variants are spreading in places like brazil and europe. brazil is on course to overtake india in the next week for the second highest of infections in the world. at the same time, the united states is seeing a significant slowing of infections as the nation ramps up vaccination efforts. the list of people eligible for vaccines in new york state is about to get longer. governor andrew cuomo says he will lower the eligibility age to 60 beginning wednesday. the governor says the state will also open up a vaccine eligibility to public employees and nonprofit emergency workers as of march 17. the governor, who is 63, says that now his age group is it eligible, he will make an appointment to get vaccinated. a small town in italy out of beds because of covid-19 continues to spread.

the issue in the facility is happening across northern italy. the u.k. variant search has still 90% of hospital beds across the northern part of the country. italy crossed the grim threshold of 100,000 dead from the coronavirus pandemic on monday. in washington, two senate republicans are taking steps to delay the confirmation of president biden's interior secretary nominee. they have put holds on the nomination, citing her long-standing opposition to oil and gas development. the move forces senate debate and a procedural vote but is unlikely to stop her eventual confirmation. if confirmed, she would be the first american indian member of any president's cabinet. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg.

>> it is 1:00 in new york, 7:00 in berlin 2:00 a.m. in hong , kong. i matt miller. welcome to bloomberg markets. here are the top stories we are following on the bloomberg and from around the world. investors are pouring back into risk on assets today, propelling the nasdaq 100 to its biggest rally since november. is it a blip in the rotation trade, or is it here to stay? identifying the next gamestop in terms of short squeeze problems and opportunities. we will talk to bob sloan, s3 partners about the names that he is watching. and we will explore what the sacs spinoff says about the future of luxury shopping. we are joined by the ceo, marc metrick.

let's take a quick look at what is going on in the markets. in terms of the tech stocks, the nasdaq at the top, you can see a 4% gain on the broader nasdaq index. then we have some of the so-called reddit stocks. not only are these stocks -- amc, palantir, gamestop -- among the biggest gainers among u.s. stocks, they are also among the biggest volume traded. you can type most go on the terminal and find the biggest losers, winners, the most traded, and these are just under general electric. massive volume in these stocks as tech snaps back from a multi-day drop. we are also getting some bond auction headlines. last week we had an issue with

the honda options in the u.s.. right now the u.s. three-year note drawing 0.355% versus 0.39% presale. we will continue to watch these treasury auctions for you. ira jersey told me that he thinks these auctions, over the next few weeks and months, will be bumpy after the volatility we have seen in the rates market. s3 has become a household name over the last few months. the company has created a score, short crowded and short squeezing, a scale of one to 10, potential gamestop sore amc's,

to give you the populist slant on this. joining us now is the founder of s3 partners, bob sloan. the references have gone from the bloomberg to reddit, in terms of s3's popularity. what are you doing with that right now? bob: we just do what we do, look at the data and help our clients. there is a world out there that needs to be redefined. we specialize in taking things that are looked at as gospel, take them off the shelf, and say, does it still hold? that is how we started with short interest, redefining floats, redefining crowded trades, and we are using data to make our clients make better decisions. that is all we are doing at the end of the day. matt: you have released a white

paper, which many people on bloomberg and wall street bets will declaring to read. you have drawn a distinction between companies and stocks that are very crowded, and stocks that are squeezable. what is the difference? bob: if we roll back a little bit, these things take on an intensity, like the weather. the thing about gamestop, reddit, is it a tempest, squall, nor'easter, hurricane, is it seasonal, once in five years about like el niño, or secular like climate change? what we try to do is say, ok, let's take a word -- crowded. if you asked 100 people to give you an answer of what it means, you would expect the same answer, but it doesn't.

it could mean a lot of players, a lot of dollars that in that stock. we try to take all the 50,000 securities in our database and rank them by crowded this, take a systematic approach to what crowded means. we found there are 355 names around the world, about a trillion dollars of market cap, that are crowded. crowded does not mean squeezed. there are about 250 names around the globe that can be squeezed. what we found is when we put together this white paper, what is the total addressable market for crowded stocks around the globe, share our methodology and the way we look at the problem, so that everyone can use it and make the right decisions. matt: people are going to want to know the squeezable names, at least how to discern which equities are squeezable

themselves, if they need to do their own research. how do we get a list of those stocks? i want to know what is the next gamestop. bob: we are releasing this white paper. you can look at the scores and rankings we put for each stock. we have been on bloomberg quite a bit over the last six months or so. in each appearance, we have identified tesla, gamestop. we looked at rocket, emergent galactic. we have identified these squeeze as well before they happen. our job is like the weatherman. hurricane forecasters get the intensity right. they don't know where it will land. sometimes south carolina, ends up going to north carolina. we don't care where it lands but we want to get the intensity and magnitude right. we have done that for 50,000 securities, and we think it is useful and valuable information.

we want to make it available to the world, to bloomberg. matt: you have been in this game a long time. i can see your book behind you that came out about a decade ago , "don't blame the shorts." is this a hurricane, is game stock and the other stocks they once in a decade or once in a century occurrence, or is there something going on like climate change where these things will happen more often? bob: it depends on whether you can attribute a return to it. crazier things have happened in the financial market. will a group of investors back a group of people on reddit to invest? don't know. all we know is they are socially mobilized and they have an investment strategy. the question is, what is the response? this was like a tornado going through new york city,

literally. what you have had is a real differentiated and moment of reflection on how to manage risk in a portfolio, because it is there. matt: the one thing that's been interesting, the thread throughout all of this, and we saw this in the financial crisis, going back to the great depression. on the one hand, there are the technicalities of going along a stock, shorting it, liquidity in the market, reverberations of those things. on the other hand, there is a populist anger for some reason about shorting, that these guys are bad people. a lot of times, congress seems to be just as angry as joe sixpack. give us your thoughts on the need for shorting inefficient markets. bob: it is crucial, what makes money flow.

we call it plumbing. i pay particular attention to how we use words, i think they are important. plumbing carries waste but leverage, credit, assets, those are power. this is about the supply of energy to financial participants. it is not waste. when you look at shortselling and the plumbing behind that and you say it is plumbing, i think you do a disservice to how important it is to the crucial functioning of a mark -- modern capital market system. it is what separates america from everywhere else in the world. our capital market's are the envy of the world. matt: you should be able to bet on winners, and if you want to keep the market efficient, losers as well. i know that your white paper will come out with jd cry filled -- katie griefeld. appreciate your time just afternoon, bob sloan of s3

partners, which has really become the name to go to when it comes to looking at short interests especially, but now so much more. once upon a pandemic, high flyer dick's sporting goods says it expects growth to slow in the fiscal year. they had a ton of customers coming in during lockdown. the question is, how does that turn out in 2021 as vaccines start to make everybody less concerned about infection? this is bloomberg. ♪

matt: i'm matt miller. this is bloomberg markets. it is time for stock of the

hour. dick's sporting goods made it through the pandemic admirably well, but its cautious nature is pulling shares lower right now after earnings. here is riddick a group tain >>g today but you cannot blame it on the numbers. the earnings came out pretty stellar, beating the top and bottom line estimates, even setting some records, it hiked its dividend 16%. it is all about the outlook which is not coming in so hot. they are not seeing 21 sales as strong. they say they could decline to percent in comp sales, the lower end of projections. that is putting investors off, despite the fact that they still see sales 10% above pre-pandemic levels. that is after enjoying a pretty good year for them after the pandemic. i don't know about you but i was spending a lot of my time in

sweats and sneakers, and that was good for their business. it is really about how they capitalize on this. it is down to e-commerce and driving the way forward. they had a 100% increase in income or sales, leading to a 19% increase in comp sales during this latest quarter. the question with all these pandemic winners is how they will sustain this momentum going forward with the vaccines being rolled out, the economy normalizing somewhat. they say they may not be able to match those profits of 2020. $4.80 is below the street target of $5.20. dick's is known for having conservative guidance, so they could be being extra cautious due to the uncertainties with the pandemic. matt: you don't want to visualize this, but i spent most of my pandemic time in motorcycle leathers.

it is the best way to socially distance. get on a bike and just ride the wind. ritika: you are a cabela's man. matt: you cannot really hunt in germany. not enough free land. thank you so much, riddick a group to. now to something else that caught my eye, a story on the bloomberg that i saw late last night, trying to put my baby to sleep around midnight. i noticed bloomberg economics did a survey and found economy's expect gdp growth to jump to 7.6% in nominal terms. that is the blue line. treasuries here trading at just 1.54%. if those economist turned out to be right, this cap will be the widest it's been, between gdp

growth nominally and treasury yields, since 1966. one of those things has got to give. either gdp cannot get that high or the treasury yield has to go up. that would be a problem for arkk investment owner kathy would. bouncing back a little bit today. coming up, why she calls it a healthy development. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. there is a serious rally afoot. let's take a look at what is going on in markets. the dow jones industrial average up only .8%, 256 points. the s&p 500 on the other hand is

up 2%. the nasdaq is up four. we are looking at a legitimate rally, especially in those riskier parts of the market that have sold off the last few days. the question is, is the rotation over? it affects a lot of companies but especially ark investments. cathie wood says that she is sticking to her highest conviction names, and that includes the ever volatile tesla. >> when we go through a route like this, the rotation now is happening very quickly. it started off slowly and is now happening quickly. i am happy in market is broadening out. this was the case in late 2016 as well. value took off and left growth behind. whenever i see that happen, i say ok, this bull market has broadened out, this is good news.

what we do is concentrate our portfolios to our highest conviction names, so that is what we are doing. we had extended the number of names in the portfolio from the low to mid 30's at the bottom of the coronavirus and now we are at roughly 55 for our flagship fund. we are starting to sell the more liquid names and buy some of the more pure play names. the more liquid names are either more mature, facebook, apple, and so forth, or they are participating in innovation but not your place. regeneron, novartis. more liquid in order to have cash-like instruments to use at a time like now, concentrate toward our highest conviction names. >> let's talk about tesla.

you said that you would only by the dip. are you going to continue to by now that it is dipping lower? >> we can buy a stock up to 10% of our portfolios. we report our holdings at the end of every day, so anybody can see that. yes, we have been building whenever we can. we built up to 10% last week, so the stock behaved in line with our portfolio. we cannot buy anymore here. if it were to deteriorate at a rate, drop below that 10%, we would then have the latitude to buy more. >> you said you are going to put out a new tesla price market. the market is anxiously waiting for that. can you give us an idea of what the target will be? >> it will be in a couple of

weeks. compliance is helping us cross our t's, dot our i's before we send it out. the two things that have happened to tesla since our last projections, one, it has increased its market share. when we put out our original $4000 price target, the equivalent of $800 now, we thought that tesla shares would drop 17% -- the share of the global electric market -- from 17% to 11%. instead, it's share increased as other wonderful brand names started increasing the number of electric vehicles in their companies.

that was a big wake-up. in the united states, tesla, through the third quarter at least, was still 80% of all electric vehicles sold in the united states. the second thing that has happened is autonomous. the probability that tesla gets autonomous right, we believe has increased from the 30% that we had in our base case in the last model. what is interesting about autonomous, the gross margins are in the 80% range. the margin for electric vehicles alone are in the 25% to 30% range, this is a five-year projection. so the model changes completely if tesla gets autonomous right, and we think it will. matt: that was the ark investment founder, also the

ceo, cathie wood speaking with emily chang. tesla is up a whopping 18% right now, the biggest gainer on the s&p 500. apple, microsoft, amazon following it up. tesla is adding 10 points to the s&p, as is apple, microsoft, amazon, each adding about six. some of the biggest names in the world. coming up, we continue the conversation on etf's. investors are plowing cash into value etf's. we will speak to our specialist, eric balchunas. this is bloomberg. ♪

mark: i'm mark crumpton with bloomberg first word news. the biden administration is looking ahead to its next stimulus package and it will

face more obstacles than the one getting through congress without a single republican vote. it will address infrastructure, climate, health care, inequality, and more. but republican opposition to tax hikes will make it hard to pay for it all. the oecd says the u.s. recovery turbocharged by the new stimulus package will help to power a faster than expected global upswing. the report says europe could be left behind. the paris-based organization says it expects global output to rise above pre-pandemic levels by the middle of this year. it may soon be easier for people who have been vaccinated against covid-19 to travel within the european union. the eu will propose a certificate that could ease travel for those who have received the shop.the european commission says the certificate would indicate which vaccine a person has received, the results of a

coronavirus test if taken, and details on whether they have recovered from a covid-19 infection. the u.k. royal family is breaking its silence about the interview that prince harry and meghan markle did with oprah winfrey. buckingham palace today said it is saddened to learn how challenging the last few years have been for the couple. the palace says the issues of race are particularly concerning and will be addressed by the family and private. pressure had been growing on the royals to respond after meghan, the first mixed race member of the royal family, said that somebody asked about her son archie and how dark his skin may be. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg.

♪ amanda: i'm amanda lang. welcome to bloomberg markets. matt: i'm matt miller. we are joined by our bloomberg and bnn bloomberg audiences. here are the top stories we are following from around the world. tech stocks snapback paving nasdaq gaining 4%, on pace for its best day since april. the latest on the markets as investors moved back into risk assets. amid this tech rally, we speak to the ceo of sex about the companies -- saks, about the companies decision to separate from its online portal and the pandemic impact on craft beer. what the future is like once the economy reopens, with the ceo of harpoon brewery, dan

kenary. amanda: it certainly is a reversal of the discussion we've been having, a rotation out of risk into value. don't count the nasdaq 100 out. it was in correction territory yesterday. today, up 4%. we are powered higher by the growth stocks that got this market to its record level. faang stocks, paypal, tesla is up 14%. as always, watching bitcoin. tesla now owns enough of it, once bitcoin moves, it may as well. the 10 year yield is still at 1.54, a healthy level. there was a healthy bond auction today, and that will have an upward push to the price, downward price -- downward effect on yields.

we are talking about the momentum that we were seeing out of etf's. eric balchunas is with us now. some great reporting on your part about the flows. they are stickier. this is reddit trading, and important to watch. what do you see in terms of growth? eric: we have seen a legitimate rotation into value. the other etf's are facing $20 billion this year, almost an annual record, and we are 10 weeks in. what we also look for is depth. 80 different value etfs have taken inflows. that tells us it is very widespread and grassroots. i know today we have had this snapback. it is interesting to see how this plays out. there are a lot of people that just bet on value. it seems like the momentum was with value. we will see if this is one of

those typical things where we see value has a nice six weeks, and then growth comes to take over as usual, or if today is a one-off. it looks like etf investors are betting more on value. matt: i wish i could have you on for a half hour, just going through the etf go function on the bloomberg and walking through the trend. it would be horrible tv but i would love to have you work the screen. what have you seen when you look at it through the end of 2020, beginning of 2021, not just changes in one day behavior, but really the trends so far? eric: i love working the screen, i feel like a weatherman. it is a great function, by the way. what we are seeing is people are selling out of fixed income. everybody has piled in ahead of the fed buying etf's last year.

they are now unwinding the trade. fixed income is seeing outflows and limited inflows. we are seeing typical lows into etf's, even arkk has seen inflows over the past year, but we see money going into small caps, emerging markets, money going into value, which is a good sign. for couple of years, we saw the money focused on the tech and growth story. the fact that it is all over is good, which is why flows to date are $166 billion. the reason they are doubling their normal pace is because money is going to the less loved areas of last year. amanda: let's make sure i'm understanding this correctly. one thing that has characterized this market for months have been the big momentum moves in individual stocks, double-digit moves. when it comes to etf's, and my

right to think that these are stickier moves? they are highly liquid but it is a more slow-moving trend, or is this also now a lot of momentum? eric: it depends. as matt alluded, when you are looking at the big board, they are etf's used by traders, almost like futures contracts, and then there are ones used by long-term investors. we have developed ways to separate those, but vanguard's $64 billion this year tells you the long-term investors are doing what they always do, plowing money into cheap data -- beta. the trader money is something that we have seen bullish all year, and that is the rotation i talked about. that money has been more fickle. that said, the past two weeks, there has not been a lot of moves out of these equity etf's used by traders.

there was a little bit of an outflow from the q's. other than that, it has been pretty much dime and hand all around, even for the treating group -- trading group. matt: i am so happy that dime in hand has become part of the popular lingo. it is my most favorite phrase from wall street bets. the events that you do -- and i have done a couple with vanguard -- incredible. investors interested in etf's should look for you guys, those events, because i have learned so much at those bloomberg and vanguard events. eric balchunas from bloomberg intelligence. coming up, splitting saks. the company decision to separate its online business from its

iconic brick-and-mortar stores. here is one in toronto, too. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. with amanda lang in toronto. i mentioned where you are -- because a lot of people don't know -- it is but i collect wool blankets.i have with me probably the most iconic one of all time, the hudson bay point blanket, a pendleton remake. i think this is a piece of canadian and retail history that you and our next guest are going

to be similar with. amanda: canadians know this, the rest of the world may not know, the hudson bay company is older than the country itself. it was here before canada, helped establish canada. that is a little piece of history that you have in your hands there, and if i can be serious about it, when we think about retailers that come and go, the hudson bay legacy here in canada is pretty important. now a part of the saks empire, and we hope it survives because it's been around for a long time. matt: you can be serious about it. i got this online. here with us now is the ceo of saks. you have an incredible history -- you are the parent company of saks fifth avenue, hudson bay. you became the ceo about six years ago and now you are

looking at turning the corner for a new future for saks and that you are splitting the online business. marc: you have to talk about it in two ways. we are not splitting from the customer point of view. saks fifth avenue is a brand. the all channel experience will not only be intact, that will be strengthened through this. when we have done is we have broken the mold, changed how we would operate and how we are structured, so that we can allow our teams to function differently and make the capitol investments necessary to accelerate growth. it goes back to 20 years ago when luxury first came online, we couldn't invest the right way. not just saks, but department stores. we had our capabilities but we had our stores to deal with, our systems to deal with.

we have to keep everything connected. what this enables us to do is take the capital and we can invest in the right way in our digital business, and take certain capital on the store side and make sure that the stores remain special and an important part of the customer journey. matt: this is kind of my point -- reason i brought on the hudson's bay blanket. the point blanket is to hudson bay, kind of what saks fifth avenue is to luxury shopping. the most five miss -- famous and department store in america. when tourists come from around the world to new york, they want to see the plaza, empire state building, tiffany's, and saks fifth avenue. are you worried that separating that too much will take away some of the luster of the brand? marc: it is the opposite.

candidly, we have a few million visits to our store in a given year. we had 230 million visits to our website last year. i believe the center of gravity for our brand and globally is the website, while the physical presence on fifth, an other wonderful markets, that is the physical instance of it. everyone is getting caught up in why are you separating? we are separating structurally so we can bring the customer a much better experience. we are not separating the brand. saks fifth avenue will be over the door, it will be oururl website. the brand will be forever, just like that point blanket. by the way, i think they turned 350 years old this summer. we know what it's like to play the long game here. amanda: one of the things that is different, the pandemic

interrupted some retail. have they interrupted them for the better permanently in some cases? you were reaching that point where the value of your real estate may be higher than the value of your operating businesses, which is an unwelcome moment for retail. is e-commerce shifting that, as it done it permanently, and what does it mean for you? marc: let's unpack a question and think about it in a few ways. i wouldn't paint all retailers with the same brush. saks fifth avenue has been growing the past few years. it is the way you bring that brand to the customer and the way they can shop across channels that will differentiate you. i don't see it like that. real estate is certainly valuable and always has been. what this does, by being able to put the value on the website,

which by the way is a testimonial, a valuation of what the brand is, the equity that we have built up in the brand the last 100 years, we can take that, get a value on it, take investment, and grow and improve the customer experience. that customer experience will overall make us stickier with the consumer, make us their first choice, make them want to go to the store more, and it's a flywheel. i look at this not as the end of the brick-and-mortar but a new and exciting getting, something that will help further propel saks as a luxury player not just here in the u.s. and canada but globally. matt: if i a retail investor and i want exposure to saks, how can i get that? are you going to ipo the online business, will you back into a spac? marc: i am thinking i will grow

the business, make it exciting, and make the customer experience unmatched. the rest will take care of itself. right now the focus is on the business, the consumer, and the brand. amanda:to matt's point, there will not be a capitol arrays for this part of the business? marc: again, the thought process for me -- and i'm an operator -- is just winning with the operating model we built. we are excited to get going with our partners and teams. it will be about growing, growing, growing. amanda: great to have you with us, marc metrick. appreciate your time. i want to jump back to the markets. we have the growth trade roaring back to life today, nasdaq 100 not in correction territory anymore. this is a massive move to the upside and we are seeing with double-digit moves. tesla up almost 20% today.

paypal is rocketing higher. all of the things -- faangs are moving higher today. is the rotation story alive and well, short-lived, or just a bump along the road to that story? this is bloomberg. ♪

amanda: this is bloomberg markets. i'm amanda lang alongside matt miller. i know, as a beer drinker, they have been consuming during the pandemic. alcohol sales have done well in the stay-at-home trend. we have with us the ceo of harpoon brewery, dan kenary. in some ways not unlike retail where the pandemic interrupted a negative trend in your favor, in the sense that we had seen a lot

of concerns about the health aspects of beer, high carb levels. we have seen consumption rising and companies getting creative about attracting people back into the fold. how has the pandemic been for harpoon? dan: just what you describe, a shock to the system in the second quarter. we began the year right around st. patrick's day, the end of the first quarter, real shock to the system. on premise shut down. all of the draft beer we had out in our coolers had to be destroyed. we lost 35% of the business overnight, and then we saw a real pivot to off premise sales. the major brewers sell 90% of their peers in packages, cans and bottles. they were less affected by that aspect of it. the smaller craft beers who saw through the taproom's took it on the chin and they had to become

resourceful, pivot to self-serve and other products to grab the attention of consumers. matt: the humanity. pivoting to seltzers. i cannot imagine doing that, and i feel for those that needed to do that. how is your distribution? i am in the center of europe but i am really light years away -- closer to the north pole and warsaw. i have had trouble getting really good beer here in germany. i would be crucified by my german fraternity brothers for saying that, but i don't want to drink a warm pilsner every day. i want something delicious and exciting. dan: that is a particular german thing that we could have a sidebar conversation on. it is the most traditional culture of beer in the world, they take a lot of pride in it, and they should. craft brewing, micro brewing got

started in the u.s., we have less tradition. typically for american, we came out with everything, double ipa, triple ipa's. it is a heavy product to ship, so shipping to places like your money is really expensive. then you have local laws. we cannot even ship our beers to canada because the laws are so strict about importing into canada. it is a state and national thing that affects distribution. amanda: if it makes you feel any better, it is hard for one province to ship to another in this country. another story. we have seen huge creativity from brewers like you. one of my favorite beverages is a nonalcoholic ipa from canada. we have seen beers aimed toward the post workout group.

what kind of things are you coming out with? dan: we are seeing ongoing strong double-digit gains, 4% abv. sea salt, chia seeds, etc. people like labor in their beer, they like hops. it used to be like beer didn't have a lot of labor. now there is light beer without a lot of calories, has good flavor with some ingredients added to it. i think the seltzer craze is an offshoot of that, people perceive it as a better for you product. later in taste and flavor. you are right, there has been this blurring of the lines, and better for you is driving it. whether that is covid and people being home, having the time to figure out what works for them or not, i'm not really sure. matt: only 20 seconds left.

can you expand outside of the u.s., likebrew dog? can you get me some dear? dan: we are shipping some of our bigger abv beer over to sweden. i know it is a ways but you can probably get up to stockholm. matt: it is not too far. dan, thanks for joining us. always a pleasure to talk to a brewer. dan kenary, ceo and cofounder of harpoon beer. for amanda lang, i matt miller. this is bloomberg. ♪

mark: i am mark crumpton with bloomberg's first word news. president biden's latest stimulus package will help power

a faster than expected economic rebound this year. the organization for economic cooperation and development raised its gdp forecast for 2021 from 4.2% to 5.6% today and more than doubled in production for the u.s. economy to six and a half percent. oecd chief economist lawrence boom spoke with bloomberg television today. >> we are revising our forecast for two reasons, first the improvement with the pandemic, vaccinations, improvement in the economy. and the one thing that has changed since december is the $1.9 trillion u.s. stimulus on top of the $900 billion stimulus in december. we have global gdp growth for about a full percentage point. mark: the house will vote tomorrow on president biden's 1.9 trillion dollar coven reef