Markets desk where julie hyman and has the latest. Julie a stumbling end for a strong week for stocks. The nasdaq has been the outperform performer today, very little change. This is over the course of the day. You will see a very tight range here in trading. Dipping at the open. The range mostly throughout the day. The other thing we are watching is we continue to see low volume. These of various groups on the s p 500. Not a lot ofl sharp catalysts and news out there trapping trading. Carol once going on in terms of other Asset Classes . Julie it depends on what youre looking at. It has than pushing down Energy Stocks in we have seen directionally, the correlation today. We have oil down 4 . Still trading. We saw it actually shrinking. We saw a little bit of an improvement in oil there but it was not sustained. Not seeing much action in the tenure. Finally, gold prices. Bit catching a little today, up about. 5 . It depends where your looking. But really, in stocks and treasuries, theres not a lot of movement. Carol thank you so much. And weheck the headlines have more from the news desk. We had over to apple. The u. S. Has filed a new motion to comply with a warrant to. Nlock an iphone it was filed in riverside, california. As theion comes committee wants apple officials to testify march 1. That is according to people familiar with planning. The highestranking africanamerican in congress is endorsing Hillary Clinton. Democrats hold their primary in the state. They will be the featured guest with all due respect. Vice President Joe Biden says he between Hillary Clinton and bernie sanders. He speaks with both candidates and will ultimately support whoever wins the nomination. He does not regret opting out of the race for the white house. Including an Islamic State training camp. Did week, president obama direct his National Security team to bolster counterterrorism efforts in libya. Harper lee, the author of to kill a mockingbird has died. She was 89. There were more than 10 million copies in 50 years. Published, butas it was shrouded in controversy. Some people doubted the author gave her consent. Global news powered by 2400 journalists. Carol our next guest says, investor beware. The worst may not be over. A strategist joins us from newton, massachusetts. Good to have you with us. A different tone to the market the last couple of days. Investors beware . Why. Unconcerned of areas outside of the stock market. Actually are quite ordinary. We see with going on in the bond market in the credit market. The credit spread has tightened a little bit, but not that much. Assee the highyield market the stock market is retraced. It is still below 30 and still 70 below the highs. Even the highgrade ore investmentgrade bond market has not bounced at all and that is particularly concerning to me. Notes fromooked at you. What happened . Wax everyone is focused on the highyield market. They have been a good leading indicator. The highgrade bond, the investmentgrade bond etf bottomed in october of 2008. Happened this year, only on the other side. The old cutie topped out in january of 2015 and we didnt get the pop in the stock market until may or july. The ltd has not been able to rally with it. They tell me things are not that cute. Weve got to line, see some kind of rally in the investmentgrade part of the market and may be the equities that have bottomed out . The banks earn a lot better shape than they were in 2008. 26 is bank paper. We want to see those bounceback to really get a feel of the stock market. Carol you are cautious here. No question. Was aeek and this week very important moment for the stock market on a technical basis. We talked about the 1810 level. Bounced strongly off that. This week, we bounced sharply above that. Were going to hold that level. To regain rather quickly, its a positive sign. At least on a shortterm basis. We have seen a lot of investors moving into defensive names. What you think of that move . You had utilities bouncing strongly. Things are getting stretched. Sometimes it is better in some of those defensive areas that it is still the right place to be. Its not only in the financial world but in the political world as well. We appreciate it. Came back, equity strategist from massachusetts. Tumbling crude prices are weighing down Energy Stocks. And yahoo taking more steps toward a possible sale. What is Marissa Mayers best move. Boeing, chevron, intel some of the biggest drags. The top gainers in the dow on friday. Back in a moment. Carol welcome back to bloomberg markets. Lets check out where the markets stand. We begin with the s p 500 down about. 1 . We are seeing a similar trade just a little bit lower. Down 44 points,. 3 . Because on the nasdaq you see the average bucking the trend today. Those are your games on this friday. Minister in mexico telling investors to expect the unexpected when it comes to boosting the peso. Policymakers raised Interest Rates and cut government spending. And the u. S. Eek dollar against the peso in the finance minister telling bloomberg that such surprise moves are a key element to countering speculators. Isabella cowrote that story. It is fascinating to hear this in an era where there is so much transparency out there. Achieve . He hoping to hashe Mexican Central Bank been known to be very transparent and open. , in the interview today with the finance minister that is part of the Currency Commission along with central bank, what he is basically telling us is that they are ready to act with the tools that they have. He mentioned both currency and molly monetary policy. And it is precisely because they want to keep this element of surprise. To get the markets to stop speculating as it is used as one of the biggest proxy hedge currencies in the world. We are watching emerging markets and all markets exposed to oil. Talk about why this has become such a priority for mexico. Its become the hardest hit currency among emerging markets, and even the worlds most traded currencies. It is down about 6 , down 30 in the last 18 months. In a particular situation because the fundamentals of its economy has been looked at very positive. We have a booming manufacturing industry. It didnt really make a lot of sense. The mexican peso is so liquid and so open that it is traded across the world 24 hours a day and five days a week. The Mexican Government and the central bank are looking to stop that and contain that now. Our Bloomberg News reporter in mexico city. Lets take a look at the energy market. Oil tumbling today. Slipping below 30 a barrel again. To sustain a rally in holding on to gains about 30 bucks a barrel. N does it mean for stocks . The stock market has been trading and i think it should because at 31, they put out a report that said maybe up to a third of the Oil Companies would go bankrupt. And that sounds right to me. Stays at these levels, even if it doesnt go down anymore, and get closer to 45. The market is worried that were going to see a rash of default and a rash of bankruptcies because of these very low levels. And it doesnt look like were going to correct that anytime soon. Predict 25 or 30 . When are these going to happen . Is there an event that will stop these from happening . What is been happening in the energy space is theyve been trying to pick a bottom for 18 months. Whether they have been investing in bonds, turnarounds, energy. These companies are pumping. But theylosing money, are still getting funding to stay alive. I think we are getting closer to the point where investors pull the plug on them and say, no more. And we will start to see the whole cascade. It is probably within the next six to nine months. If we get these closer to 45, then we get a reprieve. You talked about investors funding these companies but also the banks. How worried should Bank Investors be about this . At one extreme, there will not be a tarp 2. 0. It can definitely be an earnings event. The number of bankruptcies you can be looking at, the low residual values will be significant. If it metastasizes into the larger area of metals and Industrial Companies that are closely related to the energy companies, a lot of industrials make stuff to the energy space. They can be looking at larger losses. Up having a nice long run here and maybe a bad long run here of lousy earnings. That is what has everybody worried right now. Last few days of correlation, oil and stocks below. 8. Is that good news . Are we getting away from this extremely high correlation . And i reading too much into. 14 . I think you are reading too much into it. It is still very high. The reason we saw that praying on the hope that the squeeze from the saudis would maybe boost the price of oil. Get the price up around 45, i think the correlation goes away. When were down here, it becomes a credit event. It becomes a problem for the financial sector. Those two combined are almost a quarter of the stock market. That will be a problem as we move forward. Stayorrelation should under 30. Carol still ahead, todays options in sight. And a look at the individual gainers on the week. Like priceline and nvidia. The market close is 40 minutes away. Carol welcome back to bloomberg markets. It stocks are mixed today with nasdaq showing a little bit of again right now. Julie joining me for the option inside is managing partner at options. Out in chicago, good to see you. We have modeled along the last couple of days and we are seeing this overall rebound from where we were last thursday. Was going to be the next catalyst here . Where the end of the chinese could beand and it very telling as to whether the last couple of days was consolidation and we move higher work if we still move in this range. You see the vicks coming into the weekend threatening 20. It has been the bottom of the range. I am interested in what happens monday or tuesday. And over where things are for the rest of the month. The fact thatout they remained pretty benign here . It has been a relatively lowtech. It is near 21, up 1. 5 . Though we are down, the last couple days were down 13 points. Its not a sizable move given what the last month has been like. Bit if we are awful little the next couple of weeks, we could still see them creep lower. We have seen this column notng to the s p and it has necessarily happen with oil. Volatility and the big one day swing here. Etf. S to go with an Oil Last Week we saw the vicks of oil hit over 80. The last time we saw an index over 80 was 2008. That is the type of goal we have last week. It typically means a top and volatility which means we are in the top of the night or bottom of the eighth of this whole oil selloff. I wanted to move lower, but slower. Selling two of the 7. 5 against it. Doing that for credit. How does this work . If it moves down slowly, and steadily, i can do very well. We see it in the vault space. Appreciated. Have a great weekend. Mark sebastian of options hit. We will be back in just a moment with bloomberg markets, next. Carol live from bloombergs world headquarters, you are watching bloomberg markets. The close of trading for the week about 30 minutes away. Abigail doolittle with the latest. Benchmark trying to eke out gains compared to the other two major averages. what an exciting week it has been. Two big rally days on tuesday and wednesday. The nasdaq leading on pace to have the best week since july of last year. One of the big performers today, raisingmaterials earnings and revenue forecast for the current quarter. The ceo said the strength is being driven by demand for new technology from the companys customers. It is the other equipment makers trading up and sympathy. Applied materials itself has largely recovered the losses it had earlier this year. One of the worst performers on the week, this is after booking for the Fourth Quarter missed forecast. Reaction was somewhat mixed. Piper jaffray and rbc all said the stock should be bought on weakness. One of the worst performers, the worst performer down 6 . Negative trading today, abigail. It has been a great week for tech stocks. Rebound fora real apple and amazon and facebook. We have the biggest percentage performance including priceline and nvidia. On strong Fourth Quarter reports. Down on a negative research report. Abigail, thank you so much. Lets get a check of the headlines. We had some tea stalks that wont resolve the crisis in syria. Comes as turkey intensified crossborder artillery showings in areas dominated by mostly kurdish militia. Ted cruz is facing legal challenge. It is not coming from donald trump. Cruises attorneys want the lawsuit tossed. Received arygeneral military funeral with top honors in cairo. Ofdied tuesday at the age 93. He clashed repeatedly with the u. S. Clinton administration. A tourist taking photos of pearl harbor spotted a helicopter when it suddenly lost altitude. The tourist jumped in to help. A Record Number of people want to work in space. Applications, more than double. Mediaays utilizing social and getting pictures slam. Carol off the highs of the session, still gaining ground. Forming a committee to explore strategic options. Return now to paul sweeney. None of this is unexpected. Up . She kind of wrap this with the activist investors are pushing for is some breakup of this company. Separating alibaba and yahoo japan so that they can be maximized. I dont see where there is a future former assistant. Goal is toone maximize shareholder value. Can verizon come in here . A reverse spin out in the Standalone Company that would thee the asian assets with new code. They can try to operate separate from asian assets. Then there is an outright sale of the company. There have been some indications of interest. Little will have to see which way the board and the advisors go. Investors would say time is of the essence. We have been talking about yahoo for some time. Hasyahoo core business been troubled for some time. They could argue its beyond fixing. It is a traditional internet portal. The business has really passed them by. They do not really participate in search or social media. And so the business has been atrophying. His or even ability to turn this around . Most observers will claim at this point, no. The director of north american research. Join us to break down what this means a little bit more for yahoo . The professor of marketing at nyus stern school of business. It down perfectly in laying out the scenario in terms of yahoo at this point. What is it investors need to understand about this news today . Its exactly right. Tv series, its gone on a couple seasons too long. Conglomerate a where the whole is trading for a some less than its parts, i think you will see a couple Dozen Companies bid for this. Placed in the wrong hands. She has effectively already been fired. You have the chairman of the company issuing press releases and talking about how they have formed a special committee of the board. This is pretty much game over. The core business of yahoo , they have users that can be whether it can be fixed or not, im not convinced it can be fixed. I believe that there is someone out there that believes they can fix it. The asset here is that you have either the second or third most trafficked site in the world. Attentionty where becomes a very valuable resource, somebody is going to have a large checkbook for this thing. It will go for more than people think. You have the u. S. Government firing back at apple today. Bertie think this is going . The pope calls it the idolatry of money. We have the idolatry of innovators. They are now more powerful than the government. Beene shooters phone had a blackberry, we would not be discussing this. President ial candidates would not say they see both sides of the issue. We would tell blackberry to fall in line. And we have companies that have the gdp of finland and seen as our heroes. No congressman wants to line up against the cool kid. Apple is waving their middle finger in the face of the government and frankly, the government is in a showdown they are losing. It is a very interesting point in time around who gets to make the rules. Very broad implications. Scott galloway joining us on the phone. Arriving at the Supreme Court to pay their respects to justice scalia. His body lying in repose at the court great hall. Funeral at the National Shrine of the immaculate conception. We will be right back. Welcome back to bloomberg markets. It get a quick check. 18 minutes away from the closing bell. Stocks are off the worst levels of the session. This would be slightly lower. Down. 2 . Little bit higher. Collett unchanged. Percentage,ormer on just about. 5 . It is time for the Bloomberg Business line. It 2 billion counter bid for britains Home Retail Group in a direct challenge for control of the owner. Deadlineys before the to make a formal bid. Acquiring Home Retail Group further increase the presence in europe. Billion in the8 u. K. , france, and germany. It plays a key role in policing trade barriers. They have already ordered 118 jetliners. Billionaire investor carl icahns publicly traded company may be cut to junk. Standard and poor saying Icon Enterprises have been losing a significant amount of value in the last several months. Minusced a triple b rating and put the company on credit watch negative. And that is your business flash update. U. S. Ost of living in the getting a little bit more expensive. Forecast and than the most since august of 2011. And Global Economics executive dan moss. Numbers crossed. A little bit of inflation. Theyve kept talking about gradual rate increases. My first thought was that maybe janet yellen isnt the idiot everyone said. People have been hammering the fed. Not hyperinflation, nothing to be terrified. For court excluding households. There are real signs of an ongoing goal. The numbers show they have been they have been under pressure from not hitting the inflation targets. We dont expect to see anything. We watch what happened in the treasury trade because there was movement. Maybe they are not buying it completely. People thought the world was going to end. It mightve just been a little bit of pullback on that. Th