caroline: i am caroline hyde. joe: i am joe thousands all -- joe weisenthal. romaine: let's look at where we end the month. slightly higher. joe: the question is "what'd you miss?" caroline: amc up more than 1000%

. 150% this month. this is after pulling back a little today. meme stocks on a charge. crypto on a wild charge. investors on tenterhooks because of inflation. good spikes bring volatility? it is a brave new world. unheard of territory. meme stocks, crypto come inflation. joe: we will end covers some new ground. meme stocks, there is a website called where they talk about these stocks, amc, gamestop. amc going nuts. above those highs. gamestop did not move a lot. pretty extraordinary year. for more, let's turn to our

reporter. did amc end up down today? >> it did. 1.6%. it surged 38%, then down. it has been an incredible ride. today's loss, even with that, still up 150%. romaine: it seemed like the stocks went dormant, then this past week, they percolated to the top. was there a catalyst? >> i don't. people are just having fun. there has been a shift from crypto into meme stocks.

romaine: i smell a chart idea. >> that was the initial urge. you saw a bunch of call options on amc, kicking in that flywheel of gama hedging. caroline: break it down for those who don't understand gama squeezes. the options market on fire come extraordinary. what does that signify? >> this was the secret sauce in january and february. when you have a lot of call volume, dealers have to hedge that. they have to buy some of the underlying stock to hedge back to neutral. the contracts are all short dated weekly. we had a bunch of options expiring get bought today.

the shorter the contracts, the higher the convexity, so they have to buy more as they get closer to being in the money. that was part of the impact. we saw a record call volume day for amc. it broke that record today. you saw 2.4 million calls get traded. that was it not enough to keep the stock moving up. joe: options go banana, pretty wild. amc was up 38% today. it did close negative. we saw the coins fall, apple, tesla fall, so starting with exuberance, but ending on a down note. >> i was trying to get to the bottom of that. i spoke with one person about the incredible call volumes. what is going on? it could be that we're heading

into a long weekend. day traders is an eternity on that timeline, so some people could be closing out their positions. maybe they are not as enthusiastic in this stretch. caroline: bitcoin will not be there. down 30% over 10 days. many of us are wishing it gets some sleep over the weekend. katie will be covering it. thank you for joining us on the brave new world of meme stocks. coming up, spending rising, signaling a sustained rebound for the world's largest economy. we dig into the data and inflation numbers. this is bloomberg. ♪ s is bloomberg. ♪

romaine: we were having a conversation about meme stocks. we got data on personal spending and one of the favorite inflation metrics. joe: yes, more evidence compared to a year ago in the depths of the pandemic that prices are going higher. core pce just over 3%. there is no doubt that headline

inflation is definitely picking up. caroline: more than economists thought. but does it matter if the fed would look through it? joe: that is the big question. let's bring in our senior u.s. economist. thank you for joining us. let's start with that data. anything new, or does it confirm other measures we have seen, most comparably cpi? >> absolutely. we were expecting a spike in core pce today. if you look at the chart, you saw that coming. that does not mean it will not be transitory. it will be transitory in nature if we are correct, if the fed is

also correct. we see three things, the base effect, demand, inflation, and the economy reopening, that is affecting different services across the spectrum, and we see cost pressure affecting goods prices. that is not something unexpected. what is more important is that it is not preventing consumers from spending. the report today shows services, particularly discretionary services, they picked up quite a lot. romaine: they did. talk more about that. there was the general expectation we would see that pickup. is that sustainable? are we looking for a return to pre-pandemic levels of spending

on services? >> consumers with the stimulus money and extra savings they accumulated over the course the pandemic, their personal consumption will be accelerating as consumers overlook some increases in prices simply because they have this extra money. i expect acceleration in the services space. today, we saw acceleration and recreation, for example, so we are booking travel, going on vacations, and dining out more, so i expect more of this in the next few months. caroline: are you in consensus with the rest of the market in anticipation of this? we see investors remaining

sanguine about this? >> we are slightly above consensus in terms of gdp projections, 7.5%, whereas the consensus is higher, but everybody is expecting the reopening of the economy, that it will have a powerful impact on consumer spending. remember, that is the biggest part of the u.s. economy, so i expect that sector to relate matter a lot in the coming months. joe: i want to talk about some of the other data, including the university of michigan confidence. people say it is a good time to buy a house. i think it is the lowest reading in history. that is not surprising with all the headlines, housing, lumbar, etc. is this what will cool things

down and people will check back in the housing market in a couple of years and maybe we get to some semblance of balance and so forth? >> you are referring to home prices, which are growing at a double-digit pace, so obviously housing affordability is declining, and that could cool the housing market a little bit, but i think there are some more powerful forces pushing housing demand higher. i think we should not discount off this demand created by the pandemic itself. i believe that people did have a structural shift in their mind and they want to get away from

crowded areas. romaine: in about a week, we will get the jobs data. the last report came in well below what economists were anticipating. the bloomberg survey shows job creation for the month of may. do you think that will be true? >> we are slightly above consensus. a lot of people got it wrong last time. i am guilty myself of that. i think the april report was the one off, and there were a few categories that surprise to the downside, which shouldn't have if you look at the trend. a lot of the bulk of hiring in may came from the services sector of the economy, so

recreation, accommodation, hospitality sectors hiring people and hiring people at an increasing pace. i think it is quite reasonable to expect not far from one million. we are estimating 850,000 jobs in may. romaine: we will catch up with you next week to see how things shape up. we are heading into a long weekend, memorial day in the u.s. on monday. we want to discuss why crypto is so volatile over the weekends. we speak with our guest who will be joining the program. this is bloomberg. ♪

caroline: bitcoin on the downside again today, down 8%, which points to the worst month since 2011, so plenty of volatility still. crypto never sleeps on a weekend. joe: exactly right. no one gets the day off. lately, weekends have not been fun. there you see the chart tank hard a week ago. what is the weekend all about?

joining us now is the vice president of institutional lending at genesis. crypto never sleeps. 24/7 traded, so why does it appear the weekend has a different flavor of traders? roshun: thanks for having me on the show. the weekend in crypto is a driven market, so there is less trading happening, of the moves can be more drawn out. romaine: is there an argument to be made to shut things down on the weekend? caroline: i second that. i am interested with the force of the selling is like and who is selling.

one person said people are getting out of crypto and going into meme stocks. what is the pressure downward? roshun: that is the age-old question. who is responsible for the selloff, what is causing it? the flows are towards the buy side, high net worth, retail institutions. we are adjusting buyers. i was like, who is selling? what is causing this move down? it is point to any one aspect of the market, retail traders moving out of stocks, minors in asia -- miners in asia.

crypto is not foreign to moves like this. i will caveat that. we don't know. you can theorize extra spot pressure for a variety of reasons in the markets. one is that great we were talking about -- rate we were talking about. how do they on the wind about trade. so that hangs over the market a little bit. it is not like a net selling by any means. joe: this morning, you said post-expert, sell pressure. there is these sophisticated instruments. to what degree are those

becoming key moments in the x expiry of derivatives? . there is a little bit more -- roshun: there is more. it's not like one or the other. it is just less. it is just like the margins. the general trend is after expir y happens, there is an effect on price. this time it was the other way. it is not huge relative to june. i don't think it matters too much for the direction of the market. we will see when it hits one of the quarterly expiries

romaine: with regards to how genesis keeps itself prepared for these movements and maintains liquidity, what is the general preparation now? roshun: genesis in this moment has never had as good an asset base across bitcoin, dollars. the reserves across the top three are north of billions of dollars, some quite a bit higher, so this is the strongest we have been. we are prepared for a move up or move down. it does not matter. we are ready for all sides of it. when we sold off last week, the

frenzy was hectic and everybody is focused and wired in, but we are seeing buyers all the way through. caroline: i was looking through your twitter. one bitcoin bull said nothing broke. it does show the whole area is able to -- i think we just lost him. we will have to get back to him. joe, you will have a focus with him. if people are interested, they should tune into that. he talks about institutional buying, but at what point does the price go up? joe: exactly right. it is striking, how

sophisticated these desks are becoming in this space, how much money is there, the different schools that people use. we talked about price up and down, but the market structure, coming out of such a big story. our thanks to our guest, vice president of institutional lending at genesis. you can check it out in the episode that comes online on monday. romaine: i would check in on that. check out our podcasts, called "what'd you miss?" you can enjoyed it over the weekend. joe: three day weekend. that is a good weekend. caroline: maybe it is so good that you can listen to it on repeat. joe: saturday, sunday, and monday. caroline: meanwhile, that does it for "what'd you miss?" joe: "bloomberg technology" is

next. romaine: have a great holiday weekend. this is bloomberg. ♪ s bloomberg. ♪

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