let's ask liz ann sonders, schwab's chief investment strategist. good to have you back. >> nice to be here. >> i took a riff off what you were telling our production team. tale of two markets. considerable weakness at the individual stock level. expand on that and whether you think it gets any better as we make the turn. >> sure. so, using the nasdaq as an example, admittedly an extreme example, you've had no more than 7% maximum drawdown at the index level for the nasdaq. at the average member level, the maximum drawdown is 38%. that's a heck of a lot of churn and rotation on the surface, much more so in the case of the s&p 500. it's manifested itself in other ways, too. you can see the stat i was talking about. it's only 15% for the s&p. another way it's manifested itself is there's right now i think a 32 percentage point difference in terms of the share of the s&p above its 200-day moving average versus the share of the nasdaq. 41 for the nasdaq. 42 for the s&p. similarly widespreads of weaker breadth for the nasdaq looking ahead tends to be mor

we have liz ann sonders. i like the way you started that report. two standing on proverbial debate stage at start. year. one would i i am h claimed stocks would rip higher. the other proclaimed stocks would have significant correction. both with have been right. goldman sachs alone adjusted their target the four times. looks like the non-believers jumping into the believers camp. is that an contrarian sign for you? >> you know, year-end price targets, by the way, charles, is such a silly exercise. charles: [laughter] >> institutional strategists need to do it or they believe they need to do it for a way for them to be pit the against one another. i always use 1987 as an cam example. if i or somebody put a year-end price target just doesn't a percent or so, at the beginning of '87 to the end of the year and basically allowed a conclusion to be market is not going to do anything was that really right? charles: right, right. >> versus what happened on the way to no return in 1987? i don't pay a lot of attention to those. it is a tale of two markets. a

the ss sonder command under the command of the criminal dirlewanger, which was particularly cruel.ts of the village-settlement of the kamensky village council, pleschenitsky district, minsk region. march 25, 1943. on march 22 of the above year, german monsters attacked the neighboring village khatyn and burned its building. the inhabitants , numbering 150 people, were brutally tortured and burned. 40 adult men and 34 women were burned. there were 70 children of different ages from one month to 14 years. the village of 26 households was completely burned. another one was added to the sad list of burned belarusian villages in march 1943. khatyn. the execution of the population of the village of khatyn became the last chord of the bloody operation winter magic , or in the german version, winter charms. it was held from february 16 to march 31, 1943 years in the triangle sebish, asveya-polotsk. the main performers were german units, who were also present. anti-aircraft and artillery units, a communications platoon, two special groups, isd police, a special -purpose air group. the main

for more on what's next, chuck schumer chief investment strategist liz ann sonders joins us now.ng more optimistic at this point, given what we've seen from stocks, especially big tech, leading the market? >> well, it's the specialty part that's the operative word there. the market has done quite well, but most stocks have not, and that kind of divergence and concentration can go for a while. it's difficult to try to pinpoint at what point you start to get convergence there. but on pretty much every breadth metric including the fact that you're in low double digit percent of stocks that have outperformed the s&p within the s&p over the last one month, three month, one year, in the case of the nasdaq, the average member maximum draw down year to date is 37%. a tremendous amount of churn and weakness and rotation going on under the surface. you just wouldn't pick that up if you're only focused on the index level gains which are increasingly driven by a smaller and smaller handful of stocks. that's a risk. timing when it comes to fruition is the tricky part. >> i was going to say. w

schwab's liz ann sonders is with us momentarily to expand on what she calls the great divergence andow. under pressure for much of the day. home depot, the big loser after pool corp warned about a slowdown in new construction projects. we'll watch those two stocks over the last hour. elsewhere, united health,

his thrifty sonders removed it.of course, buyers were unhappy, because essentially, what is it? service is his own servant, and people who want to have servants who are accustomed to quality, to service, of course they didn’t like the fact that they had to load it themselves, but by firing half of the sellers, saunders was able to reduce the markup on products and the cheapness outweighed what was then considered inconvenience, customers soon appreciated the very freedom of choice, when a product can be picked up, examined, shaken and returned to the shelf without any apology, however... for years, 1,200 supermarkets were already operating in the states, and saunders became a millionaire and a guru of entrepreneurs, because he he came up with a manipulation called a labyrinth, this is when, in order to get to the necessary bread, eggs, milk, meat, you have to make several circles past shelves with bright packages of ice cream, an island with sauces on sale, display cases with aromatic ready-made food and something e

two weeks ago, liz ann sonders said this.ation. two weeks later we are meant to be measuring the same thing. and then everything just reinforces that. you look elsewhere. job openings, whatever it might be. then you start looking at what is happening in crude of all places. if we get confirmation of the trend, yes. lisa: this trading on adp? please write in, we would love to talk to you because that is a key question. also, what is driving some of the ping-pong action we've seen? jonathan: for a moment, yields were down and then back up again. by a single basis point. it's exhausting, isn't it? up next, we will get the latest spots from mike mckee still with us around the table. from new york, this is bloomberg. from recent grads... ...to rising stars... ...to living legends. —you got this. —thank you. vanguard's retirement solutions can help all your employees be well on their way to their financial goals. that's the value of ownership. ♪ jonathan: we are one hour away from the opening bell. equity futures are positive by a

wrapping up q2, liz ann sonders says we have seen risk of consolidation at the index level if performancebull market, but we think that more members will need to start joining the party for the music to stay on. i was going through some of the stats in your work. 17% of the s&p has outperformed in the last year but the nasdaq number is much worse, 11%. can you build that out for all of us? what do you think that indicates? >> that we have two markets under the surface and you can see it under the index, s&p or nasdaq outperforming and the table that you pointed out, one month, two-month, three-month, you don't get much more than 25% no matter the timeframe. another way to think about it is the average member maximum drawdown. we know that the s&p and the nasdaq are at an all-time high with a no more than 5% drawdown in the s&p and nasdaq that is at the index level. the average member maximum drawdown year to date is 39%. there's a lot of turmoil under the surface that i think reflects these uncertainties that we talk about on a day to day basis. you don't see it at the index level because