chair powell: different chairs have done it different ways. i tended to do what my immediate predecessor did, i think. this is what i do. i speak last on the sort of the economic go-around. so everyone talks about what they think about the economy. and in their district, for example. reserve bank president. i listen to all of that. and then i give my comments at the end and i sum up what people said. and then i speak first on monetary policy. mr. rubenstein: ok. you said the inflation rate target is 2%. but why 2% and not 3%? 3% could be tolerable, really. for most organized history 3% is considered ok. why do you want it 2%? chair powell: 2% is the global standard and that's our objective. as measured by the pce index. and that's not something we're looking at changing. it isn't going to change. mr. rubenstein: that's not going to change. chair powell: not going to change, no. mr. rubenstein: ok. you need to get to 2%. the goal is there by what period of time would you like to get there? chair powell: well, we're saying we are using or tools

chair powell: no. david: so you need to get to 2% and the goal to get there is by what period of time? chair powell: we say we are using our tools to get there over time. if you look at our forecast, we expect 2023 to be a year of significant declines in inflation, and it is our job to make sure that is the case. i would tell you that with inflation headline, pce inflation is running at 5%, core inflation at 4.4%, it will take into not just this year, but next year to get close to 2%. david: so 2% is firm? you are not going to get off that? chair powell: yes. david: the theory of raising interest rates is it will decrease economic activity and increase unemployment. but you have been increasing interest rates for a while and unemployment is now at a record low. what is wrong with the theory? why is unemployment not getting higher? chair powell: the labor market is strong because the economy is strong. as i mentioned, it is a good thing that we have been able to see the beginnings of disinflation withou

chair powell: different chairs have done it different ways.end to do what my immediate predecessor did. i speak last. everybody else talks about what they think about the economy and in their district. i listen to all look back and i give my comments at the end. then i speak first on monetary policy. david: do you consult regularly with some of your predecessors? ben bernanke, for example. chair powell: i do. i talked to former chairman bernanke. i talked to secretary yellen. i still talk to elling greenspan -- alan greenspan. david: when you disagree with your colleagues, do you say i am the chairman of the fed who has to make the final decision. chair powell: it is a process of reaching agreement, and i share what people have to say, i tell them what i think. i am the one who has to bring the proposal in front of the full committee on monetary policy. and it works. we have to reach an agreement. we are blessed with the diversity of perspectives on the fomc with 19 people. one think that unites all of us is a strong commitment to getting infl

chair powell: i do. [laughter] mr. rubenstein: ok. today -- how do you coordinate with central banks, let's say, in england or japan or china, do you have regular conversations with them about what they're doing? chair powell: we do. i meet six times a year in switzerland with the heads of all -- many, many central banks, even the small and medium-sized banks in basel. in addition in addition to the central banks, i have regular die logs going -- dialogues going on with most of them. what we're talking about, though, really what's happening in the economy and how we are thinking about policy and that kind of thing. it's very important that we keep those discussions going because particularly in a crisis you're going to need to know each other and be able to trust each other. mr. rubenstein: do you think the u.s. economy is pretty much in control of its own inflation rate or do you think there are events going on, what china is doing or the ukraine war make you nervous where inflation might be going? chai

chair powell: all of that. david r: no leaks. chair powell: no. david r: as you look forward for the remainder of this year, your view would be you would be happy if inflation would get down by the end of the year? 2% might be unrealistic, but core inflation is about 4.5%? chair powell: it is in that range. we expect significant progress on inflation this year. it is our job to produce it. we threw these numbers around, but the reality is we are going to react to the data. if we continue to get a strong labor market reports or higher inflation reports, it may well be the case we have to do more and rate hikes more than is priced in. david r: if i wanted to get a mortgage on a house, he would say i am not better off waiting until next year than now because rates aren't going to come down that much the beginning of next year? so i might as well get the house now? chair powell: surprisingly enough i get a lot of advice on things like this. i really can't respond. [laughter] david r: on the whole, to summarize where you are, you are saying the job sta

statement as an ongoing economic risk as opposed to, you know, ao health issue. >> nancy. >> hi, chair powell, nancy marshall again, sir, with marketplace. wanted to go back to another that fed vice chair brainard said recently. she said she doesn't see signs of a wage price spiral, and i'm wondering if you agree with that. >> i do. yeah, i do. i don't see that yet. but the whole point is, you know, once you see it, you have a serious problem. that means that, effectively, many people's decision making inflation has become a really salient issue. and once that happens, that's what we can't allow to happen. and, you know, so that's why we worry that the longer we're at this and the longer people are talking about inflation all day long every day, you know, the more risk of something like that. but,or no, there's not much -- it's more of a risk, it always has been more of a risk than anything else. by the way, i think it's becoming less salient, and people -- we've picked that up in conversations, and i've seen some data too that people gradually, they're glad that inflation's coming down. peop

they hiked a quarter point we'll go live to washington for chair powell's news conference let's bring in mike santoli with some thoughts on the market reaction here. initially a hawkish reaction now i don't know, should we call it a dovish one? >> reporter: i think, kelly, it's a not too much of a surprise relative to what we previously priced. at minimum that's what you can say. i do agree the idea they kept the language about the potential for ongoing increases in rates may be slightly more hawkish because they're already on record saying it's above 5%, i don't know if this was the forum to completely undo that. the market seems okay with things right now i'm not convinced jay powell says inflation coming down and price stability is okay only if financial conditions are certain level of tightness do they need to target the markets, what's the theory of the case if the s&p is at 4100 and triple-b bond yields, that we'll rehire these people and get inflation cooking again? i don't know a level of unemployment needed to get the job done and does he want the market to essentially be mor

. >> thank you, chair powell. let me ask a question about the language around ongoing increases. that of course implies two further rate rises. if you look at fed fund futures pricing, the implication is that you raise rates one more time and then pause. are you concerned about that divergence of do you think everything breaks to that. is that a plausible outcome? >> i'm not particularly concerned about the divergence. it is largely due to the market's expectation that inflation will move down more quickly. i think that's the bigger part of that. so again, as i just mentioned, you know, our forecast, there's different participants with different forecasts and generally those forecasts continued with subdued growth and some softening in the labor market but not a recession. not a recession. and we have inflation moving down. you know, into the mid 3s or lower than that for now and we'll update that for march and in december. markets are past that and they show inflation coming down, in some cases much quicker than that. we'll just have to see. we have a different view and it's a d

dovish undertones from chair powell mike, thank you. we'll see you soon mike santoli for more on how the market is viewing the fed, chiefment officer of g-squared, victoria green. paul, is this the right reaction by investors to the fed? >> i think the investors are betting the fed will be successful it is really that simple we have a disinflationary process under way fed chair powell acknowledged that he didn't declare victory but acknowledged the process and the marketplace is betting that the fed will be successful it's a fundamental issue that the market is betting on the outcome where the fed needs to deliver the outcome. >> what does that mean, victoria, for big tech clearly it's a positive sign yesterday and today. does that carry through? >> animal spirits call it ration experience, call it fomo, whatever it is, everybody is hitting into it. we got oversold on some names. i'm pausing a little bit until we get the three big boys this afternoon, apple, amazon, google we saw microsoft come in weaker. they're not all going to be lik

first we just heard from fed chair jay powell he says deflationary progress has begun. markets liking the sound of that first we'll break down his comments and the big market future >> in the meantime microsoft holding their big event focused on a.i ceo satya nadella says it's going to reshape everything in the software space it's already reshaping search for them he joins us in a few minutes to talk about this revolution and we have a great panel assembled to talk about both of these big events steve kovach along with oppenheimer analyst tim horan, kate rooney, herb greenberg and jennifer elias will be joining us to talk about microsoft >> and on the fed and the markets we have hear from bill lee and steven denicholo but before we get to them let's get to our own dom chu to see how the markets are reacting post-powell. >> so a roller coaster that's pretty much what it's been, guys we've seen both sides unchanged so far for the broader s&p 500 we got as low as down 16 points, only to hit highs up 51 as you can see there during fed chair jay powell's session at the econo

but we'll see. >> last question >> reporter: thank you, chair powell brendan peterson with punchbowl news does the fed takes into the ceiling given the fact that rapid or faster quantitative tightening could bring us closer faster to the drop-dead decline. -- deadline. would it bring us closer >> it's hard to think about all the possible ramifications i think the answer is basically i don't think there's likely to be any important interaction between the two, because i believe congress will end up acting, as it must in the end, in a way that doesn't risk the progress we're making against inflation, and the economy i believe that will happen we, of course will monitoring market conditions carefully, as the process moves on for example, the treasury general account will shrink down and then grow back up. we understand there will be lots of flowing between there and reserves we understand all of that. we're watching it carefully. thank you very much. >>> a big rally on the remarks the federal reserve raises interest rates, as expected, by a quarter of a percentage point. that's a step d

continuing the move higher we saw last week after the fed decided, then chair powell's news conferencemorrow powell will speak again, and bond markets will, of course, hang on his every word right now 3.62 on the ten year >>> the u.s. military is searching for the remnants of the chinese surveillance balloon it shot down off the coast of south carolina over the weekend as china continues its reopening process, could this incident bring more stress to an already strained relationship between the u.s. and china for more on what it all means to the global economy bring in marko popitch partner and a chief strategist i assume say nothing to improve an already prickly relationship with china, between china and the u.s. >> for sure. that's actually the takeaway and understand right now everybody's watching from a u.s. and chinese perspective. we live in a very, very big world and other countries are involved in geopolitics. chinese nerve targeted just at the u.s. targeted the rest of the world as well. they're going to continue doing that whether the u.s. is pushing against them or not. so i

how are investors taking chair powell's comments? ruth: absolutely. sterday's session was a good glimpse as to how people are viewing the dollar. what powell said about the interest rate outlook, we did see the dollar swing around, gaining losses we need to keep rising to ensure inflation is under control. the dollar has risen about 2% since the last week. traders have been saying it is time to take some profit, after the recent volatility. investors are turning more bearish on the dollar over the longer-term. the big peak is behind us. at some point, the fed will have to cut rates, leaving room for currencies like the australian dollar, the euro and the yen rally further. haidi: so much uncertainty for it. what are we seeing when it comes to positioning around the dollar? are there top traits emerging? my next question would be how much longevity are there in the top trades? ruth: in is very much guerrilla warfare -- it is very much guerrilla warfare. take a profit here. on positioning, hedge funds are still bearish on the dollar, so they maintain pos

importantly because the press ceiling they will be ungagged with the press corps and allowed to ask chair powell about the balance sheet. charles: quick on the debt ceiling, we referred to it, all the money we're paying to service the debt is that going back to the fed at all? feels powell punted on that in the past. >> he punted but a much bigger issue. debt ceiling they have to issue a bunch of debt at higher levels at once. charles: ali? >> look, again this is, is it political? is this economic? well the truth it is all one and the same. we're sitting here trying to figure out what interest rate policy -- see what the man has to say. charles: here is chair powell. >> good afternoon. and welcome. my colleagues and i understand the hardship that high inflation is causing and we are strongly committed to bringing inflation back down to our 2% goal. over the past year we've taken forceful actions to tighten the stance monetary policy. we covered a lot of ground and the full effects of our rapid tightening so far are yet to be felt. even so we have more work to do. price stability is the responsib

. >>> after the break, fed chair powell speaking next hour.vestors looking for any change in tone following friday's very hot jobs report. was it too hot for them to start slowing the pace of rate hikes we'll ask. >>> uber is on deck to report ahead of the bell. reporting 33%. will the results justify the rally? we're back in two. to adapt in the changing world, you could hire a professor of theoretical mathematics. we all know this equation, right? he'd crunched numbers day and night. that's it. to maximize profitability. morning. i have quarterly numbers that are beautiful. and forecast revenue from every corner of your organization. is that important? or you could use workday. the finance hr and planning system that helps cfos make better decisions faster. for a solve problems like a genius world. workday. for a changing world. [music - cover of blondie's “dreaming”] for a solve problems li[music playing]ld. ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪

it will be incorporated into our thinking about policy. >> thank you, chair powell. may i ask a further question about the language around ongoing increases, that implies these to further rate rises. if you look at the future of pricing, the application is that you will raise rates one more time and then pause. are you concerned about the diversions? do you think that everything breaks right? is that a plausible outcome? >> i am not particularly concerned. it is largely due to the market expectation that inflation will move down more quickly. i think that is the bigger part of that. as i just mentioned, our forecast, different participant's have different forecasts but generally they will have continue to subdued growth, some softening in the labor market but not a recession. we have inflation moving down into somewhere in the mid-threes or may be lower than that this year. we will update that in march. markets are past that. they show inflation coming down much quicker than that. we will just have to see. we have a different view. it is a different forecast. given o

we are going to hear from chair powell again tuesday.e is going to be speaking to david rubenstein right here on bloomberg. next, the auction block. europe's primary market coming to a standstill after a record january. this is real yield on bloomberg. ♪ katie: this is bloomberg real yield. time for the auction block where we kick things off in europe. issuance coming to a standstill on thursday after a record january. sales nearing 300 million euros for the year. in the u.s., high-grade bond sales totaling $18 billion and seeing monster demand with most issuers pricing through their guidance range. the u.s. junk on market pricing its first deal of the month on thursday. unigroup selling $2.6 billion of well-received debt following the busiest month in a year. sticking with credit, jp morgan's bob michele saying is not the time for high yield yet. take a listen. />> we have stayed away from high-yield because our analysis shows us that the peak in high-yield credit spreads always comes during a recession. it could be fast, just like the

lisa: why do you think chair powell is not more aggressive?taking the same wyoming town? >> i was a little bit surprised. david rubenstein set him up to make some changes from what he said last week versus the job number. i think you can tell from the body language and reading between the lines that there is a change probably. it's uncomfortable for a fed official to make too much out of anyone monthly number but it's not just that. if you look at the pace of job growth prior to the january reading, i think we are close to 300,000 jobs per month so i don't think we will continue to create that. even 300,000 would be enough to keep the unemployment rate from going down. it's a very tight labor market is hard to think that wouldn't create wage pressure. lisa: we are seeing wage pressure declined so what do you make of that? >> that's one of the most interesting things. we have a tight labor market that's tightening further and across a range of measures, we saw softening in wages. goes back to this being a softening from historically rapid wage

president daly, i was -- that speech that chair powell gave in stokstockholm was fascinated and wheregave and why the federal reserve is sticking to its knitting. what i'm wondering, could the fed under a different chairperson change their goals, change their mandates so-to-speak because there was a time, and i felt maybe you and others, were pushing for more of an active role. we look at beige book now and hear from certain areas that what the community is thinking, could the fedex up and down its role and have more of a social activist kind of role in the future? >> oh, not at all. i mean, i am completely aligned with chair powell's remarks and i've given speeches saying similar things. you know, i think that it's easy sometimes to maybe -- this is why our responsibility is to explain. it can be easy to misunderstand when we say we're going to study the distributional impacts of our policy to think that we're in a different space that we should be. but our work always comes back down to the core responsibilities that congress gave us. stable, sound, financial system, stable dependab

lisa: let's hear what fed powell -- fed chair jay powell says at 12:30 p.m..n will discuss how much he wants to leave into this move we've seen on the front and twelve-month t-bills are now yielding the most going back to 2001. it's a big deal because you were talking 4.8% in terms of what you are getting. park your money and t-bills for 12 months. this changes the equation for things like nonprofitable tech companies as well as high yield that used to yield 5%. the french prime minister and the german economic minister are going to washington, d.c. to talk about the inflation reduction act. this is interesting because it comes ahead of the state of the onion, the state of the union address were president biden will talk about domestic supplies going into infrastructure spending and that discussion is it 9:00 p.m. and that's getting paired downing will talk a lot about taxes on billionaires. i think the made in america stuff is more interesting in light of what europeans are saying and what they're doing in terms of the government right now. jonathan: darrell

. >>> european markets get off to a high wall street opening losses after fed chair jerome powell signals more rate hikes are ahead. >>> fourth quarter reported net products slumps 35%, but it still seeks expectations he expects economic conditions to improve. >> the central scenario we've had for many months is that of self-planning. not a great growth zero plus in the u.s. as well as in the eurozone, but amid a catastrophe b we see the market controls very well. >>> there's a record-break ing result on the energy sector. and the selloff deepens in the wake of monday's massive earthquake almost 9,000 people now confirmed dead with many more missing. we'll be live in turkey this hour >>> good morning, everybody, and welcome to "street signs." as we've been talking about the last couple of days, the stockmarkets are very much in central bank watch modes, and yesterday we got a little more commentary on fed chair jerome powell speaking yesterday in washington it had been a big focus for watchers going into the event. he didn't say anything new he did say the inflationary process is on track

that's good as far as fed chair powell believes. i think he think he needs that tightening to bring down inflation. the issue is whether or not that tightening is going to -- how hard it's going to lean against the economy and becomes something you guys got to do which is process that in terms of earn sglgz yep, steve, thanks always good to see you steve leaveman. >>> karen, what did you make of the markets today and the move in treasurys >> so, i mean to me it seemed like this wasn't particularly great news it wasn't terrible wasn't so shocking, but to sort of extend the narrative of, oh, this is good, we're closer to the end, i don't fully get that. if it's hard for comment, it doesn't make sense to me seemed like quite a rebound closer to the end. >> tim >> hi. by the way it's nice seeing you across the dinner table from karen and getting used to this cool, new set. >> we get to gaze into each other's eyes. >> on valentine's day. it's really nice a couple things about today's market once again the semiconductors and maybe it's th

chair powell, saying the fed will have to deliver a couple more rate hikes, even as the central bank tightening and acknowledged a definitive pullback in inflation. our policy editor kathleen hays is here. what are the key statements here? it seems like the press conference and the statement itself, there was a little bit of a discrepancy on how markets took the tone. >> let's cut to the chase here. jay powell said, finally, disinflation has begun. inflation was stuck high in 2021-2022. they did four 75 basis point rate hikes in a row and now they are seeing a coming down, but the fed and its official statement said more rate increases will be warranted. jay powell in the press conference also said he sees a couple more rate hikes this year. basically policy needs to get more restrictive. here's what he said. >> we continue to anticipate that ongoing increases will be appropriate, in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time. >> there was a lot of uncertainty around what he was saying about financial conditions. h

chair powell's comments yesterday i think caught a lot of people off guard. i heard you talking to mike santoli about that i think that's fascinating you keep talking about hard landings and soft landings i'm still waiting to hear about the landing. we've been talking about this for a year and we've yet to come to a conclusion. i think it's just, you know, the time that we live in, which is a complete age of uncertainty. i think that's where we're at and i think that bodes well for cme group. >> you mentioned the fed fund future, starting to price in cuts this year, even though numerous fed officials, including the chair himself, said we don't see cutting rates this year. we're not planning on it and it's not the scenario. so how should we interpret what the market is telling us there >> i think that's the beauty of the market people can express their views on what they think is going to happen over the next several months as i said, 90% chance of probability of a hike and 70% chance and near the end of the year they're talking about a small cut. that's the m

i think that is what chair powell has realized. that is why he is no longer trying to jawbone.ut for sure, i a.m. feeling confident about this. he is watching financial conditions very closely. dani: so great to speak with you this morning. that was dominique dwor-frecaut of macro hive limited. tesla workers launch a campaign to unionize. that is next on bloomberg. ♪ what do you get from the morgan stanley client experience? listening more than talking, and a personalized plan ♪ to guide you through a changing world. ♪ >> laying off about 11% in europe. the latest sign of industrial disruption caused by the automotive sector shift. some 3800 jobs will be cut, most in germany and the u.k. the carmaker has reduced ranks in the region by 35% the last five years. coca-cola exceeded expectations as consumers continue to absorb higher prices for the company's sodas and energy drinks. organic revenue, which exclude the impact of currency shifts, increased 15% in the quarter. the supply of batteries to volkswagen and bmw could reap billions from the new president biden bill. northvolt

if you had to guess, what will be the terminal rate where fed chair powell and fomc, say, now we're done we heard many fed presidents say 5%, five and a quarter, five 1/2. >> could be. i think the best indication we have what they said in the december in the summary of economic projections 75 basis points before yesterday. so that would take us to 5, 5.25. it could go higher. it will depend on a great deal simply how sticky this last patch of inflation is, that they really have to get, get under control. liz: yeah. we need still, there is some prices that need to come down. my organic peanut butter is too expense system. good to see you. >> thank you, so much, liz. liz: dennis lockhart, former atlanta fed president. closing bell. we're four minutes away. nasdaq doesn't look like it will exit bear market territory. it came very close earlier. right now we're less than 1% away from exiting that bear market. not there yet. from bears to punxsutawney phil, the groundhog. he saw his shadow this morning. i hate this. that is so tortuous for that poor thing. he saw his ahead dough. according to

earlier in the week it seemed chair powell and the central banks backed away from inflation. those exciting momentum names during covid that weren't making money, but people were demanding their services. that doesn't really work. you need cash coming in and out. >> infrastructure which is a combination of ports and let's call it utility sectors that we think will continue to derive cash flow and keep giving dividends back to clients. energy, there is a chronic investment in energy. they are returning cash back to shareholders being very capital disciplined. healthcare which doesn't generally spin off a lot of cash to investors, it's a great longterm demographic place. healthcare, infrastructure. liz: louisiana pack, sistering construction. and some of the utilities, ge energy, con-edison. what about anything in tech at this moment? we just had apple, amazon and alphabet not doing that wonderfully in their most recent quarter. >> we think tech will be a challenge. and an incredible january. it's probably a little bit early. cfos will be a little defensive in their spending. p

we have to be careful what -- interpreting what chair powell was saying.e in a pre-election period for the presidential elections. this is a fed chairman who was appointed by a republican administration and he suddenly wants to stay above the political fray and its indicative how careful he was in phrasing his remarks about the debt ceiling. i think the market is hearing what the market wants to hear and he did say their job is not going to be done until they get firmly back to 2%. he did say they will keep hiking rates as long as they need to and he did say they need to loosen up the labor markets. i don't think he has said anything to indicate that he's not going to get the job done. alix: i'm going to get -- guy: i'm to give the bond market a pass. starting to reprice. good to see you by the way. i'm wondering is the equity market. the equity market is looking at an incredibly strong labor market which will encourage the fed to go further and get margins in a pretty big way because companies will have to hang on and pay their staff more. the equity mark

inflation training, you know of what you speak so therefore, is it time to believe that chair powell when he says the job of hiking rates is far from over? >> hi, it's great to be here in person and yes, it's time to believe the fed. they have had a bit of trouble there inflation narrative, transitory story was not something market ever fully believed and they shouldn't have gone down that path but we are far from that now and we are hearing over and over from chair powell but everyone else from the fed speaking for the it's waller, they are telling us one mantra, rates are going to be higher for longer and we have to believe that and thankfully the last two weeks i think the bond market pricing, you are showing rate moves that have taken pl place, it finally believing the story that we are not going to begin to see a cutting cycle in 2023. >> time to believe the fed is what you're saying, we've got this triple whammy so we go from economic data which continue to show inflation is still a thing and if you look at the stock data, general mills ceo said yes, we were able to lift sales

it was chair powell that made it interesting.tion today i think what they're telling us is the string of bank meetings is over. the market will surprised very much yesterday so what we see today is telling us we will be surprised by a similar, i think people call it pivot by the ecb in march. i will be very curious to see what we hear from president lagarde. i would strongly advise her to be more like powell and stop guiding to strongly about contentions. the ecb has come a long way and as your color just said the data is becoming cloudy. lisa: are we coming up with a narrative to fit the flows? >> i think what we have seen since the beginning of the year is flow driven. a lot of things have fallen into place. the degree of disinflation, when it comes to the performance of risk assets particularly the riskiest, that's really because there is so much on the sidelines and under positioning. there is a big flow element. really throughout this. tom: what is the dollar going to do on this? markets clear, we get clarity, we move on to

you and fed chair powell who i know you know well. when he had the chance in his latest press conference, he was unequivocal. he said there is only one way forward and that is for congress to raise the debt ceiling. and i wonder how you would put it in your words. philip: a sentence that starts as as chair powell said in my perspective is a good sentence. i always believe that sentence with whatever follows. but from the cbo perspective, we are here to support the congress. and part of that is we find the analysis, not our opinion. we did not tell them you should do this or that. sometimes we will get them several options, many options. but we do not say do this one thing. that is the reason i am hesitating to tell what the congress to do. that is beyond the line for cbo even though i, of course, have spelled out the consequences of going past madea -- pass the debt ceiling. heather: alright think you let me pause and say to anyone joining us we are eager to hear your questions. i have a long list but you can submit your questions on

i'm sure we'll see you again soon, and we'll be watching fed chair powell.chtime, about 12:30 -- 12:40 is it? lauren: that's correct. stuart: all right. we're about to open this market on this tuesday morning, february the 7th. we're expecting a downside move if at the opening bell, and who knows what the market because after jay powell speaks at lunchtime. all right, we're off, we're going, and we're down 200 right now -- sorry, 186. all over the place actually. if we can see the dow 30, i can get you a sense of the market. yeah, this you go. they've not all opened yet, but those that have are largely in the red are. a lot of selling on the market this morning. s&p 500, where is that? it has opened lower to the tune of, not much, .21%. nasdaq, i think the same. no, dead flat. i think you'd agree, susan, that is absolutely dead flat. susan: yes. stuart: let's have a look at big tech. where are they this morning? microsoft is up nearly $4. susan: i'll tell you why. stuart: oh, i know why. they've got a news event, haven't they? susan: you're listening to powe

also ahead, we'll break down chair powell's message with richard clarida. and later the big post earnings plunge for chegg with the ceo dan rosensweig first mike santoli, what are you watching >> not that much give in this market about two days of pullback or at least some hesitation in the market friday and yesterday, bond market got twip twitchy afr the jobs report friday but you track powell's comments, the market up 1% from its high of the year last thursday. one of the big questions coming into this week is can some of the speculative stuff that got overexcited coming into the week calm down, deflate a little bit while the overall stays the same hints that's possible. if there were a pullback to 4,000, you're still in the normal pullback zone, looks like this a little mini breakout is intact one area that we've obviously been looking at is inflation and commodities need to go further up the chain here's a true year of the commodity index etf. well down from the mid-2022 highs but sticky around this level, which was really right around the russia's inva

>>> still to come on "techcheck," the nasdaq rallying again today after meta delivers and fed chair powell noted the disinflationary process has started at least in some areas we'll have more on what this latest rate hike means for tech stocks. >>> plus, we talked amazon and alphabet we also have apple earnings after the bell and qualcomm. we'll break down what to expect and rologic shares, we'll speak to the ceo ♪♪ inner voice (kombucha brewer): if i just stare at these payroll forms... my business' payroll taxes will calculate themselves. right? uhh...nope. intuit quickbooks helps you manage your payroll taxes, cheers! with 100% accurate tax calculations guaranteed. fed-fueled rally after policymakers slowed tightening to a quarter point raise hike. during the news conference, the fed chair said, cutting rates would be inappropriate he did not push back on market pricing for monetary pricing, citing disinflation 13 times barclay's joins us to talk about the fed presser yesterday. this violent rotation we've got not just this week but for most of 2023 so far is it too much >> i think so.

you spoke to fed chair powell. i don't think he sounded particularly dovish, do you? >> i don't want to characterize it, but i would just say he made it clear that they are determined to get the inflatio rate down. and i think the earlier expectation that maybe there would be rate cuts bit end of the year, i think that's out the window based on what we now see and what he now sees clearly the market could change, the world could change based on what the fed sees now, i'm not authorized to speak for the fed, i don't think the fed will decrease rates this year. that to some extent is being reflected in the stock market. >> what about the deal environment, david i always like to ask you what you're seeing in terms of deal flow and, you know, really obviously dried up last year 2023 look different? >> the market is getting better. obviously, there's fewer deals being done than people in the business world would like, or at least in a deals world i know there's a number of deals in the works and there is debt available for well-structured deals at reasonable prices there i

as you know, the fed chair powell taking the nasdaq on a bit of a ride yesterday. etf leapt up nearly 2% as powell told him he found the beginnings of disinflation, sending the trust down 2.5%. and shot up into the green when he said that the central bank will just, quote, react to the data will the nasdaq see its best start to the year since '19 secure this bull market rally? joining us today, goldman sachs portfolio manager brook dean is here on set. there's been so much hand wringing on the set of expansion. what is the thinking on stek speci tech specifically. >> as we talk with our clients and investors, we want people to be balanced. you have seen stocks move up pretty dramatically. my boss likes to say, we've had a good year in january, for the whole year but on the other hand, when you look at the opportunities ahead of us and where clothes are and where estimates are. it's actually very reasonable right now. we're talking to people about keeping their exposures up, but big cognizant of where things have moved and be balanced >> is the sense that, okay, we'v

key question, of course we may get a little bit better more information when we hear from fed chair powell later today. of course, one of these key questions, it's not just that we get to a terminal rate, but how long do you stay there >>> all right, speaking of staying, we're done, we're leaving. i'm going to send it over to "tech check. >> happy wednesday welcome to "tech check." i'm john fourth with carl quint nina and deedra bosa the readthrough for earnings tonight with meta and alphabet set to report. those results against the backdrop of the fed this afternoon, with the nasdaq already up double digits so far in 2023. how today's decision will impact the tech stocks in your powerful that's next. >> and we've still got the megacaps left to report this week so markets, they are muted today ahead of that and the fed decision this afternoon. plenty of earnings movers to mention already. both juniper networks and match group are down big this morning. we have the ceo and cfo respectively coming up this hour as you can see, the nasdaq hopped down about 0.6% let's take a look at ea, falling