you'll never have to climb a ladder to clean out your gutters again. you know, that's peace of mind and then some. so, how do people sign up? call 833 leaffilter today to schedule your free inspection. or visit getleaffilter.com sonali: welcome to bloomberg markets. our top story is that stocks are rallying and bond yields are tumbling. a big bid after fed chairman jerome powell said that the time has come to cut interest rates. let us look at these market moves. we have the s&p 500 and nasdaq 100 up .1% -- .1%. and then you have the bid across the curve.

the yields are down and prices are up. the two year yield at 3.93 and .380 on the 10 year. let us listen to chairman powell speaking at jackson hole really causing a store -- a stir in the markets. >> the time has come for policy to adjust. direction of travel is clear and the timing and pace will depend on incoming data and evolving outlook and the balance of risk. sonali: nancy, the ceo and cio joins us now. and you heard that powell speech. the time has come in the moment is here for this historic rate hiking cycle to end and start reversing. the question remains how fast that course reverses? what can investors expect? nancy: thank you for having me. i was not as pleased as everyone

else seems to have been. the market this morning rallied hard in anticipation and held the rally for a bit. and that has now faded and we are not recouping what we lost yesterday. i think the market is stepping back and thinking about it. the bond market seems aggressive on the rate cut front. i do not think that is the case. we will probably see 25 and we might get 50 but i do not think so. and then the fed will pause because we still have sticky inflation. and that has not receded. it is at 4.2% so the fed has to be mindful of that. but i do think the cut is necessary to break the logjam in the housing market and give manufacturers a bit of a reprieve but that will not likely happen for many months. sonali: even if you have the first cut in september you have a few meetings until the end of

the year in 100 basis points of rate cuts. if we do not get those, how is the stock market supposed to take off? nancy: that is the right question. the good news is that we had a great second quarter earnings report, 12.5%. that is over 5% of revenue growth but that is solid. we saw guidance that was coming down around the uncertainties of the fed, the election and so i think that investors need to be focused on dividend growers and companies able to deliver strong earnings growth and reliable earnings growth because we are in a slowing environment. i think that statement on job growth was material and important for investors to pay attention to because assumptions were made based on the numbers and executed on and on they got revised. think of this is about 30% per

month overstated over the last year march to march. sonali: here is the thing it seems like the investors off of the heels of that conference are really firmly believing that the focus is changing from inflation to the job market, and you have powell having confidence that inflation is on a downward path and yet he said the slowdown of the labor market was unmistakable. you seem less convinced that inflation is not as much of a concern. do you believe in that balance shaft or do you think that inflation given the election and the policies that each candidate has in place could be a curveball? nancy: first of all we have low base affects that we are dealing with in the coming months so that makes it harder for the number to be soft. or, modest is a better way to say it. we have been concerned about the job market for some time.

the fed is late on this issue. and so the good news is that people are working in the unemployment rate is driven by supply of workers more than job cuts. that can turn on a dime. it is going to be difficult to assess, but if you focus on the high quality companies with the really strong balance sheets, excellent free cash flow and dividend growth which gives you an indication of management optimism you will be relatively safe in the market if it decides to sell off on new data coming out. i am concerned that this felt like a victory lap to me and i do not think that victory has happened. i got the big line on the good ship transitory, and i see a bunch of my shipmates. powell is the captain, so whether they agree with him or not he needs to make the right decisions and i am not convinced this was the speech, certainly

not the one i wanted to hear. sonali: all week we had this s&p 500 flirting with record highs and it had not touched that point. it seemed to stop short of it plus a lot of people on this program tell us that there is a lot of fear still under the surface. options and activity shows you as much. a lot of catalysts in the last -- in the next couple of weeks including nvidia. how as an investor do you prepare for that? nancy: as an investor i often feel unprepared because there are so many data points. but i think you pay attention to the guidance and the other names in the space. we own amd, that was a great report. i think you can discern from that some things. we know that high pulse -- hyper scalers are spending a lot and wall street was not happy about

it. i think that nvidia will be unlikely to disappoint and then you need to hear what the guidance is and how delayed is blackwell and what are the expectations for 2025. that is what will matter to the market, i think. sonali: with nvidia is the risk to the upside or downside given the run-up in ai and nvidia in particular? is there that much more upside to the stock? nancy: i think there is. if you look at any new innovative technology and how long the stocks have run. you back at one amazon went public until today and there was a huge drive and then it sold off during the internet bubble. the stock is over 175,000%. these companies that can pivot and adapt, i think it can continue for some time because they will find the next new thing. and so, we do not own the stock

because it is so expensive. we have been waiting for an opportunity and we got close but the runoff is a selloff. and even though it is expensive on the metrics we look at it is really not that expensive if you look at price-earnings to growth. none of the mag seven are, they are below median and average. sonali: we have to leave it there. happy friday and looking forward to next week as we talked about a lot of catalysts. that is nancy. now michael mckee will join us from jackson hole for more on the speech from fed chair powell and being on the ground and seeing the reactions from the people, the fed governors and investors, how do they feel about the ripple effects that the speech is having? mike: nobody was surprised, at least on the central banking side.

they all agree that it is time to start thinking about adjusting policy. the market reaction has john -- drawn quizzical looks because they thought the markets knew that. they are not happy about it because the stock market is up and bond yields are down, doing part of the fed's work for them. sonali: there seems to be a diversion and what people expect the first got to look like, whether 25 or 50 would be alarming or a line with expectations given what the fed chair set about the job market. how do you read the tea leaves? sonali: the chairman -- mike: the chairman did not give us a sign one way or another but he sounded dovish and saying the fed would do whatever it takes. you can read the possibility of 50 basis point cuts into that. but members of the open market committee have told me that they do not think that is the wisest way to go and they do not think

that is the way they will go unless we get bad news because they do not want to give the impression that the economy is worse than it is and they do not want the market to start anticipating 50 basis point cuts. they anticipate 25 and sending the message that this is the pattern. 25 and then maybe 25 at the next meeting and the one after that. they will take a cautious but regular approach. sonali: once you give a kid some candy they will ask for more. thank you very much for all of your coverage over jackson hole. please come home soon. let us look at the midday movers. abigail doolittle. abigail: we have a lot of movers and to the upside we have big tech after the speech from jay powell, suggesting that the liquidity gates could be open and the cuts that folks are anticipating. nvidia, tesla, broadcom and then

apple. nvidia, u.n. nancy were talking about it, something that we need to keep in mind is the conversation around numbers. this quarter they are expecting just 113% and that is a big drop on the bottom line. 580 5% growth year-over-year. this quarter, 156. that could, even if they meet just be a little bit of a ripple. they need to put up big numbers. in terms of what have leading to the downside. the tax prep software company met the corridor but their full year view is long. the chinese company does report next week and down into that report. we do have the shares of bill, the back office company which failed to impress.

goldman sachs cut them to a neutral and they are already down 42%. red robin they cut the full year. in terms of today there are some people who think that that could be the cell the news moment around powell's speech. one of the dividing stocks, the in between stocks is microsoft which has been down three days in a row and this reflects. fed chair jay powell is dovish, but that pushes the dollar down and the yen higher. if that yen carry trade were to unwind that could be painful for microsoft. sonali: a lot of risk under the surface. abigail doolittle, thank you and we look forward to your coverage. we will switch gears and talk about politics. vice president kamala harris formally accepting the democratic presidential nomination. we will go live to chicago next. this is bloomberg. ♪

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>> i promise to be a president for all americans. you can always trust me to put country above party and self. to hold sacred america's fundamental principles from the rule of law to to free and fair elections, to the peaceful transfer of power. sonali: vice president kamala harris has formally accepted the democratic presidential nomination, wrapping up the dnc with a speech bowing to prioritize a affiant for the middle class. annmarie hordern and has the

latest. heavy on rhetoric on vibes and light on policy. what do we know. annmarie: that is exactly right. we are waiting for details to come out on how kamala harris would govern if she was elected president. a lot of this seems to be carrying on -- carrying on the proposals from the biden-here is administered -- harris administration. i thought she was cherry picking some of the things when it comes to the economy and taxes. she talks about not raising taxes on the middle class and she mentioned standing strong with nato and ukraine. she leaned into reproductive rights which the democrats want to make sure that they are amplifying in the swing states. and something that she did when biden was president. it was notable that joe biden did not like to talk about abortion but this is something that kamala harris went out and talked about. that was unsurprising. when it came to immigration which was notable because donald

trump was at the border trying to counter program. she talked about revamping the bipartisan legislation that was killed after being drafted by senators murphy and langford. we do not have details of the policy is. and this is an issue for some because we have seen the vice president flip-flop on a number of issues like fracking which is important for voters in pennsylvania and private health care. but now they have over 70 days to really get out and continue this energized momentum but potentially outline more details of the policies and whether they want to do that remains to be seen. we know there will be a debate and we are waiting for her to sit down on a one-on-one interview. i go back to what tobin marcus said to me. what the campaign is trying to do is strategic ambiguity. talk about broad strokes and policies, some of the populist

rhetoric that resonates with swing state voters as much as they can avoid details on policy discussions. sonali: absolutely fascinating. 75 days until the election and the countdown is on. annmarie hordern, we thank you so much. let us take a look at how markets are thinking about the upcoming presidential election. kristin mcdonough of nottingham trust joins us now. you had the dn speech yesterday and the big moment for monetary policy today with fed chair powell and one major question on the minds of investors is not the september rate cut but the rate cuts that would come after. how much room is there really when there is that much uncertainty about the fiscal path ahead and the economic path ahead? kristin: thank you so much for having me and that is an excellent question.

when i was first going to come on i was going to talk about how powell has a measured approach but that was thrown out with that speech today at jackson hole. i think that two cuts is an entirely reasonable, -- possibility. to your question about the future path there is a fair amount of data and uncertainty like you said. but there is more happening in the job market and just the revision to the monthly payrolls that we saw, 800,000 jobs disappearing. we heard from austan goolsbee a month or so ago talking about how they do not want to risk the golden path where inflation is kept under control or they are curbing that. and they do not want a spike in unemployment. so this is the path that they are treading. and yes there is a fair amount

of uncertainty moving forward. if i had to pick based on the comments that we have been getting, i would think that they would be more likely front end load cuts rather than space them out. that is in contrast to previous policy. sonali: how much of that is predicated by the job market. in addition to inflation data coming up two weeks from today we have the next jobs report. the revisions were significant. some of the largest we have ever seen to prior jobs data. does that tell you that the job market was much weaker than expected and how does that inform how you read the next set of data? karissa: that is exactly right. another thing i am thinking about, this fed has access to more timely and accurate data. when you get revisions to that degree you are right. decisions remain based on the accuracy of prior data, calling

into question the forward path. i think this is definitely not a proactive move on the fed in terms of frontloading, but i do think that if they are calling into question kind of the accuracy and forward data and we are looking at the august jobs report with fingers crossed, i think that they are trying to make policy the best they can with imperfect information. but this is to get one of these situations where they want to be proactive even if that is not necessarily possible. i am still the camp that they will be more aggressive than they have been historically. sonali: at the end of the day that is not the only data we get and it is certainly the most important but we get consumer sentiment data. how much do you feel that the consumer is starting to weaken when you look at the earnings reports, they are mixed in terms

of what consumers are willing to spend their money on? sonali: excellent question. -- karissa: excellent question. we have been looking at the bifurcation of the consumer. there are a set of mixed earnings coming out. average statistics do not tell the whole story. i think that there is a broad swath of weakening for the majority of the american consumer. and those data points, whether it is through consumer surveys or sentiment, that does not always bubble up as effectively as the fed will needed to do. we definitely believe the average statistics and there is weakening that we need to be observant of. sonali: thank you. and happy friday to you. we will turn over to the big story, the bls blunder heard around the world. on wednesday the bureau of labor

statistics failed to release a key revision at 10:00 a.m. eastern time and it took around half an hour to get out there. liz mccormick joins us because one part of the blunder was the site yet that certain banks had gotten information earlier when they contacted the bls so the data was not uniformly delivered to the market. what went on and what are the ramifications? liz: to be clear the folks who called and got the data did nothing wrong. many people were calling only ac -- a few seem to get through and get it. the backdrop to this was not this focus on labor on concern and heightened interest in this revision is that not a lot of people always watch. i think people were not familiar with how to read it coming out. people misread, you're just watching the internal chats. people misread on some of last year's data on the website.

and some people got these numbers and were confused and it just created a lot of floss when -- and then it became clear when the numbers came out and all of the media were able to report. people in the markets were saying that this is not right. there needs to be a better check and balances and there were a lot of decision -- confusion and only a few folks having it and having the right data has a lot of animosity on the street that this data should be released better. there should be some other issues in the recent past. sonali: in about 30 seconds, how do you feel about the reaction from powell's speech. you are so close to the bond market with bond traders and the yields have been driven down. tons of people saying it is too much too far. what is the take?

liz: it is clear and he has been the clearest ever that he would want to say for sure that he is cutting and they left open 25 and 50 and the pace thereafter. there will be a lot of volatility. but this gave all of them that they could take rates lower. it is a risk on. he said he does not want the labor market to weaken more. for now the take in the markets is right and now we have to parse how it goes. sonali: thank you for your time. we were talking about it so much more critical economic data ahead with tons of moves in the bond market. let us talk about the markets before we let you go. we have been talking about the rally. we have the s&p 500 up .6%. the nasdaq 100 is seeing similar vibes. they are up, but we are not hitting the records that wall street was hoping for this week.

we are not even at session highs or where we were before the powell speak. -- powell speech. i am sonali basak, this does it for bloomberg markets. steak with us -- stick with us to the end of the day. this is bloomberg. ♪

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live from washington, d.c. joe: the sprint to november starts now. come to the fasted -- fastest showing politics the day after the democratic national convention wrapped in chicago, with battle lines drawn by both parties. we are going to be with congressman robin kelly of illinois and our political panel. the former rnc communications director, joined by democratic strategist brad howard. it is all after a look at wall street. how does it look, amy? amy: fed chair jay powell says it is time for the federal reserve to cut its key rate and markets are responding. we checked these markets for you all day long. the s&p 500 up