welcome to bloomberg markets i'm romaine bostick in the latest record close for u.s. stocks is put on pause with the s&p sitting on again to start the year. not much action here a lot of restraint ahead of the treasury refunding details and the fed decision day and a deeper gauge of sentiment as earnings season kicks into high gear. you look at the big movers and that includes ups dropping 9.3% coming in well below analyst expectation meanwhile whirlpool with weaker than expected expectation saying the cash flow outlook. there are a few bright spots with gm with consensus growing that auto sales will continue to be resilient. and then micro, anything ai and a company they could promise in ai future. raising that revenue forecast with the ai demand that is still outstripping supply. friday payroll reports, it is not looking good. ups cutting 14% of management. american airlines getting rid of 8% of customer support. lows, levis have all started the year with plans to trim down in the latest read on job vacancies. the number of americans quitting their jobs has failed t

i'm romaine bostick.told you it was going to be really consequential week for economic data, and that includes housing data as well. we are expecting to get an update on home sales prices tomorrow, and we are also expecting to get an update from pulte. they report tomorrow morning, and new-home orders are expected to increase 43% from a year earlier, as the u.s. housing market continues to grapple with excess demand. pulte expects between 9000 homes for 29,500 previously -- expects 29,000 homes, from 29,500 previously. our next guest has a neutral rating on pulte right now. would be remiss in not pointing out that the new home builders have been the superstore of the last year or so, despite all the stress in the existing home market. new homebuilders have held up pretty well. is that going to continue in this report tomorrow? >> thanks for having me on. we from an earnings perspective are in line with consensus. but we do think that gross margins are going to be a little bit weaker, as well as order to g

here at bloomberg headquarters in new york, i'm romaine bostick. >> i'm katie greifeld. look at the equity trade right now. the s&p 500 is trying to go green. not quite exactly getting there, down a 10th of a percent at the moment. we have seen big tech flip into positive territory. the nasdaq 100 up .2%, fighting back. take a look at the bond

bowman give similar remarks in this idea, bostick said he is comfortable with the fed's restrictivee right now. you and i remember just last month, after the fomc meeting we saw markets really start to price in big bets on the idea that we could see a cut by march. i am not sure we are there yet. the fed, certainly several of these fomc members have pushed back against the idea that could come extremely soon. we have to look at what else is going on with the latest cpi print. whether we are getting more rapid cooling off. there is reason to believe that even though we are seeing a drop off in goods prices. there are sticky elements we have to pay attention to. services, shelter. it is too soon to call this idea that we could get a cut by march, but yes, basically, to answer your question, they're preserving a lot of room to push that off. kriti: i am almost curious every time we look at the fed minutes to see where that kind of dispersion really is still alive. the hawks not letting go of this idea that perhaps we may need some sort of actual dovish pivot rather than one the markets

live in new york, i am romaine bostick.kicking off with about two hours to we have a rally on our hands. take a look at the s&p 500, up .9 percent. repowering the index. by about 1.7%. it is an interesting week. we have a lot of events coming up later in the week. that is as the bond market rally resumes. currently

live in new york, i am romaine bostick.: kicking off to the closing bell in the u.s., take a look at the equity markets right now, not too much going on, take a look at the s&p 500, we managed to flip into the green. .4%, higher when you take a look at the big tech or the nasdaq 100.

live at studio to hear at our headquarters in new york, i am romaine bostick.d i am katie greifeld. two hours to go. he

live in new york, i'm romaine bostick. >> i am vonnie quinn.ve already had a high on the s&p, a great day for the team at bank of america can talk about how the magnificent seven and the narratives of last year still count and at least for today it is true.

i am romaine bostick. >> and am scarlet fu. 2023 has given way to risk are generally as christopher waller's to elaborate. the s&p 500 is limited losses. two days of treating this week and two days

. >> from studio two at boebert headquarters in new york, i am romaine bostick alongside scarlet fu,ng you off to the closing bell on this wednesday afternoon and we start with a look back at the last fed meeting, ending on december 13. no decision on rates but a big decision on the dot plot. kailey leinz is in washington right now with a readout of the fomc minutes. kailey: chairman powell said at the press conference last month that rate cuts were discussed but the min

live in a dark studio, i am romaine bostick. scarlet: and i am scarlet fu.00 clawing its way back, clinging onto its first gain of the new year. do we have the screen up? it is on track to end a three-day decline, up by .1%. u.s. treasuries are pushing yields up across the curve. climate jobs showed u.s. companies continue to hire last month, raising the stake fo

bostick is a voting member of the fomc on these rate decisions. at that point it is the risk of, we have seen cooling off in cpi data so far. but what if we see a reverse turn on that in the next couple months time? you want to make sure as they are guiding these decisions that they do not act too quickly and then ultimately miss this idea there could be a ramping up of inflation expectations later this year. certainly as we have been saying for many months now, a tricky line for the fed to walk. but i think that has really been telegraphed as a big risk for this year. tom: a great preview of the fed and what to expect. thank you very much. joe biden says he has decided how to respond to an attack by iranian backed militants that killed three american troops in the middle east. we bring you that story next. this is bloomberg. ♪ tom: welcome back to "bloomberg daybreak: europe." joe biden says he has made a decision on how to respond to an attack by iranian backed militants that killed three u.s. troops in the middle east although he did not reveal

the only fed i have heard is bostick, who specifically said i am looking at q3 and only two rate cutsall of that speaks to the long end backing up. a lot of people are positioned for that. to me, that is a good play. alix: liz, do you agree? liz: i think the big theme this year is the curve steepen her, but that is not easy either. when is it going to get there? some are saying we could see an upwards slope with the short and longer. others will say we could be inverted all year. that is a tough trade. i do not want to say steepener, but it is not an easy, no-brainer win but that is where people go. katie comiskey yesterday was like we could have a happy steepener where short rates fall a lot or a painful one where it comes from the long end moving further up with people worried about supply or whatever. there is a lot of ways to get a sticker. it is not always fun but i do think that is the tone. people say steepener will be the theme of this year. guy: what do we think will be the theme of this year, edward? the question is being posed whether this will be trump's year, whether that

live from new york, i am romaine bostick. scarlett: we are kicking off to the closing bell.gains, the first advance this week, the holiday shortened week. big tech, leading the way with the nasdaq of .9%, the chip sector getting a boost in particular thanks to tsmc's outlook. the 10 year yield, down slightly by 10 basis

kriti: wells fargo's mike mayo speaking to romaine bostick and scarlet fu.don't miss our exclusive interview with morgan stanley's executive chairman, james gorman. he's on his way out. we will have an exclusive interview. in the meantime, i want to get some of our other top stories from this morning. harvard president cladding ga -- claudine gay stepping down and initial tenure marred by allegations of plagiarism. she says it's in harvard's best interest for her to leave the job. . her exit is a dramatic out face from her acclaimed start in july as the university's first black president. donald trump has filed a lawsuit seeking to restore his name to maine's presidential primary about. the state declared the former president ineligible for another term under the u.s. constitution's 14th amendment, which bars candidates to engage in insurrection. colorado republicans have already asked the supreme court to reverse a similar decision in their state. the social media company x has started to re-show news headlines alongside links shared to the service. the mov

i'm romaine bostick. katie: i'm katie greifeld, kicking you off to the closing bell in the u.s.look at stocks right now. pretty soggy. off our session lows. the s&p 500, down about .2%. we were much lower earlier in the day, .9%. coming back here. the nasdaq

federal reserve president rafael bostick says inflation is on path to reach the 2percent goal.mon says he's not too sure about that. he says it's going to bounce around 3% and probably go higher. we'll hear more in minutes what's your take on the fed and inflation, the next meeting, of course, at the end of january? >> yeah. i think you're seeing this big disagreement between the fed and the market. the market is thinking a lot more will happen a lot sooner, but they're both agreeing on 150 basis points of cuts to come, but the market thinks it's going to happen within a year, and the fed thinks it's going to take two years to reach them. i think a lot of that is exactly around the point on inflation. so we have done quite a lot of work on this trying to understand the inflation dynamics and one thing is clear which is that a lot of the decline we have seen so far was food and energy related. it's not really something that the fed can impact directly. and so i think from their point of view looking at the labor market, look agent inflation -- looking at inflation, you are seein

waller backed up the rates truck, bostick helped him. 20 basis points around 2's and 10's this week. has that jolted you are thinking in any material way? good morning. >> good morning. what is notable is the market seems to actually be listening to what the speakers have to say. sometimes, the market listens, sometimes they do not. we think the market is listening to what the fed is saying, not just because the fomc members are saying it, but because they think it is important. ultimately by what the backdrop is in terms of inflation and growth, which is inflation will not decelerate as quickly or easily as the market expects, and that is why the work it will not cut as much as had been forecasted. scarlet: is the bond market hearing something different? manus and i were talking about bond markets have used -- moved higher, but so have growth stocks, making a record high? daniel: we have to keep in mind it is not only about rates. it is what is happening with rates. we have got to calibrate what the impact is with higher real yields, which should a negative impact on growth stock vi