>> from bloomberg world headquarters, i am caroline hyde. >> i am joe weisenthal. >> i am romaine bostick. romaine: this pushes the s&p 500 back near its record high. joe: the question is what did you miss? caroline: the global economic recovery, taking the biggest step yet by a major economy to

reduce emerging levels of monetary stimulus. the loonie is loving it. the fed is saying they will scale back their purchase of government debt. they spent time discussing housing today. >> ezra made -- as romaine was saying. romaine: people apparently back into some of those more speculative areas of the markets that have really gotten beaten up lately. it has been a while since specs have done well. this i not a bad day, all around. >> you did see some of the more fundamental type stocks as

people are betting on that reopening trade to continue. >> for more, let's bring in katie grunfeld. >> traders are being rewarded for holding through the difficult monday and tuesday. >> it was a rough 2 days. if you look at small caps, cruises, airlines, all leading gains today. norwegian krone resigns -- cruise lines was the second-leading performer in the s&p 500. you saw goldman come and upgrade that industry. they say that they see pent-up demand in the leaders face. even though you did not have such great news for the airline industry. it is like you saw all of those travel stocks trade in tandem today. >> the covid numbers are still

horrendous. talk to us a little bit more about any technical analysis going on here. >> diff -- dip buying seems like that. you're just by the stocks at a team -- the stocks at a cheaper price. your to -- you are seeing some interesting notes. bitcoin in particular, it has had a bit of a funk. really rough losses. he came out and said that if you look at the technicals, it is not looking too hot for bitcoin. that recent surge was not confirmed by rsi reading. you had j.p. morgan come out and

say something similar. that the momentum signal could turn into bitcoin. we are down about $55,000 per coin. >> we are seeing some softness in the consumer staple stocks and some of those household goods stocks. this seems to be where a lot of them -- we are starting to see that trickle-down to the end consumer in a lot of different ways. how concern is that and how could it weigh on future markets? >> if you look at the consumer staple sector, that encapsulates food, beverages, household products, you're starting to see some weakness there compared to the broader market. there is some evidence from that. you're starting to hear from

companies. procter & gamble said yesterday that they are going to offset some of their higher costs into by and raising prices. this is going to be really interesting to watch because this is going to be what the fed is watching. if we do see prices the consumers have to pay start to rise, we don't see the same sort rise in wage growth. this will be interesting for the recovery. >> the economists will be watching the recoveries for inflation. netflix aside, we just saw chipotle come out. it seems like so far in the earnings season, by and large, -- >> as we look at the latest estimates, the estimates, they

are expected to grow by 30% this quarter. the last quarter, it is obviously, huge growth. a huge growth, whether or not that starts to translate into the stock prices, that is another left. you're starting to hear some chatter about deep earnings potential, peak economic growth. that is the start of the conversation i'm starting to have with investors. >> rocking profits. look at the bank numbers. we thank you so much. all of the insight, coming up. bank of canada taking the lead. that is next, this is bloomberg. ♪

>> the economic outlook has improved and governing council is more confident in the resilience of the economy to the pandemic. canadian households and businesses are adapting to the virus, finding new ways to shop, serve customers and work remotely. >> there was bank of canada, and are, to back him -- tiff mac klem. there was a big reaction we saw in the loony. there will be a little bit quicker than some expected -- they are moving a little bit quicker than some expected. joe: you see the cad falling

very sharply. it speaks to the idea of this sort of pulling forward of the price that was not priced in. >> the recovery needs extraordinary support but the loonie ain't listening. >> we have our guest now, there is a difference it seems between the way the bank of canada speaks versus the fed, the fed is basically like we are on vacation until things are really good again, the bank of canada is forecasting a little bit what the endgame looks like. >> the bank of canada took a hawkish tone today, it signaled for the first time that it is ready to start on his path to the normalization of monetary policy by reducing some of the stimulus in its qe program.

it especially stated it is reducing purchases of government of canada bonds because economy -- the economy is recovering faster than expected. the bank of canada pulled forward its guidance. it sees the excess like in the economy and inflation returning to its 2% target. that is really because of the economic recovery. this is happening a lot faster than expected. even though canada is in the midst of a third wave of covid cases, are having more and more restrictions on the economy, the canadian economy --

>> that is good economic data. powell is looking at a little bit more fluid data in addressing some of the equity markets here. then you go back to canada and look at the housing boom there. you almost wonder if it is moving too slow. >> the housing market and the housing story has been a big part of the economic boon. it has been this bright spot. the bank of canada said that that fundamental factor is driving the housing boon. it is the desire for more space as people are spending more time at home during the pandemic.

they said they are going to watch this area closely because it could turn into speculative behavior. they do think that house prices -- >> it is interesting, i am just looking on the economic statistics from bloomberg. the united states is seeing this on implement rate but great disparity within depending on who you're talking about, either than looking at women or people of color. there is this worry about all boats rising. fed chair powell is looking at an inclusive kind of growth. is the bank of canada seeing that? >> they are definitely looking at the uneven recovery happening in the labor market.

it is not as explicit as it is in the u.s. where they have the dual mandate, where they are targeting employment as well. certainly, during this time, the bank of canada has signaled it is going to look at making sure we have of the recovery in the labor market and that no cohorts -- if you look at the labor market situation, the labor markets have recovered much faster. we have never covered 90% of the jobs lost at the height of the pandemic last year. joe: is there still some tension? romain brought up the housing boom. the virus situation is still worse in canada and seems to be going in the wrong direction, restrictions picking up. how does the bank of canada balance that threat?

you mentioned jobs recovering. on the other hand, there is this negative trajectory still with the virus. >> in the midst of the third wave, that is why the bank of canada is going to be cautious when it does talk about the economic recovery. we do have a lot of restrictions on the economy right now. particularly in ontario and quebec. the economy actually expended a lot more than we thought. the bank of canada is predicting nearly 7%. the bank of canada is really betting on a more optimistic outlook and thinking that businesses and consumers have adapted to these restrictions and they will continue to do so through the third wave.

>> a lot going on up there in canada. you can paint the same picture here in the u.s.. we will get a big batch of u.s. housing coming up here. we look ahead to those releases. we will talk about that lumber shortage. allie wolf, chief economist will be joining us after the break. this is bloomberg. ♪

>> today, we're focused on the signals of the global economic recovery. one part of the recovery that remains red-hot in the united states was housing. tomorrow, we start to get the latest round of the data on the sector and we're are pretty sure that it will stay pretty hot. >> housing, absolutely on fire.

we were talking about it in canada. in the u.s., we are getting more data tomorrow. home sales are excited to come in at an annual rate of 6.1 million. impressive. let's bring in allie wolf for more. is there anything curving the momentum in housing? >> on the demand side? no. housing is crazy. i could pick up a dart and throw it at a map of the u.s. and i could bet money that is universal across price point and or groups. they are doing really well.

>> it is going well. they look at the rate environment. once you, the floor, that is the scoop on people. then there is the whole issue of availability and affordability. that is ultimately cribbing sales again. how do you factor that into your general outlook -- crimping sales again. how do you factor that into your general outlook? ali: on zillow and redfin, housing is made to look their expensive. we have run the numbers. interest rates are all from the floor but the monthly payment is still down. there are some consumers that are savvy enough to recognize that and say i want to jump in and that is creating the feverish pace today where people are saying i need to get in now.

the issue is that interest rates are likely going to go up. if you are a builder and signing a contract today, the lead time until someone can get that home has become extended. we have heard up to 15 months. caroline: is that on the back of a supply-side issue? why the big disconnect? ali: i smile because it is everything. it starts with supply-side issues. 89% of builders say that that will impact their ability to build. local jurisdictions did not think housing was going to be this hot. the government are scrambling to get permits done, get entitlements done. all we talked about in 2019 was the labor shortage. you will never hear about

annette because lumber is taking the front stage. there is a lot of factors working against the builder. joe: does the price of lumber matter at all or is it about whether the builders can bundle it? >> the price of lumber does matter because we are thinking long-term, if you're talking about interest rates going up, you have to be the one that purchases the home at that entire price. i texted with the ceo of one of the biggest homebuilders yesterday and i said what is the workaround? he said there is no workaround, we are just going to try to be a bit more efficient. some builders are trying to warehouse lumber. in a lot of cases, builders are just raising prices and consumers are saying all right. joe: we have heard at least anecdotally some concerns about cost of things like insulation

and flooring that go into the final part of a home here. how are builders addressing this? ali: another great question. 98% of builders raise prices month over month. when you look at the numbers, 50% raise prices $10 or more. i have heard of home prices going up 250,000 dollars in six weeks. it really depends on the market, it is crazy. to answer your question is lumber is going up, insulation is going up. concrete is going up. one thing i want to know is right before i got on the call with you guys, they say that they held off raising prices because they knew that builders were just getting pummeled left, right and center.

he said he finally had to go back to builders and say i am sorry, we cannot continue to build this. >> it was interesting today that without saying downgrade your outlook, i think the r&d will come in, we will get a supply-side bump. i want to go back to what you're saying in terms of -- a few months ago, it was all about the urban flight. our high prices through the roof -- are prices through the roof? ali: we look at our zonta data. 70% of the best-selling communities are closer to

suburban districts. i have gone out and toward markets in places like los angeles, i have talked to builders who were selling along the silver line in washington dc and they say all of the articles tell me i need to be freaked out about demand but people keep coming. people keep sounding contract. -- signing contracts. i think there are some parts of the city's, people may balk at that. i really hold that demand is universal. >> amazing statistics she is coming up with. even though lumber came off a little bit today, is that the first thing you're going to be looking at 4:00 a.m.? >> may be the loonie tomorrow. >> is in the loonie just driven by lumber?

>> it is all the same. caroline: we love it when things work in synchrony. that does it for what'd you miss? >> have a great evening, this is bloomberg. ♪ it's moving day.

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emily: this is bloomberg technology. coming up in the next hour, one of the largest software ipo's in u.s. history. thank you pet shares -- ui path shares climbing.