julie: from new york, i am julie hyman.e now for etf here to give us more insight is tom from bloomberg intelligence. first of all, what are these? tom: these are a little different than what we're used to could use etf's are powered by picks from analysts so there are three key qubes that looked at. there are tracks that are holdings popular with hedge funds. there's the sell side that is taken care of by bernstein and that using cel-sci ratings to fill in that etf. the third one is machine learning. machine learning and it is picking stocks based on algorithms they put together. julie: instead of based on an underlying index or a sector, they're supposed to be performance-based. they are picking stocks that they suspect will outperform. just make it sure i'm understanding this. how are they doing? >> one common thing is that they are all outperforming the market. it's a little bit of a faux pas for the performance a little bit short for some of these products. i don't want to make a big rock statement, but it's not what n

i'm julie hyman in for scarlet fu. julia: and i'm julia chatterley. ack to a developing story. gm motors said it could cut u.s. jobs due to u.s. auto import duties. been tracking companies and their relationship with the administration. as david welch told us earlier, this is unusual for gm to come out with a direct statement. as part of this commerce department investigation, they submitted this testimony, and at this point, the pr, this is messaging, is this really going to happen as far as gm is talking about may be reducing jobs? we wrote earlier next week -- last week that the retail lobbyists are gaining momentum now around fighting tariffs, saying it will increase the cost for american families. gm says it will kill american jobs. the wayks like corporate america is going to go as far as attacking the tariffs, it is just how aggressive it will be is the question? julia: i love the word you used, and that is lobbying. i can only imagine the millions of dollars that have been spent 80's companies combined lobbying this government. is this starting

i am here in new york, i am julie hyman. this is bloomberg markets. i am in for vonnie quinn. joining me in london is mark barton. mark: we are 30 minutes away from the end of the friday session. you can see it for yourself. gmm is the function. stocks are lower by italy and spain, they have been the center of the political storm. all of these currencies falling against the dollar. we are seeing a flight to safety and quality. german bund's yields -- bund yields falling. g7 to consider. we've got the trump north korea boj,ng next tuesday, fed, ecb, what a week we have in store next week. it seems like we never have a day without a deutsche bank story. the chairman is on his third strategic overhaul. now he is mulling a solution and has been raised's -- that has been raised countless times, possible merger with canards bank. these of thoughts of pairing have been floated before. the concepts reemergence shows pressure is building to snap deutsche bank out of what it calls the vicious circle. something which the cfa alluded to yesterday. it's a great chart, tells you everyt

julie: i'm julie hyman. there is no place like home. e seemingly been thinking. if you take a look at this chart, this has been one of my favorites and julie's favorites we have been enjoying frequently over the past several years. the performance of small caps in the form of a russell 2000 versus the s&p 500. you have seen a surge in the relative performance. that is on the back of corporate tax cuts, stronger dollar, and reduce geopolitical risk. the idea that these companies are more insulated from trade concerns. our next guest is small cap outperformance is here to stay but the risk reward might look less appealing. joining us is mike wilson, morgan stanley chief u.s. equity strategist. we had a debate on this program recently about whether these are a true haven in this kind of environment. mike: it is all relative. clearly, trade tensions are the concern of tay. small caps, don't have to worry about that. as you pointed out, tax cuts, benefits small caps were disproportionately. i would argue policy to visit ministration or more d

let's get a check on the markets with julie hyman. g a little bit with the doubt deeply in the red now. as i look at some of the groups on the move, it is somewhat confusing. typically, he will see defenses up encyclicals down. that is not really what is going on today. if you have the classical -- classically defensive groups training higher as we see yields lower, then, consumer , a more economic sensitive group tech is in the green now as well. also, consumer state through -- staples to the downside. isis not that trends that economically dependent. technology is doing well. large-cap in particular. the records along with the nasdaq 100. the momentum trade is seemingly continuing. it is the media helping on the news that comcast will be benedict -- bidding for the 21st century comcast disney shares higher, comcast shares higher, not to mention a much rotter media as well on continuing speculation about who else might be the target. one of the down groups, banks and financials, are under pressure as we have yields whatng down enough

julie: i am julie hyman in new york.aw majors close lower on concerns of a trade were with china heating up. one exception, energy stocks, which rose along with oil prices. our next guest says we are locked in a bad place on trade for now. joining us from washington is a managing director, james. thank you so much for joining us. we have seen pockets of reaction, mostly in u.s. markets, to trade rhetoric. a lot of it having to do with the industrials. do you think the reaction has been enough? and do you think it has been too narrow? what do you think? james: i think the reaction is just about right. here in america, american investors and american businesses have learned that with the trump administration, you have got to ignore the circus, it more the circus, it more than fireworks, and concentrate on what they actually do and say. in this case, with regard to trade, we are in the new normal. there is nothing really different, and nothing will change for months now, because we failed to get a reservation on nafta, fail

julie: i'm julie hyman. this is "daybreak australia."ese resorts on a tropical island laying the groundwork for entertainment bars or cashless casinos. they are betting that the island will be spared from gambling restrictions, as officials seek to boost the tour is a ministry. we go to tokyo now. explain to us what the entertainment bars are and whether they have already been around. >> yes, they have already been around. this would be a resort hotel that includes, for example, baccarat tables at which anybody can place a bet, buy some chips and place a bet. the only difference would be is if they win they will be getting back chips that would be good for spending at local restaurants, at the nightclubs and that sort of thing. so when we say cashless, we mean you cannot win. you can lose cash, but not win cash. you would be winning prizes. these have been set up for years on the island, but then in 2014 local officials said, wait a minute, this is really gambling, so they shut it down. and the resorts to get to beijing, to court, not be

let's get to options insight with julie hyman. hoffenheim are talking options today. thank you for joining us. he is down in his office in new york and manhattan. we were briefly seeing backing up of the vix curve. thinkinghe current here as to whether the volatility will persist? insaw stocks rising earlier the day. those gains have faded away. >> hi, julie. thanks for having me. we think the level complacency had a high once again. similarly to what we saw in late january. investors were happy with their performance. volatility got to cheap levels again. we saw the downside that was attractive was not receiving interest in protecting books. i think we are seeing the typical move where we are getting these random declines, people are caring about china, it is here to stay, we have the tariffs deadline coming up july 6. we think we will stay choppy ato it, positioning is still bit light, growth exposures were taken down. but we think we will not rip back to the highs quickly. julie: i am curious about summer patterns as well. we a

julia: from new york, this is bloomberg. ♪ >> 3:00 in new york, 8:00 in london, i'm julie hyman. me to bloomberg markets. julie: live in bloomberg world headquarters over the next hour. here are the stories we are watching. the dow rowling for a change on pace to snap an eight day losing streak. energy, opec strikes a deal. oil production overcoming opposition by iran. flying high. setting sights on amazon two years after walmart acquired the e-commerce startup. we are an hour from the close of trading. traffic. a check on -- get a check on stocks. >> we have the dow higher. we of course are breaking the eight day losing streak and we have the nasdaq lower at this point. some relief on the part of investors despite continuation and innuendos for a trade war. let's hop into the bloomberg to take a look at why. the dow and s&p 500, the energy sector up. nine of the 11 sectors are higher. technology, not down by a lot but tech has been down. rallying.l the best day since november 2016. now we have opec reaching a supply boost yield that is less than anticipated giving a boost to oil

julie: i'm julie hyman. off on the state of the global economy and monetary policy. the former u.s. treasury secretary joined us from the ecb form in portugal. he spoke exclusively with bloomberg stephanie flanders. the issue that has preoccupied monetary policy for the generation before the financial crisis, the avoidance of inflation, is no longer the top issue. the top issue and i believe, is a maintenance of sound growth and getting to full employment. that is going to be a much more difficult challenge over the next generation than many suppose because of the very sharp declines we have seen around the world in the neutral real interest rate. declines that in many cases have been masked by the very substantial fiscal expansions we have seen. >> you are known for having stagnation. some people thought you had walked away from that a little bit over the last few years. i felt you are doubling down on it last night. larry: i think that is exactly right. some people think that well, the economies are growin

julie hyman has the details. popped at the price, after 3:00 p.m. e: this was clear after the headlines cannot. reuters is reporting that the firms who may be interested include companies like sycamore partners. we saw that big surge in the shares. biggest since january 2015. what i like is the title on the bloomberg intelligence report in reaction to this. gamestop possible buyout gives time, nonsolution. which i thought was fascinating, because gamestop has been trying to give it to what is the new wave of gaming come although it is not that new, digital gaming. you are downloading your games. if you look at the bloomberg, we have a look at the company's revenue stream, and digital at this point -- you can barely see it on here -- digital is this blue bar right down in the corner, only about 2% of the company revenue at this point. still, new software, preowned video games, hardware, the biggest portions of their business will bloomberg theyligence analyst says are trying to make this pivot but it is much smaller than it is industry-wide, and it wi

let's get a check on where the stocks are trading with julie hyman. is this a new record high? ve vista virgins again, which --

in the next couple of hours, we have kevin kelly with julie hyman. about the apple story. from new york, this is bloomberg. ♪ >> in terms of monetary policy, it is better to let the central bank governors do the job they have to do. ♪ time for options insight. joining me is kevin kelly. we are heading into the summer which feels sort of doldrums-y. you have been looking at the recent history of the vix in the summertime. talk me through it. >> after living through four tenuous summers when it has come to episodic bouts of volatility, it has been on my mind. 2014, we were worried about europe, especially greece, ebola. if we look at 22015 where the fed was going to raise rates for the first time possibly, we saw the vix spike and almost double towards the end of the summer. 2016, a spike over 60%, 40%. it is short-term and only happened in june and august which is telling because it would come and retract all of a sudden. fix could even double -- the vix could even double. cboeix spiked so much the could not even calculate vix on august 24 morning bec

shery: julie hyman, thank you.oming up, president trump taking hisegal grievances to twitter. , claiming absolute pardon power for himself how this is sitting with members of congress. we will ask republican congressman ryan costello next. ths bloomberg. ♪ ♪ shery: this is "bloomberg markets: balance of power". i am shery ahn. i'm david westin. you. david, shery, thank as far as presidenp is co there is no legal debate. tweeting that he has the absoluteright to pardon himselfe asks, "why would i do that, if i ?" e done nothing wrong his lawyer, rudy giuliani says that that would probably lead to impeachment. as shery ahn mentioned a few moments ago, we will be discussing that with republican congressman ryan costello in just a moment. united kingdom is seeking a breakthrough in brexit talks this week. we have learned that theresa may's government is planning to publish its plan to extend how long the united kingdom remains under european union custom roles. the plan would allow goods to cross the irish border witho

here is julie hyman with the latest. julie: this is a nge, tighter than we have seen all year, not much bouncing around, though we are slightly off the highs of this early session as we see a benign reaction or not much of one to the events unfolding in singapore. one of the areas of strength pretty consistently has been retail. taking a look at the s&p retail index this year, you can see that the year to date performance is impressive and this is the 12th record close, potentially, if it closes their in 17 sessions. really, it has been on an extraordinary run for the retailers. today let's look at the retail leaders. we've got restoration hardware, 34% in a single day with better than estimated first-quarter earnings and same-store sales as well. also, a lot of analysts pointing to the strength of the margins for the kind -- for the company. lands and would same-store sales that truckly, but performing less poor locations not located inside of sears stores and they say they are now planning to drop the 100er of in-store

julie: i'm julie hyman."bloomberg markets." ♪ scarlet: we a live in new york over the next hour. here are the stori stain with cyclicals, calmly on navigating headwinds from political tauro -- turmoil to trade tensions. jonathan bush stepping down and clearing the way for a potential sale of the health technology company. playtime overcome how toys "r" us became private equity's biggest mistake. u.s. marketssing in two hours. let's check in with em chandra on how the stocksng. . good to be back. scarlet: as we talk about the headwinds, we are looking at the naesh >> green across theeen with the stocks extending their advance, s&p is pushing higher for the fourth consecutive day, and being led by financials and health care. let's also take a look at u.s. stocks more broadly, take a look at the chart. linee have the blue showing the growth companies, white line is the value and disparity between the two of them is wider since the tech bubble. this from our equity strategist tina martin ada kelly. that large-ca

i'm julie hyman, by the way, here with sherry on. a hope on market participants that it is not on july 6, maybe some kind of resolution can be

julie hyman is here to explain. julie: one of my husband's favorites. not just brexit.hat would make sense. it is burgers, apparently. this is a marketing thing. they said we are changing our name to i hop -- ihob. event todayarketing and set it is actually "burgers." age, if you can master the twitter marketing, that is kind of the game. was ihop doing badly? it hasn't been doing great. it hasn't been doing badly. take a look at the bloomberg. we had comparable sales. you can see the stocks are doing well. andarable sales of i hop applebee's. applebee's is white here and ihop is orange. same-store sales of both of them were rising and then we saw a dip. it is actually closing down applebee's and paring back to improve things as well. been trying to make some changes. it is interesting the whol i ihob thing,whole which they say won't last, it would be lower burger prices for them. this is someone on the consumer team pointed out. i thought it was interesting. ground chuck prices have been going down. inn 14% from a record high 2014. if you are pushing burgers, now is a

julie: and julie hyman denver scarlet fu.o "bloomberg markets." ♪ julia: we are live and 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. great dalio takes a step back from bridgewater. we are live in a few moments with the billionaire investor from the ideas festival. speaking of that, heavy hitters continue with the -- with david rubenstein. thoughts -- at foxconn. he is said to tell to his economic policies of the groundbreaking ceremony for a new multibillion-dollar facility in wisconsin. in two hours.lose let's get a check on where stocks are trading with abigail doolittle. abigail: we have a push for the major averages. we have had moves up and down on the day. at this point, we

julie hymans states and meets the president of the united states, do go with him sometimes? yes. david: have you met president trump? robert: i have met with president clinton, president rush, and now president trump. david: you do this and other parts of the world as well. robert: yes. david: how much of your time is running the day-to-day mubadala operation, and how much related to government issues? robert: the best part of my job is i don't do anything. one of the things i have tried to do throughout my career is surround myself by talented people. i have been lucky and hired will . i have a very strong team at mubadala. i have four top-notch ceos that report to me. my idea professionally has always hire the best and make sure they have strong, stable of talent around you, and that allows me to do so many things. i have a significant commitment working for his highness, so i travel with him many places around the world. david: would you ever go into government full-time, or are you happy where you are? robert: he is a person that i think working for him, it is not a job.

i'm julie hyman, by the way, here with sherry on. there is a hope on market participants that it is not on july 6, maybe some kind of resolution can be made. stocks are down or remain steady , where they were before the announcement. let's get to kevin cirilli, chief washington correspondent. getting these tariffs and retaliation, as expected. give us what details you know. kevin: we know that china is responding with trade tariffs of their own, $50 billion worth, as president donald trump doubled down this morning on criticism against chinese president xi jinping in the same way that he praised him for his help with regards to north korea. imposing $50 billion worth of thanfs on his own, on more 1300 products, focusing on the technology sector. but if you are looking at this from the agricultural landscape, if you are senator chuck grassley or joni ernst, republicans from iowa, they won't like this. this is why the republican party is increasingly divided against president trump's trade policies, simply because of the back-and-forth

let's get a check of the markets with julie hyman. julie: we have a mixed picture in the u.s., the dow just kicking into the green, but it has been struggling to stay in the positive today. that is because we see some pressure on industrials and financials, also holding back some of the gains on the dow, a classic interest rate trade today as we see rates come down a little bit. it is not a big move, but enough to push financials down and utilities higher. we continue to see the outperformance there in the nasdaq. speaking of outperformance, take a look at netflix. a note coming out saying that it , $340 aflix going down share. what itoen is citing hopes are competitive threats, including a combined at&t-time warner, disney, at the truck. as you see here, netflix is call, theto this stock briefly went down at that, not negative on the day but from its high, and then went back up again. we will continue to monitor that. ther stocks have been in red today. oracle, for example, being downgraded by jpmorgan to neutral from overweight. numb

julie hyman is tracking the moves.sdaq gaining ground, as the dow has been losing a little bit of ground from highs of the session. technology propelling part of the gains we are looking at today, as we continue momentum from the jobs report on friday. the nasdaq and the nasdaq 100 both potentially poised to close at a record today. they have outpaced gains in s&p and the dow. here is a look at the nasdaq year to date. the number we want to watch today at the close, 75.88, that was the prior closing record, right now above that level. not passed the intraday level, but it could be the next level to watch. the year-to- chart, you see the zig zag, the nasdaq re-attaining a record in march, pdid not get there. in the session today, best performers in the nasdaq 100 are some of the chinese companies listed in the u.s. alibaba rising after the strength we saw overnight. and it was up about 1.66%. many of the companies that do business or are based in hong kong and china rising today. and finally, when i talk about the tech

julie hyman has more on the u.s. trade. julie: the u.s.tocks in their groups today at of the big week for economic data and central-bank action. we do have some deal activity and potential deal activity .oving in a big way this report just crossing from the wall street journal that striker is said to have named an approach to boston scientific to combine the medical device makers spread it looks like it's pretty tentative at this point or at least we don't have details about of the deal will happen or under what terms. boston scientific share spiking. striker shares moving down. youill continue to keep posted on that developing situation. we have a couple of done deals as well we are watching. invision health care agreeing to a buyout by kkr. $46 a share is the price of the deal. $9.9 million. envision has urgent care centers. rocks a big maker of sheet agreeing to be acquired by a german company for $44 a share. that's an exit for berkshire hathaway which owns 30% of usg and has not been a terribly successful investment until no and with

appropriate comment against prime minister trudeau. 19 minutes into the trading day in the u.s., julie hymanave the latest. julie: i've got the canadian dollar up there as we talked about those comments from navarro. we had the dollar that it been climbing versus the canadian dollar, we saw a take a move down. little changed at the moment. if you take it back to stocks we not seeing much change on the summit in singapore as we did not see details of an agreement come out. we have all three major averages in the green. it's a very narrow trading range in today's session. let's look at oi oil has been volatile today. we've seen it bouncing around quite a bit. said it's not in favor of the request reportedly from the u.s. and months discussion of opec members to freeze prodhe second half of the year. oil has rebounded. we watch it bounce there. how ths translating into different metrics here, you look back at the bloomberg, we have crude oil demand and supply them so far we have seen directionally stay in good lockstep in terms of their movement. pretty well matched. we will see what happens wh

julie hyman has breaking news. julie: we have consumer sentiment from the university of michigan, the preliminary reading coming in higher than estimated at 99.3. that is an increase over the 90 -- 98.8%. even as we have tariffs weighing on optimism for the economy, even as we have inflation expectations at a three-year high, sentiment is holding month overrising month once again. we see a divergence about the president and future, because it looks like households are mentioning recent income gains on the one hand. theyng to the future, expect a pickup in inflation. interesting as we start to get a little bit of trepidation about the future and rising costs. rising costs is something weighing on stocks. rising costs inform tariffs for many companies, costs to their businesses. the dow is taking the worst of it. that is because industrials are down. some of the products named by china as going to be the subject of tariffs include industrial equipment, so we are seeing re, caterpillar under pressure. for technology, m

a check "on the markets" and here a globally prosperous is julie hyman. jonathan: -- julie: all of this talk over the rhetoric between president trump and some of the other world leaders notwithstanding, we see stocks not moving much today. ahead of what is going to be a busy week for economic data and central banks. the s&p and nasdaq only up about a third of one percent. up jones industrial average just slightly. in terms of the groups that are moving the most in today's session, we have telecoms. defensive trade today which telecoms and consumer stables, the two best performing groups, just slightly. in terms of the groups that are moving the most in today's session, we have telecoms. defensive trade today which telecoms and consumer stables, the two best performing groups, health care which is defensive or cyclical depending which subsector, also doing well. digging into it, if you look at the up just slightly. in terms of the groups that are ng the most in today's session, we have telecoms telec we're watching at&t and time-warner, both up slightly ah

you.e: julie hyman, thank resident donald trump threatening the european union with a new ultimatum on trade. he says he plans to impose a 20% tariff on all cars imported from the block unless it removes tariffs and other various for u.s. goods. we join our trade reporter live in washington. we know president trump wants tariffs on car imports. that is not a surprise. odd he is tweaking this now -- tweeting this now, reports the german ambassador would bring an offer that would maybe lead to tariffs being zeroed out. that is one of the puzzle pieces. the commerce secretary initiated an investigation into the national security threat of cars and car parts. that is not done yet. donald trump sort of put doubt into the credibility of this investigation with this tweet. if he is saying they are leading to 20% tariffs on eu cars. they cannot prejudge what is happening but the president got anyway. vonnie: what about the 232?tigation, >> into the national security threat? under that -- the commerce secretary has months to conclude it. the president is getting impatient on the tariffs. he wan

julie: i'm julie hyman. julia: 30 mins from the close of trading. stocks in the grain, typical lead. miss? what'd you a warning from an american icon. protectionist measures could cost jobs in the u.s.. and decision day four of the spell --ner, it could what it could spell for market friendly policies. kari shared hikes, his tips and tricks in an unusual cookout with joe. julia: another iconic u.s. brand saying the america first agenda may mean less made in america. general motors echoed the a stern warning. they could be forced to reduce up actions and cut jobs because of the impact of tariffs. david welsh is here with the latest. one analyst said it was a thinly made statement and this is more pr. >> this is an as direct as harley davidson. because of retaliatory tariffs, they would have to move to a different market. directt giving it that cause and effect. they say a chain of a vax could happen here. bring up prices, bring down demand, gm has to employee fewer people. it does not quite like harley but close were gm it is a direct statement. take

let's get a check on the markets with julie hyman. ence between the dow and the nasdaq. the nasdaq is down much more than the nasdaq as we continue to have trade tensions as one of the reasons behind the selling we have seen. the dow is actually down for the fifth straight session, the only of the major averages to be in those straits. at the same time, interestingly, the best that we will see more volatility for is not really present here. if you look at leveraged funds in the big net position's they have been short and getting directionally shorter ever since april, the only time that they were net long, so you could argue that they were not exactly correct and it gives you an idea into the sentiment behind market disappearance year, that they are still not short volatility. getting back to the tariffs and the stocks on the move, we continue to see large industrials and equipment makers hit i this. not huge declines, but again it's the trend, the direction. boeing, caterpillar, dear, feeling the pain on that front as the products mad

vonnie: julie hyman, thank you. another major sports deal for discovery. discovery has signed a deal to air pga golf globally. and thedavid zaslav commissioner of the pga tour. an exclusive joint interview jay let me start with you. what will you do with the $2 billion? jay: we are combining our resources with discovery. acrossed 40 tournaments six tour's the 40 events on the pga tour. vonnie: will you be charging the more, or you have more leverage? we will address every single market as those deals come up. when you create this video streaming service, when you bring discoveries and knowledge. in marketn sport but relationships, we will look for the partners that give us the biggest opportunity to diversify and grow our fan base and accelerate growth of the game on a global basis. you have brought in someone from the nba to do this. >> when we look at this together, we can do traditional things, we could launch a ball channel in every country in the world outside the u.s., we could -- we when we want to could aggregate all of the content and offer it on

let's check in on the markets with julie hyman. rally, although no longer tech in the driver seat, financials leaving the game in today's session and that means relative underperformance for the nasdaq but it is still up and out performance for the s&p and especially the dow. highlighting individual movers, -- there ceo, day and cofounder jonathan bush is stepping down after misconduct allegations involving women. he has been under pressure from elliott management, which early last month proposed buying the company for $160 per share and his departure could open the door to a potential takeover. cigna jewelers rallying, they showing sounds -- signet inelers rallying, flat sale the first quarter, a 12% drop one year earlier. 19% withs are surging substantial short interest in the stock. rising as oil falling after they announced a sale which will fund $3 billion in additional share buybacks. 1.25%, after an unexpected built in the weekly oil inventories report, the dollar is under pressure today as the trade deficit narrowed to the

shery: julie hyman, thank you. awaye about eight hours from the first face-to-face meeting between sitting u.s. resident and a leader of north korea. president donald trump and kim jong-un are set to meet at 9:00 and theyl time surprised a cheering crowd in a rare public appearance. mike pompeo standing firm on sanctions against the regime. bloomberg's chief washington correspondent kevin cirilli joining us now from singapore. the middle of the night in singapore and mr. kim is out and about. and he took himself it was singapore's foreign minister. remarkable been a evening watching north korean leader kim jong-un who is really left north korea felt since he assumed power accepts a visit actuallyitarized zone touring downtown singapore in the middle of the night. just ahead of his meeting at 9:00 a.m. with president donald trump. just within the last two hours we are also getting word that nba all-star dennis rodman who we of course are members also met in the past with kim jong-un have also arrived here in singapo

markets close in two hours per julie hyman has been tracking the moves.daq is that a new record high. components,of its the big cap names we talk about as having remit -- having momentum, at record highs. like amazon, microsoft. we are seeing wavering in the s&p 500 as well as the dow jones industrial average. yesterday, we highlighted the weakness and dow jones transportation average. we're seeing that today. by some,seen especially proponents of dow theory as a negative sign for the underlying market. appears to be the culprits are airlines, southwest airlines came out and talked about its unit riveted could -- revenue could fall as much as 3%. beenrevious addiction had a decline of 1% to 3%. this appears to have something to do with the fatal accident on the southwest airlines flight the spring. the company is saying ticket sales have been reduced. it did cut down on advertising following that fatality. those shares down little more than 1.5%. other airlines are also declining on the session. better one of the performing groups, the department stores.

abigail doolittle speaking with -- bj's wholesale has opened, $21.11 now at 20 -- let's bring in julie hyman.his is a nice premium which was taken private in 2011 by cvc capital partners and leonard green and partners are now coming public once again and seeing that strong demand. the stock already got a buy rating from gordon haskett, saying this was good value, compared to other types of grocery related trained -- chains. vonnie: i suppose competitors like cosco and sam's club, but bj's has 215 stores in 16 states. julie: that's right, and that is some of the changes that the private equity partners, the private equity owners had made. the upgraded some of the stores. they made some other changes to the company, changing the store footprint as well. vonnie: let's ask elizabeth for you a -- elizabeth what bj's might do. >> this was a big buyout back in 2011. they took it private for $2.8 billion. it's got about $2.4 billion of debt right now. the main objective in raising the money is to pay down some of that debt. vonnie: we think a retail being under siege and yet this looks to be quite a

julie hyman is here. this has to do with expectations. julie: it is unclear why the stock is down. year toes were up 20% date. they have outperformed. said financial theets were set because other automakers, they have had this strategy. the financial targets were more conservative than expected. another analyst said the targets format. everything looked good. wooed haven the kate been a big m&a deal. these are the theories about why this stock might be going down. that was a failed experiment, the reintroduction of the fiat brand. numbers, itat the looks different than that. and 11% gain for the month. line were downle 46% to which you cannot even see. it is small compared to the rest. the why access is such. >> jeep is the outperform are here. looking at how many cars they want to sell jeep is what is pushing the big brand. it is going to continue to push. >> exactly. forget small cars. thank you. market closes next. ♪ [applause] julia: "what'd you miss?" stocks rise, treasuries fall. if you are tuning in live on twitter, we want to welcome you to our closing bell coverage. we beg

julie: live from bloomberg world , and julies hyman. joe: i'm joe weisenthal. julie: stocks are higher for a fourth consecutive day. joe: what'd you miss? scarlet: larry kudlow calls trade tensions a family quarrel. we call on the latest in a global trade. the biggest primary night this year. we have the latest results in california and why one part of texas is offering 100% paid raises to work in the region. president trump regards himself as a free trader according to larry kudlow. he addressed the president's trade policy in the white house briefing earlier today pushing back on reports the administration was close to finalizing a deal to revive is eta. bipartisans drawn condemnation from congress but kudlow insisted no decisions have been made. joins us now with the latest. how do we know what the latest is? relation to cte? >> here is what bloomberg is reporting. the chinese have agreed to a deal in which they would buy $25 ,illion more of coal, shale oil and make big changes in the management of cte. marco rubio said the people there proposing run other co

julie hyman is here for the latest. persisting inrns a way they were not yesterday as we see the administration ratcheted up what they are looking at for possible tariffs and the chinese responding. all three averages are down. you still see something of a divergence between the dow and the nasdaq but it is different. the nasdaq not showing the same resilience. this is the daily change. the nasdaq in yellow has been holding up better than the others. you see today's session is down. even if decline does not match that of the dow. losers on an0 big index point basis. facebook --and apple and facebook. om selling off as well along with chinese stocks and the broader chinese markets. companies -- we are also watching apparel companies. these were not on the latest list of industries targeted for potential tariffs by china. there is concern in the industry they will be and there could be for productsfects they use. we will see the ripple effect from all of this. we are seeing stocks, bob the defense.use of it looks like wha

julie: i'm julie hyman. joe: i'm joe weisenthal. julia: 30 minutes from the close of trading. tech stocks leading the charge. a new high and the s&p 500 raking a three-day losing streak. >> would you miss? >> president trump reversing course. thishas just happened hour. steven mnuchin's silence could be speaking volumes. years keeping silent on trade tensions with china. disney could be getting a green light on its fox deal. the justice department has approved the deal. more on the exclusive bloomberg reporting ahead. president trump signing in order a few moments ago to end the immediate separation of immigrant families at the u.s. exit go border. it should spark outrage -- it would -- it has sparked outrage. afternoon after this executive order, reversing what the white house has been saying for this policy is rooted in law and congress has to act. what do we make of the decision on this? where does that leave congress? this issue has created a national firestorm that has roiled the white house. criticism -- it has sparked criticism. i read the text of the order. it requires

. >> i am julie hyman. >> i am joe weisenthal. t to welcome you to our closing ball coverage every day from 4:00 until 5:00 p.m. julie: there is a lot to sift through on the market front as we see this selloff in reaction to the news that the administration was considering investment curbs on china and u.s. technology firms. major averages bouncing from the lows of the session. take the s&p 500, finishing down after they by 1.4% index was off by a little more than 2%. something of an improvement on a relative basis. still by far the biggest drag on the major averages. consumer discretionary, suffering along with energy. utility and consumer staples, finishing in the green, and in terms of the individual stocks that were selling off the most, those companies that are talking about the trade concerns and its affect on their businesses or outperformed. for example, you've got carnival shares down the most in six years, the worst percentage performer on the s&p 500. company cited headwinds that had been affecting the industry, like fue

julie hyman has the answer. this is bloomberg. ♪ a recent ipo quietly sneaking up on people.o down the list and it is all up here >> saying it is fine now but the israeli discrimination in terms of performance. >> in the case of dropbox, it is actually doing pretty well. it had its profit report, it would double estimates and sales rep. in the pantheon, this one actually makes money. all right. thank you so much. the market closes next. we have major indexes. little changed for the dow. it is mixed. the nasdaq is higher. this is bloomberg. ♪ ♪ u.s. equities for once again, the tech stocks outperformed and financials lag. i am julia chatterley. .carlet: i'm scarlet fu joe: i am joe weisenthal. we begin with our markets, u.s. stocks coming off their best levels of the session and closing mixed. the dow is negative, and tech continues to power the nasdaq higher. if you look at the different financials, and industrials -- energy also in the red. ata, the headline news that came out early this week, retail sales -- joe: they were really good. julia: -- scarlet: anticlimatic. joe:

let's check with julie hyman on the markets. but first, a central bank decision out of mexico. he mexico central bank 7.75%, ad the rate to quarter-point increase here. we have been seeing peso weakness over the long-term, spurring inflation concerns. looks like that flips the increase in rate here. in theh movement yet peso, a pretty broadly expected decision. again, we have seen, prior to this movement in the peso climbing in the dollar versus the peso has been dramatic over the past three months. .he dollar down one third of 1% in terms of other breaking news, we've been watching nickel foods 3%pinnacle foods spiked a after bloomberg reports that them for aproached deal to add freezer aisle brands to their roster. remember that janet partners has urged pinnacle to explore -- the inake in the company april. this might be one potential , shares up two point 5%. looking at what is going on in the wider market, we have coming pressure notably from the energy complex. energy stocks down today along with oil prices, though that may change with a reversal in oil and industrials week

julie: i'm julie hyman. welcome to bloomberg markets.orld headquarters in new york. here are the top stories on the bloomberg and around the world. u.s. stocks bounce back led by a new record for the nasdaq. bank stocks rising. we have records there as buying momentum continues. solomon speaks. more of our interview with the goldman sachs president. why he says his business in china will grow over the next decade. a blow to comcast. disney close to winning approval for its bid for fox assets. one hour from the close of trading. with a look at the close of trading. >> record highs for the nasdaq. its seventh day and a row on pace to finish down for seven days. if that happens it will be the longest losing streak since march of 2017. strength for the other major moving averages. a trade war fears hit the market yesterday. maybe weighing on the dow a little bit. the nasdaq up 8/10 of 1%. highs, in fact that is over the last several years. this goes back to 2011. small-cap version of index, it is beating the rest. .&p 500 beating the small-c

julia: a market update with julie hyman.oes not seem to a lot of market reaction to these events. market participants get more every movesistant to -- news reaction from washington. we're seeing stocks off the high of the session. seeing this rally on the back of the jobs data that appears to be in place. seen a divergence. we have seen the dow fall by half a percent. s&p up 4/10 of 1%. markets are reacting to trade talks or lack thereof. , tech continues to outperform. we may have a number of record closes. microsoft, amazon, facebook. they are enough to put them at records. were aig momentum stocks broader basket. bank stocks are also on the rise. this was the favored trade of many strategists with whom we speak. we are seeing yields go back up as a result. that is definitely benefiting the banks. i want to go back into the bloomberg. at the u.s. dollar. 5% from its lows in the year. initially, why are yields going up in the yield is not? the dollar is now catching up. yields have gone sideways. we saw the drop below 3%. y

julie: i'm julie hyman. welcome to "bloomberg markets." live in new york over the next hour. here are the top stories we're covering. nasdaq havingthe its worst day since april as trade tensions hit equities. speaking of trade, china and europe say trade war could trickle a -- trigger a global recession. how serious is the threat. and the royal welcome, president trump due to meet making of jordan in a few moments. and in the meantime, checking on where the stocks are trading with abigail doolittle. >> here is the pullback for the major averages. declines for the dow, s&p 500 and nasdaq. the worst day since april for the s&p 500 and nasdaq as trade tensions continue to hit. and it is interesting to note that we just have this continue to risk off sense, especially for the dow, down right now. the week is young, but this is for the third week in a row. we will take a look at why it is underperforming. this has to do with the fang trade, this chart shows the selloff we are seeing for those stocks, which are lower on the day. here is the char

julia hyman is here. julie: that upward momentum, especially that was affecting the technology sector has wavered. the nasdaq and the nasdaq 100 were reaching record highs for three consecutive sessions. we have seen strengthened technology stocks. technology was rallying and now we are seeing a stall in that upward momentum even as the dow and s&p continue their upward climb. the best-performing group in the s&p are energy stocks. the $65 a hold around barrel level. still down sharply over the past week. the latest is that people are closely looking for clues as to whether opec is going to pull back on cuts. and its allies may have failed to reach a consensus on the plan. that giving hope to the markets. also there is a meeting next week between vladimir putin and the saudi crown prince that will be closely watched for any clues about this deal. we have the oil majors like exxon mobil and chevron up and then the fracking stocks are also on the rise. elsewhere we are watching the rv the company thor industries