1 00:00:01,639 --> 00:00:05,119 Speaker 1: Mobile business News twenty four hours a day at Bloomberg 2 00:00:05,160 --> 00:00:07,760 Speaker 1: dot com. The radio blows Mobile Lab and on your 3 00:00:07,880 --> 00:00:12,000 Speaker 1: radio is a Bloomberg Business Lab Sean Bloomberg World Headquarters 4 00:00:12,000 --> 00:00:15,400 Speaker 1: in New York. I'm Doug Krisner. This is UH Bloomberg 5 00:00:15,400 --> 00:00:17,480 Speaker 1: Markets and we're brought to you by Sector Spider E 6 00:00:17,600 --> 00:00:19,439 Speaker 1: T F S. Why buy a single stock when you 7 00:00:19,480 --> 00:00:22,720 Speaker 1: can invest in the entire sector? Visit sector sp d 8 00:00:22,840 --> 00:00:25,040 Speaker 1: r S dot com or you can give him a 9 00:00:25,079 --> 00:00:28,760 Speaker 1: call there at six Sector et F past the hour. 10 00:00:29,280 --> 00:00:31,159 Speaker 1: Kind of a down day for the equity market. We 11 00:00:31,200 --> 00:00:34,199 Speaker 1: had a couple of FED speakers that rattled markets kind 12 00:00:34,200 --> 00:00:37,239 Speaker 1: of midday Wall Street time. To begin with, FED Vice 13 00:00:37,320 --> 00:00:40,560 Speaker 1: Chair Stan Fisher was saying high asset prices may lead 14 00:00:40,840 --> 00:00:43,839 Speaker 1: to future stability risk, and the president of the San 15 00:00:43,840 --> 00:00:46,680 Speaker 1: Francisco Bank, John Williams, was on the wire saying he's 16 00:00:46,680 --> 00:00:50,360 Speaker 1: somewhat concerned about complacency and financial markets. In his words, 17 00:00:50,400 --> 00:00:53,160 Speaker 1: the stock market still seems to be running very much 18 00:00:53,200 --> 00:00:56,240 Speaker 1: on fumes, although when she was speaking in the UK, 19 00:00:56,400 --> 00:00:59,480 Speaker 1: FED share Janet Yellen saying, yeah, asset prices may be high, 20 00:00:59,520 --> 00:01:02,680 Speaker 1: but it's not something to fit is targeting down industrials 21 00:01:02,720 --> 00:01:05,319 Speaker 1: minus three tenths of one percent. We have the SMP 22 00:01:05,440 --> 00:01:07,679 Speaker 1: five hundred week or by about six tenths of one percent. 23 00:01:07,920 --> 00:01:11,720 Speaker 1: Class A shares in Google getting clocked down two point 24 00:01:11,800 --> 00:01:14,880 Speaker 1: three percent after that record fine from the European Union 25 00:01:15,480 --> 00:01:18,360 Speaker 1: and the weakness in Google helping just lead the NASDAC 26 00:01:18,400 --> 00:01:21,640 Speaker 1: composite weaker by about one point four percent. Nestlee buying 27 00:01:21,680 --> 00:01:25,200 Speaker 1: back twenty one billion dollars in common equity. This is 28 00:01:25,240 --> 00:01:28,119 Speaker 1: the first strategic move since Dan Loeb's hedge fund Third 29 00:01:28,160 --> 00:01:31,080 Speaker 1: Point bought a stake in Nestley. Over in the bond market, 30 00:01:31,200 --> 00:01:33,160 Speaker 1: US Tenure Treasury has got a yield of two point 31 00:01:33,200 --> 00:01:36,120 Speaker 1: to zero percent. A rebound in crude oil w t 32 00:01:36,240 --> 00:01:40,120 Speaker 1: I better by two percent. Right now, you're caught up 33 00:01:40,120 --> 00:01:42,880 Speaker 1: on markets. Let's get back to Carol and more Bloomberg markets. 34 00:01:43,240 --> 00:01:45,880 Speaker 1: All right, Christner, thank you so much. It is time 35 00:01:45,920 --> 00:01:47,480 Speaker 1: for the Bloomberg e t F Report, brought to you 36 00:01:47,560 --> 00:01:51,720 Speaker 1: by black Rock. Worried about market volatility, Minimum volatility strategies 37 00:01:51,760 --> 00:01:54,200 Speaker 1: may be able to help. To learn more, please visit 38 00:01:54,240 --> 00:01:57,400 Speaker 1: black Rock dot com slash factors prepared by black Rock 39 00:01:57,440 --> 00:02:00,280 Speaker 1: Investments LLC. Here with the Bloomberg et F for port. 40 00:02:00,640 --> 00:02:05,080 Speaker 1: Bloomberg's Jenna dagenheart the FED is certainly the financial focus 41 00:02:05,120 --> 00:02:07,320 Speaker 1: for a lot of investors right now, but some could 42 00:02:07,400 --> 00:02:10,480 Speaker 1: care less about rate hikes. Many people are holding onto 43 00:02:10,520 --> 00:02:13,320 Speaker 1: dividend e t f s. The largest is the Vanguard 44 00:02:13,320 --> 00:02:16,200 Speaker 1: Dividend Appreciation et F with the ticker v i G. 45 00:02:16,840 --> 00:02:20,840 Speaker 1: It's top three sectors are soft drinks, software, and pharmaceuticals. 46 00:02:21,080 --> 00:02:24,720 Speaker 1: The top three holdings are Microsoft, PEPSI, and Johnson and Johnson. 47 00:02:24,919 --> 00:02:27,120 Speaker 1: Because they believe in these in the health of these 48 00:02:27,120 --> 00:02:30,240 Speaker 1: companies and in how consistent they are, then they trust 49 00:02:30,360 --> 00:02:32,600 Speaker 1: their money in this fund for longer periods of Bloomberg 50 00:02:32,639 --> 00:02:35,520 Speaker 1: at F reporter Carolina Wilson says it's a safe bet, 51 00:02:35,560 --> 00:02:38,800 Speaker 1: but not one yielding high returns only about two percent 52 00:02:39,160 --> 00:02:41,639 Speaker 1: less than the Tenure Treasury no about the same as 53 00:02:41,639 --> 00:02:44,120 Speaker 1: the SMP five index. So some may ask, well, what's 54 00:02:44,160 --> 00:02:46,320 Speaker 1: the true value of owning this thing. I'm sure you're 55 00:02:46,320 --> 00:02:48,880 Speaker 1: getting exposure to some healthy companies, but are you really 56 00:02:48,880 --> 00:02:51,120 Speaker 1: okay with giving up that much shield, especially when you 57 00:02:51,120 --> 00:02:53,880 Speaker 1: can get the SMP five hundred for almost nothing. For many, 58 00:02:54,000 --> 00:02:56,760 Speaker 1: the value is safety, so this is something that is 59 00:02:56,760 --> 00:02:59,880 Speaker 1: going to help them stay away from unwanted volatility on 60 00:03:00,000 --> 00:03:02,600 Speaker 1: wunt at risk. That's your Bloomberg et F report. I'm 61 00:03:02,680 --> 00:03:08,639 Speaker 1: Jenna Dagenheart. You're listening to Bloomberg Markets with Carol Mezer 62 00:03:08,760 --> 00:03:18,200 Speaker 1: and Corey Johnson on Bloomberg Radio. All right, everybody, tech stocks, 63 00:03:18,240 --> 00:03:20,919 Speaker 1: if I take a look there, roughly up this year. 64 00:03:20,919 --> 00:03:23,280 Speaker 1: Our next guest suggests buying any of the big five 65 00:03:23,720 --> 00:03:26,519 Speaker 1: tech names on pullbacks. Let's bring in dear Barton. He's 66 00:03:26,639 --> 00:03:30,040 Speaker 1: chief technical Strategies at Money Morning dot com. We find 67 00:03:30,080 --> 00:03:32,680 Speaker 1: him on the phone from New York, Delaware. De are 68 00:03:32,760 --> 00:03:36,040 Speaker 1: nice to have you back here. On Bloomberg Radio. We 69 00:03:36,040 --> 00:03:38,400 Speaker 1: talked about tech stocks a lot. Dave Wilson are bloom 70 00:03:38,400 --> 00:03:41,440 Speaker 1: brook stocks commist earlier just saying it's not just really 71 00:03:41,480 --> 00:03:44,200 Speaker 1: those five names. It's a much more broader based rally 72 00:03:44,200 --> 00:03:47,400 Speaker 1: in the tech names. When you look at tech as 73 00:03:47,400 --> 00:03:50,480 Speaker 1: a group, as an equity group on a technical basis, 74 00:03:50,560 --> 00:03:55,040 Speaker 1: what do you see? Well, I see Carol, and thanks 75 00:03:55,040 --> 00:03:57,560 Speaker 1: again for having me on. It's always a pleasure. You know. 76 00:03:57,760 --> 00:04:00,840 Speaker 1: The thing, the thing that I really that I really 77 00:04:00,880 --> 00:04:02,960 Speaker 1: see here is, you know, a couple of weeks ago, 78 00:04:03,280 --> 00:04:05,160 Speaker 1: two and a half weeks now, we we got this 79 00:04:05,440 --> 00:04:08,200 Speaker 1: quote tech wreck and uh, you know where we had 80 00:04:08,200 --> 00:04:10,520 Speaker 1: a big drop for a couple of days and on 81 00:04:10,560 --> 00:04:13,240 Speaker 1: the ninth, followed through on the twelveth, and a lot 82 00:04:13,320 --> 00:04:16,560 Speaker 1: of people were saying, well, maybe it's time to unline 83 00:04:16,680 --> 00:04:19,280 Speaker 1: some of these names, and I think that's just a 84 00:04:19,360 --> 00:04:24,000 Speaker 1: bit and the premature. Uh, you know, technically, what happened 85 00:04:24,000 --> 00:04:26,960 Speaker 1: to support the rest of the market while the NASDAC 86 00:04:27,080 --> 00:04:29,240 Speaker 1: was having a fullback I thought was very strong, the 87 00:04:29,320 --> 00:04:33,520 Speaker 1: VIX didn't move much. Goal didn't didn't support that move 88 00:04:33,680 --> 00:04:36,720 Speaker 1: VON did not support that move down or you know, 89 00:04:36,800 --> 00:04:39,559 Speaker 1: follow it or or confirm it. Let's say, it's probably 90 00:04:39,560 --> 00:04:42,480 Speaker 1: a better word than support. So I don't think that 91 00:04:42,560 --> 00:04:45,680 Speaker 1: there's anything in particular going on here that's really scary, 92 00:04:45,960 --> 00:04:48,520 Speaker 1: except maybe some profit taking, as you said, on some 93 00:04:48,640 --> 00:04:51,839 Speaker 1: names that are up really strong across the whole sector 94 00:04:52,200 --> 00:04:55,440 Speaker 1: for the for this for this year. Hey dr though, uh, 95 00:04:55,520 --> 00:04:57,880 Speaker 1: you mentioned a couple of indicators that you're watching the VIX. 96 00:04:57,880 --> 00:04:59,159 Speaker 1: There are a lot of people who say, I don't 97 00:04:59,160 --> 00:05:01,400 Speaker 1: think it's a really rely able indicator. What are what 98 00:05:01,680 --> 00:05:06,880 Speaker 1: are reliable technical indicators that you have found historically have 99 00:05:07,120 --> 00:05:11,080 Speaker 1: proved to be kind of the most reliable. Yeah, I 100 00:05:11,120 --> 00:05:14,359 Speaker 1: think one of the things going into if you're trying 101 00:05:14,400 --> 00:05:17,280 Speaker 1: to pull out a major top, Carol, you know, and 102 00:05:17,480 --> 00:05:20,440 Speaker 1: and and several people, more than several people are calling 103 00:05:20,880 --> 00:05:24,960 Speaker 1: for a major topping action here. Those major tops, if 104 00:05:25,000 --> 00:05:29,559 Speaker 1: we go back forty thirty years, they just don't happen 105 00:05:29,640 --> 00:05:33,239 Speaker 1: when a few things are going on. Number One, market breadth. 106 00:05:33,400 --> 00:05:36,799 Speaker 1: I know you have a very uh, very well well 107 00:05:36,880 --> 00:05:42,440 Speaker 1: read um listenership, and but market breaths is just how many, 108 00:05:42,880 --> 00:05:46,520 Speaker 1: how broad is the participation you already mentioned. It's not 109 00:05:46,640 --> 00:05:48,480 Speaker 1: just the big five s thoughts. We saw that in 110 00:05:48,520 --> 00:05:52,160 Speaker 1: August fifteen when we had that uh, when we had 111 00:05:52,160 --> 00:05:55,560 Speaker 1: that twelve percent pullback, only the fang stocks were really advancing. 112 00:05:55,560 --> 00:05:58,679 Speaker 1: We had very poor breath and that was a tell 113 00:05:59,080 --> 00:06:02,760 Speaker 1: that we might have a push down here. The breadth, 114 00:06:02,920 --> 00:06:07,279 Speaker 1: the cumulative advanced decline line, to be specific, on an 115 00:06:07,320 --> 00:06:10,960 Speaker 1: indicator I watched very closely. Um, it's still going up. 116 00:06:11,040 --> 00:06:13,719 Speaker 1: The slope is up, and we just have not seen 117 00:06:13,880 --> 00:06:16,960 Speaker 1: any major tops made in the past thirty years when 118 00:06:16,960 --> 00:06:20,320 Speaker 1: that's happening. All right, So that's interesting. So you say, 119 00:06:20,520 --> 00:06:23,039 Speaker 1: if you see a pullback in Facebook or Amazon or 120 00:06:23,080 --> 00:06:27,520 Speaker 1: Netflix or Google, you would be a buyer. Yeah, I 121 00:06:27,680 --> 00:06:30,719 Speaker 1: think those those stocks that you just mentioned are real 122 00:06:30,839 --> 00:06:34,640 Speaker 1: kind of legacy stock, Carol. They're they're stocking, they're winnings 123 00:06:34,720 --> 00:06:37,080 Speaker 1: the game. They have been winning the game for a 124 00:06:37,120 --> 00:06:42,240 Speaker 1: long time in their respective fields, their dominant players. And 125 00:06:42,440 --> 00:06:45,000 Speaker 1: I think that the run ups that we keep having 126 00:06:45,040 --> 00:06:47,880 Speaker 1: that we saw the summer of fifteen, that we saw 127 00:06:48,279 --> 00:06:51,560 Speaker 1: this year, Um, you know, those kind of run ups 128 00:06:51,640 --> 00:06:55,320 Speaker 1: because they're just beating everybody else, are going to continue 129 00:06:55,360 --> 00:06:58,320 Speaker 1: to happen. So buying them a pullbacks and putting them, 130 00:06:58,560 --> 00:07:01,080 Speaker 1: putting them away in your portillo is just a really 131 00:07:01,160 --> 00:07:03,560 Speaker 1: prudent move. Hey, what do you look at the ard 132 00:07:03,640 --> 00:07:06,880 Speaker 1: to just say that it's not just a momentum play 133 00:07:07,000 --> 00:07:10,520 Speaker 1: going on and everybody kind of chasing the names that 134 00:07:10,600 --> 00:07:13,800 Speaker 1: have run up, specifically, especially with so much money going 135 00:07:13,800 --> 00:07:17,080 Speaker 1: into et s, index et s specifically. Uh, you know, 136 00:07:17,080 --> 00:07:19,880 Speaker 1: you just look at the flows into Vanguard index funds 137 00:07:19,880 --> 00:07:23,400 Speaker 1: and ets specifically. Um, there's a lot of money going 138 00:07:23,440 --> 00:07:26,880 Speaker 1: into one trade, So what do you do to figure 139 00:07:26,880 --> 00:07:31,800 Speaker 1: out if the momentum trade is kind of a dangerous one? Sure? 140 00:07:32,120 --> 00:07:33,840 Speaker 1: And I like that, you know, one of the things 141 00:07:33,920 --> 00:07:36,240 Speaker 1: I think of it. I kind of like having that 142 00:07:36,360 --> 00:07:39,200 Speaker 1: momentum behind is you know, going with the going with 143 00:07:39,240 --> 00:07:43,080 Speaker 1: the broader tide of of what's happening. But but it's 144 00:07:43,080 --> 00:07:44,920 Speaker 1: a it's a great point you make. And if we 145 00:07:44,920 --> 00:07:49,160 Speaker 1: weren't going in and seeing Facebook still adding eyeballs, still 146 00:07:49,960 --> 00:07:54,200 Speaker 1: driving up there there at dollar per user numbers in 147 00:07:54,280 --> 00:07:56,440 Speaker 1: the US and still have a lot of upside in 148 00:07:56,600 --> 00:08:00,480 Speaker 1: Asia and Europe for that metric, if Google wasn't hinuine 149 00:08:00,560 --> 00:08:03,600 Speaker 1: to get you know, year over year increases and ad 150 00:08:03,640 --> 00:08:06,960 Speaker 1: revenues and go on down the list, you know, Amazon 151 00:08:07,080 --> 00:08:10,600 Speaker 1: finally doing what they do, turning plus turning a little 152 00:08:10,600 --> 00:08:12,760 Speaker 1: bit of a profit. You know, when all of these 153 00:08:12,760 --> 00:08:16,760 Speaker 1: things are showing the continued health, then I don't I 154 00:08:16,800 --> 00:08:19,120 Speaker 1: don't get worried that we're just in the momentum play. 155 00:08:19,240 --> 00:08:22,120 Speaker 1: But like you said, I I personally don't like buying tops, 156 00:08:22,360 --> 00:08:26,240 Speaker 1: so I love buying things on a pull back. Um, 157 00:08:26,320 --> 00:08:28,920 Speaker 1: So what have you just got about thirty seconds here? 158 00:08:28,960 --> 00:08:32,200 Speaker 1: And what have you been buying a pack most recently? Well, 159 00:08:32,320 --> 00:08:35,920 Speaker 1: I'll tell you, Yeah, another thing that I really like. Um, 160 00:08:35,960 --> 00:08:38,520 Speaker 1: and I keep adding to my Facebook position for sure. 161 00:08:38,600 --> 00:08:40,720 Speaker 1: That's just one that I think is gonna be uh, 162 00:08:40,800 --> 00:08:43,640 Speaker 1: you know, many many many years of good run. But 163 00:08:43,840 --> 00:08:46,760 Speaker 1: I like to I like zilo Um, which is a 164 00:08:47,040 --> 00:08:50,480 Speaker 1: which is the real estate company, just because they combined 165 00:08:50,600 --> 00:08:54,000 Speaker 1: Facebook number of eyeballs. Eight percent of all new homebuyers 166 00:08:54,000 --> 00:08:56,440 Speaker 1: have looked at a home un billow. That is huge. 167 00:08:56,880 --> 00:08:59,320 Speaker 1: And they've also just been doing well and earnings. They've 168 00:08:59,320 --> 00:09:01,640 Speaker 1: had a good mentor run up. They had a pullback 169 00:09:01,720 --> 00:09:04,600 Speaker 1: here in May. We bought a bunch beIN and I 170 00:09:04,640 --> 00:09:07,040 Speaker 1: think that's just another stock that's going to continue to 171 00:09:07,080 --> 00:09:09,520 Speaker 1: beat everybody in their space. All Right, We're gonna leave 172 00:09:09,520 --> 00:09:11,000 Speaker 1: it on that note. D R, thanks so much for 173 00:09:11,040 --> 00:09:14,360 Speaker 1: your time this Tuesday afternoon. Dear Barton, he chief checked 174 00:09:14,440 --> 00:09:18,120 Speaker 1: up story about that chief technical strategist at Monday Morning 175 00:09:18,160 --> 00:09:21,400 Speaker 1: dot Com joining us on the phone from Newark, Delaware. Uh, 176 00:09:21,400 --> 00:09:23,360 Speaker 1: and he mentioned Zillo. That's stock, by the way, it 177 00:09:23,440 --> 00:09:25,800 Speaker 1: is up about thirty two so far this year. You 178 00:09:25,840 --> 00:09:28,199 Speaker 1: are listening to Bloomberg Markets on Bloomberg Radio.