this market as a general rule. youging back to stocks, look at the landscape of what is declining today. it is a broad base selloff as you can see. telecom and utilities are higher. interesting those interest rates are higher even as we see those bond yields of those elevated levels. a are seeing as more defensive groups. on the flipside, the worst perfor

we have eric the coolness -- we have eric balchunas with this and julie hyman. this has been a long discussed topic for the two of us when the etf will come to market. what are the most important questions? 31, we will not go through all but what are the most important? eric: they're about valuation, security, and these are major topics, how would they develop -- julie: and that asset value? eric: it is all over the world on different exchanges, and what would they do to ensure liquidity? will you be able to handle those reductions? and how would this etf attacked against hacks? cad is a big one. there is a bitcoin in sweden that seems to work fine, and i think there is a degree of them wanting to look like they are studying this and concerned. i was a little bearish on when it would launch but i have moved up considering some of the feedback i'm hearing from issuers. it might be a while, might not be this year, but it is hard to say. the whole thing kind of reminded me of bob dylan's blowing in the wind -- julie: of course you have a musical analogy. eric: thes

and one hour from the close of trade, let's go check on the markets with julie hyman. -- julie hyman.janet yellen's last meeting, we did see a little bit bouncing around in the treasury market. there was nothing particularly and dramatically different in the commentary. highest 2.75% before coming back down to unchanged on the day. nonetheless, that percent is still the highest since april of 2014. if you look at the dollar, you saw a little bouncing around in the wake of the decision. the dollar index also going unchanged. to unchanged at this point. down 1/10 of 1%. he see the bouncing around that happened. likewise in stocks but stocks haven't reversed the initial movement. we saw the move lower and it kind of stayed there, especially the s&p 500 and the nasdaq. straight day of losses for the s&p for the first time in eight weeks following on the heels of declines in the prior two sessions. boeing.ecause of boeing coming out with earnings at it is also one of the biggest index point contributors to what gains were -- remain in the s&p 500. boeing selling more thing -- 737. thex poi

as will go to julie hyman. >> the pullback is exhilarating. , itaw it start this morning was tepid atirst, but now it is gaining steam. it is leading up to the upside recently, now living to the downside. the s&p and the nasdaq down just barely. a lot to dig and today, including what we got in the oil fund. crude oil prices right now are little changed after zigzagging in the weekly inventories report. --ot to sift over as well but in inventories down, cushing, oklahoma, that is why you see the bouncing back and seeh, on the flip side we gasoline inventories and crude production. take a look at bloomberg here -- the u.s. is on track to hit 10 million barrels a day in production within the next few weeks. you have inventories and white. they have been working down, but at the same time you have production going up. 9.7 barrels a day is what we are at with barrel production. then were watching natural gas today. the stockpile falling last week, but the production is with winter weather moderating, we will not continue to see those drawdowns. natural gas producers are also under pressure

julie hyman is with us. we're halfway into the trading day. julie:

julie hyman is with us. new record highs. julie: we have seen the gains moderating to some extent today. julie the dow gained 280 points. is now below 26,000. 800.back below 2 averagesugh to put the at records. look at the imap on the bloomberg, you can see the groups on the move. energy has been lagging today. right now, the group is down .9%. material stocks also selling off. the combination of those holding back the s&p 500. the biggest index point movers today, we have general electric on the downside. $6.2 billion write-down related to its long-term insurance business. it hasn't written any new policies in that business since 2006. this is a legacy holdover still creating issues. otherwise, we have merck trading higher on early results from its showing an medicine extended survival when used in combination with chemotherapy. amazon rising after it got an analyst price target of $1600. record.ares at a unitedhealth group coming up with its earnings, boosting its forecast for 2018 with a lower tax rate. those shares up 2% a

julie hyman is right here. lie: pending home sales rising right in line with estimates, .5% from one economists had estimated. to aequirements revised little better than what had been estimated. the year-over-year number is in decline of 1.8%. trying to piece that together since the numbers seem to be in line with estimates. you are still seeing a relative strength in the housing market. some of the numbers have been a little more uneven. this is still showing an expansion. pending home sales are a forward-looking indicator. this coming amidst a rebound and stocks from today's of the clock, the worst selloff we have seen since august. in an unusual one since there have not been many percentage points from stocks last year. not recouping the losses of the past several days. take a look at the bloomberg to get a better sense -- this is just a daily percentage change in the s&p 500. friday, we had a more than 1% gain, swinging yesterday to a 1% decline. that has become increasingly unusual over the past year or so.

julie hyman is with us and we are halfway into the trading day. julie: it is another day of records. we have seen day increases for the major averages . today, it is the dow that is the outperform her and the nasdaq is the underperformer. financials are leading the pack if you look at the imap on the bloomberg, up by more than 1%, and they had a strong start to the year. technology is still participating in the rally and the bank stocks are up. the merrill lynch tank stocks were at a record today. real estate is falling as bond yields push higher. goldman sachs saying that banks and consumer finance are set to outperform this year as the benefits of the tax overhaul become reflected in share prices and net interest margins. fargo, andells bankamerica among the gains. stocks, marijuana stocks are pulling back today. canadian listed shares which have been rising in advance of and after the initiation of recreational legalization in california, are now pulling back. u.s. attorney general jeff sessions set to revoke a memo that allowed the legalization

i am scarlett fu, and i am julie hyman.to "bloomberg markets." >> we are live in bloomberg world headquarters in new york. over the next hour, here are the top stories we are covering on the bloomberg and from around the world. budget break through, the senate clears a way to reopen the government after three days the we will bring you live kurkjian of the white house news briefing due to begin in a few minutes. and a pair of multi-billion dollar pharma deals. and u.b.s. leaves investors wanting more. the swiss banking giant set less ambitious goals and investors anticipated. u.s. markets close in two hours time. we were not really trading on government shut-down concerns, but now that it looks like the shut-down is ending, we are getting a boost. >> yes, record highs for the three major

julie hyman has the latest. julie: not just higher by strengthening throughout the session.highs as we progress throughout the day. they are trading at records today. a pretty broad-based rally with energy as the clear leader. energy being the lacquered from last year now moving into first place in early 2018 as oil prices surged to their highest in three years time. if you look at the monthly tally thus far, i know we are not at the end of the month, but you see a gain in the s&p 500, which would be the best since last february. running pretty hot to start the year in 2018 as we have only had one down session, and that was yesterday. a resumption of gains in today's session. let's look at some of the movers driving things higher. we have to talk about alternative energy for today. solar and somehow were both on the rise. in the case for solar, initiation of coverage by gordon johnson, a longtime solar analyst. he says that stock is decidedly undervalued. onare waiting the decision solar panel set to come sometime before the end of the month. that could be another catalyst d

julie hyman has details. this is the company's lung cancer drug. its topready one of sellers.ference is that now it might even get expanded sales as a result of this study. it is not completed. merck is releasing initial results from it. basically the conclusion is when combined with chemotherapy it did improve survival. it's interesting because merck added the survival metric to the study and initially cause concern that that would delay the results of it. it appears that is in fact not the case here. it basically cements leadership. it's already expected to help mark -- merck. if you take a look at the various business lines you've got vaccines in blue. you've got animal health in orange and pharmaceuticals in white. overall what you are looking at is sort of tepid if any growth here for the various revenue lines particularly when you put them all together. going to help boost the company potentially. $10.6 billion in sales for 2022 would be key to its 2.5% sales target. meyer dropped off financially on this news. >> they are falling because of the results of this study. thi

julie hyman is here with the latest. julie: thank you. we are seeing major averages rally today.s he can see, the outperformance of the nasdaq is notable. up 1.2%. just about a full percentage point more than the dow's gains. there is an index of stocks, this outperforming, as we continuing to see this large -- these large stocks to kickoff the year. if you look at the individual stocks, you will see that outperformance we have facebook, thatn, netflix, and off of rising. netflix rising on the back of a downgrade. taking a step back as we go into 2018, we have watched the dow, s&p ratio during various administrations. we tend to see the dow outperform the s&p 500 under republican regime. that, at least initially, appears to be the case during the current trump administration. i suspect this would look similar if you are looking at the nasdaq. the nasdaq has been doing well and did well last year. look at theresting relative outperformance. we have been talking a lot about recreational marijuana. leading up into the january 1 legalization of it in california. shery, you were talki

to the latest on the markets now, we will turn to julie hyman. we have 30 minutes into the trading session and we have read on the screen. julie: stocks falling back from record closes on friday so that is the context here. stocks are a little bit lower, but it's from elevated levels. interest rate sensitive stocks are leading declines with bond yields pushing higher today. to put it in perspective, we have seen an enormous rally already and stocks thus far this year. take a look at the bloomberg with the s&p 500 up 7%. we have seen $2 trillion added to the value of u.s. stocks alone, not even global stocks. that is the most on record. we have seen a lot of wealth added as a lot more people have been piling into the market this month. the pullback today, take it with perhaps a grain of salt. that said, there are some interesting downward movers we should point out. one of them is apple after a report that the company is going to cut in half its production target for the iphone x in the three months from january in this quarter from the figure of o

julie hyman is checking the rest of the markets. nesse: a lot of bullish remaining is all three major averages again rise to records today. a strong start to 2018 with now three straight updates. the dow is the outperform or today, rising above 25,000 for the first time. optimism is such that it is actually the highest in seven years. oforganization does a survey bullish participants, newsletter writers, other market participants, and the like. if you look at the bloomberg, we have the most bullish minus the most bearish, and that is that he seven-year high. we see bearish participants dropped to a three have in your low. this is looked at as a contrarian indicator. the last time we saw a peak like this, four month later the s&p 500 rolled over. i want to run through some of the performers today. financials are doing well broadly. one main holdings in particular after apollo and another group agreed to buy fortress' stake in one main. of ae seeing shares desktop 24% -- we're seeing shares of the 24%. domino's pizza was upgraded by o