no expensive machines, no expensive memberships. get off the floor with aerotrainer. go to aerotrainer.com to get yours now. caroline: from bloomberg's world headquarters in new york and from right here in london, i'm caroline hyde. joe: i'm joe weisenthal. romaine bostick is out. caroline: where's golf was the tone of the day. s&p 500 crushing lower. e small caps really fell. joe: the question is, what did you miss? caroline: of course, today marking one year since the s&p

500 hit the bottom during the pandemic. we have learned a lot about every fabric of society from social disparities to health care. central bank supporting the economy during the lockdowns. we will look at how the market digested all these factors and how we tell investors rose to prominence. the focal promise was gamestop. just out with earnings after the bell. joe: gamestop, the ultimate retail play. the ultimate meme stock. we have been talking about gamestop for weeks and finally we got an earnings report. the market really likes it. stock nearing 200. the company naming a new coo. some of the numbers on the up 6.5%. this is not so much media

quarter story. there was a value play along. caroline: it is notable we have these continuing executive changes at the top when it comes to getting stop. you have a new coo being announced. we had yesterday the chief customer officer stepping down. you had hiring of an amazon alumni. for me, the take away is e-commerce doing better. joe: let's bring in the code proprietor of "gma" -- gme. one of the originals. you are a very serious investor. you have 30 seconds to digest these earnings and give us your complete analysis. what is your take away from the quarterly report? >> a lot of time to really dive in d. scrolling through the release, the big take, looking at the

2021 strategic adjectives, a lot of language around customer care operation. that goes in line with what we have been seeing with executive hires. really bringing the business from being the legacy break and mortar oriented business to a digitized customer centric operation. caroline: talk to us about e-commerce and happy birthday by the way. >> belatedly one day. caroline: global e-commerce sales in the salt -- the small print spread to 191 percent representing 30% of total net sales. how does that fit into your long-term vision of how much we move away from bricks and mortar and into digital only. >> the comp number looks great, which comes off a low base. the 30% number is a little inflated given all the preorder activity for the new consoles pushed through the e-commerce

channel. we had a lot of forced activity through the e-commerce channel. longer-term, we will want to see that number grow. i think we sell them report just under 700 stores were closed in 2020. would like to get more clarity on how they see that store rationalization player. it is moving in the right direction. joe: janet l1 is going to be the new coo. -- janelle when is going to be the new coo. what does that tell you about the crew that is coming together? >> they have been making a lot of hires for the past couple months ever since the agreement was reached in january 11. it tells me the company is taking it seriously and they believe that is their future.

i mentioned the focus on customer. there was a story this morning and a reuters that shows me how important the obsession with the customer to ryan and the folks he is bringing on board. there was a story reuters had. he had a customer who had sent emails to the company upset about order delay and ryan reached out within 12 hours of the email to the customer directly. cut on the phone with him. let him know what was going on. we funded the customer has money in tandem with the new customer service chief. they are going to be embodying the customer center in those of amazon like what chewy did. caroline: we are already seeing wall street reacting to results. gamestop earnings misses top and bottom line. this is a company that does not

always move off fundamentals. your perspective as always on the stock trading at 195. whether the story being told been the case that price point. >> it is difficult to say. we continue to have the supply chain issues. revenue came in a bit light. they are going to continue to -- experiencing these chip shortages paired with covid, there'd been delays in software development that will get pushed out into later in 2021 and 2022. those impact the shorter-term results. it is pretty clear there is a euphoric excited investor base that may also be customers. we talked about this idea that these folks are not are not investing for cash flows.

but the market priced at a massive move. i think it was a 30 plus percent move. joe: the one thing we have not seen, which some analysts have expected is capital rates. taking advantage of the surge in the share price. you have said perhaps the best reason not to take advantage of it is they do not need the cash. they can execute the turnaround without more capital. does what you see today make you feel more confident that ultimately the reason they are not selling stock is they don't need to sell stock? >> they don't need to. they have over 630 5 million in restricted cash. they just paid off their short-term note that came due on the 15th of march. they have access to cash. if they can lay out a pathway,

we have not had an investor day in years. that is something that investors like myself will reach out and be inquiring about if we do not hear anything about it on the call today. that is something many of anticipating. what does the path forward entail and if there is a need to raise capital, that would be ok. right now, there is no need to raise cash if we don't have a plan. caroline: how much do you read what the sell side analysts are putting out from the larger institutions and whether or not you care? there is not a single buy rating. to that point of having it -- do the ceos and executives need to sit down with analysts and give them their vision a little more actively? >> i think there has been an

adversarial relationship between the sale site and the company for a little bit now. i know from my research there is a significant portion of analysts who were short in the past. i can understand why the company may have been reluctant to engage heavily with some of them. there was an analyst who had a dollar 60 price target on the company a few months ago. he has raised it to $10. i think they could improve that relationship by having an analyst to help appreciate the direction they are going. that was a missed opportunity a few months back when my team put out our research where we dug into thing is to understand there was an opportunity to justify the price reaching triple digit and higher. it does remain to be seen what the path forward is. there is a lot of uncertainty. as evidenced by the implied

volatility around the stock options rate. joe: currently up 4% after hours. great to have you. great insights. coming up, we talk treasury secretary yellen and appel making their first appearance together before the house. we have more on the highlights. maybe some of the low lights. this is bloomberg. ♪

caroline: today, we are focused on the one year anniversary since the s&p 500 hit its bottom during the pandemic. one thing that has become prominent is what worries about inflation. jay powell addressed this at the house this afternoon. >> our best view is the effect

on inflation will be neither particularly large nor persistent. part of that is we have been living in world of strong disinflationary pressures around the world for a quarter of the century. we don't think a one time surge in spending leading to temporary price increases would disrupt that. we have the tools to deal with that. caroline: once again saying we have the tools to deal with it. trying to downplay worries about inflation. joe: joining us with more, bloomberg senior economic economist. thank you for joining us. we have been hearing a lot from powell lately. it seems like a lot. is there anything new or what stood out to you today from what we heard from him? >> i think we should put it in the context. this about the early legislation and how much that benefited the

recovery. both chair powell and secretary yellen had to make an assessment of what happens and how that early fiscal support really boosted economic growth. and rightfully so, they praised themselves on the actions. the testimony highlighted how the back -- the rapid government response to the pandemic brought physical release and a wide area of monetary actions played a critical role in what we are seeing today. that was not the case after the great recession. this time around, the response was really rapid, was really timely and powerful enough so that we can see the economic recovery as powerful as it is right now.

we are expecting an even stronger economic growth. in that sense, i think they confirmed our expectations. in terms of new information on what to expect on inflation for any other things, i did not hear anything new. caroline: you talk about the powerful recovery and we did see -- we are getting this drip feed of data that does not look so pretty because of february. is that something to quote a famed fed chair, is it transitory? >> i think so. i think february data is tricky. it is kind of in between a strong january and what we expect to be an even stronger march. you mention housing. i think it was the decline in new-home home sales and existing home sales, partially a result

of harsh weather. if you look at mortgage applications to purchase, we anticipated a decline in home sales because mortgage applications dropped significantly during the week of the faries in the south of the country -- the freeze in the south of the country. they recovered for three weeks in a row. i expect march will be much better and informative in terms of what happens to the housing market. i don't think the back up in rates we have seen so far will derail housing market this year. it will slow down. affordability still really high. i think it is not going to ruin the progress in the housing market. not until we see mortgage rates in the vicinity of 4%. there are currently at three point 3% on a 30 year mortgage.

i think we did not see much better data in terms of personal consumption because of the stimulus checks that were distributed in march. we will already see that data. caroline: great to have your voice on. taking us through the views being given in congress and from the data. looking ahead, we have one year since the bear market bottom. we break down the year that was through the charge. this is bloomberg. ♪

joe: today marking the one year anniversary of the s&p 500 bottoming out during the pandemic. a closer look at the recovery and the outlook for the months ahead. march 23 marks one year since the market bottom. and the outlook for the economy could not be more different. u.s. stocks having more than recruit crisis -- more than recouped crisis losses. household balance sheets are in aggregate flushed with cash. the u.s. already vaccinating people at a rapid clip and further acceleration is expected in the weeks ahead here the federal reserve bank of philadelphia showing conditions jumping to the highest level since 1970 three. other surveys of many fracturing conditions showing strong improvement. the labor market expected to see

hiring any the months ahead. the service industry already getting going. almost 300,000 jobs in february. this is before the pandemic has been fully defeated. u.s. consumers expected to engage in revenge shopping. fed chair powell sounding more upbeat. >> fiscal policy overall will have really helped us to avoid much of the scarring we were very concerned about at the beginning. i think that is the side and speed -- the size and speed with which congress has delivered. it will make a you difference in people's lives. joe: what is most interesting is people are not just as upbeat as last year but they are more upbeat than they were before the crisis. >> people are spending more money than they did last year and growing at 10%. that was before the pandemic. joe: the massive infusion of

cash to households dramatically different from the financial crisis and could lead to a new economic trajectory. caroline: nice beats on that package. shout out to the producers. our bloomberg markets producer is here on some incredible charts. i feel like equities have inched it. >> it really did. a lot of it is not equities broadly. it is tech. not only has that changed the u.s. benchmark but it has helped the u.s. benchmark become such a bigger power of the global equity market cap. that is a really interesting commentary because you are seeing that have lasting effects. you can see this have lasting effects because we just heard from gamestop putting in outfit -- a massive emphasis on e-commerce. i was joking that e-commerce is

the reinstating guidance. it was the thing that used to make stocks rally. that tells you the 2020 tech gains once again, it is a long-term structural change we are in for. joe: in the meantime and over the last several days, some of these really intense trades are cooling-off. some of these tech trades starting to fade. are people talking about this as a moment where these trends are starting to take a >> pause? you can see it from oil. you can see it from small caps and things like airlines, which were one of the most volatile stocks in the s&p 500. part of it is cooling-off. even though we are pinning it to the european demand crisis and vaccination rates and that is a factor of it but there is also this idea it has rallied so far. why not pullback? that is an argument we used to see with tech as well.

perhaps tech is selling off or having these corrections not because they are losing steam but they rally too far. caroline: talk about that rallying too far. 50 trillion is the number that kept sticking with me globally worldwide. that is such a phenomenal number. it was notches the u.s. number -- the u.s. market they did so well. >> it actually came out of china as well. you saw the chinese market really rally. this matches their underlying economic change. chinese tech is something to keep in mind because that is something that pushed these rallies ahead. names like alibaba or baidu. things that actually rallied even with the retail frenzy you saw in chinese markets. we are just adding to get a taste of how much retail traders can move the market. i think china is such a great path or leader in that they have dealt with as volatility.

they know what to expect. in terms of where the future is and what kind of participants you see in the market, china is a great example. joe: what are you going to be watching year? what are going to be the themes you watch to see how that have -- now that we have -- what is next? >> i think the big one is going to be things that have to do with inflation. i am looking at semi conductors, which is a weird take on inflation. also a way to play the tech space as well. you have to look at things like energy stocks. they have become such a global proxy you for growth and economic growth out of china and the u.s. and yet, their prices are controlled by opec, u.s. shale producers. there is a lot of push and pull. it tells you, what era are we in? are we in this era where oil is a part of our lives or tech

taking hold? caroline: a good way to leave it when we have such a selloff in the day. she always have some really great takes. what are you looking at the next couple of hours? joe: i have been looking at prices of the nba topshop digital trading cards. that is the classic leading indicator of a downturn. i will see if that continues overnight. caroline: ok. all about those non-fungible tokens. as everyone else jumps on the bandwagon. joe: bloomberg technology is up next. have a great evening. this is bloomberg. ♪

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♪ emily: i'm emily chang in san francisco, this is "bloomberg technology." coming up in the next hour, robinhood ipo. it is said to have filed confidentially, despite regulatory scrutiny and lawsuits, you can expect they had turning valuation. we break it all down. aggressive and distrust of