Considers a doordash considers a listing instead of an ipo. We will hear from qualcomm Ceo Steve Mollenkopf on the race to 5g. Climbing to a record even as the dow sank following disappointing reports from retailers. Some big tech names leading the way on nasdaq were facebook, broadcom, and tesla. Reports that u. S. And chinese negotiators may link the size of tariff rollbacks to terms set during talks in may. I went head over to new york where Bloomberg Cross asset reporter Sarah Ponczek is standing by. Are we ignoring the trade headlines . Sarah i dont know if we are completely ignoring the trade headlines, at least the good ones. That the u. S. Is softening its stance, that did engage in negative outlook. , ae a day like yesterday bureau chief from cnbc noted that the tone in china is pessimistic. They were unfortunately seeing that the u. S. Was not going to rollback those tariffs. Focused on stimulating their economy. 500 Information Technology index hit a new high, apple hit a. The bad news, as you said, does inm to be ignored, not just tech, but in the Broader Market as well. Taylor i want to show a chart in my terminal, which is apple and microsoft. Exceeding the entire market cap of the entire Consumer Staples index. Out onear of missing this massive rally. Sarah this chart is pretty unbelievable. The entire Consumer Staples and the s p made up of made up of about 30 companies or so. The other comedy combined market the combinedher, market cap. Two companies have a larger market cap than 2000 companies combined. That is a possibility through the end of the year, we see fomo pick up for some of these highflying companies. Apple up 70 this year. Some funds are doing windowdressing. We have seen some differentiation within the whole thing. Apple up about 70 . Microsoft and facebook both up 50 . Ofn you look at the likes google pair and alphabet, amazon lagging. Although it is possible that we pick up for some of these high flyers. Taylor within the idea of differentiation, bear with me as i pull in another terminal chart here which again highlights the market cap of apple more than the entire s p 500 energy sector. This is not a story about apple, to me, it highlights the concerns about growth over a dividendpaying sector, a value sector. Are we starting to see a rotation out of value into growth . Sarah if you look, yes, there are many ways you can measure value and growth, but you look at the value index, growth index. A streak of that sort since back in 2016. When it comes to tech, it is difficult. You have to see it broken into three different industries. Semiconductors, software, and hardware. What is interesting for tech, up 40 this year, the best year for the tech index at large since 2009. You see tech outperforming on days where we see cyclicals and values outperforming but also on days that we see defensive and safer areas of the market performing as well. If you were to look at the beginning of september two just before last week, that is when we did see that value outperformance, cyclical outperformance. In tech, we saw performance and hardware and semiconductors as well. Lately, we have seen that resumption of defensive outperforming like utilities, real estate, health care as well. Technology is still in the mix. I do think that this is an interesting take to be aware of just because we were talking about software coming under pressure. Taylor bloombergs Sarah Ponczek breaking down all of the market action. Toswitch gears from tech tech regulation in washington. A group of Democratic Senators want any data privacy law to include criminal penalties for violators. I want to go to washington where bloombergs ben brody has more. What kind of criminal penalties are we looking at . Ben it is a little unclear. This is a highlevel statement of principle. We have seen a proposal from democratic senator ron wyden which could send these executives to jail for knowing the willful violations of illegal duties. Toldeant to do it, you someone to do it, then it was actually against the law. A lot of prongs for that. It is something that would be hovering in the background, a sort of incentive to keep right with the law. A lot of these are rhetorically aimed at facebook ceo mark zuckerberg. A lot of democrats say that he faced these sorts of incentives, they would not have had as many problems with the fcc over the years. Taylor i wonder how democrat and republican ideas on this different. They differ quite significantly. Republicans dont like the idea of sending them to jail regularly. They dont like the idea of consumers suing to enforce privacy rights, Something Else democrats said really needs to be on the table. I think it is worth saying one orce that they largely agree have agreed over the past year, the is giving the ftc ability to find companies. For the most part, there is bipartisan agreement. Taylor to be given a criminal penalty, you would have to knowingly break the law. What are some of the issues you would have to do to get this criminal penalty . Ben it is relatively highlevel statement of principles, but you would be looking at democrats wanting to allow consumers to, say, opt out of Data Collection or datasharing within a specific company. So if you collect information to improve a product and it goes to advertising. If you have executives knowingly violating that, that is the ron wyden model, you might have a situation where the fcc comes at them and says, we have a lever over you here, you have to work with us. I think that is what the companies are worried about. Taylor we know it is never a slow day when it comes to tech, antitrust and washington, d. C. Today, you were talking about amazon,four, facebook, apple, google, pushing back. What did we learn about what those Tech Companies are saying . Ben one of the most fascinating things that i saw in these documents is amazon basically conceding that it does demote thirdparty merchants if they are offering lower prices on other retail ecommerce portals like walmart, ebay, etsy. That is something, when i talked to antitrust experts, that they say the ftc will want to dig into that and see if amazon is. Sing Pricing Power somewhat of an important admission. Thatnk it is important they say, the reason we do that is that we offer our customers the lowest prices, and there is no competition or antitrust concern. They are offering a robust defense, but i think it was an interesting concession from the company. Taylor thank you for joining us. Coming up, a lump of coal for investor stockings. The retailer gets a bad forecast despite the partnership with amazon. If you like bloomberg news, check us out on the radio, the bloomberg app, bloomberg. Com, and in the u. S. , on sirius xm. This is bloomberg. Encouraging sign for kohls heading into the retail season. Shares dropping by as much as 19 on tuesday after kohls reported thirdquarter earnings missing Sales Estimates and cutting profit forecasts for the second time this year. Our bloomberg retail reporter joins us now from new york. The whole point is the partnership with amazon. Is it not working . That is one thing that kohls is doing but what they said today was they missed on womens apparel, which is a key part of their strategy of being a department store, appealing to women. Y are also launching an launching a lot of new brands. That was some of the reasons that the ceo gave for cutting their forecast. In addition, they are part of a retail environment that is struggling. They are trying to navigate that environment. Taylor it has not been great and part of what you alluded to, having to take on the big ecommerce giants like amazon. Is this really the right time to be expanding that partnership . Jordyn kohls definitely thinks it is. They expanded the partnership earlier this year and part of the idea is that when people bring in retail returns to the coal stores, they stay around to browse a little to maybe buy some of the activewear, the home decor. Today, the kohls ceo said she is encouraged and pleased by the results she has seen so far and that could contribute to some of the operating profits. Not as manyill details as analysts might want to have about how successful that partnership is. Taylor new buyers they are trying to gain with the amazon partnership. Jordyn the amazon partnership, one thing that kohls says it brings his younger shoppers. Kohls is really focused in on the millennial mom, making sure they are offering products for the mom and the kid. They want to bring the shopper into the store, drop off the package, and hopefully stick around and realize, kohls has things for makeup, jewelry, things you might not think about kohls for. It is challenging because there are a lot of other retailers after that same customer. They have to have a value add that other places dont. Taylor any thoughts on the analyst call . Our analyst piece saying a positive catalyst for stocks could be the Digital Store fulfillment, pickup of mobile app purchases. Any sense of how digital fulfillment and those mobile store pickups could help the Company Going forward . Jordyn i think every big retailer, they are looking for the next big thing. By online, pickup and store is a big part of it buy online, pickup in store is a big part of it. There were not too many details around that but it goes along with the amazon partnership. Hopefully they get people in the store and they buy more while they are there. During thee tested holiday season. The kohlsaid ceo said it is a great test for the holidays. Taylor bloombergs jordyn holman, thank you for joining us. Now, how to head to the public market, initial Public Offering or direct listing . Most public Tech Companies are weighing their options but it looks like Unprofitable Company doordash is leaning toward the direct stock listing, and that could be coming as soon as next year. Joining us to discuss, Bloomberg Technologys candy chang. Candy one of the reasons they are considering a direct listing avoids ano is that it investor roadshow. Raisedst week, doordash 100 million from t. Rowe price. Hen i last spoke to the ceo, said the company is wellpositioned, that they have money in the bank, and that he this no hurry to spend it all. Taylor who do they join the ranks of now . Was thepotify last year First Company to use this unconventional method of going public. Slack followed and we have reported that airbnb is next in line to consider this as a way to go public next year. Taylor doordash, such a competitive, capex heavy space that they are invested in, and they have said they are not profitable. How is doordash positioned within this competitive environment . Candy a Consumer Report reported that 35 of Consumer Spending is led by doordash. They have been able to succeed by conquering the suburbs in the United States by partnership with chilis restaurants and wendys as well. Raised 2as in total billion in its lifetime, much of that in the last 18 months. And they are valued at nearly 13 billion. Taylor cash on hand, much simpler, avoid the roadshow. Bloomberg technologys candy chang, thank you. Coming, popular Vaping Company juul is being sued by new york state for allegedly breaking laws. And Bloomberg Technology is livestreaming on twitter. Check us out technology. This is bloomberg. Taylor new york is suing juul for allegedly violating state laws by targeting teenagers in its ads. The ecigarette company is also accused of misleading statements about nicotine content in its products. The lawsuit announced tuesday comes just one day after california filed a similar complaint against juul. Joining us to discuss, ellen ellen huet. Where does that leave juul . Juul is under a ton of pressure right now. The new York State Attorney general and California Attorney general, back in may, a similar suit from the attorney general of north carolina. Probes and inquiries from the ftc. The cdc. It seems like every agency you can think of that might have some connection to juul is taking action to show, we are not just going to sit idly by while we see this epidemic, as the fda has called it, of youth vaping. Taylor what is the guest concern here, the fact the guest concern here, the fact what is the biggest concern here, the fact that they were marketing to teenagers or the nicotine content . Ellen this idea that some teens or children may not know that there is nicotine in juul products, but that is a concern i have heard people discuss and that is something coming up in relation to some of the advertising that juul has done. More recently, there are also these Marketing Tactics around both using advertising that has sort of a youthful look, colorful color schemes, a young model. In one of these, the california of shipping accused products to customers that may had names that were obviously not real. One of them filled out their name as beer can. They were saying, they dont want you using their products werenteems like they putting in an effort to stop it. Taylor from the new York Attorney general, it seemed that juul took a page from big tobaccos playbook. This . S juul able to do what is it doing that big tobacco wasnt doing . Why is juul now all of a sudden in trouble. Ellen over time, they have been more regulated in terms of what you can advertise. You dont see the big the same advertisements for cigarettes as 40 years ago. That being said, people are looking at the way ahead juul the way that juul has employed some of the same tactics that tobacco did years ago such as going into schools and doing Education Programs about addiction and ends like that, but then being sponsored by juul. Hasor for their part, juul come out and said they are continuing to be committed to resetting the vapor category. I wonder, from a business standpoint, they had a partnership with altria, but the all triaphilip moore but the morris deal has been called off. Ellen i have been sensing that they have been trying to put their public message, we really want to be compliant, careful, we want to earn back the trust of american consumers. This has been an interesting pattern. You mentioned the vaping deaths have been a big part of the headline. Theairness to juul, many of vaping deaths have been related e thc vapes that have vitamin and other additives that juul says is not present in their products. They are getting a lot of heat because they are the biggest ecigarette company. Taylor bloombergs ellen huet, thank you for joining us. Qualcomms ceo says it is important for the u. S. And china to Work Together to make 5g an international standard. This is bloomberg. Whether youre out here on lte. Or here on a wifi hotspot. Xfinity mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. And now get 250 off when you buy a new Samsung Phone during Xfinity Mobile beyond black friday. Plus, you can save up to 400 a year. Click, call or visit a store today. Taylor welcome back to Bloomberg Technology. Im taylor riggs in san francisco. Lets get a look at todays top tech calls. Disney up to 100 75 a share. The analyst cited faster than for disneygn ups plus streaming. An internal survey suggest high awareness of disney plus and that a High Percentage of users will stay on the service after a one week free trial. Shares of at t fail after being downgraded with the 30 price target. One analyst finds it hard to imagine the recently updated for your guidance can be achieved. Intel raised their price target to 65 a share on their Pricing Power. The endless said intel was getting aggressive on cutting prices and that could position intel to aggressively compete. Aftery Rating Increased announcing a new graphics processing unit. Thats a look at your top tech calls. Qualcomm has been front and center in the development of 5g networks including a partnership with apple and some of chinas Biggest Telecom companies. A ceo set down with Caroline Hyde to discuss his views on apple and how china is doing in the 5g race. Is focused on the things the companies naturally do well together, which is work on products. When you get engineers talking to engineers, things work out pretty well, and thats where we are today. Caroline so the 5g relationship will mean more for you, do you think . If you look at what 30,000 people do everyday, its work on products. When they engage with the partner, whoever that would be, thats a very natural relationship for us. Everyone is so interested in driving 5g, and there is a long roadmap to do that. Theres a lot of natural discussions going on in the product area and thats a comfortable place for both companies to be in. Caroline what about the discomfort in the fact that they bought the intel modem part of the company . How long do the do you think the partnership at last . We think a long time. Were not accustomed to dealing not unaccustomed to dealing with these partners. What we find is if we are competing in the areas we are very good at, and we are certainly very good at the modem, we would figure out a way to continue to expand our business. That has been true for a decade plus for us and i dont think it will be any different here. Caroline what about the competition coming from china, and huawei becoming more selfsufficient . You have a relationship with huawei how is that relationship and with the partners in china at the moment . Steve its driven by the same things were talking about at the moment.