piper jaffray upgrading zumie's to neutral from overweight.he goal is to get a feel for teen retail trends. they talked to 10,000 teens across the country. joining us is the analyst behind the report. thank you so much for getting up early and joining us. i have a lot of interest in this report. but what's your biggest surprise from what you saw? >> the biggest surprise is everyone knows that spending in retail has been choppy this year. when we looked at the overall numbers, total spending was down, but down less than what we saw in spring. what was positive were teens that live in upper income households. they were positive on the total spending and particularly positive on fashion. this is really encouraging heading into the fourth quarter and the all-important holiday season. >> we've been talking about denim strengthening again in retail. it looks that's what this report showed as well. are there key names you go to when thinking about denim strength? >> absolutely. what's great about the survey, as you indicated, we have so much fun talk

good to see you, gene munster from piper jaffray.ing on ubs reports a drop in its wealth management business but shares hit a one-month high. from new york as we count you down to u.s. gdp, futures are firmer, the dollar is stronger and yields hit a may 2016 high. ♪ jonathan: from new york, this is "bloomberg daybreak." we are eight minutes and 30 seconds away from the u.s. gdp but our attention goes to europe. ubs reports a drop in profit. the ceo pledged to continue his cost-cutting strategy. >> on the cost side i think we have a very comprehensive and cost reduction which with a 2.1 net cost does not include any reduction of cost or benefits from exiting businesses, or any reduction of costs used for variable compensation that is driven by financial performance. jonathan: that was the you ebs -- ubs ceo speaking to bloomberg. michael moore joins us from london. , thisg the cost lever story began in 2012, the pivot away from ib. this will not capture the brilliance of that move. do the year after and the following do that? michael:

analyst atel olson, piper jaffray. dilemma for the people's bank in china.hit a top spot with how it is trading. i will put that up. -- immigration is impacting u.k. labor markets. this is bloomberg. ♪ >> it is time now for our battle of the charts. we look at some of the most compelling charts of the day and what they mean for investors. we can access them all on the bloomberg. michaelthings off is mckee. i think it is your first time. >> it has been a while since i have done this but i put one together for mark barton. i don't normally do it. what we are showing here, this 4436 for the number of people coming into the united states -- united kingdom. 2011,e a lot of people in the rate goes up and more people are coming in. most from the eu. the number from the middle east is very small. you could plug in any country and it is not very many people. most people moving in from other countries. these are people who don't have jobs but are looking for jobs but look what happens into the unemployment rate. net in migration, though it increased significantly over

this stock weakness is dragging on other bio techs, including iona pharmaceuticals, although piper jaffrayng this could present a buying opportunity in iona pharmaceuticals. this medicine company and alnylam, they were developing a drug. some investors may think the continuation of that other drug -- we had a number of banks saying there should not be a read through. analysts seem to think that this could in fact present a buying opportunity on the medicines company. s for biotech, something happened. we took a look at it last week and this is the nasdaq biotech index slicing back below its 50 day moving average. we see the choppiness around the 50 day moving average. it tells you investors are increasingly bullish. they are caught off guard by the fact that it is dropping below now. we also see the nasdaq biotech index is caught in a muddled range that biotech traded in for much of this year, suggesting we could see biotech drop-down towards the bottom of that range. keepis very important to an eye on, nasdaq biotech, 50 day moving average and how it trades. >> thank you, abigail doolittl

this includes piper jaffray and rbc capital. analysts are on hold including deutsche bank citing the gross margin dive being a little bit bigger. aboutday we were talking the idea that there was a reset of expectations for apple after the rough first half, at the more than 20% after the better than expected lobar quarter in july. it seems with the stock down today marginally in the grand index of things, perhaps -- investor expectations and sentiment got ahead of itself as we reset the iphone 7 demand and what is ahead. we have seen this in the past. , back in 2013 the was a big decline as the iphone 5 had disappointed and then the five s started to exceed expectations, but there was an area of choppiness. we see something similar here so we could be entering into choppy trades were apple but overall analysts are blessed -- bullish. mark: monta lea's reported earnings that beat estimates and boosted its profit estimate -- mondelez reported earnings that beat estimates and boosted its profit estimate. let's get to greg g.m. mona

i don't know that they're quite as diverse as piper jaffray would have them be here because i still think they're mainly a clothing company. not as much on the shoes. >> they're looking for a huge uptrend in their footwear. they're -- >> there's huge up side when you are only making as many shoes as they're making. huge up side. and plank makes a lot of the right moves. piper recognizing that this is a great social media. i mean, they use social media very well. they use the i'm platform very well. >> adidas has had a big reboot. they initiate on adidas with overweight. you have bought nike. >> i have held nike. i am a firm believer, strong ceo, strong brands. >> i'm not saying under armor is not going to perform well. nike will still have its place and continue to own the footwear market in my opinion. >> let me give you the perspective of an ex-sell side research structure. here's how it works. okay? >> school us. >> i'm schooling you right now. i've got an analyst that works for me, says and the analyst follows footwear and apparel. what that analyst has in their quiver, they have nike

piper jaffray says teen spending is at all-time highs.getting their higher interest from the group. jcpenney $500,000 in sales per square foot and those products are rarely on sale. it's key for generating repeat foot traffic for those consumable items. you wi ulta turning in double digits comp.ing for more than seven straight quarters and upped its guidance and google search shows an increase from even its december peak. poised to capture a larger piece of the beauty enthusiast. these folks responsible for more than three quarters of the total beauty spend. so i think this trend is here to stay. maybe folks aren't watching espn, maybe they're watching qvc home shopping. >> i'm going ask pete that. >> i don't know the answer. >> i feel i've got to go to you. why. i have a feeling in my bones. >> she talked about ulta and you look at the valuation, looks a little high. you look at a forward earnings perspective, comes down a little bit and gets more interesting. i don't think you want to chase these, mel. they have had a great run. that do

to talk about why, we are joined by gene munster, a senior research analyst at piper jaffray. the program. i will assume you think the market is wrong in its reaction, last night, so what is the market missing? gene: the iphone is down 5% in the september quarter, but the guidance says it will be up 3% in december. it is the first time in over a year that the iphone will grow and that is important. it should have been boosted, last night. is down isthe stock expectations ran out over the last two weeks. -- they got it above the street at 78, but below some of those whisper numbers. our perspective is to look at the big picture. the iphone franchise is intact. it should return to growth and stay in growth mode for the next several quarters. jonathan: the store you have painted is backed up by the stock price performance, a 30% rally off the may lows. the question is what is this your -- what is the strategy of >>s company, going forward? does apple have a grand strategy for what you want it to do? do you know what you want to do over the next five years or is it more of a read

computer -- gene munster in the 8:00 hour with piper jaffray. more with dominic konstam next.rning, everyone. a foreign exchange report. sterling with 1.21 earlier, a little bit stronger. call, andhurning out the yen weaker over the last number of days. dominic konstam is with us from deutsche bank. this was a quiet little thing you said 20 minutes ago, 30 minutes ago, gdp growth migrating 2%. bring up the chart. we have shown this many times. stan fischer alluded to this in his speech. 4% real gdp1990's, growth, and the red arrow is down, down to 1.9 percent growth. you say we stay here and migrate lower. tell me about the american spirit if that occurs. dominic: what is behind that is the fact that we are reaching full employment. but as we reach productivity, things have slowed down as well. the other side to the gdp from this metric, that could literally stagnate or grow less than half a percent. so where it is, it will go lower. basically close to 1%. that is bad news for wages, and obviously is a challenge for profit as well. tom: it is a challenge for any institution tr

craig johnson of piper jaffray and stacy gilbert. i know them to be real and alive.t days of gains, that's nice. what are you seeing the options market about where apple may be headed going forward? >> overall, the options market continues to have what i would say is a positive to bullish sentiment. what i think is really important with the options are telling us is that the risk with apple shares has come in considerably. we're looking at this bit measure of how expensive are options. for example, if we look at the at the money options, this is the one that the strike is right where the stock is trading. the call and puts cost around 3.8% of the current spot of apple. that's around $4.40 if we're looking out two months. that's in the bottom quartile of what we have seen over the past five years. so what i would say is for anyone who feels like they missed this recent 12% rally, the options are offeri inin ini attive reward. protection really is not expensive on historical basis. if anything, the sentiment is continue to be bullish, but the risk seems to have come ou

piper jaffray saying the sell-off is over done.question is, is it fast enough to meet the lofty expectations. >> if i own the stock or wanted to look for a chance to own the stock, i don't want the analysts defending it today. i want to see some analysts capitulate on this. it trades at twice the multiple of nike. it still has a very high bar to justify that. over time it probably will. the question is right now exactly what the path is between now and then. i think that's what the market is dealing with. >> we tossed the ball around with jim on what's happening regarding housing spend. whirlpool a disappointment. sherwin-williams a disappointment. home depot among the weakest dow components right now. whether it's rising insurance premiums or rising streaming phone bill or just election uncertainty, are we beginning to look at a peak housing thesis that looks sense? >> there seems like some kind of a squeeze going on. i don't know if all of those is about new construction or housing turnover, but definitely on the renovation side.

he is an analyst at piper jaffray. at the top of the next hour, it is "bloomberg markets." >> we are looking forward to the details of the conference call with brian moynihan, the ceo of bank of america. maybe underneath the surface, the beat was not quite as good as it looked at first sight. we will also be speaking with the priceline ceo. how to the terror attacks affect bookingnd half when travel? how is competition between priceline and expedia going? obviously, the brexit question, as well. that will come up with our next ,uest, the chief jobs officer we will be asking him about rising gilt yields. jonathan: looking forward to the program. crude rolling over. $49.71. more fed speak up next. what to look ahead for the rest of the trading day. this is bloomberg. ♪ jonathan: from new york city, this is bloomberg. fed vice chair stanley fischer speaking at the economic club of new york, you can watch it right here live on bloomberg television. a little bit earlier, we spoke about fed speak. we asked about inflation and the impact on markets. iteration. are in an the iterat

take two interactive, piper jaffray says that software sales were up by 31%, driven by some individual. even ifocks holding up it over all things are less strong than earlier this morning. david: julie hyman, thank you for that market update. be talking about amd and nvidia with cory johnson in a few minutes. first, let's get more on the first word news with mark crumpton. hillary clinton and donald trump are locked in a battle for new hampshire. a poll has clinton at 31%, trump at 38%. libertarian gary johnson gets 11%. matchup,-to-head clinton leads trump 46% to 41% in new hampshire. both have high unfavorable ratings. 54% for clinton, 56% for trump. in rnc raised $39.4 million september, about $9 million less than in september of 2012 when mitt romney was the party's presidential nominee. over those two years leading to the election, the rnc said the party's fundraising is up by almost $20 million. the uk's exit negotiations with the european union will be controlled by a select group of 12 ministers from theresa may's cabinet most opposed to increasing powers of the 20 member block

piper jaffray's gene munster is not terribly concerned.rowth and should stay in growth mode for about the next seven quarters. as long as you can see in a tech company. ubs analystg us is steven milunovich. joining us.r what do you think is behind investor disappointment? is of the revenue issue or the outlook? steven: the stock is up quite a bit over the last month or two. in terms of the fundamentals, the units -- the revenue guidance is above expected for december, but the units are you sign. the second thing is the gross margins. gross margins came in a bit lighter. the cost of the seven to build is more expensive,urrency is an issue. it's a goldilocks quarter. you don't want the iphone to do too cold because people will question underlying demand and if it's too hot, people will be 8 next yeare iphone won't be the super cycle that people expect. looking through the analyst notes, i noticed that by side estimates were higher than sell side estimates. how did the buy side see apple versus the sell side? steven: not to do similarly. ly.n

. >>> some stocks to watch today, there's a report from piper jaffray saying a pause in gopro sales toro plans to resume shipping to amazon at the end of october, but those shares down 3.5%. >>> and back to today's top corporate story today. john stumpf announcing he will retire in the aftermath over the sales practices. wilfred spoke to new ceo tim sloan in an exclusive interview. here's what he said about moving the company forward. >> wells fargo is a company that's made up of 268,000 team members all across the country and world. no one individual is necessarily going to make the difference. we all have to work together to restore the reputation of the company to continue to focus on moving the company forward. so one person is not going to make the difference. >> joining us now is mike mayo from clsa. good morning to you. does this do the trick? what is this -- how does this change the game? >> well, it helps wells fargo move to the next chapter. the old chapter, i still can't believe what's taken place in the last 34 days since wells fargo had the regulatory settlement. they stru

he is piper jaffray's senior research analyst and one of our favorites. gene, help us through this.amazon. you saw where the stock went. was that the appropriate reaction? >> no. i think it's going to bounce back here. and the reason is that all of the areas that they're spending in are areas that have produced revenue growth in the past. so these fulfillment and content are no surprises. so the stock was down 7%, it's down more or less 5% now. i bet that in a week or two it will be up from where this is at. so yes, this brings back some bad memories for investors about some investing they've done in the past, but i think it's wisely spent money for amazon. >> when you make a prediction like that, explain to us how you map out amazon. when you look at the multiples, they never make that much sense. what is the math you're doing on this? >> we think they're going to continue to gain shares. that was consistent from the previous quarter. sop they continue to gain share. the overall market is going 15%. we think they continue to gain share, continue to have margin expansion. we think t