jon: welcome to bloomberg markets. sonali: we will get a quick check of the markets before we get started because we are looking at an s&p 500 essentially flat on the date but down a little bit. the russell 2000 is up a little more. it's not getting the same kind of love you're getting in the nasdaq this year. we have some significant movers here, more than 1300 stocks are in the green today which amounts them less than 1% gain.

i want to take a look at the three year and the 10-year gilts. we have a day lucia of bond issues coming up -- a day lucia - deluge of bond sales coming up. it will be interesting to see those when we have the issuance announced wednesday. jon: we will be watching that closely and watching earnings stories as well this week. we will talk more about that and you got analyst commentary that is fueling several tech stocks today. adobe shares are adding to their big advance this year and morgan stanley says the ai excitement around adobe could continue to push the shares higher, and the neighbor of dachshund neighborhood of 25%. crowd strike is up about 4% today. we saw some legal setbacks for johnson and johnson tied to those lawsuits it's been focused on. we've seen some weakness in shares of j&j today and we are

watching shares of disney with multiple reports of a couple of well-known executives possibly returning to the company in an advisory role. bob iger continues to figure out the road ahead. we will watch all of those stories. sonali: and it's a busy week on the earnings calendar with 169 companies reporting. that's 11 trillion dollars in market cap and abigail doolittle is looking how investigators have been reading the reports so far. abigail: it felt like it could be a challenging earnings season that could be the first earnings season in many quarters to perhaps trip of stocks. that's not the case. earlier this month in july, jp morgan reported and we can see the s&p 500 is taking the stairs higher. a pretty good response overall to the earnings season with some of the big tech heavyweights in their including netflix, meta, alphabet and microsoft.

one thing to take note is management companies are doing a good job of working the numbers but we are looking at more than 80% of growth or beats for earnings. for sales, it's less than 60% so there is a 20% difference there, suggesting that margins, management is doing a good job managing the margins. investors probably want to see sales go higher as opposed to them going down. lots of big names reporting this week. i think it will be apple and amazon that will be the real focus. apple in particular, on their top line, investors are looking for a decline in sales of about 2.5%. will they beat that? is it a sign of trouble ahead? the president so far suggested won't be trouble but let's see thursday. jon: we deftly will, thank you very much.

let's bring in some more assessment of the markets and the profit picture. great to have you with this. let me start with the earnings story so what you seen so far, what's been your reaction? >> it's been another better earnings season and like you just announced, it's been an 81% growth rate and we are not halfway through earnings season. corporate america and consumers have been incredibly resilient. we think that will continue. sonali: you've seen quite that jump in the s&p 500 as well as the nasdaq and composite. how much more upside is there? >> that's a good point. in january, we really thought the market would be up 15% this year. we thought it would be in the second half of the year.

we think it will continue to be a strong growth market. the average bull market is about five years. we would not be surprised to see some short-term volatility here. we have some seasonality coming into play where august is actually one of the worst months for the market. most of europe is on vacation for the month of and slows down in the u.s.. we also are not going to get more strong seasonality until the back half of october. let's not forget what's coming up that could roil the markets. that is jackson hole. the fed may have to reorient investors like they did last year. the s&p was sent down 3% and the nasdaq went down 4% in a day.

it will be interesting to see what happens in the back half of august. jon: we will have to watch that with central banks speaking. we were talking about the big tech earnings to watch for this week. in terms of sectors and where the money may flow from here, what have you been watching? >> one of our best ideas right now would be industrials. we think that represents a lot of opportunity. i do like technology. i know we're focused on apple and what they will do for earnings but those are good long-term holdings. it's hard to be bullish on the market and not like technology because technology represents 3% of the entire market. even being neutral on technology which is what we are now because

it has come so far, that means having of 30% weighrtting in your portfolio. there is opportunity with small caps. they were up today and they have underperformed the market and we see some opportunity there. sonali: i feel like the small-cap rally that everyone's been waiting for, at what point do you see things start to turn around for the small caps especially given the lag to other parts of the market? >> one of the reasons they've lagged is because everybody's been expecting a recession. small companies which make up a lot of unprofitable companies are very sensitive economically. now that we are starting to see much higher case of restoring soft landings, it seems they

really could do well here. it might be early but would you rather be early or late? i would say it might be a good time to step into small caps and even some mid-caps. jon: on that idea, what's your view of a soft landing? >> if there is any case for a soft landing, it's going to happen. when we saw that gdp number come across and when we started seeing core pce softer than expected, i think it's really hard to bet against the consumer that has jobs and rising wages. i think it's more probable than not i think we will get a soft landing. sonali: if you look at the bullishness in the market, what can set the market off course at this point? >> you know, the fed. we all know the fed is almost

done but he could raise 25 or another 50 basis points right now. the market is betting there is only 20% chance among 25% of our respondents. that could be one thing but jobs. i think it will be interesting to see what happens this week with labor market. i really think it's about the consumer. the consumer is 70% of the economy and i think the consumer and the billy did brilliance of i think in a couple of years, the bull market will continue but we should expect some volatility because even bull markets have corrections. sonali: thank you so much for your time. coming up, sofi stock is soaring

after topping estimates and their securities analyst joins us next. this is bloomberg. ♪ and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com

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about an aarp medicare supplement plan. sonali: this is bloomberg markets. i want to mention the bloomberg news is reporting the birkenstock may have an ipo of more than an $8 billion valuation which could come as soon as september. l.catterton is working with goldman sachs and jp morgan on the potential listing. the company sales have been boosted by the blockbuster bargain movie -- barbie movie.

my birkenstocks are black. someone who covers private equity, the return of the ipo market. heading back to market is exciting from what i understand. jon: it's great reporting by bloomberg and you are right, it opens up so many doors to speak about whether you talk about bernard are now - arneau they look for potentially large payday if the ipo market comes together but the fact that you got a business which is more than a couple of hundred years old which has leaned into that fashion opportunity. they made spotlighted barbie build all those high-profile luxury partnerships to really put a premium on this cooked up real many consumers are feeling

cash-strapped for the luxury market has been doing pretty well. we will watch the development's that potential ipo story. also coming up come the u.s. treasury will start ramping up treasury bond sales this week, aiming to boost his quarterly refunding of longer-term treasuries from $96 billion. we will say what that means for the bond market coming up.this is bloomberg. ♪ you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989!

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jon: this is bloomberg markets. time for our stock of the hour. we are keeping tabs on sophia today, the shares up the most in the year after the online bank boosted its guidance while many regional banks were dealing with deposit problems earlier this year, sofi has benefited from

higher deposits and lower funding costs on their loans and investors are responding in a big way with the stock up 20%. sonali: this was a stock that was four dollars a couple of months ago and now over $11 per share. we caught up with the ceo any spoken what's fueling the company momentum? >> for the first time, 50% of our growth on a year-to-year basis came from non-lending products. those were the first product we've had and everything else is been introducing thin so 50% very yearly revenue growth came from the financial services side. it's the first time we can truly say that our strides are being one stop shop are now playing out in the actual financial results. sonali: for more, we are joined by dan who has a by reading at $9.55 raise target on the stock .

is writing even higher than that today. they recently bought a bank and if you think of doubt it, we are seeing lending quite soft. how much juice do they have to squeeze out of the lemon here? >> thanks for having me. the stock is running ahead of what i thought it would. that's a great thing but i think this is just the beginning for so fi because it's going up because a lot of the bear thesis that people were saying they cannot sell is not materializing. it's actually the opposite in the next leg will be student loan refinancing. this is literally just the beginning of this massive rally. jon: on average, while should anticipate this company could generate near to billion dollars in revenue for this year but if you look over the next four or five years, some estimates would suggest that they could double

the size of their topline performance. when you talk about this being the beginning, what do you see ahead? >> if you think about the catalyst coming our way -- student loans have been disaster until now and yet they've done ok. you think about the pent-up demand for student loans, 1.6 trillion dollars of student loans that need federal stimulus the needs to be refunded and refinance. that's a huge number and i don't know what consensus is but i doubt we'll have gotten to the numbers a much. mortgages have been pretty bad with interest rates and now our credit cards. sonali: why are some of the worries in the regional banking system not reflected in the stock like so fi.

they have some of the highest savings rates and you have them for paying for things like naming rights to a stadium so at what point do costs catch up with the growth story? sonali: i >> talked to people in my industry and they are using so fi as their primary bank. the move by management to give a piece of the insurance of $2 million when everyone -- there was a run on the bank in may and june it was a huge move because it takes people and brings them that life level. if you link just think about the way they are lending, they are lending more with deposits and that should offset some of the rising advertising costs they are doing. from this year on, the scale, there is more than their marketing cost because they are getting bigger and bigger so the

cost are basically averaging out on the smaller and smaller number. jon: on the competitive front, the bigger they get, i'm sure the big banks take notice of that. anthony noto was asked about the elon musk plan with x and a payment system within that universe. how are you watching the competitive landscape? >> personally, i think it turns into gold. i'm worried more about the x deals rather than jp morgan. i think so fi could be a large bank in the next few years. they've really figured out how to have the consumer, the edge, the advertising. everything you need to be a full-fledged bank and they don't need wrenches. think about how much money jp morgan and bank of america and all these banks are spending interest. they're doing the same with less

than this. jon: thanks very much for your analysis. we're looking at the $102 billion in treasury after they boost their quarterly refunding of long-term treasuries, 202 billion dollars from 96 billion thousand according to the consensus among dealers. liz mccormick joins us now with more details. we've been waiting for this moment with lots of supply and the demand picture, given eggs the not kind of appetite or foreign investors, what we know about matching this money? >> exactly, we've been talking about this for a while. treasuries kept things down for a while.

now with the trajectory of the deficit and the fed balance sheet, they will start on wednesday when they renounce the funding issues come to bunk them up to 102,000. it's at a time when many people say the kind of structural briars of dish buyers of treasuries like banks not buying and foreign accounts haven't been buying because it been costly to hedge and now we have this boj yield curve kind to control tweak. they save rates are higher in japan, those accounts may not buys much treasuries. bank of america because it great supply/demand backdrop and someday yields will take up it is on the margins so that's a negative to supply. sonali: how much volatility could this add to the system and we think about who the natural buyers are? could they put liquidity restraints given the dynamic you are talking about? >> we talk about the hedge funds

and people say they are likely to be the new -- the continued marginal buyer. these other accounts are not buying as much and they are no more price-sensitive. the in they had more. some of us are thinking maybe the worst is over. new the fed is in the peak but there are other things that will keep volatility and rates high including who is the buyer etc.. i think we will see two orders in for well -- sonali: we are looking forward to those issuances in the coming weeks and days. i want to bring us into new headlines coming out on reuters. it says elon musk will be leading the product and engineering teams at x, the

newly branded kidder and linda set carino will return. we need to see how the competition take shape. jon: we know elon musk had brought in a ceo because he was ready to hand over the reins but the company is going through a whole bunch of product evolution. we literally just spoke to our last guest at the fact that he's got to keep an eye on what text will be. if we no longer are talking with twitter but in everything app which involves a payments business, i imagine you will have to be in a phone booth. to have him focusing on the product and engineering price is probably not a surprise. sonali: it's like when jack dorsey ran twitter himself. will it be in everything app or

more of the same with a new interface? we will see that soon. this is bloomberg. ♪

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>> unmixed day -- a mixed day for the markets. i am romaine bostick. katie: we are taking you off to the closing bell in the u.s. and just about two hours. looks like markets are taking a breather after a busy week last week after a busy week ahead of us with big tech learn -- earnings but you take a look at the markets, the s&p 500 unchanged and you take a