we are seeing prime age participation on an uptrend. that is keeping wage growth subdued.hat led to an uptick in the unemployment rate in this report after a pretty vast decline to 3.8%. on balance i think that sort of validates their gradual approach to raising interest rates. there's certainly nothing in this report that says they are behind the curve. they can kind of proceed with a plan of gradual interest rates as dr. rivlin suggested. that is good news for the market, too. that is helping to maintain the current easiness and financial conditions and that the fed does not have to take away the punch bowl right away. vonnie: does that mean to more policauseor a posit som at some point? expecttwo more is what i -- one in september and one in december. the fed has a lot confidence that they can move to a neutral rate. , which they think is maybe three or four more rate hikes. beyond that, they will let the data tell them what they should be doing. chairman powell and other speakers have downplayed the further out projections that say they are going to raise rates to 3.5%

carter >> well, let's talk about the definition of an uptrend this is what you say is the guideline?ly right north by northeast, never higher, never too hot or too cold. in fact, put in the line, we see that right here, right this is a well defined trend line, but what i'm thinking at this point is that we know that uptrends will have checkbacks. we'll often get back to trend and we're due for that around now. let's zero in on the more specifically and take a look at these, the drawdowns that the stock has had. putting zoom on here, we know that the stock dropped 15% it dropped 12% it dropped 8, 8 again, dropped 8, 10, 29, and so i would just point out that it's perfectly normal to have a give back let's put the line back in what i'm thinking, basically, is that the stock closed at 69.85 come back to trend, which it's done ten times 62 plus-minus the trend line comes into play. that's 11% it doesn't mean a thing. it doesn't change the great stock or change the angle, and think that's what's coming >> mike, trade on square >> the put spread spend $3.20 to buy the 65s and sell to 55s f

at some point when you get back up to the uptrend and say you're right and it's something fundamentaluldn't you at some point shoot to the downside a little bit >> you get to the downtrend down lower before overshooting the downside and targeting the intermediate low on the chart not shown here and that's where we are headed on the more immediate basis and from there, sure you get worse. it's an excess returning stock for quite some time. >> the excess return that we got also was a lot of one-off things and we were talking about sgna cuts and refranchising efforts and we were talking about breakfast all day and these are shifts that you get one time and you get a boost from that, but the long-term secular trend was not necessarily in the favor in terms of top line sales growth and that might be where they can make headwinds here. >> good job. ko r ko and carter >> we'll tell you why, and have an options question for one of the traders? send us a tweet to @options action and make it a good one because neighbwe might answer ir in the show. much more options action in a couple of minutes

. >> let's talk about the definition of the uptrend.his is what you say is god-like literally up to the right north by northeast never too hot or cold if you put in a line we can see that right here. this is a well defined trend line and so forth. what i think at this point is that we know that uptrends will have check backs and often get back to trend and we are due for that right around now. let's just zero in on the more specifically and take a look at these -- the drawdowns the stock had. i put the zoom on here we know the stock dropped 15%. yes, it dropped 12 it dropped 8 it dropped 8 again it dropped 8, 10, 29, and so i would just point out it's perfectly normal to have a give back let's put the line back in and what i'm thinking basically is that the stock closed at 69.85. just to come back to trend which it's done about ten times, 62 plus, minus where the trend line comes into play. that's about 11% it couldn't mean a thing don't change the great stock don't change the angle i think that's what's coming. >> thanks carter mike wh

its big uptrend of the 13th -- 2013.other big theme that the emerging-market risk, the china risk especially, continues. we will continue to see the china equity market remain under pressure. guy: the chinese have a point when they say it is dollar strength. david: it is and it is not just a china theme. if you look around the emerging markets in general, you see a korea,e in the dollar and it has been asia that has sort of taken this over over the last few weeks. yes, it is definitely a dollar huge component to this. where it gets interesting. the venn diagram overlapping the trade story on what is happening in the trade markets. the chinese are quite hands-off and eight potentially have this currency story in the back pockets to use in the trade narrative been generated out of washington. were you surprised to see the currency move in the way that it did? is there anything anomalous here that sort of stands out? or is this consistent with what we see elsewhere? the chinese are not doing anything in keeping with what we

someone like elon musk makes an uptrend is all behaves like that, the knock—on can behaves like that,be incredible and impact thousands and thousands of people that have spent a lot of time building a business around them. an off—the—cuff remark can impact and damaged that to such an extent which is quite phenomenal. you said that it shows resilience but kessler shares fell sharply. it is not like investors could pressure the company to fire elon musk given he is the founder. when the celebrity ceo does well, the positive effect of the awareness of the brand, it is fantastic, but when it goes wrong, it can have a really damaging effect. think about sepp blatter around fifa, tony howard at bp, the deep waters spill. sometimes these things can have a long and impactful damage on the brand but when it goes well it can go really well. bill gates, richard branson, they are great ambassadors for their brand. it all comes with having particular, opinionated photogenic ceos. let's ta ke opinionated photogenic ceos. let's take you to farnborough air show where all the headlines have been about

doing like a black friday thing but the stuff really doesn't look that great macy's stock is not an uptrend target looks good and they're trying to compete with amazon and go toe to toe because the prices there are good and they do have brick and mortar stores are getting people in but i'm telling you it's a problem one march stop doesn't look that great but wal-mart came out with this new thing they're doing a three d. you can put different furniture pieces and try to play around and see how your furniture looks before you buy it but the stock doesn't look that good long march going to try to compete with amazon and target too but i don't know if in the end they're going to be able to do it you mentioned. and you mentioned which i guess started yesterday three o'clock eastern and i went today but it didn't go that well they had a computer problems or what you call and then it was interesting they had some problems but they still had tons of sales people hung in there because i guess it's thirty six hours it wasn't like just it was a twenty four hour period where they were doing the sale so

you know, at some point when it gets back to that uptrend, say you're right, say something fundamentaldn't you expect that to overshoot to the downside a little bit? >> i mean, obviously, it can get to the down trend lower, but the targeting intermediate low on the chart, not shown here, that's where we are headed on a immediate basis. from there, sure, gets worse, there's excess returning stocks. >> now, the excess return we got was one-off things like cuts and refranchising efforts, breakfast all day, so these were shifts you can do one time and you get a boost from that, but the long term secular trend was not in terms of the play, and that's where they can run >> okay. good job >>> up next, netflix calls 8% after reporting earnings this week that's great news. we'll tell you why plus, i have an options question for the traders. tweet us, make it a good one, maybe we'll answer it later on in the show. we are live with more "options action" in just a couple minutes. well, it's earnings season >>> "options action" is sponsored by think or swim >>i don't know. there's so many opinions

last year, the uptrend was above that. look at this volatility, trying to go above the range, above 2800. some of those technicals suggest it may not last. it's going to be interesting to see if the s&p is back into a reliable range. reliability? what is that. check out where equities for trading. we are on the lower side. into theserack you moves. we've been hit by trump. we turned negative in the trading day, around lunchtime because of him talking tough on china, saying they've got $500 billion worth of chinese goods they could hit with tariffs. indeed, he keeps tracking lower. china anot only is currency manipulator, he talked tough about dollar strength. it seems to be a call out to the fed. those lows bysing .5%. have the eu commission going over to meet with trump. will we see tariffs attacking that sector? what will the eu do in response? check out how much minor seven underperforming. -- have been underperforming. this is what happening in terms of the mining stocks. on italian debt markets. we will look at the it

doing like a black friday thing but the stuff really doesn't look that great macy's stock is not an uptrend target looks good and they're trying to compete with amazon and go toe to toe because the prices there are good and they do have brick and mortar stores and they're getting people in but i'm telling you it's a problem while mart stock doesn't look that great but wal-mart came out with this new thing they're doing a three d. you can put different furniture pieces and try to play around and see how your furniture looks before you buy it but the stock doesn't look that good wal-mart's going to try to compete with amazon and target too but i don't know if in the end they're going to be able to do it you mentioned back to amazon you mentioned which i guess started yesterday three o'clock eastern today but it didn't go that well they had a computer problem so what's your take on that was interesting they had some problems but they still had tons of sales people hung in there and because i guess it's thirty six hours it wasn't like just it was a twenty four hour period where they were doing

you can see on the chart, it's on an uptrend.ro -- chinese eco nomiey firmsyou can see on the l feel more lucky about chinese stocks if investors do. rishaad: i want to make this a fair contest. haidi, this is them going head to head for the second time. divya won it last time. eric was a sore loser. divya will be the sore loser today. haidi: i feel like you are attributing the technical malfunction in that chart to divya. i think they are both great stories. else is getting swept away by the intricacies of this facebook story. expectations, the market cap is equivalent to mcdonald's. lots of questions. rish, i know you hate choosing. contest,it was a fair as i said before. there you go. haidi: gtb go is where it is at. it is at.is where santos charts for future reference and let us know if rish chose poorly. ♪ emily: i'm emily chang in san francisco. this is bloomberg technology. a rare miss for facebook. plus, on the heels of facebook results, investors gave a thumbs several tech peers in market trading. qualcomm terminates its

year, the beautiful uptrend above the 100 day moving average, buyers in control.his year, uncertainty entree concerns, one of the factors -- on trade concerns, one of the factors, s&p 500 new the top of the range, near 28,000. will the bears take control again? 100 day moving average, who knows? back at the bottom of the range, everyone is watching, closer to 2600. mark: great job. let's stick with trade and investors, just when they thought the markets has shrugged off trade war concerns, the trump administration the new list of chinese goods facing additional tariffs. vincent joins us from paris. how much is the near-term outlook influenced by this ongoing trade conflict between china and the united states? massively. just when we thought it was time to warm up again toward hasties, president trump brought the trade war to a whole new level overnight. the market had riced in -- had priced in bad news already if you look at the chinese equity markets, the chinese currency, the auto sector in europe, the 10 year bund, adjustable 10.3%, there is quite bad news pric

last year's beautiful uptrend above the 100 day moving average but fisher volatility as investors contend with all sorts of issues, especially trade concerns. ,p against resistance at 2800 very interesting to see whether earnings season provides the catalyst to provide up and out for back down into the range. mark: if the outlook for the earnings season is boosting , trade lifting sentiment concerns have dominated in recent weeks but today it is the outlook for the earnings seasons and the fact that there is not much on trade escalation between the u.s. and china. greece,re up led by luxembourg, sweden, austria, italy. best run since midway. since last year, europe small-cap stocks have benefited from the region's economic recovery and currency strength. thanks to their larger domestic exposure. even with economic data deteriorating and volatility rising this year, they have held onto their gains as the broader market dropped. surprising resilience has divided analysts. second straight year about performance over large caps, a wide -- what is interesting is the divergence is reflected in

lester, the beautiful uptrend when buyers were in control.nd this into the official start of the trade war, and we recently had the dow trading below the 200 day moving average, telling us that sellers were taking control, but now we have the dow back above the 50 and 100 day moving average. so the volatility and excitement continues. it will be adjusting to see how it plays out. we will be here to report on it. nejra: thank you so much. turmoil in the british government as far as boris johnson resigning, heightening the chance of a leadership challenge to the prime minister, theresa may. she is facing questions in the house of commons right now. is's bring in tim ross who standing by for us at westminster. it is great to see you. the big question after we have had the resignation of david davis, and now boris johnson, is where does this leave theresa may in her position as prime minister and a leader of the tory party? anything we can learn about that from the address she made to the u.k. parliament? well, she is still talking to the m.p.'s.

last year, a beautiful uptrend.his year, sideways between 2600 and 2800 over the course of the second quarter. the s&p 500 did not really do anything. it will be interesting to see what way is next. some technical sites suggest it could be a move to the downside. take a look at the decline on oil, near session lows, down 1.9% on a bearish inventories report showing a build as opposed to a decline. on pace to its worst day in about two weeks. trade coming up, we talk with a ceo who served as george bush's commerce secretary, carlos gutierrez. this is bloomberg. ♪ ♪ is "bloomberg markets: balance of power." before carlos gutierrez served as commerce secretary he was chairman and ceo of the kellogg company. he is now cochair of the albright stonebridge group. thank you for being here. carlos: a pleasure. david: the big news is tonight and the tears coming due on $34 billion of imports from china. china says they will retaliate right away. is there a way to stop it from escalating? carlos: it is hard to see how we are g

we have the beautiful uptrend. above the moving day averages.ving day averages, we now have the dow on pace to close behind that 200 day moving average. this is a narrow index. it could suggest this could be ahead for the s&p 500. if that happens we could see the s&p 500 move back down as it is happening. let's now get a check of the first word news with mark crumpton. mark: president trump says he has had a taste of meetings with potential successors to anthony kennedy. the president said he is working toward a decision over the next few days. withinterviewed and met numeral for potential justices of our great supreme court. they are outstanding people. they are incredible people in so many different ways. otherically and every way. mark: the president will announce his pick july 9. a song rouhani is in switzerland for a two-day visit. the will discuss salvaging iran deal. switzerland has served as a diplomatic intermediary between tehran sinced 1980. department is spelling out the campaign of maximum economic and diplomatic pressure to drive i

it trades cheap for a reason now and on a technical base 'tis broke the uptrend from september below 50 to me i think it will have money for a while. >> so yesterday the chinese regulators did not approve the qualcomm p.i. deal and not that intel was on the market to do anything and that underscores the notion that for chip companies right now it is the business that they have. survive on their own. >> that there is no combination at least while the trade war is going on >> it's interesting. i agree with everything that dan said intel is not ridiculously expensive and the uncertainty on the ceo level is concerning. asps were okay. >> do you think he would be a good ceo of intel? >> i don't know. >> they've taken a step back from servers and that's where intel is growing do you think a deal can get through? >> in the u.s., yeah i do. >> qualcomm is better buying back their own stock in my opinion. >> which they are doing. >> quickly >> fair enough >> it's on fire. >> but most of the things that qualcomm have been self-induced. they seem to have gotten -- i don't know let's talk about

not as important as the consumer price index, but you see an uptrend as the yen weakens against the dollari am not so worried about them. if they are supposed to fall 4.2% in may but supposed to be up 9.7% year-over-year. a lot of up and down in durable goods orders, machine orders. the trend is still strong. that is something that will reassure the bank of japan when they need at the end of the month. paul: global economics and policy editor kathleen hays, thanks for joining us. next, president trump said to be close to upping the ante in the china trade battle. the latest on his next terrorist targets, just ahead -- latest tariff targets. ♪ ramy: breaking news crossing the bloomberg terminal. the latest out of those reports initially from bloomberg talking about those $200 million in tariffs that donald trump is reportedly going to do. now confirmed according to officials. the u.s. has compiled $200 billion in china goods tariff list. one you senior u.s. official has said china is not seriously negotiating on trade. that list of chinese goods is expected to post shortly. more breaking li

just get a perspective of how far this stock has come if we flip over we're inside the beautiful uptrendel many ahead of the earning reports looking at 12 to 18months. if these continue from the simple technician point of view you have a uptrend which serves as a resistance if they get bade that level doesn't come in until you're up around 16 to $1,700. we certainly have room to go over the next year >> fundamentally, dave see berg are you as bullish we are set to see the $5 billion fine factored in q 23 profits which wrecks the number. even though they appeal the decision what else are you watching out for if the reports. >> that getting out of the way is an overhang lifted. but i think it's about the core margin we did a preview a couple days aig and talked about the fact that for the first time in 11 you know quarters he expects tech to deaccelerate that's the traffic skigs costs. if they they can keep the core margin and 35% or better is ran voms volumes in longan the itching the sfok moves to higher levels it's up 14% year to date, probablily the least performing fang stock this is

the top chart is a beautiful uptrend. names like caterpillar and boeing american express, goldman sachs. one, we've broken trend. here's the more important thing, by my work we have undone the entire move from the election. >> so that this is relative performance to the s&p 500 all of the outflow was an eight week period. and the whole thing, we're well below where we were in the election, getting to be almost two years ago, let's move on to a few other things we have the circumstance as of friday, we're both industrials and financials as sectors, closed at the midway point down. now, that has only happened nine other years, you see it right here, and what i looked at was what lapped to the s&p 500 performance in the second half, in those years the average performance down 61 base points, median down compared to the average second half of up four or five percent. this is not a good setup either. finally, i want to look at the correlation. they're running at an 89% correlation over the past one year, now look at over the p

case i mean, we got above 2800 on the s&p which was a severe level of resistance we've been on an uptrend, lately, clearly. even with netflix may have had a disappointing earnings report. the stock may have pulled back that didn't stop the nasdaq toward its march towards 8,000 the gdp print is going to be good i can make a good case as to why we go higher from here these are momentary upsets the dow's at 255 >> i would say the positive thing that's happened this year, the market has taken a lot of body blows okay we're sitting here basically up 6% on the year that's a constructive backed up. and the market has done a lot of good work in that regard i just don't it's finished i think it's got a little bit more to do and deal with because this is the highest data group and highest market cap group that can leave a mark. all i'm saying the near-term risk is higher than i think people appreciate. and the risk is until areas that they least expect. that's it. by the way, if we're wrong, we're going to know shortly. if there no follow-through to today's action then i'm off. i'll be first one to

he needs to know the agriculture industry has not participated in the current economic uptrend we are seeing. long-term trade disputes only make matters worse. we must ask, what is the exact goal and exit strategy? bewe knew this would all over in a few months, we could hang around and manage, but none of us know the timeframe. bankers are extremely worried. withrs work very long-term their customers and they become friends. they are members of the same community and watch their children played in sports together. the lasting a lender wants to do is sit across the desk from one of his customers and say, i am sorry, we cannot renew your loan. of business. that can become commonplace if the trade wars don't end sooner. said,nker i talked to drive around the countryside and the crops look fantastic. but it is too bad there is not a black drop out there. trade officials to engage in discussions to resolve trade concerns. we must get back to the table and get these issues worked out. if we can't do that, the consequences are dire. thank you. mr. chairman: thank you. -- membersu to the of t

rate of change for the s&p got a 200 bump up, you have a 2% to 5% pullback in the market and the uptrendt started in april. >> that makes sense to me and i don't hear you stamping your fist on the table. what do you do the factors that we might not be able to control? will that be an outlier to the bull call, the way that the yuan was trading with china, and it looked like they would read on and it's the offshore, currency. >> that makes me a little bit nervous. the market doesn't care and that's okay, so i just -- i just feel like the banks are still good because we're getting the upward pressure in yield and we did a show on that three weeks ago and this is just an exciting and overall environment with kind of a nuance situation where you may just want to -- to karen's question, you wait for the third in on another decline and not care about the roast of the third. >> we have a crack staff with clips. >> we do >> why did you bring it up >> because they do their homework and we do have some we just want to know what it was like working with deniro back in the day. >> look. >> look at th

ultimately a 220 target is appropriate and home depot, relative to the s&p 500 is still very much in this uptrend. so you have the new trend that's good and relative, it is still a leadership stock let's go to apple and the most important name and we think it's okay here. another name that was in the 190 range and it's held to 200 and it exploded off the 200 back in may. it's held all of the big levels and it made new relative highs and only about four or five weeks ago and we still think this is leadership and look to a 210 target going forward and then on the short side, not everything here is perfect and mcdonald's does worry us right now. most importantly, this is just not a leader big, relative top for the s&p and made four-month relative lows today and unlike those other two names, what mcdonald's has not been able to do is retake the 200 so you had the 20% drawdown, has not been able to reclaim resistance and that's a problem here we like home depot, we like apple and mcdonald's is a sale >> chris, we have questions for chris. >> come on over, chris michelle, i'll bring the chair in thank

>> what's interesting, when we look at tech, 80% of the sector it's still in an uptrend right here that number was 90% a year ago and it wasn't quite as broad as it was 12 months ago, no, but is it narrowing not really i think when you look at this group it's not just this one look at the payment processors and paypal and square. there are a lot of names in this group that are there. >> the s&p tested the lows three or four times and now we're here with 2800. is it a foregone conclusion that we test the highs that we made in january, whatever it was, 2885 or so >> i think you'll see the highs here probably sooner than later and the one idea i kind of reject is that this market has narrowed dramatically and i know that's been a popular topic recently if you reversed weight the s&p right now it's still up about 5% year to date >> reverse s&p up five that doesn't sound like a market that's narrowed dramatically >> that's the biggest four stocks that account for 84% of the s&p 500 for the year >> that's true almost every year actually in a year where the s&p is not up that much it's very ea

however, he does need to know that the ag industry has not participated in the current economic uptrend that we are seeing and reductions in income due to long term trade disputes only make matters worse. we must ask what is the exact goal, what is the exit strategy? if we knew this would all be over in a few months, we could hang in and manage around it. none of us know what the timeframe is. we know bankers are worried. ag lending is largely based on personal relationships. lenders work long-term with customers and they become friends. they watch kids play in sports together. the last thing a lender wants to do is sit across from a customer and say i am sorry, we can't renew your loan for this next year. you are out of business. i'm not exaggerating i said that. that could become commonplace if trade wars don't end soon. a banker i talked to yesterday made a comment, he said driving around the countryside the crops look fantastic. it is just too bad there is not a drop of black ink out there. rather than fixing all the problems at once, we would suggest a more targeted approach . star

part of the concern is this is all in the context of agriculture has not enjoyed it the economic uptrend that other parts of our economy have. in that entire context, i think it is very important that we address these issues in a timely fashion, because we have a lot of things to work on. just in the trade arena, there is a greater understanding for trade in a greater appreciation for trade. i is a great appreciation for trade, the president has appointed to that. again mr. vander walt, it looks like from your bio, and your background, you are familiar with resolve, they are a pretty strong competitor that we have. i was wondering if perhaps you can elaborate as much as you can what these trade issues me to marketshare, and perhaps other countries might do, particularly brazil. >> thank you congressman i wonder if i could respectfully yield my time to mr. bain, because he has to leave. if he would be able to answer your question, and i can come back and address it. >> thank you scott. related to brazil as a competitor, there is no doubt that they are a very strong competitor. what was yo

going down, it was going down less the buyers habitually have come where they should to preserve the uptrendit is not overbought, though it had a nice move in the last week for me, if you're someone that's like, all right, i want to be in the banks, but i'm worried about, you know, name your thing, like jpmorgan, not only is it one of the better chart, it is also one of the better run companies. one of the better balance sheets one of the better strategic positionings f >> the valuation is still reasonable on jjpmorgan. >> i think. >> i like goldman sachs better i own jpmorgan and i am happy i do. >> you and i agree, michael. >> always. >> we talked about the upside call buying at the $108 strike sorry. $105 strike. it burned all the way through to over $108 today. i took it off. rang the register on that one. look at clf. pete and i have had multiple, unusual activities in clf, which is cliffs. this one hit a 52-week high today, and we took this one off. >> up nearly 15% good stuff. >> thank you >>> coming up -- actually, let's get the headlines with michelle caruso cabrera. >> the "new yor

they resume their uptrend or we see this correction where fa ang leads the way down. thank you so much. would you miss? lower,of fitbit sharply on pace for their worst day since may. abigail doolittle is here to tell us why. abigail, what is wrong with wearable exercise devise trackers? abigail: it goes back to president trump and his comments on trade. there was a report the fitbit unders, they could come 10% tariffs. that is the fear. this is a nifty product that could be terror left. , the revenueoblem picture, for revenues coming in the not right direction, $2.2 billion, there is the year-over-year growth. -- seems relatively strong. julie: right after apple incidentally. apple is on the july 31. abigail: apple smart watch was on this list of possible tariffs as well. those shares lower 7/10 of 1%. parallel. interesting a smaller part of apple. joe: you mentioned it is not about and the mental so much as risk. it is not like people are particularly excited about fitbit. it is down 90%. >> i have a chart to show to illustrate your point. 'ed in 2015.po joe: there w

which was recently well above its moving average in terms of trend, it has been it in a rocksolid uptrendut a year. every time the futures contracts and gotten up to standard deviations above the 50 day moving average, it tends to pull back aggressively. this was an extreme version of that. that to me is what happened. you look at the eia data and it has been a noisy couple of days. crude demand is solid. we have relatively tight crude markets around the world and it is getting tighter. it is hard to square that with a huge move on crude was a fundamental driver. it's also important that speculators are extremely long crude compared to the aggregate crude open commodity market. when you have the market overbought, you sometimes see violent him a harsh reactions like the one today. that is especially true with liquidity. necessarily expect volumes to behind in that scenario, but i do not think that disqualifies the fact that crude was overbought and has pulled back toward trend in a way that looks more like positioning than anything else. scarlet: and people are distracted by the croatia e

we have seen yen strength in this session, so much so we are looking to snap that uptrend.we get yen strength from here? >> we believe we might see yen strength coming through. you talked about the trade tensions happening and we talked about the program. ultimately, the flow that comes through is the repatriation of foreign assets. as i said at the beginning, the equity still being quite low, we have not seen those coming through. the amount of foreign equity investor we have seen from japan means that if we do see volatility picking up, there is a chance we see that repatriation. we are at a critical juncture in 108 level in dollar-yen. yousef: where does japan ranked in terms of favorability to enter into certain traits? i was speaking on bloomberg daybreak middle east about -- they're very keen on japanese equities and u.s. small-cap stocks. are in the cycle in valuations. >> from a currency perspective we think there is room for the japanese yen to keep going. one of the key points over the past few months, there has been a breakdown in the interest rate differentials.

why he says we are due for a pause and the uptrend.up, and this is bloomberg. ♪ julia: -- emma: this is "bloomberg daybreak." plane makerrazilian embraer have agreed to form a joint venture for commercial jets. boeing went -- would own 80% of the market. embraer will remain an independent company that makes military and private planes. praxair is taking another step in wrigley to approval to crit the world's largest industrial gas supplier tiered the american company has agreed to sell european assets to a japan company for $5.9 billion praxair is looking at antitrust concerns over the proposed takeover of a german company. and glencore will buy up to $1 which may its shares, reassure investors who heard the u.s. justice department is investigating the world's largest commodity trader. possible money-laundering and corruption. that is your bloomberg business flash. david: thank you. trade tensions this weekend comedies a focus on domestic business have benefited. this chart shows the russell 2000 outperforming international companies o

most recently, we have actually started to move below the one-year uptrend.backing down to another level of support. this chart just suggests that gold is going to drop back down toward the higher level of 12 --t in blue, below $1200 brown's. and -- brown's. and as for the nasdaq, cisco systems, look at this nosedive, coming off of the lows slightly but down 4.6 percent. this on the news, a report from the information that amazon web services, aws unit might consider selling its own networking switches for business customers. they are citing two people familiar with the model -- matter, taking a chunk out of cisco today and offering some serious competition if it happens. atie: and cisco is trading its lowest since about april. thank you, abigail. let's get the first word news now with mark hampton. mark? deputy attorney general rod rosenstein today announced indictments against 12 russian intelligence officers. with hackingged into democratic email accounts during the 2016 u.s. presidential election and released stolen information in the months before americ

>> i think the market has done just enough to preserve the uptrend.till think until further notice that's where we are it is an unusually long period to go to have a krcorrection not recovering off all-time highs. >> seasonality starting to fade now. that's all true? >> all true, third quarter is also the quarter when you tend to see downward revisions when analysts kind of get it wrong a little more than not and that what why august tends to be a little bit sloppy >> as we head to break, take a look at the dow, it's down 35 points so nothing major in terms of a selloff today it is a tech heavy nasdaq that's getting hit. google's alphabet and face pobok are higher we'll be right back on "squawk on the street. whoooo. you rely on tripadvisor so you don't miss out on the perfect hotel... but did you know you can also use tripadvisor so you don't miss out on the best price? tripadvisor searches over 200 booking sites to find the hotel you want for the lowest price. saving you up to 30%! so you can spend less time missing out... and more time paddling out

last year it was uptrend, this year's volatility. what we are seeing today is not new.moves up and down on the year, and we see this range between 2600 and 2800, we had been in rally mode for roughly four days, and over the only to downs, days. but look at what happened on the last two days -- back down into the bottom of the range, or into the range, i should say. but can investors, the bulls pushback higher, or will we just go lower into this range? i want to bring in eric dugan of 3-d capital. it is a perfect day to be talking about stocks in that range, because all you do is trade the e-mini future. i know you take a look at other global markets to influence your trading position. what are you thinking right now amid all this volatility we are seeing today? were actually forecasting an uptick in volatility in mid june. we had a key reversal sell signal in the s&p and saw some weakness on said day, june -- fed day, june 13. then we saw volatility confirmation across the globe. we look to the euro stocks, gold, which is supposed to be as safe haven, is being sold well

. >>> a double top is a chart forms that suggests a uptrend maying ready to reverse sometimes the m formationtern looks like an mp it is two wellefed din peaks at the same pris they see the lowest low as a bearish signal >>> i'm morgan brennan and here is the cnbc news update. president trump during the joint press conference with russian president putin once against criticized the investigation into russian meddling in the 2016 u.s. presidential election. >> i think that the -- the probe is a disaster for our country. i think it's kept us apart it's kept us separated there was no collusion at all pch everybody knows it >> as amazon gears up for prime day special, which will begin in about half an hour rival target count wers online deals. those that will spend more than $100 tomorrow will get a free six-month membership for shame-day delivery that service is normally $99 a year >>> and a new study reveals 40% of eczema patients consider themselves in fair or poor health and more than a quarter feel feel dissatisfied with life. the most common complaint, itching. they say the disease was a bu

concern here is this is all in the context that agriculture has not enjoyed as you said, the economic uptrend that other parts of our economy have. and so in that entire context, i think it is usually very important. because we have a lot of things to work on. in the trade arena, i think there is a greater understanding and appreciation of trade. i think there's a greater appreciation that trade. so again, mr. vanderwal, it looks from your bio, a strong competitor we have. certainly in soybeans. i was hoping you could elaborate as much as you can on what, you know, these trade issues mean to market share and perhaps what other countries might do particularly brazil in this context. >> thank you, congressman. i wonder if i could respectfully yield my time to mr. bain because he has to leave. if he would be able to answer your question and then i could come back and address it? >> sure. >> thank you, scott. related to brazil and the -- as a competitor. there's no doubt they're a strong competitor. what was your question again? exactly what was the question? >> just reflecting on market share as

you have to it back into the you see a bit of an uptrend with the banks having buyers in control.y we have seen for major averages as investors are contending with some much uncertainty. this is the defending bearish triangle. it is bearish because of the highs being lower. to we want to see a breakout suggest that the buyers are .eally going to seek control let's see whether or not that comes. oil had been higher, a treating of tough words. that is not really the reason. quarter and aing return and profitability. trading down with halliburton. toie: let's get you now first word news with mark crumpton. learned theerg has trump administration will try to revoke california's authority to automobile emissions including mandate for electric cars sales. the proposed revision of obama era standards is expected to be released this week. alsoroposed revamp would boost fuel efficiency into the next decade. the federal fuel economy requirements at the 2020 level. a tourist boat that sank in missouri killing 17 people has been raised. the vote went down thursday night in the branson area af

week moving average that align was that which ultimately signals the market is going to continue the uptrend the upside we have seen -- we have a 200-day moving average. i don't know if i want to sell up there but i would like at the landscape at look at 320 as a sell opportunity look at it from both sides. >> all right guys thank you for weighing in on the levels and activities stacey and bill. for more trading nation head to the website or follow us on twitter at trading nation coming up on power lunch, america's growing cheese problem there is too much contessa brower live a a warehouse with more. contessa. >> and how is that possible, sara when this is the 37 pounds of cheese that each american eats each year there is so much cheese we would need to tack on another 3 pounds to get rid of the excess the economics of extra cheese coming up on power lunch >> announcer: and now the latest from trading nation.cnbc.com >>> i'm morgan brennan and here is the cnbc news update at this hour facebook says it has uncovered sophisticated efforts possibly linked to russia to influence u.s. politics on

it is another correction within a longer-term uptrend.bears come out in full force and born this is a next 2008-2009. frankly, the economic conditions are stable, and the earnings outlook is vastly different. tom: this is where i want to go. bloomberg intelligence, you look at companies. i get that. what are you seeing sector to sector, industry group to industry group, down the income stream. >> it is fast growth. second quarter coming specifically, 20% growth year on year in every single sector, cyclicals surpassing defensive's. growth, but excluding energy, 20% growth for s&p 500 companies. it is broad and consistent. sales growth is accelerating, which dismisses the bear points. there is not a lot of evidence in that. sales acceleration is consistent throughout the index. it supports the longer-term optimistic stand. i think the market right now is struggling through an environment in which monetary away some ofing the punch bowl that reinflate it arek prices, but earnings taking up the slack. anna: we talked about financial condition

which encompasses this as well, it looks more like a bit of a plateau within a very long-term upstre uptrend's kind of the broad picture here it does seem as if it's not uncommon to have a six-month period when the market does just digest strong gains. they're penalizing the market a bit for anchoring ourselves. we're down 2.5% on that. the market is up 4.8% year to date it's on track for a 10% return the fundamentals look fine the market has become less expensive. there's no leading indicators of recession. so all those things would tell you that the bulls retain the benefit of the doubt en though the market is showing some aspects of being later in the cycle and things like that it's kind of a close call, but i think you still have to give the market a little bit of credit that it's still within a bull market even if it struggles before seasonally it turns a little bit better >> the tech earnings this week, how crucial? >> it's all very crucial but i think expectations are very high. i think you're getting companies penalized for missing even a little bit because, hey, you guys got a tax c

doing like a black friday thing but the stuff really doesn't look that great macy's stock is not an uptrend target looks good and they're trying to compete with amazon and go toe to toe because the prices there are good and they do have brick and mortar stores are getting people in but i'm telling you it's a problem one market doesn't look that great but wal-mart came out with this new thing they're doing a three d. you can put different furniture pieces and try to play around and see how your furniture looks before you buy it but the stock doesn't look that good long march going to try to compete with amazon and target too but i don't know if in the end they're going to be able to do it you mentioned i was on you mentioned which i guess started yesterday three o'clock eastern today but it didn't go that well they had a computer problems or what you call and then it was interesting they had some problems but they still had tons of sales people hung in there and because i guess it's thirty six hours it wasn't like just it was a twenty four hour period where they were doing the sale so they e