Julie thank you. It has been steady. It is not just j. P. Morgan, but china as well. Saw the biggest yearoveryear gain in exports year over year in china. A little bit of reviving economic demand potentially there. Some mixed Economic Data in the u. S. Neither of those really derailing stocks from their upward climb that we have seen in todays session. It is financials leading the way. Take a look. Groups, groupsal that are economically sensitive, to what is going on here in the u. S. Or in china. Industrials, and technology also on the rise, the defensive or economically resistant groups at the bottom here, telecom, consumer, and on the wave today. Really has been largely about jpmorgan, up that are than 4 . It saw a lot of declines in its earnings. Mentioned,as carol partly because a lot of folks are cutting earnings estimates. Other Companies Set to beer to report this week, also rising for what may come from those reports. I want to point out that along with automakers, really lagging this year thus far, you see they are below on a percentage adjusted aces. Right, in white, autos and yellow. We are starting to see more of a list in recent days as we see a recovery there. The question is will it be enough to make up for the big drag . Climbing as aare result. The defensive play is going to the wayside. Right. Gold, a more risk on attitude sentiment today. Gold is falling. We are seeing a buying of treasuries. The yield is moving lower as the price moves higher. You could argue there is safety in either the yen or the dollar depending on how you look at it. Today, the yen is lower versus the u. S. Dollar following yesterdays gains on the dollar as well. Oil prices have been over the map. Declines earlier, they went higher and now back to the lows of the session. We the inventories report was mixed, showing a building crude but also higher demand for gasoline and lower production. All of that now is equaling a falling oil price. Thank you. Now lets get a check of the headlines. Mark crumpton has more from the newsroom. Mark thank you. Family suing the Flight School where the suicide pilot trained. Phoenix was filed in against Airline Training center in arizona. Andrea crashed a plane into the french alps, killing all 150 people on board. Treated for depression before sending the Flight School. Authorities in spain have arrested a frenchman they believe supply is supplied the suspectse of in the deadly january of 2015 terror attacks in paris. A 27yearold was apprehended in a coastal town in spain. Two other men were taken into custody. Four people were killed inside a kosher supermarket in that attack. All 20 people, including a policewoman and gunmen, were killed. A task force set up by the chicago marriott in response to an outcry of Police Shootings is out with its report here it it says police in chicago have no regard for the sanctity of life when it comes to evil of color and it alienated blacks and hispanics for decades by using Excessive Force and honoring a code of silence. The panel found it did little to weed out the officers and routine encounters unnecessarily turned deadly. Data from a survey show people who fast food at elevated levels have some Industrial Chemicals in their bodies. Which dohe chemicals, not occur in nature, are cosmetics, soap, flooring, and window blinds. Fast food is a significant source of the chemicals, which may leach into food from machinery processing, packaging, or the gloves worn by workers. Global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world here at i am mark crumpton. Back to you. Carol financial stocks getting a lift after a better than estimated for firstquarter profit. Taking a beating so far this year. Joined by we are jeff, chief Global Investment strategist at charles schwab. You are back with us here in december. We got fromwhat j. P. Morgan, do you have more conviction about financials now . It was a tough order for financials p are we are now seeing not just the fact that jpmorgan has found ways of showing maybethere are ways of getting through, it has been a tough quarter with negative Interest Rates and credit concerns about oil, they found a way to profitably move through that era the key is rising Inflation Expectations. The reason that is important for what they is that is base their Profit Margins for landing on. It lists the longer end of the yield curve and they make more on each loan, which is critical. It has not yet meaningfully picked up in europe as that begins to show signs around the world. More of a list of financials. I am more focused on q2 and the outlook for those expectations. What we got from j. P. Morgan, does that set the ground from what we got from wells fargo, Goldman Sachs next week, morgan chase morgan stanley, excuse me, so there is a lot more to come. What do you anticipate from the rest of the group . We want to hear things from wells fargo. Maybe the most exposure to energy and oil lending. How they arear lending the credit exposure there. We want to hear from some of the most global lenders about how markets are effective around the world, particularly in europe and other parts of the world where we want to see it begin to pick up. From differents companies. Overall, having gotten through a tough quarter and setting themselves up for a better second half is what people will be looking for and wanting to hear. Different things from different financials. Forow much better everything, the corporate environment as a whole and the investment environment . It depends. We are looking at early signs that china may be destabilizing. We got data last week of the manufacturing index. That will be the key in taking a look at what the Global Demand picture looks like here and we have started to see some sights in the u. S. Of things starting to pick back up again. Shift intum of the forwardlooking growth is critical for our expectations for the 2017 profits and much of that begins to get priced into the second half of this year. I would expect to bet more on volatility that continued the upward rise in the last few months. Retailill dig into the sales figure we got that was no doubt disappointing. Yes. You are right. There are pockets of weakness. We are not seeing uniform shifts in weakness to. January and february, we seemed to be heading for a recession. Trajectory over the last few months and how the fed perceives it as well. The fed talks about hiking rates, that could tighten financial wind out of the sails and financials. Is if the fed raises rates, doesnt that mean theyre confident enough if it just look like rates will go up slowly. The key is how fast and aggressive and how that balances the Global Economic picture. Janet yellen talked about developments abroad, the phrase she uses. The chinese data, some of the data out of europe were seeing, that is a good sign. Hiking rates, slow but that he, globalll not upset the economic picture. We just do not have enough data and neither does the fed. That is why more volatility. Data do you have enough to feel confident about where to invest at this point . Yes. One thing im excited about is the upward change after he in the eurozone. We are seeing a good outlook for profits this corner and next as we look to europe and asia as well, there is not as prominent and Energy Sector so the drag is not quite as severe. The turnaround of financials as are really benefiting as things turn around and Inflation Expectations and so on and other areas. T shortok brighter in term particularly as the dollar remains stable here and financial conditions remain solid. Carol thank you so much. I appreciate your input. Getng up next, we will investment ideas from chris, chief Investment Officer for the california teachers fund. It has more than 100 78 million in assets under management. Atding to break, take a look return over the past few years. Pretty impressive. You are watching bloomberg markets. We are 45 minutes away from the closing bell holding onto the highs of the session. A rally across the board up about 1 on the Dow Jones Industrial average. The nasdaq, check it out. Oh performer on a percentage basis, up 68 points. At 2080, of 18 performance 18 points. For a look at some of the biggest business stories in the news right now. The u. S. Is reportedly looking to ban the founder from the blood Testing Industry for least two years. That is according to the wall street journal. Citing people familiar, the journal says a have responded to the proposal and regulators are reviewing the response. Over the last few months, they have been sending off charges that Affordable Lab tests are not as accurate as they should be. Comply withn will the senatea and Committee Investigating drug pricing. He has repeatedly said he would not go. The Senate Special committee on aging on april 19, he will also attend another hearing on it 27th. The panel will postpone a vote to hold him in contempt of congress. Executive isany asking an Appeals Court if he can remain free while appealing his case. Asking the court of appeals to let him remain free on a Million Dollar bond. He was convicted of conspiring to willfully violate safety standards. In coal mine killed 29 men 2010. That is your update. Billion dollar california state teachers retirement system is to get more activities than the european awayestate and staying from commodities and emerging markets. The ceo of the secondlargest joiningsion Fund Bloomberg this morning where he broke down the boards philosophy on investing. Think of us as a giant cruise ship. Subtle course corrections based on what we see in the ocean, but we will not turn the ship on a dime. We will make little moves so we are at market rate in the u. S. Equity market, going a little bit into the u. S. Equity market. That mattersincome the most, and then watching your risk and not trying to overextend. Past japan, then europe. We talking about an incredibly low yield. Do you get off the ship, do you look at the markets at this point . No. I totally agree, not just low but negative yield. It is amazing to see parts of the world with negative yield and that is amazing. We are very underweight text income. We think u. S. Fixed income is very cheap when you look around the world and yields. We are underweight overall, fixed income. We think we will feather in with traits, particularly in with europe. Was a very good trade at the start but it has been tougher as the implementation of the third arrow has taken a long time. Hasthan the beast of japan one stocks and gone abroad, etc. When we talk about negative yields, we say, this must the health for pension funds. You are running one, how bad is it . Pif is a great guy. Finally rebalancing into more of a in more a normal retirement portfolio. He has that a 30 year retirement horizon. Into theassets built portfolio, as delete. We will stay invested to we will be underweight and not chase negative yield at all. We will look for coupon income in other areas. Given the need for yield at private equity, like real estate, are you changing your mix in that regard . We already have a sizable exposure. Up 13 in real estate and 9 in private equity. We think right now, u. S. Real estate is priced to perfection. Profits. Ell to take in the only way we can make money in real estate now is to build up to core and really sell it. We are looking at private equity and real estate and other parts of the world because as jonathan lookseurope actually pretty reasonable and inexpensive compared to the usa in those markets. Where are you making the minor course corrections on the cruise ship . Yes we are taking money and profits. We have a negative cash flow. Profits in the u. S. Market and these kinds of high levels. We will shave off some of the profits on a regular basis and use that for cash flow and sell off a little bit of text income if the yield curve continues to hold up. You said you were reallocating 25 billion dollars. That is a lot to reallocate. Where are you putting an end . We will take it slowly. The board made a decision to be more global. We had a home country bias. We will now be more global. 50 u. S. He were old always global. If i guess you would get out of japan and into europe, would i be right . Over time because europe has a lot of problems to get through. And we will increase our investment infrastructure. We think the usa at some point will be finding a way to get Infrastructure Finance besides just municipal bonds. Steady cash flow coupon. Still ahead, we have got todays options insight and as we head to a break, look at the big gainers of the day. Check out 10 , we are looking at a 5. 5 gain in citigroup. This is bloomberg markets. Mode forocks in rally the second straight day. All three on the pace to close for 2016 eyes. Julie hyman is standing by with how the Options Market is. Julie thank you. Joining me is david, strategist, out in chicago. Everyone was worried about an about earnings season. Now it is fine. Eat andr bank will everything will be dandy. That is the vibe you are seeing in the stock market today. What is the read over there . Sure, i will take it. It is sunny out. That is a plus. What is happening is there is a range contraction on the s p 500 here for a while, lower highs and higher lows here whenever the rain contracts, it will eventually break out one where the other. I think the spring went to the upside this time. From a technical perspective, it is looking good. From entering side, you lower the bar enough, and you can hop over it easily. What you are seeing, since we were looking at 10. 9 Earnings Growth on the s p 500, if you strip out energy, youre talking 6 , earnings contraction, 6 if you strip out energy. The bar is really low plus, dollar headwinds. I think that is what is calm in everyone a little bit. It is lobar and we are getting over it. You have technicals and the lobar. That mean there will be in up swell now of optimism for the rest of earnings . Is legitimatet that earnings will indeed come in not just better than estimated, but maybe positive commentary as well . What do you think . I think coming into the earnings season, companies were just try to set the expectations so low. I think it will be better but when you live by the sword, you die by the sword. We are a bad Earnings Report away from turning around and selling back off. A big spike in the fix and everyone is worried again. Right now, things are looking ok because a major concern was the banks. We are worried about energy but we know that was going to be bad. That is what we are dealing with, a lot of optimism. You are looking ahead at e trade. Itll 21st of i am not mistaken. You seem to be relatively positive on that. Thinking behind it . Is it a general lobar that we are seeing . They have been taking a bunch of my commission. Just kidding. What e trade, you have got a department of labor ruling came down that will restrict retirement accounts and where they can go, and what sort of shares they could go into. Affecting some of the bigger financial firms, the more full service kind of guys. It will draw a lot of business toward the diy play. Specifically, e trade will benefit. Plus, a situation where they sold off a little bit while earnings estimates state afloat. I was bullish on them. What i will do is they have got earnings, and there is not a lot of juice in the causeight now. Go out and earlier today, i bought a 24 call that cost me 1. 5. I think it could be a 30 stock by then. Seee all right we will what happens with changing culture and regulations, if you will. Thank you so much. We appreciate it. Carol thank you. Still ahead, retail sales posted a surprise drop in march. How much trouble, we will take a look at the numbers coming up next. Ahead in the break, a look at the retail trace trades. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Carol you are watching bloomberg markets. Checkget started with a of the headlines this afternoon. Mark crumpton has more from the newsroom. The republicanof National Committee is challenging Donald Trumps claims that the nomination process is rate. Rise previous says the rules have been in place for a year. He tweeted it is the responsibility of the campaign to understand it. Complaints now, give us a break. Voters15 of republican say the candidate with most state delegates should be the nominee even if he does not have a clear majority. According to a new associated would bel, 43 say it acceptable for the delegates to pick a different candidate. In xas team who used teen who used an affluence a defense for drunk driving case will spend years in prison. A judge ordered even to spend more than 180 days behind bars for each of the four people killed. As his attorneys argued, he was too spoiled to know right from wrong. He turned 19 on monday. He and his mother were caught in mexico last year after flinging possible probation violation. Americas brightest children were at the white house as president obama attended his final science fair, which featured more than 130 entries, includin