Day. Julie hyman has the latest. Julie stocks are fielding on some fluctuation earlier, a little more of a positive by. Even though the jobs number was weaker than estimated economists are saying it was a solid report. We had a day losing streak going into today, so looking at breaking that streak which is the longest since october 2008, stocks are still on pace for their second weekly drop and perhaps the worst since september 9. The groups on the move, health care. After Bloomberg News reported the Justice Department was planning to file charges at the end of the year alleging price collusion. Health care down sing up, up bouncing up. Lagging our Consumer Staples and real estate. In the wake of the jobs report, wanted to look at the 10year note. That has been seeing some fluctuation but right now, 1. 78 , down three basis point in the 10 year as we see some buying in the wake of the jobs report. There has also been a lot of interesting action in oil this morning. Oil earlier was falling sharply after reuters reported that saudi arabia would have to raise opec members to not agree to cut, and then sharply reversed after the opec secretarygeneral said that did not happen, there was no saudi threat. It reversed and is back down by two thirds of 1 . If you look at the fiveday chart of oil, oil is on pace for its worst week since january, down 9 , 44. 39 a barrel. Starbucks coming out beating animist analyst estimates. Sales up 5 . Cbs also boosting earnings. Five, missing earnings. Activision, its forecast for the Holiday Season is not so good. Mark 90 minutes away from the fridays nation. Stocks are falling for the ninth day in 10, the second consecutive week. The 4. 5 fall is the biggest since february. The drop is the longest since october the seventh. The volatility index is rising for the 10th day, the longest stretch since august 2011. Investors nervous ahead of the election next week. Earnings season is in full swing. Lets get to commerzbank, germanys second biggest lender, it explodes expects to have a profit. The chief executive has responded to record low rates, isreased regulatory, and cutting jobs. , cartier one of its brands, shares up 6 . The biggest gain since 2008. It unveiled today the most sweeping management overhaul in years in responses to plunging sales of luxury watches and other goods. Essentially the ceo and cfo will retire next year, eight directors will step down and new managers will lead watchmaking and operations. The ceo will be abolished. Operating profit fell in the six sales in all of its main regions declined, the biggest drops in europe and japan. It is the overhaul that is sending the shares higher by 7 . Sticking with switzerland, this is the smi index. Stocks in switzerland are trading at the cheapest since december but still they cannot track investors. Smi, thehe rsi of the relative strength index is below 30 which means it is oversold. It is the third worst performer among developed markets this quarter, and why is that . Because of health care companies. They constitute more than one third of the gauge. Declining. Re nothing beats a look at the rsi. Vonnie nothing beats our producers because we have somebody coming on to talk exactly that, Health Related stocks and what you should do with them. Lets check in on the bloomberg first word news. In our newsroom we have courtney donohoe. Courtney four days and counting to the new election and an abc news poll has Hillary Clinton with a 47 to 44 lead over donald trump. She campaigned yesterday in North Carolina with bernie sanders. Trump was in North Carolina where he appeared with veterans and said he could not imagine clinton as commander in chief. While polls show the race is tight, trumps path to winning enough electoral votes appears to be harder. According to a Bloomberg Politics analysis trump is showing strength in iowa and ohio well clinton looks to be stronger in North Carolina and nevada. The fbi and new York Police Department are investigating the possibility of an al qaeda effect attack on election eve. They are reviewing information that mentioned texas, new york, and virginia as potential targets. The information received is not specific. Police in turkey have continued their crackdown and rounded up a number of kurdish lawmakers in a latenight wake. A court has ordered that the two cochairs of the main prokurdish party be out of jail. In paris police are cleaning out about 3000 migrants who turned sidewalks into a makeshift camp. They are from sudan, ethiopia, countries, and they are being taken to shelters to apply for asylum. Global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. I am courtney donohoe. This is bloomberg. Vonnie lets get back to the u. S. Jobs report for october. 161,000 workers and the Unemployment Rate dropped to 4. 9 as wages rose. This report provides further evidence the fed says it needs before hiking rates. Officials decided to hold off on a rate hike earlier this week. Joining us from irvine, california is Mohamed Elerian. Nothing to change the perspective on a december rate increase. What about the labor market . Mohamed what this will tell the fed is from a cyclical perspective the labor market is doing well, adding jobs, and wage growth is going up. Cyclically everything is fine. Structurally there is more warning in this employment report because the Participation Rate went down. The hope had been that more people would reenter the labor market but that is not happening. Cyclically fine, structurally more challenging. Vonnie what about the argument that the 2. 8 yearoveryear wage gain would argue for not that much difficulty . Mohamed there is less slack in the economy and the labor market. That is fine if it were not the fact that the employment ratio is 60 . Yes, it tells you on the wage front that things are fine but there is less slack, which means if we stay at this low level of employment to population there will be less people powering this economy forward in the future. Mark you said it is just going to be a matter of time before participations, rate or wages move higher and we know whether they have been impaired by demographic factors. Which way are you heading . Both heading higher or are you going for the structural side . Mohamed i hope is that both will had higher. My worry and expectation is that wages will go up but the Participation Rate will disappoint, and that will simply emphasize that we have structural headwinds and we need a policy response that goes well beyond relying just on Central Banks. Mark paul krugman spoke to us yesterday and said the fed does not know what is coming down the road, does not know what is coming down the path so what should not be raising rates in december. Do you have any sympathy with that view . Mohamed have sympathy with the view that we are facing unusual uncertainty and it is economic, financial institution, and political. I have a lot less sympathy that the fed should move because it some point, the Collateral Damage and unintended consequences of unconventional measures outweigh the benefits. I think we have gotten to that point. Todays employment report tells you absent a major shock to the markets because of the elections , the domestic indicators for the fed suggest they should hike in december. Vonnie so they hike in december and then what . Is the economy going to see some real inflation at that point . Mohamed we are going to see a pickup in inflation. It is not going to be something we wont worry about excessively but we will continue to see a pickup. What we should worry about is the extent to which markets have been disconnected from fundamentals because of reliance on Central Banks, and whether by hiking the fed signals it is less willing to support the market, and then you have the bank of japan less able to support the market. The big issue really is can the market continued to do relatively ok without the support of Central Banks . I have my doubts. Vonnie the Federal Reserve not going to abandon the market, right . Why should it now or why should work it are dissidents feel like it would . Mohamed first because the economic signals suggest the fed should be get out of being hyper stimulative. Secondly, within the central bank, there is more concern today about the threats to future financial stability. The fact that you encourage extensive risktaking excessive risk taking in nonbanks, that could be a headwind to the economy in the future. Does the reasons why one has to because its about this notion that the fed will be two reasons why one has to mark it is the essence of your argument that the Central Banks, the fed leaving it have replaced repressed financial volatility. If the volatility rises as the fed normalizes policy in a smooth and gradual way, and the boj has its hands tied behind its back, volatility might rise. Does that hamstring the worlds major Central Banks . Mohamed the Central Banks are increasingly in a very tough position, but it is not because it is their fault. They simply made the wrong bet in terms of how other policymakers would respond. They were building a bridge, never delivering a destination. The hope was that the politicians would deliver the destination by enabling a comprehensive policy response. What they have found out is this bridge keeps on going and the destination is elusive. Vonnie Mohamed Elerian is staying with us. More bloomberg markets. This is bloomberg. Vonnie this is bloomberg markets, i am vonnie quinn in new york. Mark live from london, i am mark barton. With two trading days left or polls open in the u. S. Election investors are having flashbacks to the brexit vote. This chart shows the upheaval that happened after the u. K. Decided to leave the e. U. , the referendum sparking price swings in commodities, stocks, and isds, and still with us hamed elerian. Wins the trump election on tuesday, do we see a similar or more extreme Market Reaction to the one we witnessed after brexit in june . Mohamed if donald trump wins the election, and if in his acceptance speech he reiterates his antitrade rhetoric, two ifs, then markets, risk markets will sell off significantly. Mark give us a sense, im going to put you on the spot, how much does the s p 500 fall in a day or two . How much does the 10 year yield to go up . What happens to the dollar . Mohamed if the two its materialize i would expect a 5 to 10 decline in the s p with the balance of risk towards even a greater decline. Why, because of liquidity issues. The bond market, the only thing you could say for sure is that Corporate Bond markets and high year bond markets with the hit highyield bond markets would be hit and station protected securities will do well. Currencies will be in a tugofwar and at the end of the day people may be surprised but the dollar may end up stronger if the two ifs materialize. Vonnie he said you would keep 30 in cash. What would you do with that . Mohamed that has been an important call because it has allowed you to stay on the sideline with a lot of resilience and not worry about what has been an eightday drop in the s p. I think the message of the markets so far this year is that the money is to be made in two ways. One, be more tactical than strategically positioned so look for overshoot and two, be very name focused. Name selection matters a great deal and in particular you want names with strong Balance Sheets , a Good Business model that can take advantage of real disruptions going on from a technological point of view, and a Good Management team. It is not great news for most investors that are just buying indices and hoping for the best. Vonnie yesterday paul krugman said the u. S. Was dangerously close to a failed state and that was not even related to the election but about congress and how extreme both parties have become, and how big the wings have become. Characterize that statement, is it an overstatement . Are we going to be able to hold on to our Investment Grade rating . Mohamed yes, we definitely hold onto an Investment Grade rating. I do not think that is threatened. What professor krugman was pointing to was the gridlock on congress and the inability to get anything done, including where there was agreement. There was agreement among many people on the need to improve infrastructure. There is agreement on the need to make the corporate taxes more growth friendly, and yet, no one is willing to be seen collaborating with the other side. We have not had a proper budget approval process in six years. This gridlock is inhibiting the source of policy the sorts of policy response you need to unleash a huge potential for this economy. Ask you what exposure you have to u. K. Assets right now . Mohamed i am a rather boring investor so i am not exposed to u. K. Names per se. I am much more barneveld. Barbelled. I think it is time to reduce exposure to Public Markets and have more cash, and go the liquidity spectrum to places where Central Banks have not distorted valuations. Mark Mohamed Elerian, chief Economic Advisor at elians. Vonnie in addition to jobs data and elections, investors are investigating corporate results. We look at some of the biggest movers in the early u. S. Session. This is bloomberg. Vonnie this is bloomberg markets, i am vonnie quinn in new york. Mark from london, i am mark barton. Vonnie time for the Bloomberg Business flash. Another roadblock to the plan to create the worlds biggest chemical company. The European Commission is demanding more information about the merger between dow chemical and dupont. Dallas is the deal is expected to close in the First Quarter of next year. It has been a big acquisition in chinas Investment Banking sector. China Investment Capital has agreed to by China Investment securities for two and a half billion dollars in stock. It gives them access to small retail customers. That is your Bloomberg Business flash. Lets head to the markets desk where julie hyman has been looking at u. S. Trading. Julie looking at some of the biggest movers to the up and down side, im looking at the three best and worst performers in the s p 500. Nrg energy is coming out with estimates numbers that the estimates. Analysts told us the thirdquarter profit was driven by retail sales and Renewable Energy generation. We are seeing alexi on rise because they canceled on presenting at a Credit Suisse press conference on november 7. Sometimes these kinds of cancellations lead to speculation about a strategic move, perhaps some kind of acquisition so that appears to be accounting for the rise in shares. Industries, their thirdquarter earnings per share rising 21 , revenue up 7 . That is for the upside. On the downside we have an Energy Engineering company, the stock down sharply and the most in eight years. It cut its profit forecast because of a delayed construction project and its earnings target next year is short of analyst estimates. Rvo as well, concerns about Gross Margins pushing shares down. Isantec as well, the Company Still falling after its earnings report. I want to talk about earning season overall as well. You can take a look at the bloomberg at spx ea. Earnings analysis. 400 22 of the companies in the s p 500 of reported and share growth of about 2. 3 . Snapping the decline we have been seeing in earnings per share for four quarters. Mark julie, great job. London, 11 26 new york. How the election is impacting pharmaceutical and health care stocks. We will break it down with one fund manager. Seeing is believing, and thats why were opening more Xfinity Stores closer to you. Visit us today and learn how to get the most out of all your services, like xfinity x1. Well put the power in your hands, so you can see how x1 is changing the way you experience tv with features like voice remote, making it easier and more fun than ever. Theres more in store than you imagine. Visit an xfinity store today and see for yourself. Xfinity, the future of awesome. Live from bloomberg World Headquarters in new york and london i am vonnie quinn. Lets check in on bloomberg first word news today. Courtney has more from new york. Special iraq key forces have resumed their push and to the city of mozilla. Heavy fighting has been reported on tuesday. They are being backed by a usled coalition. Both u. S. President ial candidates have people they are considering for treasury secretary. Atlary clinton is looking facebooks sheryl sandberg. And roger ferguson. Among trumps possible pick, his Campaign Finance manager, hedge fund foundered stephen nugent. Steven mnuchin. The singer will perform on november 12. 130 people were killed in the attacks. And we have breaking news involving the new jersey issue. Plotting toy of punish the mayor. Are lt on all counts. We continue to have breaking news for you throughout the day. Powered by 2600 journalists and analysts. This is bloomberg. The u. S. President ial election and his it