Income countries. The world bank has raised capital has an raise capital since 2010. Two out of five americans said that they would need 1 million or more to retire comfortably, according to a survey from the Employee Benefit research institute. The organization has Research Showing that 10 of people with 401 k retirement plans have at least 200,000 stashed away. News, 24 hours per day, powered by 2600 journalists and analysts in 120 countries. Im a mark crumpton, this is bloomberg. Im mark crumpton, this is bloomberg. Live, from bloombergs World Headquarters in new york, im scarlet fu. Joe and im Joe Weisenthal. Scarlet u. S. Stocks heading to one of their steepest declines of the year. Joe but the question is, whatd you miss . Scarlet thanks ox seen relentless selling, falling as much as 3. 7 , the biggest decline since the monday after the brexit vote. Washington, Top Republicans warning that a failure to repeal obamacare could endanger the goal of a massive tax cut that the white house has promised. Reports Third Quarter earnings after the bell today, taking a look at why they are tracking more shortsellers than ever before. Joe lets look at where the major averages stand as we enter the close. Abigail doolittle is standing by. Abigail as for the just mentioned, were looking at selloffs heading into the close. The dow, the s p 500, the nasdaq, alls all sharply lower. It will be interesting to see if new lows will be factored into the closed. We have the russell 2000 down more than 2 , the worst days in september 9 last year. For the other averages it is the worst selloff since october 11. Reachedlier our team out to gina martin adams, Bloomberg Intelligence strategist, and she told us that because the banks are selling off look at bank of america, down more than 5. 5 , the worst day since brexit, jpmorgan, citigroup, wells fargo, trading sharply lower, but because this was the worst sector dragging averages, she believes this has to do with a rally in treasuries. Taking a look at the intraday chart of the 10 year yield, trade is inverse to price and we saw that earlier this morning for bonds were actually selling off. Right around 9 00 they started to get a bit of the did and we are looking at 10 year yields down three basis points. Third down day in a row, or put another way, a third day of rallying in a row. A bit of a risk off message year , for sure, confirmed by the end , which is up five days in a row. Yen, which is up five days in a row. Bloomberg,ok at the g tv679, this is the election. The s p 500, the bloomberg dollar index, all rallying. This is bonds sold off with the 10 year yield shooting higher. But then at the end of february oil started to take lower, than the bloomberg dollar index, the s p 500, bonds rallying, confirming the reflation trade. Another strategist told our team that it could have to do with fears around the Health Care Bill on thursday not passing, something that would put off fiscal stimulus and certainly cut the taxes, something that investors have been banking on that has fueled the rally. Perhaps a bit of a reversal, joe. Joe how lets get more insight into these market moves with our lead blocker, mike regan. Great having you on the show. Its always one of those days like this where people come up with a story, playing into this nonsense, but nonetheless, what are people saying today . Already dont believe it, but regardless, what are they saying about why . Mike you are absolutely right. You ask five people whats causing it in you get 10 different reasons. There are some obvious ones. Obviously, the market has gone so long without a noticeable dip. 109 days without the market 1 , as abigail was saying, nervousness about the Health Care Vote on thursday. [no audio] its not a done deal for the Health Care Bill on thursday. Back to financials, how far out is this push the doddfrank reform . How far out does it push doddfrank . Yield curves, its not just the 10 year, its the flattening. It is like someone flipped a switch this morning and said risk off. Elseld give you everything we have heard. You see these big down tech stocks. Joe we have a chart, the new york stock kick index. Why dont you explain to us what we are looking at here. Mike this basically just measures stocks trading on an uptick. In other words, last price was higher versus the downtick price being lower. Do you see that thousand, that negative thousand level . Joe where are we looking, 2 p. M. . Mike all throughout the day, its negative for most of the day. Those really had the cash heavy negative numbers signal to a lot of people that people are aggressively program selling. Not really being conservative with their programs, dumping stocks quickly. Suggesting to some people that may be a fund is liquidating some positions. Something that we can never really figure out. It is clear that people were aggressively selling throughout the day, for whatever reason. ,hey are serious about cpas the Commodity Trading advisors. Joe the usual suspects. Mike absolutely, yeah. Scarlet is there one clear winner . Are equities just catching up to for instance . Abigail wasries, as showing, that risk off moves dashingms to have been to have occurred one hour before. Treasuries picking up on the risk off vibe little bit for the equity market did. Getting back to financials, again, there are several Different Things that people are pointing at. The financial earnings warning is being talked about a lot. People have been worrying about this for a lot. That subprime auto lending would start biting banks. Thatn stanley saying trading is not going to be as strong as people were expecting. That has been hurting the big supermarket banks. Like you said, there is a lot to point at. I would say that probably all of the above, to some degree. Joe i mean, the degree to which banks if you look at a bank spread,dex over a 210 as you say, some of the underlying conditions, not so great. One thing, just looking at the market right now, we are exactly 1 off, we have hit his huge streak going back to last october without a 1 down day. Talk to us about complacency. There have been endless stories, low vix, never getting a down day, and how much that has permeated the market. Mike Lpl Financial said 109 days without a 1 drop, the longest streak since 1995. For sure, people, systematic funds, can get lulled into this march higher. People talking about marco at jp morgan again, another guy who comes out on days like this with his theories. Joe always a hero. Mike [laughter] always with the big series. We just had options expiration for march friday. The positioning leading up to that was very bullish. The calls was towards the imbalance, which tends to have an upward pressure on the market. For the first time in a while is towards puts, which has a downward effect on the market. There is some of that near 1000 different theories. Joe terms of the scarlet terms of the kind of catalyst for next month, you are going to have earnings to drive stock prices. On the political side, we are all in wait and see mode for concrete details, and that will be months in the coming. What are people looking towards in terms of what could determine whether we go into a bear Market Correction or just float at these levels . And the very near future, the Health Care Vote and how trump response to it if he gets defeated. Is he really aggressive, does he start insulting people . What does that say for the prospects of his policies Going Forward . That is the myopic, nearterm focus of the market right now. After that, i mean, a bear market would be somewhat surprising just because the Economic Data is still coming in. The soft Economic Data, surveys, are doing really well. I think people are willing to give that a little bit more time to see how it translates into better economic prisms. Noting,course, worth down 1. 1 is not the end of the world. Its just been so long. Scarlet we havent seen that for a while. Mike regan, you can find him onny you can find them on nlivego. From new york, this is bloomberg. This isscarlet bloomberg markets, the s p 500 is down by 1 . We havent seen some in like this in 109, 110 days. . Oe armageddon panic . Compared to what we have seen recently, its been such a long streak of no decline. Scarlet its been a strong markup, which you notice when there is a low decline. Png, chevron, and cocacola, gaining. President trump warning House Republicans that they could lose their seats in the 2018 Midterm Election if they dont support is bill to replace obamacare. Leading thean charge against the bill, dave brat, of virginia. Representative brat trump is a businessman, we want him to be successful, but the most important aspect is price. We have got to bend the cost curve down. A lot of people are saying, just vote for this and you can solve that later, but you cannot. The Insurance Regulations have to be in the bill. They cant come later. His the secretary can work on them, but if he works on them, they dont become law. They would change every years that you get a new secretary and you will be playing bumper cars with 16 of the u. S. Economy. We clearly cant have that. We are going to get the price curve down and we are all on board. Thats the major piece we have to get right. To be clear, right now, it does not have your support . Rep. Brat thats right, im a no vote until we have the Insurance Regulations in the bill. They currently do not allow a young person to go out and buy a cheap policy. You have to buy these minimal mandated federal policies from the u. S. Government. No one wants to be buying Health Insurance from the u. S. Government. We wanted in the states, we want a free market for Health Insurance and hospitals. You dont get 20 aspirin, m. R. I. Rates from 20,000 at this hospital to 5000 at this hospital. Everybody knows that that is what is going on because we dont have a free market. You have to return sanity to the market to take care of those with preexisting conditions. Thats not hard to do. What Milton Friedman said 50 years ago, i taught economics for 20 years, hit a target. There is a policy target there for the folks. 5 of people are over 50 health care costs. We need to solve that problem, thats a market failure, but lets keep the rest of the markets fluid. As you all know, if you dont have fluid markets, you will get Economic Growth in the healthcare sector will continue to hamper the economy. What did you hear this morning from the president . It aer ryan calling rendezvous with destiny . Are you optimistic to the changes that could be implement it . Rep. Brat he put on the big sales pitch and he is getting counseled that he thinks you can do the sales rags to the secretary. You can, but then it is not permanent. We have a once in a century opportunity with the house, senate, and president , we have to get this into the law right now and we need that one change. He knows that. I think we will get the yes and have a big party. Scarlet and that was virginia congressman, dave brat. Joe the whip for the house caucus, a prominent supporter of the health care legislation. Kevin spoke with the representative earlier today and asked if the republicans have enough votes to pass the bill. I believe we do. Kevin when the House Freedom caucus chairman is saying that you dont have the votes, hes wrong . I believe we have the votes and i believe the president was the closer today. He made it clear that there is no more time for excuses. We have to keep our promises to the American People and we have a mandate to do not only what is politically correct, obviously, in terms of the repeal and replacement of obamacare, but to do what is best and right ivy people. They deserve patient centered and Affordable Health care. Obamacare is clearly in a death spiral, its important that we do this work to make sure that we have health care that is again, affordable and accessible for others in the future. Kevin who are you focusing on in terms of the whip operation . Changes were made to the legislation just the other night that were seemingly trying to appease moderates and some other changes to appease the more conservative members. Who are the key players here . Kevin were listening rep. Wagner were listening to all members. This has been a very open process through the committee and the budget. What, its going to come down to the votes at the end of the day and i think the president , leaning in on this, which he certainly did today, owning this bill kevin you agree with him that if the bill passes, it will increase the majority for 2018 . Rep. Wagner im not worrying about the majority for 2018. What im worried about is doing right by the American People, passing the legislation, moving it to the senate for them to also vote on it. It is time that the senate not be allowed to try to jam the house and hide behind us. We are the leaders, we have worked on this reform with the senate and trump administration. This is the full united republican government plan Going Forward. And im hoping, to be honest, that we will be able to pick up some democratic votes, especially on the standalone pieces of legislation. Kevin there were some antitrust things in there. Rep. Wagner things dealing with tort reform and medical malpractice. Joe that was missouri representative and wagner. 10rlet we have got about minutes left before the close. I wanted to show you the function of the index mrgo, the terms of the 30 Dow Jones Industrial average, it is at a session low and cocacola is one of the only two gainers here. Everything else is declining right now. The dow falling as much as 244 points. We are at the biggest drop since september 26. Joe when people think that the things are going bad, at least they will drink cocacola. Scarlet the banks, notable, set up for their worst drop since the aftermath of brexit. We will talk a little more about that in the coming minutes. This is bloomberg. Oe whatd you miss . Lets take another look at the s p 500. Go into the bloomberg and you can see this every day since last october. That bar, way down at the right, down 1. 2 on the s p 500, or about that, it would be the first time that we are down 1 since early october as you see this incredible streak of no big down days for a long time. For more on what this all means, lets talk to Market Strategist kevin karen, joining us from new jersey. Thanks for joining us. What are you telling your clients today about the market . Are we in for a rough patch . I it just random noise . Think the market has depreciated the idea that there would be a slippage in the timetable for the bigger tax cut, connecting iswith Health Care Reform something that the market has to price in for now. For months there has been nothing but improving sentiment and data. Given that the stock market has added several trillion dollars in market capitalization on the back of all of that good news, anything that would raise the specter of slippage in the timetable towards a fiscal form of some kind, a fiscal package, might cause some doubts to creep into the market and that is what we are seeing today. Scarlet i want to bring you into the bloomberg here, looking ,t the average volume for xls tracking the financials here. The blue line is what we have seen today, the cumulative volume throughout the day. Of course, it is higher than what we typically see on average, the white line. The dotted redline is what we are projected to see as we head into the close. Talk to us a bit about sentiment on financials. Why have they soured so much in recent days . Yeah, i think that if you look at the biggest proxy for the trump trade, it was financials, which jumped of the most initially after the election and enjoyed a tremendous run on the back of verizon cap for shortterm Interest Rates amid expectations for regulatory relief, where the need has been so acute. I think that anything that threatens, i guess, or at least temporarily interrupts the trump trade, that would have to come out first with financials, but i see it more as a barometer of sentiment these days than anything structural. Joe kevin, how closely are you and your client us watching the thursday Health Care Vote . Currently scheduled as a marker for whether the legislative agenda will keep Going Forward . Its important, looking at the calendar, april is not the particular month for congress to be busy. I think that the idea of moving something through, particularly now that the president has attached a broader reform on taxes to the passage of this, really elevated that is a pivotal issue, this takes on a bit more importance. Now it has become more important to watch as we head towards thursday. Equitieshave we seen dry up completely . Or is it still continuing, albeit at a four slower pace . The move overall . Kevin in a broad sense, the trade has been into equities, out of bonds for the last nine months or so, until very recently. Obviously that has shifted a bit in the last couple of trading days. Its too soon to call that over, but what i would say is that enthusiasm has increased, month after month, and i think we get to a point where the equity trade gets a little tired. We see a pause and a breather. Scarlet kevin, thank you so much. The market close is next. Take a look at the dow, one. 1 drop, the s p 500 losing 30 points. This is bloomberg. Scarlet we are moments away from the closing bell. What you just . Government bond yields, all returning this tuesday retreating this tuesday. I am scarlet fu. Joe im Joe Weisenthal want to welcome you to the closing bell coverage every weekday from 4 00 to 5 00 eastern. Scarlet we begin with market minutes. We have a selloff . Joe really. I think we can c