jonathan: is that sector-specific, mike? michael: it is credit-specific. cannot go out and randomly by energy. if you are looking at exploration and production companies, whether cost structure is, what their leverage is -- there are a lot of considerations. that is how we are taking advantage of it. we are picking through the entire sector and looking for those companies that we know have the management and the financial wherewithal to ride o a prolonged- out period. kathy: one ofkathy: the concerns about the high-yield index is energy, and if you are sort of passively investing in energy and high-yield right now, or high-yield, you have a lot of energy exposure and not taking the approach that mike is taking and being jonathan: very disciplined. jonathan: greg, weigh in on the active-passive debate. how do you navigate that story at vanguard? gregory: we see most investors being broadly diversified when it comes to index process, but we offer both, active as well as an active, but the main story for us is around low-cost, being able to do it that when we

jonathan: is that sector-specific, mike? mike: i would say it is even credit-specific. cannot go out and randomly buy energy. you really have to look at -- if you are looking at exploration and production companies, what their cost structure is, what their leverage is. there are a lot of considerations. that is how we are taking advantage of it. we are picking through the entire sector and looking for those companies that we know have the management and the financial wherewithal to write out a prolonged period of crude oil. we do not know when it will recover. jonathan: do you have that you as well, kathy? kathy: yes, i do. one of the things that concerns us about the high-yield index is energy. if you are sort of passively investing in energy and high-yield right now, or high-yield, you are getting a lot of energy exposure and not taking the approach that mike is taking and being very disciplined about the approaches you are looking at. jonathan: greg, weigh in on the active-passive debate. how do you navigate that story at vanguard? greg: we see most investors being b

>> i don't cover the semi sector specifically. i won't comment on this.t for the rest of the week? when do think would be the right time to start seeing real opportunity to buy? >> you do have one event in the middle of this week. the fed open market committee decision will occur at the end of the day on wednesday, 2:00 eastern time. we will know what the rate decision is. our guess is most people would not want to buy in front of that. we may very well have a continued trade-off in the best-performing to date. we may have a reversal in some of those for another day or two. then we could see a bounce back as we get the uncertainty over the rate decision out of the way. the next catalyst has to be earnings. we will not get major earnings news for about a month. we could be in a position where large cap techs that have outperformed could trade sideways or trade-off modestly for the next month until we get into earnings news when we get more visibility on the rate decision. caroline: rich pickings come the 15th and then it is all about earnings. thank you ve

. >> stepping away from sector specifics, your latest take on the data and the reaction to the fed decisionthink the economy is soft i was on one of the other cnbc shows the other day, everybody was telling me that the pundits are saying the my is goeconomy , we're growing 2%, 2.5% i was saying things are not good, we're not growing 2.5%, we're barely growing 1.5%. this economy is fragile. i don't think fragile economies deserve a 24 multiple on reported earnings. my sense is that the economy is weak i don't see it with the flattening yield curve the fed is saying we're on autopilot, we're tightening policy into a flattening yield curve. the yield curve leads the economy with a four quarter lag. the run rate on gdp growth is better than 1.5% where do you from from here? we'll weaken off >> home sales are actually due today at 10:00 a.m what do you expect how would characterize the health of the u.s. housing story? >> i think the housing market is starting to weaken the big story is not single family that never got off the ground. you can see in the bank ride lending data, this will change i

how much further does the energy sector, specifically coal, have to go before they're back?hing that jumped out to me is he said, you know, they're mining coal to serve the steel industry. they're not necessarily putting this into power plants. that's getting at what i'm saying. coal has gone in the power sector from about half of electricity comes from coal to less than a third today. and that's because of fracking that has made natural gas incredibly cheap. leland: still not green though in terms of what paris or something else -- >> i mean, natural gas is about half the co2 footprint, so it's much greener in that respect. over the long term if you want to talk about getting emissions down, you would have to do carbon capture which you could add to coal plants, gas plants or, obviously, renewables, nuclear, solar, wind, etc. leland: we'll look forward to your report anything politico, see where the jobs come out of this. liz? elizabeth: still ahead, president trump drew big crowds when he promised to drain the swamp and make big changes in washington. are those voters stil

broadly through have two sector specific problems. student loans, very high.subprime lending but that is not symptomatic of a broader problem . >> how does the household balance sheet look right now? >> it is actually quite good. we had a massive rally in asset prices. incomegrown slower than so the debt to income ratio actually reversed a bit. so it is actually in decent shape. it creeped up a bit in the cycle. households became a bit more conservative as they should be given the lack of saving for retirement right now. >> thanks so much. jonathan. jonathan: we get your weekly initial jobless claims after a big upside on adp report ahead of payrolls on friday. alsoust ethan harris but andrew with global fixed income will react to that from london. from new york city and our viewers worldwide, you're watching bloomberg tv. ♪ jonathan: you are watching bloomberg daybreak and i am jonathan ferro. futures positive up about 1/10 of 1%. the s&p 500, 1.3%. a big upside on adp report. higher by two basis points. dollar strength throughout the morning. the euro is a l

sectors. specifically in retail and consumer if you look at whole foods, we detect a decline around mid 15, 2015e at that time period and really accelerated since then and it's really a sector divergence here. it's not necessarily just whole foods. kroger, super value and some others so you are seeing a decline in those areas. and yeah, you have more and more folks that are looking for different types of options to purchase their services. it's kind of a -- it's really a natural extension of new ways to shop for things, and new ways to purchase them. whether it's retail clothing or eventually food products like amazon's going after >> any of those gresry chains that seem like they are resistant to this sort of new trend? anybody who's hanging in there with their profit? >> costco and walmart. we've seen kind of continual steady line increase in traffic to those particular brands when you think about the size, and the breadth of offerings that they have, they're very strong in their category target's declined a bit. we thought they would be up with the big three but they've also declined with the

elections commission that it serve as the co-sector specific agency as a logical federal agency to partner with dhs to provide subject matter expertise and assistance in communicating with local election officials as the a.c. has that communication structure already in place. and the 2016 elections reinforce the need to constantly enhancing the security of voter registration databases as we have heard this morning. while hacking into a voter registration system, as has no effect on tabulating election results, intrukss could result in unauthorized parties getting access to data, regarding voters, candidates and polling places. i would note that while much of the information public upon request, there may be some confidential data held in those databases such as a voter's date of birth, the driver's license number, the last four digits of the social security number. different states have different laws about what pieces of that data is confidential. the 2016 elections demonstrated that state and local election officials can implement steps to improve the voter data and many of these steps a