plus, get $400 off when you buy the new samsung galaxy note20 ultra 5g. ♪ from bloomberg world headquarters in new york, i am caroline hyde. romaine: the dow, s and p, and nasdaq rally 1%. joe: the question is, "what'd you miss?" caroline: just like that, market exuberance is back at least for one day. the current economic environment has lent itself to booms in the markets when it comes to

prices,ng's, equity asset prices and risk-taking. it is not without its consequences. you have to think about what the cost of building has become. have soared, adding thousands of dollars to the price of any new home. tech valuations, volatility. joe, these record low borrowing costs mean you can also lever up. &a.t is why we are seeing m seeing know why we are these pictures when we are talking about market exuberance. extraordinary morning. we were on our news call and news kept breaking.

when we were discussing things. nvidia buying the semiconductor from softbank. oracle in some kind of deal for tiktok, it appears. gilead buying immunomedics. animal spirits that helps fuel the market on a day like today. romaine: other big biotech deals. gnc looking like it might have found a deal. if you look at the performance, and that market cap jumping on the day. oracle, a lot of enthusiasm. verizon, it kind of makes sense. we had one of the executives on and he kind of made a case to why this is a good deal for verizon. caroline: the full spectrum of

offerings, it is time to add on in terms of your users. i want to show you what happened in terms of what a busy sunday it was for many. it was the sunday tidying up of the deals being announced. the busiest weekend of the entire year. welcome more, let's bloomberg news cross asset reporter sarah ponczek. we had a couple weeks of fairly intense selling of some of the hot momentum, tech names. timeng down for the first in quite a while. s may behe-board gain helped in part from some of these deals. surging.kola is a day like today enough to convince people that it is back on?

sarah: you have to consider the fact that before friday, the nasdaq moved more than 1% every day. one of those was to the upside. see very healthy the breadth in the market. the s&p 500, more than 90% of its members finishing higher. this deal news does insight excitement. investors like that companies are using their cash in ways other than just buying back stock. at the same time, it was not just tacked leading the way higher. -- the russell 2000 up to .7% today. inis up for its best month two years. a turnaround intact. we are also seeing other areas

participate. romaine: when we came in and saw all these deals on the table, there seems to be this general sense that there was a reflection, the fact that companies were willing to sell out this cash to make deals, there was a bet on economic rebounds and that these companies must know something. this: you can also look at in a different light, the idea that we are seeing right here with industry consolidation, it really is another chapter in that story of haves and have-nots. investorsnalysts and say that this is going to continue. while you may believe that this is a sign that these companies believe in an economic recovery, this also shows that you have your winners from covid-19. their business models have been accelerated.

you have many others, maybe not today. but you have other companies who have very high debt loads. what you might see is this then forces more industry consolidation, forces more m&a. , the divide.ity caroline: it is something we want to make sure we talk about in some way, shape, or form. nvidia has been the darling of the stock market. how much do people like to follow this? sarah: for now, you really can't blame these companies for going about this when interest rates are so low. that havebig names

been winners, investors like to see that they are growing revenue streams, using cash at hand to make purchases that will benefit their companies going forward. romaine: real quickly, obviously tech soaring, speculative names soaring, but also this -- also these returned to normal cyclical names. are you surprised that the 10 year yield will not budge an inch higher? sarah: not necessarily. the fed meeting this week on wednesday. ask about rates right now and people seem bored because the fed has said they will not make any moves. what will it take for yields to move sustainably higher? it will take a recovery more than what we have seen so far. romaine: sarah ponczek come

across asset reporter, giving us that update. also running hot, the housing market, the homebuilding index that march50% off low. it is one of the strongest areas of this economy. jerry howard will be joining us in a minute, the national association of homebuilders ceo. this is bloomberg. ♪ ♪

romaine: the homebuilding sector, one of the hottest areas of the economy and also one of the hottest areas of the stock market. a derivative of that is what has been going on in the lumber

it is not as sexy as a tesla, is it? joe: it is. i have the chart to prove it. if you do one of my favorite tricks and use two y axes, you can line up the lumber chart with the chart of tesla, you can see them rise and fall at the same time. across many asset classes, whether it is gold, cryptocurrencies, even lumber, even though you can tell one story about housing and one story about electric cars, the broader story, this shows the degree to which people pile and to anything in unison. caroline: lumber was sort of like a perfect storm. many abeetles ravaging tree that would make it

impossible to get hold of the lumber. in california, a sudden need to be doing more building work. joe: let's talk more about housing and the effect of lumber on housing. we are joined by jerry howard, ceo of the national organization of homebuilders. i don't think anyone would have guessed that in a crisis homebuilders would be having one their best years of all-time. the demand, what is it doing to the cost of building a home? jerry: we were off to a great year before the covid recession. the first-time homebuyer market was really, really heating up. we were actually in a housing shortage. we were needing to build over a million homes this year.

then you take the covid recession. what has happened is people are moving out of the cities. a lot of people who had been sort of wedding to -- have been to their urban lifestyle have said, if i need to be quarantined again, i need more room. i need a backyard. we are seeing a lot of the housing markets that had been dead for a long time really open up and get hard. we are i think right now the bright spot in the economy and we are ready to help lead a v-shaped recovery if we can keep getting building materials at a reasonable price. 170%tunately, lumber up since april. that is a real potential problem for the overall economy if we can't get that fixed. curious about the

sort of balance between supply and demand. i think if you are a homebuilder right now, this has to be a great time. the demand is clearly there. but the time it takes to buy land, develop that land, build those homes, it is a little bit of an elongated period. may not be at the same growth rate a year or two from now. caroline: we are looking this year and all of next year to be very solid. there could be a little bit of bumping the road in 2022 but we don't think that will happen in 2021. they are building right now as fast as we can get the permits and get moving. at the beginning of this calendar year, guys were pulling permits, ordering their lumber. the biggest problem we are having right now, when people are trying to get their lumber

packages, the price and availability. that is scaring some of these guys. when i talk to my members around we are not going to start the frame right now because we can't afford the lumber package. caroline: i am interested in the fact that you said you are on the phone with the members, what is happening in the west, in california right now in terms of this responsibility that holmberg -- that homebuilders in rehoming people when we have this devastation, but also that people need to be aware of where and how they build. hearts and prayers are with the people of california and it looks like it will need to be with the people of louisiana and the gulf coast pretty soon. these natural disasters put pressure on local homebuilders to rebuild as quickly as we can. but we have an obligation to do

it as safely as we can as well. we look at these situations with an eye towards the responsibility for building decent, safe, affordable housing. you a want to talk to little bit more about -- already in housing deficit before this crisis. if you look around different parts of the economy, you see the great acceleration of trends already in place. e-commerce was already growing rapidly. suddenly, it is growing more rapidly. of this boom in housing, i wonder how much is essentially pulling forward a trend that was already going to happen over the next 4-5 years. people that were going to move out of the city saying, now is the time. jerry: i think there is a part

of that. we think that 2022 could have a downe bit of an up and cycle. our industry did not fully recover from the great recession. be our very --to there is a lot of pent-up demand that we are bringing back into the marketplace. the other thing i will say, interestingly, for the first time in years, some of the trends are not extension of existing trends. the demand is for more house rather than a more technologically savvy house. people are looking now in this post covid environment, they are looking to work from home. people are also asking for the first time in memory, in large numbers, to have a room where they can put some exercise

equipment. environment has really impacted the housing market going forward. i think that is a permanent shift. joe: our thanks to gerald howard, ceo of the national association of homebuilders. some breaking news crossing the wire. nikolagoing to examine over short seller fraud allegations. we had allegations from a group called hindenburg saying that the company was a fraud. nikola came out with more of a rebuttal. now we see the selloff on this headline. caroline: denial of the short-sellers claims. we will see how that supported the share price earlier, now sinking after hours. we will be going in depth on nikola after this commercial break. romaine: back in a moment.

this is bloomberg. ♪

caroline: let's get back to that breaking news. the sec is said to be examining nikola to assess the merits of a shortselling investigation that the truck makers deceived its profits.ut struck a deal with gm, shares went lofty, now we get a rebuttal from nikola and sec probe. joe: just today has been extraordinary. ,his morning, when i woke up the stock was looking like it will be down 15% on the day. then it surged around 7:00 a.m.

after they delivered somewhat of a more lengthy report on to the short seller report promised last week. -- then aly, that rally and this headline now. romaine: there were a lot of skeptics from -- skeptics about this company from the start, the reverse merger, then the idea that it came to market when it did not really have a product. i guess some people now are starting to dig deeper and figure out whether those promises can be fulfilled. joe: i want to welcome ed ludlow. after the short seller report last week, the ceo of nikola said, i am calling the sec. according to your reporting, the sec is not so much reporting hindenburg as the allegations put forward by hindenburg.

>> they are basically looking at nikola and assessing the merits of the allegation made by the short seller. effectively, the allegation is that nikola deceived investors about technology, bound business prospects. essentially, what the sec is looking at is hindenburg's claims, and it may determine whether nikola may or may not have violated securities law. any regulators review is preliminary and they or may not lead to allegations of wrongdoing. romaine: in nikola's rebuttal, they said hindenburg took a comment by one of its suppliers out of context. the general assumption that a company like gm would not have gotten involved in -- gotten involved with nikola had it not

done its due diligence. ed: speaking today saying that the company did do its due diligence. as a rule, over the past few days, these key partners for nikola, including general motors. a big italian firm. coming out in support of nikola ining that they believe partnerships, believe in the vision that nikola is trying to push out. the cfo is speaking at a conference today basically talking about how ridiculous it was that his partners, these big names in industry and automotive had been hoodwinked. he said, these are multinationals, companies with great experience and heavy industry.

the cfo today was dismissive of this. 'sen it comes to nikola rebuttal, it was not so much point by point, it was basically more counter arguments that nikola was making. nikola's main point is that the allegations by hindenburg, they believe, are false and misleading, and the main motivation is -- caroline: making profit from a manufactured decline. it seems as though the founder has been making some bets on his own stock because trevor nielsen himself purchased shares today for $1.3 million. what is the next step? are we expecting them once again to speak out? ed: i think they have probably said their piece for now. the messaging has been that they are now focused on executing.

largely positive, because past,less of nikola's what technology they are actually providing to any relationship or any project. at the end of the day, they have clearly skated -- clearly stated goals for production on semi trucks and this pickup truck it general motors. there is optimism and potential upside in the stock as long as they are able to execute. that is what the company says they are focused on. caroline: many still betting that this has been a wild ride. 35 is where it closed. we wish you some rest tonight because i know it has been a very busy course of the weekend.

that is all for "what'd you miss?" joe: "bloomberg technology" is next. romaine: this is bloomberg. ♪

♪ welcome to "bloomberg technology." stocks rising on renewed optimism for a second day in part due to more optimism about a covid-19 vaccine. pfizer may be the first to reveal results from its late stage trials. the ceo saying it is likely the u.s. will release a vaccine to the american