>> the risk that the data comes in hot or remains hotter is an important part of it, and the fed has so far -- the fed is so far behind the curve that it is hard for them to catch up. >> we already had a bit of a melt up in the first half of the year, so we don't necessarily see another melt up happening. >> inflation could keep rising, but stay higher for longer. >> even forget decent cpi prints, i don't think that is going to be enough to force the fed's hand and tightening any before 2024. >> you cannot really push the story of inflation targeting and

have it as -- have a rate hike as soon as 2022. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. thrilled you are with us on radio and television this morning. coming up, our equity discussion of the day. david kostin will join us from goldman sachs. part of it is about the end of this pandemic, and mom during the steps and where pfizer has been -- and moderna steps in where pfizer has been. jonathan: in the moderna study, 93% to 100% effective in a study of 12 to 17-year-olds. from here, the process continues. the company will submit for regulatory authorization in early june, and from there you imagine this one gets rolled out. tom: to me, it is about the quiver of solutions. it is not anymore one target,

one silver bullet. it is a quiver of solutions for nations that are in the headlines, and too many that are far behind. lisa: the question now is below that, what about younger adolescents? and are we almost out of the pandemic? tom: stock moving 2.2%. we really need to frame the equity markets. futures up 15, dow futures up 92. jon ferro notes 18.36 on the vix. that is a david kostin number, isn't it? jonathan: after a really tidy rally in yesterday's session. growth has made a bit of a comeback. is that just a little bit of a bounce of fate? what are the signposts you look for to try to understand whether that move is a little more durable? tom: i'm going to go to sector rotation. i do want to step in now, with

every friday, it is the pendulum of gloom. there's no other way to put it. there's a whole cast of characters saying kostin is wrong. lisa: that's called bond investors. two jon's point about the growth names, it is big tech having a resurgence, coming intended with a flight to quality even within credit. you have seen this rotation into the higher grade bonds from the lower grade bonds recently, and you have seen extra yields fall to a postcrisis low. this comes at a time when people are concerned about inflation, which raises the question of why they are expressing this concern and a flight to safety. tom: there's a million news stories this morning. jon ferro, when i look at belarus and the flight, you are our expert on ryanair and british aviation. have you been surprised at the response from u.k.? jonathan: are you calling me the

expert because i'm the only one of the three of us that's taken a ryanair flight? e.u. was on the same page when it comes to dealing with this, and i imagine the u.k. will be as well. whether there is some difference around trouble right now is how to reopen things for the summer, and who is going to curtail access of u.k. tourists into europe? because germany and austria have made that move in the last couple of days, and spain is saying the door is open. france is considering closing the door. that's where there is some confusion right now. tom: we are going to bring in david kostin, chief u.s. equity strategist for goldman sachs, as he resets for s&p 5000. we must celebrate, as you at goldman sachs come with a fully staffed team kostin today in the office. i want you to explain the past to get your team is const again. -- your team ensconced again. david: i want to congratulate

everyone. the team is here for the first time in 15 months. we had some density restrictions in terms of seating arrangements, but given the way we have been able to use some extra offices, we are all here today, so i am happy about that. jonathan: what changes for you as the team gets back around the table again? david: the difference is just the interaction and being able to have small conversations about different issues that come up on a computer screen, call someone over to pointed ou,t. some people are wearing masks -- two point it out. some people are wearing masks still, but everyone has been vaccinated. it is just a more efficient way to communicate. we were doing everyone remotely, but just an incremental amount of communication, so that is really helpful for our teams. and i think in my conversation with clients, more and more of them seem to be coming back to working from their offices, and there's different portfolio

managers that have different time frames to reengage. but right here today, my team of u.s. portfolio strategy, we are all here. jonathan: let's shine a light on one of the debates at the moment. the nasdaq has made a bit of a bounce. earlier in the conversation on this program, we were talking about whether there is a correlation or a causation between what happens with rates and what happens with growth, big tech. what are you in the team saying about that? david: it obviously has a lot of different dynamics, and i would impact that in two ways. how does inflation affect the equity market, broadly speaking? which sectors in particular? the transmission mechanism on the one hand is valuation because the impact of higher inflation leads to generally higher rates, and that has an impact on the longer rate growth stocks. but there's also a transition mechanism through margins. so i think we need to bring both

of those together and think about it. what is one of the attributes of the technology sector? they have extraordinarily high margins, and have been relatively immune from the higher inflation curtailing their margins. so on the one hand, you have a depressing effect on valuation for inflation and what that means for rates and the valuation of that long-term expected growth, and on the other hand you have the durability of the margins as compared with some other more cyclical sectors where their margins may not be so robust in terms of ability to pass through those higher input costs. i think those are the two things we are trading off one against the other, and my view is that the margins are going to become the more dominant topic of conversation. the idea of transitory is a debate we will be having consistently until october. we will put a stake in the

ground and say that is six months. colleagues at goldman sachs economics also have a view that the inflationary impulses are relatively transitory, and we will proceed back towards our 2% core pce next year. so that is the issue with that repeatedly. the more interesting debate around portfolio managers is the durability among margins. margins have recovered now to their pre-pandemic levels, so they are already back to where they were pre-february of 2020. the question is from here, where are we going? my view is margins are going to be relatively flat, and a big variable there is the tax rate, corporate taxes. if you told me for a moment we will not have corporate tax reform, we would have earnings growth of around 10% from this year into 2022. that is not our view. we expect an increase in

corporate taxes, and that is going to mean that growth in earnings is going to be around 5%. so you pay a different multiple for 5% growth as opposed to 10% growth. lisa: this has been the story, that big tech can pass on pricing increases, big tech reigns supreme again and again, and that is why it is the top holding for so many companies, so many investors. at what point do you start to worry about concentration risk that again as hedge funds double down on facebook positions after already having large positions outstanding? david: facebook is the largest stock in our hedge fund. very important position. we have been tracking the snow for 20 years. every 90 days we are looking at around $2.8 trillion of long and short exposure, and that is the most important position.

it is a big topic of conversation, just how dominant these can be. right now, these five stocks, the big five companies that we all know are comprising around 21% or so of the s&p 500 equity cap, but last september, that was 25%. so the actual concentration has diminished slightly, and perhaps more importantly is in the growth index. if you look at the russell 1000 growth index, this was a big issue for diversified growth mutual funds, where the passive index weight in the russell 1000 of the five largest companies but a number of funds in excess, or tripping the diversification requirements of the sec. that has come down a little bit as these companies, as big and dominant as they are, the rest of the market has proceed a little bit in terms of their concentration. so the discussions with fund managers is just how further can

they run. when you think about what happened year-over-year and revenue growth in the first quarter, they were up 41% compared to the rest of the market, where they were up modestly in terms of sales growth. so the idea, even think of the worst part of the pandemic in the second quarter of last year, the worst part of the pandemic, year-over-year, these companies had 18% revenue growth. the rest of the market was around 7%. so these companies are pretty durable in terms of their growth, their expectations, and terms of revenue growth. they trade at basically about five multiple points higher than the market. the market is like 20, 21 times right now. these are 25, 20 six times. so they are trading at a premium valuation, no question about that. but they also offer that growth. tom: in the time we've got left, i do want to congratulate your

team on their amazon research of a couple of weeks ago. i thought it was great. you went to cash flow. there's a lot of people out there cautious short-term or a long-term view, and one of them is douglas cass. doug kass is saying i don't care what cost and -- what kostin thinks about the market. how does it play into your view of the equity markets? david: when i think in terms of liquidity, low versus high liquidity stocks and groups of companies that have more or less liquidity from a trading perspective, the market has rewarded companies that have relatively lower liquidity. that is just a factual statement in terms of the performance. i know doug. i haven't talked to him in a while, but he is generally more on the bare side, so i wouldn't be surprised if he had a more cautious take on the world. to be fair, the market right now in s&p is 4200. our target for the end of the year is around 4300, so a pretty

modest upside, to be very clear. that is likely to be shifting from more cyclicals, which has done really well so far, towards more of a growth. the idea behind this is the economy is peaking this quarter in terms of growth rate, by 10%. that is going to decelerate. still grow, but at a slowing pace. that is where the transition hands off to companies that are growing at a more extended level. companies behind that are investing in their business, and that is what makes some companies differentiated from others. the typical company invests 11% of its cash flow from operations to grow its business. as a portfolio of companies, there's 75%. big companies we talked about earlier, around 60 5%, so it is an enormous round of investment to grow into 2022, and make no mistake, all of the conversations with fund managers are about the growth

prospect in 2022. jonathan: love catching up with you. tom: fired up. the team is back in the office. jonathan: excited to have you soon around this table at some point in the future. tom: lisa, could you pass me the tang, please? [laughter] jonathan: this is bloomberg. ♪

>> if we saw some development pushing inflation up, i wouldn't expect that to get embedded in

ongoing inflation rates. if we did see inflation that moves persistently and materially above our goal, in a manner that also threatens to have some impact on the long-term inflation expectation, we have the tools and the experience to gently guide inflation back down to target, and i think no one should doubt our commitment to do so. jonathan: you're going to hear that conversation on repeat through the year, as david kostin of goldman sachs pointed out. good morning. . alongside tom keene and lisa abramowicz, i'm jonathan ferro. about an hour and 12 minutes away from the opening bell, your price action looks like this. advancing on the s&p by 13 points, higher by about zero point 3%. the nasdaq 100 up 71, 0 .5%. in the bond market, yields lower to 1.5893%. euro-dollar, one due to to sit -- euro-dollar, $1.2265.

if we can get to moderna, i will bring you where the stock price is right now. a couple of percentage points in the premarket off the following headlines. the moderna vaccine is highly effective, 93% to 100% effective in a study of 12 to 17-year-olds. that stock is up by about 2.75%. tom: those are big effective numbers versus the other more suspect vaccines. one question out there is this quiver of vaccines we have that seem to grow every day. we have been euro, euro, euro this morning. 1.2 sue 65 -- $1.2265. i would also note renminbi out to new strength. the chinese you on -- the chinese yuan strengthens out to a 6.41 level. that is a really compelling statistic.

lisa: did you read about how the central bank in china was hoping for a little more strength to offset the commodity inflation? that they thought it could actually help the economy? so perhaps this is part of the response. jonathan: easiest way to let the policy response happen overnight is to let this weekend best to let this weaken. tom: to me, it is the dynamics david kostin was talking about. that goes back to foreign exchange, the litmus paper of the market. we all know the cliches. they'll drive her aris in the city. -- they all drive ferraris in the city. ira jersey is joining us now, our u.s. rates interest strategist. what is your signal from one-day paper out to 30 year bond? ira: that the market is still thinking we are going to get more inflation, and i think that

commodity story is certainly part of it. when we are talking about 2.5% inflation, it is almost a goldilocks scenario for the fed if the market asportation is realized because it ends up being a little but higher than we have had the last decade in terms of inflation, but still not run away. that i think would be the situation that the fed really want to be in. will it be realized or will we runaway inflation? i think that is what people are worried about at the moment with a lot of these trades. lisa: based on the idea that the fed has to talk about talking about tapering, and then start tapering before they even begin the conversation about raising rates, do you think james gorman could actually be right when he says that the fed could start lifting rates as soon as early next year? ira: i think next year would still be a little bit early. obviously the market is pricing some chance of a late 2022 interest rate hike. i think the question is what

type of inflation do we get. do we get the inflation that is in goods and driven by commodities and potentially higher energy prices? or is it being driven by wages and things that the federal reserve once it to be driven by? i think the fed is going to be concerned about things like income inequality, and the fact that this is the pandemic, if anything and has made a wider disparity between the haves and have-nots in many situations. so i think the fed will wait to raise rates a little bit longer than the market is thinking, and i think a lot of people are thinking. that doesn't mean it won't taper. i do think they will start to reduce their asset purchases very early in 2022, and like you mentioned, they have to start talking about that relatively soon, probably in three q, at least lay out what they see as the plan for that, and then say the timing will be based on incoming data, things like that.

as soon as we start to say we have a plan, the market is going to act maybe not like the 2013 taper tantrum, but it is going to rhyme a little bit. lisa: let's talk about what that looks like. i'm looking at a 10 year yield of 1.59% and wondering, is this pricing in a taper or even a discussion of the taper in the next couple of months? ira: a little bit, but not a lot. i think earlier this year in january and february, when we had that pretty dramatic selloff, there is that idea that we were getting away from needing another round of qe and pricing in some chance of a taper at some point. i think the big thing to look at is going to be tips yields. yields on 10 year tips now is -80 basis points. i think those yields are going to rise pretty significantly, 50, 100 basis points, perhaps. that is where you are going to start to see 10 year yield rise

above 2%. we had 2.3% for the end of this year. you are still talking about a nice 70 basis point selloff from these levels. i think once we start -- these levels i think once we start getting a taper from these levels. you had a nice 9, 10 basis point selloff. but i think the market is still skeptical as to the resolve of the fed, and will they be willing to actually taper given some of the data and how volatile it is. they keep talking about looking past this bout of volatility because the base effects and the like, but nonetheless, i think the recovery is still well under way. it is just a matter of the pace that will ultimately drive exactly when they start to taper and how loud the chorus is about needing to taper. jonathan: question of the morning, did you see the

cristiano ronaldo instagram post? ira: i did not, i hate to say that. jonathan: said, thanks to everyone who takes part in this journey, we stood in this together. is he done? ira: it sounds like it. will he go somewhere else? i can't imagine he stops playing. tom: png. they are the only ones with the money. jonathan: they are saying psg, maybe. although i heard some rumors over the last couple of weeks that maybe he goes home, back to portugal. tom: maybe the padres will pick him up. jonathan: maybe. they would sell some jerseys. tom: david rosenberg out moments ago in toronto, and he says the real inflation, you know what? it is not that's real. rosenberg and others are really pushing against the gloom of higher inflation. jonathan: pushing back hard. that's for sure. julia coronado joining us next,

macropolicy perspectives president and founder. your equity market higher, advancing zero point 3% on the s&p 500. alongside tom keene and lisa abramowicz, i'm jonathan ferro. heard on bloomberg radio, seen on bloomberg tv, this is "bloomberg surveillance." ♪

jonathan: one hour away from the opening val. -- from the opening bell. alongside tom keene and lisa abramowicz, i'm jonathan ferro. through 4200 on the s&p. yields are breaking 1.60 to the downside. down not even a basis point at 1.5944 four stop -- 1.5944. 1.2262 on euro-dollar, moving to the euro's favor. tom: a lot of housing data coming up. i believe you will see that on "the open" with jon ferro. jonathan: thank you. tom: it is now time to frame the fed. we can do that with julia

coronado, macro policy perspectives founder. the equity market is voting. maybe it is a raging rally. how do you use the stock market within your fed economics? the stock market is voting optimism. julia: right. chair powell is a financial conditions guy. he does use financial conditions to calibrate how easy or how supportive policy is come and right now the markets are saying policy is supportive and it will work and it will create a strong recovery. that is exactly where they wanted to be. tom: where you see that with an investment? it is a smaller number. what is that volatility right now into the end of the year? julia: we saw a very strong investment recovery last year. investment ended up stronger come at a higher level in

pre-pandemic are the end of the year. i think that bodes well for gains in productivity this cycle and also for that optimism you talked about earlier. companies are putting capital to work. they see progress for making money by doing so. i think that is a good signal. there is some volatility and it will not keep rising at the pace we saw in the second half of last year. it does him to be on the positive track. jonathan: how you gauge productivity and how easy is it to get a gauge on what is happening in the economy? julia: it will be hard for a while. everything will be extremely noisy this year with the reemployment of a lot of people and the shifting in the mix of workers. we have seen a strong productivity performance during recession as companies struggle to survive by squeezing every bit of efficiency out of their

operations that they can. it will take a little bit of time to see whether we settle at a higher trend in productivity then we did last cycle. last cycle we saw pretty disappointing performance throughout the recovery and expansion. i think there is some thought the pandemic accelerated business transformation. it brought forward a lot of plans that could result in higher productivity, and then the question is how do we balance that against the frictions associated with dealing from where does work from home go from here. how do companies navigate and manage their workforce with some employees wanting to stay remote and others wanting to come back to the office. that will be a management challenge. jonathan: give me a second to bring our audience of news. joe biden said to have a summit with vladimir putin and expected to take place june 15.

that just coming from cnn. the biden-bruton summit expected -- the biden-putin summit expected june 15 and june 16. tom: nbc talking yesterday it would be in geneva, switzerland, which has symbolism when you talk about the tensions across kong ho europe. jonathan: a lot to achieve next month in europe. lisa: and it raises the question how much of this is a factor into the economy. we teach -- we keep talking about the infrastructure bill that seems to be getting pushed back further and further. now there's a question of whether it will get past at all. no adjustments being made economic forecast based on that jonathan: jonathan:. how do you make that adjustment? how do you think about what is happening in d.c. and plug that into your outlook? julia: a lot of what we are seeing is the political theater around the structure bill.

we are not adjusting our forecast because we do think it will get past. the question is how big is it and how much is paid for through higher taxes. that still seems to be in a state of flux. overall we think the bulk of the infrastructure proposal goes through. the question is is it bipartisan or a partyline vote? lisa: there's a question of how much this higher inflationary regime hinges on the presumption you talked about, that infrastructure will get past, something resembling what it is right now in the proposal. julia: i think it is an important contributor to the outlook, although remember infrastructure is something that gets spread over 10 years. it is not a replacement for a fading fiscal impulse. we will see a fading fiscal impulse. we have had a tremendous recovery push that has been stoking a lot of the supply chain pressures.

that will ease back as we move through the year and into next year. underlying that is a decent recovery. we expect, given the gdp tracking, we will see a nice bounce back in may hiring. i think april was the outlier. maybe we do have some friction reconnecting people to employers . there is a lot of demand. i think ultimately that will lead a strong labor market recovery. we will not be as reliant on the fiscal impulse to get it decent economic performance next year. i do not think it is the be all and end all. it will cause sector reallocation. you're pulling in resources for this infrastructure agenda. that will move resources towards that from other sectors, so that might be different otherwise. i think we are going to hand the baton back to the natural expansionary dynamic towards the end of this year and into next.

lisa: can you elaborate about april being the outlier and expecting hiring to pick up? what has been responsible for this labor market shortage at a time when there are still so many people out of work. julia: there is a lot of friction. there was a nice article on restaurant workers in the washington post this morning that was talking to the workers themselves. we are coming out of the pandemic and we should not forget that. a lot of people have made changes in their lives. they think about their work differently. if you are on the front lines, you do not look at your sector the same. you are making decisions about where do i want to be, what do i want to be doing, and what am i willing to work for. we are saying that negotiation happened right now. it is not a question of whether people will return to work, it is where they will return to work, at what wage, and how that settles out in the coming

months. we still have millions of people who are actively looking for work. tom: one final question, to your point on wages. are they transitory? julia: i think what we are seeing is something similar to what we are seeing on the price side. you have excess demand for workers in certain sectors. that will lead to a shift up in their wage rates. we are seeing that very clearly in the leisure and hospitality sector. that is long overdue. that is great news for those workers. that could be a relative price shift. we could see less point wage gains if that is -- that is something we saw at the end of last cycle, pretty covid when we are in a very strong -- pre-covid when we were in a strong labor market, we saw the low-wage get the strongest wages and the top earners seeing their

wages low. that kept the overall wage bill moderate. the growth in wages moderate. i do not see any reason we should not see that same kind of dynamic with a relative shift with lower wage workers, especially front-line workers getting the biggest races as we reopen the economy. jonathan: always enjoyed catching up with you, particular this morning. julia coronado of macro policy perspective. news from cnn. the first face-to-face meeting between joe biden and vladimir putin expected to take place next month in switzerland according to two u.s. officials speaking to cnn. the white house and the kremlin move closer to finalizing arrangements for the summit which will take place next month. tom: there's a lot of news before that with the belarus overlay we see over last few days. you wonder how their agenda can be organized. there are so many things to talk about. jonathan: brussels, london, now

belarus. a lot of things to work out. that is a first overseas trip for this president. lisa: fraught is the word i would use. how he can toggle between the democratic party and the republicans and present a new front for the united states that will be powerful to all. the market up about 18 on the nasdaq 100. you called monday's news come are you calling tuesday a snooze? tom: foreign-exchange is really nuanced. euro swissie not sewing much this morning. euro speaking stronger volumes about stronger euro. there is a -- between the euro and the yen full-time. it is an interesting mix. i looked at singapore dollar to confirm that. i do not have new recent

strength but it is getting there quickly. jonathan: euro-dollar 1.2258. looking for that deal to cross between mgm holdings and amazon. the $9 billion deal i believe the journal was the first report. lisa: we are looking for that. you're talking about the chinese yuan and how it is the strongest against the dollar since 2018. i looked. over the weekend, the central bank came out and they were talking about higher commodity prices. one central bank official in china wrote an essay saying perhaps the yuan should appreciate to offset the higher cost of commodity imports. that blog post has been deleted and people have come out to try to fight back. it highlights some of the sense within the chinese central bank as how to handle this. jonathan: that can move against them pretty fast. the cisco ceo chuck robbins will be joining us in studio in about 20 minutes. lisa: nice. tom: that will be a good sit

down. jonathan: i am looking forward to that sit down. tom keene, lisa abramowicz, jonathan ferro. the glass thing is just for me and tom, lisa. i am sorry you got caught up in this. both vaccinated. maintaining the 30 feet distance from me, won't you? i would love to say this is the president, vice president set up when we cannot be in the same room. who is the president? lisa: dr. phil. tom: they're capturing it. ritika: with the first word news, i'm ritika gupta. moderna's covid-19 vaccine was highly effective in 12 to 17-year-old adolescents, paving the way for regulatory submissions around the world by early june. the drugmaker said today its vaccine was between 93% and 100% effective in preventing covid in a recent study of teens. that puts moderna's vaccine on

track to become the second shot authorized in the u.s. for that age group. secretary of state antony blinken kicks off a middle east diplomatic mission today with a pledge to help reconstruction efforts in gaza. speaking in jerusalem alongside israeli prime minister benjamin netanyahu, antony blinken said he will specify an aid package to the palestinians. backed by the u.s., european union leaders are moving to impose new sanctions on belarus over the forced landing of a ryanair jet and the arrest of a dissident journalist. the eu called on the belarus president to release the journalist and for aviation officials to investigate the incident. president biden called the incident a direct affront to international law. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg.

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>> what we saw earlier this year in terms of real yields coming up the bottom, being less

negative is an example the market is not 100% comfortable with the fed's ability to do everything it says. tom: state street senior global strategist. good to have him on earlier this morning. the vix is a huge deal from the 2021 level. 18.32. lisa abramowicz and tom keene. jon ferro preparing for a magnum opus we will see at 9:00. barry ritholtz joins us come our bloomberg opinion columnist. doug kass was talking up volume as being low. you have written on this including into thousand seven. to be fully clear, i do not believe in volume study. barry, do you? barry: it is a truism that volume often precedes price in a

specific stock. you have to look at the context. the context is after a hellish year of lockdown, heading into a long weekend, the economy is reopening. i think anybody who could get away from their terminals, get away from their trading desk has done so. if you're surprised that volume is light this week, you are very easily surprised. tom: if we go back. mike sam totally writing forbearance, now he is over at the death star. the volume today is not the same as when mike santoli was writing forbearance. barry: that is right. you have a giant rise of passive indexing which is a relentless bid. 11% of all u.s. public companies are held by blackrock or

vanguard? there is that element. on top of that, you have the algorithm trading and the high-frequency trading. it is not the same sort of volume flows it was 20 to 30 years ago. in fact, if you look at flows, some people love to look at inflows and outflows, outflows have dominated for most of the 2010s in a period where equity prices just went up and up. i do not think you could read a lot broadly into volume, but i do still cling to the concept that volume can confirm price action in a specific stock or a specific sector. lisa: in other words, conviction, right? if there is a lot of volume and price action that can indicate greater conviction about the direction of a specific stock or an entire market. what is the conviction like right now at a time people have seen froth with respect to

spac's and high flyers and when people are looking to a potential deceleration of growth expectations already priced in? barry: keep in mind, i hate to keep going back to the lockdown pandemic. we saw the rise of stocks as entertainment. maybe i should call that the resurrection of that 1990's era, everybody is now a stock expert. between robinhood and reddit, lots of people were participating. i could go sit on a beach without a mask and go to a restaurant? my next-door neighbor went to the mets game last night and set in the vaccinated sector? when all of these people are no longer stuck in a spare bedroom staring at a computer, i cannot be very surprised that volume is tapering off. i do not want to read too much into that as this shows a loss

of conviction and speculation and froth has run amok. there is broad speculation, there can be no doubt. i'm surprised none of us anticipated the rollover of the crypto going as the market reopened -- of the crypto coins as the market reopened. people found other stuff to do. lisa: this is important. if people are finding other things to do, will some of the money funneled into markets because it had nowhere else to go start funneling into the real economy? barry: that would be horrible of companies saw more revenue and profits, that will be terrible for equity markets, don't you think? lisa: horrible. barry: wait. profits are good for stocks. rather than have people day trade, they going by stuff? i will take that over meme stocks and renick. tom: we are staggering through

to another bull market. we are up against record highs. what will push us to record highs? what is the fundamental catalyst where people rationalize comfortably being at a new price level? barry: let's start with earnings. we are working our way through earnings season and you have to recognize it has been pretty spectacular. already lofty expectations have been met. how much of that is built into prices of equities? that is a different conversation. i like the fact we are seeing earnings very strong. people are underestimating the strength of the economic recovery. do not underestimate the fact that record highs and new all-time highs is a bullish sign. you do not end up with record highs in a bear market. you only get record highs enable

market. if you look at the history of past bull markets, record highs beget more record highs. tom: barry ritholtz, greatly appreciate it. particular he on the volume conundrum, should you follow volume? i hope that was not too nerdy. lisa: you're asking me if something is too nerdy? go ahead. tom: we did cartesian geometry and volume dynamics with barry ritholtz. what do you see? lisa: i am looking at a 10 year yield 1.596%. i am surprised to see the idea that inflation expectations have started to come down and you are starting to see people hide out in securities that are thought of as safer. i find that compelling at a time we are seeing really good economic data and trying to understand what this means going forward, and whether that could

be something that could become a problem at a certain point. slow growth is not with the fed wants to see. tom: another story percolating. we did not cover it. i would point out david coston's comments on the fangs. lisa: basically how people are starting to like them again because they have pricing power. when you go to the apple store you are willing to shell out how much for the iphone 12? tom: forget the phone, it is the are pod, the buds? lisa: you have a collection under your couch? tom: she pulls them out and she is styling. lisa: i thought the other real important story was moderna. the idea we are getting vaccinations eligible for kids quicker and quicker. i wonder when you will get under 12 years old and what does this mean in terms of get back to work? tom: we have a double barrel on

radio and television, the senator mark warner on balance of power. i am interested in what mary callahan says of jp morgan at a time of change in our largest bank. stay with us on radio, on tv. this is bloomberg. ♪

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jonathan: from new york city for our audience worldwide, good morning, good morning. your equity market positive one

third of 1% on the s&p 500. the countdown to the open starts right now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. ♪ jonathan: from new york, we begin with the big issue. is big tech making a comeback? >> there are some opportunities. >> there are some long-term structural benefits. >> those secular technology themes -- >> you really want to own those. >> make a high-quality tech. >> higher-quality companies continue in and out to put up strong growth numbers for their profit. >> the secular growth areas dylan technology.