They will offset anything that ipos youpen from the mentioned. Did the work today and power of the top 10 stocks is phenomenal. That translates into the broader index. When you take those cash return yields and compare those, you can make some basic assumptions about the cycles going forward, economic growth, drawing in classic recovery. 3200, 3250. I want to be buying stocks hand over fist. Romaine you have some Great Research year, breaking down these evaluations. Curious, once you get beyond those big cash generators at the top of the market here, we saw this week and lastly, a lot of people buying what would be at the bottom of the market. A lot of those fallen names in the industrial space on the general idea that those valuations were too low and if you are a believer in this recovery, then why shouldnt you be in a fedex for packaging corps. Dennis i would ticket a step further. Of the fed has made it clear that they want real rates to be negative. On an applied basis, if you take 10 year yields and expectations, youre looking at roughly 120 basis points. Why do we care about that . Hard assets become more attractive. Tech is still attractive, but materials, industrials, they become more attractive as long as you have a negative real rate backdrop. I think it is important for people to understand, despite what is going on right now, it is important to see those sectors outperforming right in line with what you would expect. Caroline we have just saw the market close. Major benchmarks up about 6 versus the usual 20 day average. That of a rush as we see hammering and terms of volume. The smallested in caps versus the large caps. Even though we ended on the downside, it did outperform. Will that continue . I dos im pretty bullish, not want to get over my skis and say it is an outperformance versus largecap. Frameworkvery bullish for the next five plus years of the housing cycle. With 2002, i am not made to im not making an exact comparison. It is very good for u. S. Consumption. That is good for small caps, bottom line. That is going to keep real rates negative. We are a buyer of small caps, but im sure theyre going to trounce large caps. That they see the bond market, in a week when you have triple cs outperforming worryings and perhaps less about balance sheets, is that confirming what you see within the equity market . Dennis absolutely. We were talking about key technical levels. One area of the market that is not below the averages finances. Industrials. What is going on beneath the surface in other areas, particularly credit, seems consistent with the internals of the market. Equities reigned well ahead of other areas market ran well ahead of other areas in the market. Maybe a little bit of normalization. Romaine you just brought up financials in one breath. Im curious to get your thoughts on that baking sector banking sector. Aven the economic backdrop, lot of these names really got battered around here. Im curious if you see any value in these names given that some of these banks arch trading ennis i am reluctant to jump on this grenade because financials tend to lose their careers over the past for years. With that being said, in an and airman where environment where it is clear that knock on wood, doctrine progresses over the next year in a positive fashion, loanloss reserves will come down. The fed is doing every thing to stimulate the economy, there is a potential for fiscal policy. That should normalize a little higher. Decline, the risks money center bags in particular look pretty attractive to us. I think there is a lot of value there. Do i think it will outperform apple . I think that is very difficult. Relative to the s p, yeah. I am excited about banks and financials. Almost sounds like [laughter] yes, they do look attractive in our view. Romaine im glad you stuck your neck out there. Usappreciate you giving irrational response. You always have great insights. Leader ofusschere, the Portfolio Strategy Research team over at ever core isi. Theline what it meant to volume and how it lines us up for monday trading. This is bloomberg. Caroline lets get you a check on the close. We saw the fall of more than a percentage point and over the course of the week, the s p 500 similar to the nasdaq. Some of the big cap names. Apple, the biggest longing losing streak since april. A percent of its market cap. Taylor, you have been looking at the technicals, some of the focus on the derivatives and how we move on. Taylor it is our favorite third friday of every month. It happens every quarter. The quadruple switching day. At this time around, it was lower than the last two quarters so we were thinking with only 500,000 500,000 contracts out, it would be less volatility than a million contracts. Caroline talk us through it. My old i stole it from boss, but i will gladly take credit for it. The spikes highlighting some of the previous volatility that we got in the options in the contracts outstanding. , she did notews waste her breath because as you point out caroline, we do see a little bit of volatility into the close. Lets have katie weigh in. Waste. Words not going to atie we certainly did. It lives up to the hype and think it is it dude it did. The expectation heading into today was mixed because you did see a lower number expiring today than what was the case with june switching, but that could be because see so many retail traders coming into the market. They tend to open positions and close on the same day when they are trading these options, which would not be captured in the open interest. Still, with that lower number, you did see s p 500 volume double at the start of trading and it ended at about 70 higher than its 20 day average. The nasdaq 100 briefly touched its lowest level since july. Still, with that lower number, there is plenty of trade to be seen. Romaine you talk about the Retail Investors here. A little earlier, taylor cancel halloween for all the kids out there. I am curious when you look forward for the next switching at the end of the year, and all of the single stock option activity that we have seen this time around, whether you start to see a rotation of that and maybe that hymns down volume. Will be interesting to see how they digest the auction drama over the past few weeks. You saw plenty of People Holding these short calls on tesla, apple, the big cap popular tech names. A lot of those calls ended up expiring worthless with the nasdaq 100 falling into that correction. As the election comes around and weekly options start to open up that you can use to wager on the election, it is going to be important to watch whether you see the same rush into those options as you can as the election comes. Today, you see people diving back into options. When you look at the most active options, for the first time in a on apple. Is in those contracts. In the past month at least, you have mostly been seeing calls atop the leaderboard. Romaine wow, apple. It is like shorting her grandmother. Your betting on barstool this whole time. Have a great weekend. Breaking down what is going on there. Lets go over to mark with the bloomberg first word news. Says hissident Trump Administration expects to be able to vaccinate every american against the coronavirus by april. The president says there will be at least 100 million vaccine doses manufactured by the end of the year. This is trumps timetable. It matches an optimistic forecast. But it is more ambitious than those of drug industry executives and other health officials, including dr. Anthony fauci and cdc director robert redfield, who said that most americans should expect a shot before mid 2021. The Trump Administration will appeal to the Supreme Court in its attempt to exclude undocumented immigrants from the census count. Advocacy groups and states including new york sued the president , saying he was trying to deprive democrat areas of congressional seats. Ruled thatge Panel Congress did not give the president the authority. Seasonantics hurricane got an unusual change today. Forecasts have run out of traditional names and have begun to use the greek alphabet. Subtropical storm alpha has formed in the eastern atlantic ocean. Forecasters say that it may strengthen into a hurricane and the closing on texas just a week after Hurricane Sally unleashes floods across the golf game across the gulf coast. Puerto rico is getting much of the money it needs to rebuild its power grid three years after is wiped out by hurricane maria. Released 13 billion for reconstruction of the grid and to help rebuild schools damaged by the storm. Puerto ricos governor announced the funding in a series of tweets, thinking President Trump thanking President Trump. Global news 24 hours a day on air and on quicktake by bloomberg. Powered by more than 2700 journalists and analysts in over 120 countries. Mark krumpton. This is bloomberg. House Speaker Nancy Pelosi saying that the funding measures still undecided, but hopes to have the government funding bill by today so that it can get a floor vote early next week. We spoke exclusively with bloombergs david westin. Set for a while that we will keep government open. The secretary of the treasury has made a similar statement. We are working out the details. We hope to have it today so that we can bring it to the floor early next week and then go to the senate, which usually takes a bit longer in terms of their process. By the end of the fiscal year, september 30, there will be no question that the government will be open. David how long will it be extended . That is a question that we are still negotiating. David i tried. Of bank of america said earlier that we need or stimulus. We need it for the people that are hurting right now. Where are we on that deal . You can down to 2. 2. Now we have a 1. 5 trillion, is. Where are you . Rep. Pelosi i am at 2. 2. Senate democrats and House Democrats agree on the 3. 4 trillion. The heroes act. Why the know republicans did not think that the American People were not worthy of that investment. Taking some of the time off of it, not changing priorities, but shortening the time, we came a trillion dollars. We met them halfway at 2. 2. As your show has demonstrated, there are other issues that have emerged because the fornistration has contempt science. Not done with the scientists testing, in terms of tracing, distancing, sanitation, mask wearing and the rest. We have not improved our situation from a health standpoint. Whether it is airlines or restaurants or small businesses, there are additional needs. We say to point to is our figure 2. 2 isave to we say our figure if we have to negotiate. If that is what the traffic will bear. We negotiate with the administration. The other point is that with all of this, the chairman of the fed has said we need his monetary policy, our fiscal policy. Elected officials have the power to tax. It is important we have a substantial package. He often said that the state and in theirernments fiscal stability is important to our economy. He has also said if they do not get rid of the virus, we will not solve our economic problems. That is what our bill does. Many of the things that help state and local governments try to crush the virus, and also does so in a way that helps people put money in their pockets. The American People. Consumer confidence is important. Listening toare how Speaker Pelosi speaking on bloomberg. We will turn our attention to College Sports in the u. S. And the ncaa, which regulates all the College Sports in the united states. The question is whether players should be paid, particularly now that they are being urged to play despite the covid outbreak. Joining us is janet, who spoke with chris murphy about this particular issue. Thanks for being here. The issue of paying collegiate athletes has been out there for quite some time. Chris murphy and a few others have been banging the drum on this but now they are saying, if you are forcing these kids to go back onto the field despite the covid crisis and testing protocols that are not clear, maybe the issue of compensation should be pushed harder right now. Yes, as you know, these athletes are unpaid. That comeand women from areas ravaged by coronavirus. The decisionmakers are often white, the players are often black. This is an issue of social justice and has been for a while. It has been highlighted by the pandemic. To allow compensation, Health Care Coverage for the players, how much backing does he have . Janet the republicans simply do not like it. There is more support among democratic senators, especially cory booker who plays football we played football for stanford. Caroline what is not to like . What is the feeling of republicans against it . Anet how do you figure out fair Compensation Structure . How do you figure out differences between divisions, states, men and women . Some people think that congress has no business in the issue generally. Does theoes and how ncaa come up with a consensus . It is controversial. If you are a music major and giving piano lessons, you can get paid for that. If you are a College Athlete and want to get paid for schools making lots of money of your successes, it does not exist. The pandemic really highlights this issue because these players are not being forced to come back. Theyre not saying that their scholarships will be pulled, but there is pressure. Want to go into the nfl echo you to be a professional athlete . You have to play. Taylor i wonder if getting a free ride is that not an argument . Janet the scholarships can simply be taken away if you are injured. Educationtting their that is one thing that senator murphy has highlighted. In some schools, kids are learning virtually, at the Football Team is playing in realtime. Romaine what is the likelihood that any legislation forgetting these athletes paid, or getting money on the side in their own images, is there any sense that it will make Progress Given the current climate . Janet no, but we will see. It has been successful in states. There is a push to try to get some national consensus. You have state leading the charge in payments can be inconsistent. Caroline im interested in we have many players. Have seen professional player , theing out about it golden state warriors, for example. What do we hear from the actual student body who are having to go back and take on the health risks . Are they doing it willingly . Are they nervous . Janet students want to play. They want to show what they can do. There is a lot of pressure. Coaches want to play. If there fellow teammates want to play, and as you saw the big ten reversed this year and they will be playing next month. We are waiting to see what happens with the pac12. There is peer pressure out there and the fans want to see games. We will see what happens. And there are a lot of campuses experiencing higher rates of infection. We have to wait and see. Caroline great to get your perspective. Thank you for your time, janet lorin. Taylor that does it for our coverage. I am going home, but do not go home yet. You guys stay there. Whatd you miss . Is up next. This is bloomberg. Give you my world how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with Xfinity Mobile. Caroline im caroline hyde. Romaine markets a little bit uninspired. Pushing stocks to a sixweek low. You have failed to miss energy put into the future of tiktok, but you might be feeling to see the Bigger Picture here. War . It mean for tech cold creates fresh tension with beijing and what remains of the reelection campaign. U. S. Officials say there is as used by the chinese government. It is not just tiktok in the u. S. T is like ice, tencent with gaming companies. China is emphasizing its right to improve approved operations. Joe, this cold war is just Getting Started and we need to first and foremost breakdown this deal with tiktok. Joe there are so many lawyers to this as it is about the future of the internet, a deal story, so in theory we do not know what is going to happen. That maybe 50 in an u. S. Isaisal in the occurred provision. That will go through november 12. We do not know where this is headed, but this is the proposal and after today, there is more time to work it out and approvals, or have a shutdown. Romaine one of the agencies that has to create that approval we will talk about in a moment. But it still has to go to President Trump. He spoke about earlier today. Trump microsoft has been called in we will see if they will continue. Walmart is Great Company a Great Company. Have some great options. President hat was the saying this deal can be done quickly. As to what the deal is and why we even need it. Joe so many questions, hopefully we will dive into them. But first, lets talk to paul halpern. Paul, thank you for joining us. We look forward to getting your perspective. For those of you who dont know, what other questions that cfius is answering in terms of signing off on this deal or not . Number 1, 1 of the ,ulnerabilities of the assets or in this case in some sense divested. If inat are the threats this case they are not divested. Thats whats involved. You talked earlier about the geopolitical war just warming up. For a technology war, this has been going on for years between the u. S. And china. It has expanded beyond technology and critical infrastructure, and the other big three which is proximity of by in thehe chinese sense of military facilities. There are several types of this information. Cfiuslly speaking, what is increasingly concerned about are things that either chinese with their mega databases assisted by Artificial Intelligence could find, which eing ablereasons for bwein to blackmail somebody or discover that they are antiamerican emcee that they thatvailable and see they are available to be recruited as spies. A second concern is in the case of social media. The censoring of information to put the u. S. In a bad light and that has to do with the kinds of monitoring that our own social media has found itself in the