matt: thanks very much, dave wilson with your stock of the hour.nt biden is speaking from the white house on his build back better agenda. he says he asked the fda to get generic drugs to people faster. we will continue to follow this for you and bring you any headlines. you can also watch the speech on the bloomberg terminal. live go is the best place to follow. electric volvo trucks are hitting the streets of new york city for the first time. we will speak to volvo trucks north america president peter voorhoeve. this is bloomberg. ♪ matt: this is bloomberg markets. i'm matt miller with amanda lang. volvo's electric trucks are hitting the streets of new york city for the first time, being deployed as a part of manhattan beer distributors's fleet of trucks serving 25,000 first to customers. peter voorhoeve joins us now to discuss. i have always said, if this doesn't work out for me, i would like to be a truck driver or beer distributor. i guess i would have the chance to do both here. aside from that, thanks for joining us. what will we see with th

taking a look at palo alto networks, with us to look at that is dave wilson. are we seeing here? we are seeing -- >> we are seeing a record of gain since probably 2012. who can blame them? the amount billed to customers, billings up already for percent from one year ago. -- 34% from one year ago. that is not necessarily going to be kept up. but in terms of the latest quarter, what is noticeable is that palo alto is getting bigger contracts. the number of new customers, million of dollars, up 31% from one year ago. it is staggering how much it grows. it looks like businesses are going to try to consolidate in terms of who they go to for firewalls and other cybersecurity devices. the company talked about notable strength in large customer transactions. as far as the outlook, billings have been talking about a little bit more than 20% growth this year. with revenue and also profitability, they are anticipating they are going to be able to sustain the growth they had in the most recent fiscal year and that is going over well in large measure. it expense while the

dave wilson has the deeper dive. dave: quite the quarter for warren buffett's conglomerate.ake a look at the bottom line figure, $28.1 billion. it definitely jumps out and terms of being the most for any company in the s&p 500. now, about three quarters of that was investment gains. and berkshire hathaway will say at any time that number is usually meaningless. but that said, if you look at it , it was up 21%. it was not the insurance businesses, geico and all the rest, that delivered the growth, it was all about the rest of the company -- the utilities, railroads, manufacturing services and retail. they more than doubled in the quarter. it's clear that berkshire hathaway benefited from the economic recovery. and you can say that is reflective in how well shares have done this year. up about 20% in the first half, whether you look at the a shares or the b shares. that's the best performances 2015. that has meant that berkshire hathaway has backed up a bit on buying stocks. it's spent about $6 billion in the second quarter, down from $6.6 billion in the first, and way down fr

dave wilson is looking at those moves. rd to believe a week ago robinhood shares began trading. down 8.4 percent on its first day, stayed low the next couple of days, and then 87% gain in two days. people talk about the idea that robinhood, the home of trading a lot of these meme stocks, is itself a meme stock. think about amc entertainment. the movie theater chain went back and raised money from investors. here we are one week after the initial share sale and you have robinhood filing for investors to sell almost 98 million shares. we are talking early investors in the company. andrews and horwitz. that $98 million is a lot more than the $55 million it sold when it went public last week. will there be demand? you can argue the question, but there are numbers out that show, so far, you have had one hundred million dollars of retail buying on robinhood after the ipo. not the initial sale but subsequent sales in the market. gamestop, that figure was more like $350 million in january, when meme stocks were just emerging. with

we asked dave wilson to take a deeper look. this patent dispute goes back to january of last year. google, the search unit of alphabet -- they had violations going back to 2015 that involve chromecast, google home, phones, and laptops. friday, and international trade judge weighed in. this is a process that is subject to review by commissions. there is a decision do. you are talking about the potential for sonos to read royalties on google devices, at a minimum. the commission could decide that google could not be able to sell in the u.s., going forward. it is what happens now that sonos has won this initial legal victory. it raises the potential for royalty payments. this is a company whose revenue has been moving up. you talk about the stay-at-home shop. they have benefited in terms of revenues in september. it's a relatively small piece of a bigger market. google and amazon really dominate, with sonos just a 5% market share with smart speakers. going after google, you have to worry what is up for other companies. matt: it is

weak comparisons and dave wilson has a deeper look on a day when other retailers are doing really wellsolutely. it isn't just that they beat in terms of second-quarter earnings they came out ahead on sales as well relative to analyst estimates. they also increased their forecast, looking for revenue to be up more than 35% for the fiscal year that ends in january. 10% more than the previous projection. profitability, i mean, they only bumped it up half a percentage point at most from where it was. really the company was citing what they called macro related cost pressures on the business, labor cost, arguably inventory too because it was up 13% from two years ago even though sales were down. you compare it to last year and sales were double. of course, that was when the coronavirus pandemic was raging. you look back to two years ago and sales were down close to 6%. you didn't see that with nordstrom's peers. when khol's reported results, up from two years ago. macy's a similar story up 1.8%. there was a real contrast in stock performance between these companies and it is reflection of h

bloomberg's dave wilson is looking into the details. you're talking about a company whose revenue more than doubled in the second quarter from a year ago. they had a bigger loss than they expected. that was largely the result of changes in the value of convertible debt and in response to robinhood's debut as a public company. what is interesting is if you dig into the results, you see that transactions accounted for about 80% of robinhood's revenue in the quarter, and from there, we tend to associate robinhood with trading in meme stocks. well, stocks are the smallest piece of its revenue. it is much more involved with options, and in the last quarter, what changed is they got more than half of their transaction revenue from cryptocurrencies. in fact, the ceo set on the conference call yesterday that they had a larger share of first trades i new customers in crypto as opposed to shares, and that had not happened before. clearly, things are swinging, and as a result, robinhood is more susceptible to what is happening in the cryptocurrency

bloomberg's senior stocks editor dave wilson looking at this divergence in his chart of the day. s be specific here, we are talking about the s&p 500 relative to stocks listed on the new york stock exchange. so a broader group of companies, not all-inclusive when you think about the likes of apple or microsoft or other companies listed on the nasdaq stock market. nonetheless, this is a comes harrison -- a comparison that liz ann sonders cited on her twitter feed, looking at the relationship between what is called a cumulative advanced klein line on these -- advanced klein line on these and why essie -- advanced decline line on these nyse stocks. over that period in the past two months or so, the s&p 500 has closed at records 20 times, with the last time coming yesterday. so this is sort of a nonconfirmation. it just raises questions about whether the broader market is really reflecting what is going on in the s&p 500 at this point. it is funny because you can actually kind of stand the index on its head, look at the smallest companies, called the rivers s&p 500, and it has been se

dave wilson has more. w him see because of its status as a meme stock, but from time to time, it is actually something you have to hang onto beyond just the moment of the shares. the stock is down by more than half from a peak in early june, and we are seeing a bit of a rebound in today's trading thanks to these latest results for the second quarter. revenue was actually down from what it was two years ago, but it was higher than analysts were expect, at least the ones we survey at bloomberg. when you look at their quarterly loss on a per share basis, it was actually the smallest since the coronavirus pandemic began last year, so you could argue from that perspective it is a sign of progress. as far as cash flows go, about $85 million a month went out the door at amc. compare that with $124 million a month, the figure that they cited in march. they got more than 22 million moviegoers in the quarter, which didn't hurt either. this is a stock that has tended to react positively to quarterly figures. we should

dave wilson has a look. : you are talking about a company that went public a few weeks ago, came out with its first quarterly report, and revenue more than doubled at robinhood for a year ago, but there lawson's -- losses widened. that is the set up. 80% of robinhood's revenue in the quarter came from transactions. when you are thinking of a key product, you are thinking meme stocks, but not exactly. they made more from cryptocurrencies there and they did from shares or equity options. the ceo said on a conference call that the first trade by new subscribers it was more likely crypto than equities for the first time ever. there are a whole lot more customers, no question. 22.5 million funded accounts. that was more than double from year ago. but this quarter, robinhood is expecting considerably fewer funded accounts, in its words, to be added. they are looking at potential revenue to decline and they attribute that to seasonal headwinds and lower trading activity across the region. matt: of course, they warne

today wilson has a deeper look. davee talking about one of the biggest payment companies around. in terms of their latest quarter, numbers look fine. second quarter average revenue beating estimates, but then there is the real question of, where is the growth coming from? and $830 million deal. they bought the company from vista equity partners in june. these quarters figures will include that takeover. the stock set a record in april and then backed off once they announced the steel. the question is, how does the business look moving forward, given the fact that this buy in growth? they did mention on the conference call that their profit margins may be hit because of this takeover. revenue, 28 growth in the second quarter. analysts were only looking for half of that in the third. not what you want to see in terms of being able to sustain growth. the 14% includes this takeover, which couple case matters further. matt: speaking of takeover, we had a big payment takeover with square. $29 billion for after pay. you order s

dave wilson is looking at the effect for both companies in today's stock of the hour. the tie in is that last month zoom video agreed to by this company 59 that was at $14 billion. you see what has happened to fi ve9 shares, it has come down to the point of 10.8 in terms of value down 23% from where it started. it stands to reason that if you are buying a company for stock that it shares should follow the shares of your acquire and that is what is happening. you take a look at five9, and it isn't growing as fast as zoom has. you are talking 33% growth last year and projected for this year. compare that to zoom whose sales more than quadrupled last year and expected to be a 52% this year, even after we saw in terms of the second quarter in the company's forecast. the quarter was fine in terms of beating analysts estimates, but came out ahead in terms of earning and revenue when the company went public in april 2019. when it comes to the second half, analysts were a bit more optimistic on the high-end than zoom was in terms of its outlook and that explains why the shares

dave wilson has been taking a look. : beyond that, we are talking about 765,000 vehicles, all four of tesla's models going back to 2014. the question is -- did the autopilot have an issue that led these crashes in the 17 injuries and the one fatality that resulted from them. that is the focus at this point. because we are talking about a u.s. agency, there is the potential for recalls, for other corrective actions. you see the numbers in terms of the effect of these crashes going back to 2018. it really becomes a matter of trying to figure out what happened, how it happened, and there will be plenty for the investigators to work through, no question. beyond that, take a step back and look at tesla your they don't spend as much -- tesla. they don't spend as much on research. the revenue has taken off as they have ruled out model after model. that said, you are talking about 5% of sales going into research now as opposed to more than 11% back in 2017. so whether that's an issue, knows. we certainly -- an issue, who knows.

david wilson considers china. daveally, the weight that chinese stocks of all kinds have and the msci emerging markets index. we know the story of the past month and the past six months is how chinese companies listed in the u.s. have taken a tumble. you've got the nasdaq open dragon china index, one benchmark for that group, down 25% for the year. you had a spill over into stocks traded on the mainland and also in hong kong. the msci china index is down 12%. put that together with the rest of the emerging markets in msci's benchmark gauge, and basically you have an index that is little changed while the s&p 500 is up 17%. what really jumps out is looking at china stocks before this year. you have seen their weight and the msci emerging markets index go up for 10 years and around, and last year -- 10 years in a row, and last year go above the peak wafer tech stocks in the s&p 500. tom: who determines the weighting of the pacific rim index? dave: it is how many shares they include within the index that are free to trade

here with what is going on now, dave wilson. u are talking about a fund with $23.5 billion in assets when you look at her flagship arc innovation etf. what is interesting there, track the year. it has been quite the volatile period, considering the shares set a record in february. phil just 39% the next three months, and really struggled to come back since then. they are lower as we speak. while the s&p 500 has a gain for the year of 18%, so she is definitely trailing. we have seen money come out of this fund in three of the past four months. lies outflows, something like -- julys outflows, something like $700 million, was the biggest yet. so people to some extent are running for the exits. beyond that, we are seeing investors increasingly bet against this fund. you look at short interest because you're talking about publicly traded shares, and the opportunity to sell them short, as there would be for any other stock. in's mid-may or so, that short interest has been around 20 million shares. it is there now, about 10% of the stoc

dave wilson is here looking at the come back. sically it was one week ago that the shares were getting pitched to investors and initially sold. trading started the next day. yesterday, we saw them up 24%. today up as much as 82%. along with the surge in price, you saw a rebound in volume. the first day, $102.5 million. yes -- today, we passed that. 108 million shares. it really does show you there is pouring into the stock. ultimately, robinhood set aside so many shares with customers when they went public. there wasn't the demand outside the initial public offering you would think with a lot of other companies. that is according to the wall street journal. the shares bought by individual investors, compare that with 140 million or so for snap. matt: we should be clear retail investors took up 25% of the ipo. dave: the point is it's the shares once they start trading in the marketplace, that's where the smaller investors weren't because the ones who wanted to buy got it from robinhood. that's the thing that may well be influencing

matt: thanks very much, dave wilson.g up, i deeper dive into all the retail earnings out this week with stacey wildlitz. ♪ it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. total gym includes everything you need to get into the best shape of your life. for every body at any age. it works every muscle group, including your core, using your own body weight as resistance. customers love total gym because it's fun, fast and effective. nothing delivers full body results like total gym. and right now you can try it risk free and enjoy special savings too! get on demand workouts free, free shipping and more. call now! mark: i am mark from bloomberg's first word news. u.s. heal

bloomberg senior stocks editor dave wilson has more. u are talking about a vaccine that has been sold in the u.s. under emergency use authorization for the past nine months, so now it has full approval, it raises the possibility of more vaccine mandates, and certainly raises the potential for pfizer to benefit in terms of their sale. analysts are anticipating that sales will be double what they were a year ago, and bear in mind back in july, pfizer forecast $33.5 billion of vaccine sales for the year, which was up something like 30% from their previous forecast. this is clearly an area of growth for the company, and the u.s. is just part of that growth when you consider looking around the world what the opportunities are. there are 277 million people in the u.s., or 200 some to 7 million shots it would take to get every buddy vaccinated. you are talking about much bigger numbers outside the u.s. a lot of emerging markets, india and china have their own vaccine, so there is competition locally there, that there's more room for growth, and

dave wilson has been digging into the filing. are talking about a company that delivered almost $12.5 billion worth of revenue in their latest quarter. the highest estimate was just about 12, so an easy beat. you look at earnings, for five quarters in a row, they have topped the average production by 20%. if you focus on the dollar amount as opposed to share percentage, you are talking 7%. in the latest forecast, $46 billion for the fiscal year. they bond that up to 47. if you look at those numbers, you would think numbers are going great, but the challenge is this company has really had issues in the chicken business. that is largely where its roots are. they have expanded over the years into different kinds of meats. the beef business did fine, so did pork, other areas. chicken not so much. that is also due to legal issues involved with government price-fixing lawsuits. you can figure in the cost of those. that is part of the issue for that business. think about inflation. tyson is saying prices were up 14% in the latest quarter

dave wilson, thank you. we will hear from our guest later on and you don't want to miss that. popular stay-at-home stock was doc you sign and i cannot live without it. do you have it over there? you can sign documents with your finger, it's a game changer. francine: very popular with lawyers. i use the new technology, doc you sign is something good. alix: i was really excited about it. it's a stay-at-home stock but he could still do well. coming up on european close, we will talk to chris watling joining us next as inflation moves higher. this is bloomberg. ♪ mberg. ♪ so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's release from golo. it naturally helps reverse insulin resistance, stops sugar cravings, and releases stubborn fat, all while controlling stress and emotional eating. at last, a diet pill that actually works. go to golo.com to get yours. ♪ >> the c

dave wilson with our stock of the hour.ldren across the country are heading back into the classroom. we discuss the risk of the delta variant and the safety measures in place for teachers, students, and bus drivers. the president of the largest teachers union in the u.s., the national education association, becky pringle will join us. this is bloomberg. ♪ ♪ matt: this is bloomberg markets. i'm matt miller. students and teachers across the u.s. are heading back into the classroom this fall. the return comes in the shadow of the highly contagious delta variant spread with parents facing fear and confusion. politics, diverging policy approaches and daily changes to safety guidance clouding this reopening. the country's largest teachers union with more than 3 million members, the national education association, recently announced its support for requirements that all educators receive a vaccine or submit to regular testing. president becky pringle joins us now to discuss. the first question is, do we expect the majority of scho

alix: thanks for joining us, dave wilson.e will be speaking to randi weingarten, american federation of teachers president about the approval of the pfizer vaccine. and the debate over masks in schools. this is bloomberg. ♪ alix: this is bloomberg markets. i'm alix steel. on the same day the fda approved pfizer's covid-19 vaccine, new york and new jersey have mandated vaccines for their teachers. for more on this, we welcome a medic and federation of teachers president randi weingarten. this vaccination for teachers. do you expect this to go at a national level at some point? randi: yes. i am actually in 20 states this month on a back-to-school campaign. we gave out $5 million in grants to our locals across the country. they are standing up vaccine clinics for our kids and members there, going door-to-door, talking about going back to school. we are all in on back-to-school for everyone, five days a week, but we also want to make sure it is safe. we know that vaccines are the sicko most effective way at making it safe. univer

bloomberg's dave wilson is here. robinhood early today came out with a filing, almost 98 million shares on behalf of investors, especially the venture capital firm entries. it is understandable given the run-up in the shares. 87% gain in the past two days. you could argue the investors are functioning the way that companies that have found themselves in the meme stock category have. using about amc entertainment, the movie theater chain, as a good example. robinhood only sold 55 million shares or so when it went public, so a pretty substantial increase in the amount of stock available for trading if indeed this sale proceeds. and there's plenty of room for retail investors to buy more. consider that so far, through yesterday, they bought $100 million of shares in the secondary market, and you saw much bigger numbers going back to january for the likes of gamestop and amc when they ended up in the meme stock category. alix: dave, thanks a lot. really appreciate it. coming up, the first of our ceo interviews today. ener

is it something not that, dave wilson? did i do ok there? dave: you did just fine.lationship is kind of breaking down a bit. it is something stephen panelli over at knowledge leaders capital pointed out the other day. we have seen the s&p 500 setting record after record. it came really close to doing that again yesterday, there kind of tailed off. we may be looking at another record today. here's the thing, though. you have not seen bonds go along for the ride. prices have fallen, and that means yields have risen. so that is what the chart represents. by inverting the yield, you can soon see that direct relationship in terms of price. you are just not seeing what you saw earlier in the year. tom: in the last 10 years, is this like a once a decade thing? dave: maybe not so unusual, but if you're looking for a reason to be concerned about whether what we are seeing is sustainable, then that is one of the indicators you can .2. and actually, panelli noted a number of others in his note out yesterday, so the stock/bond relationship is the one that caught my attention. y

dave wilson is here with the details. e company basically lets consumers buy on the installment plan. they don't charge interest or fees as long as you keep up with the payments. this is a new area of finance for square. the shares fell initially in response to the deal, and they have now moved higher by 9%. afterpay up almost 19% in australian trading overnight. afterpay has something like 16 million users, so square gets to add those to the 70 million on its cash app, focused on consumers. others are not doing so well. mobile payments out with earnings today -- global payments out with earnings today that weren't well-received. it is really setting up square to move into another area of finance here. alix: it is a really interesting proposition. i wonder how many more are there out there? how much consolidation could we see in this space? how many players are there? dave: that becomes the question. when you think about the online payment business, you have square, paypal, certainly some other companies as well, but then

bloomberg's dave wilson is looking at the contrasts. what you have? you look at citigroup index of stay-at-home stocks, the goldman sachs index of reopening stocks, they are kind of telling the same story, to some extent. citi's index peaked in february. the goldman gauge in june reached its high, and it has been coming down as well. it's all as much as 14% from that peak -- it fell as much as 14% from that. the back-and-forth between people staying at home and going back in to work again, you can focus on some data that plays in the reopening argument. whether you look at people going back to the office or u.s. airline passengers going through security, or restaurant patrons, the data series that track those, a kind of rolling over as chart watchers would say, numbers have been coming down the last few weeks. so you asked to see the shares follow along, and indeed, the numbers really do tell the tale when it comes to the effects of the delta variant spread, when it comes to people being willing to get out and go to work, take a flight, go eat out at

dave wilson, thank you.up later today, cathie wood will be joining bloomberg, so get that feedback loop from her there. coming up on this program, house budget chairman john yarmuth says the house will vote at 1:15 p.m. on the budget. we will break down the odds of any infrastructure bill passing with terry haines, pangea policy founder. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at

bloomberg's dave wilson is here with some of the details. walk us through the numbers. ally, home depot is more of a story than walmart arguably in the wake of their second-quarter results. fiscal second quarter, to be more precise. it is all about growth at stores open more than a year not measuring up to what analysts were looking for, and a big reason for that is they just didn't have as many people walking through the doors. they made fewer sales, but the sales they did make were bigger because there was a shift towards serving contractors as opposed to mom-and-pop, shall we say, do-it-yourselfers. so a change in the business. the on that, when you focus in on those comparable sales, the slowest growth in about two years, and this is a company that, for the past four quarters , had 20% plus increases in same-store sales. people were staying home. they wanted to fix up their houses. they wanted to do all kinds of things. but that seems to have faded a bit, and when you look at walmart, it is their online business which really ramped up in the second quarter of their f

dave wilson is digging into the number. that's the numbers -- into the numbers. you're talking about the company that is all over the chinese internet industry. you've got cloud computing, online advertising, social media, games, all of it. it has really been in the crosshairs now of regulators at they try to rein in the technology industry on the mainland. what it has meant for the american terry receipts which trade over american depository receipts which trade over-the-counter -- the american depository receipts which trade over-the-counter here, they have been down over 40%. regulators scrapped the plan to merge a couple of game streaming companies. tencent's music streaming service had to give up licensing deals. wechat even suspended registrations for a little while. there's pressure on the via game industry -- on the videogame industry, too. 20% revenue growth sounds just fine, but was actually in-line line with average estimates. yet, it is the slowest in more than two years. that is really front and center. earnings beat estimates. alix: earnings still gr

matt: dave wilson talking to us about the aftermath of the latest china regulatory decision.damage from hurricane ida could cost insurers $15 billion, not to mention the tragic human impact. we will discuss that. this is bloomberg. ♪ president biden: now i am here with my senior advisor and boy who knows louisiana very well. cedric richmond. i will make a brief statement and then go through and tell you what we are doing, and then hear from all of you. i know that you are busy as the double -- devil. i know you have a lot to manage in your states, but i want to hear from you, we both want to hear from you. we know hurricane ida had the potential to cause massive damage. that is exactly what we saw. we already know there has been at least one confirmed death. that number is likely to grow. we have got one million people in louisiana without power. for a time, ida caused the mississippi river to literally change its direction. some folks are dealing with the storm surge and flash flooding. there are roads that are impassable due to debris, downed power lines. we need people to

dave wilson comes through the numbers and he is here to break it down. >> that start by noting this issecond earnings report out of coinbase since the company did its direct listing in april. the first was a mixed bag. earnings beat estimates, but revenue was pretty much in line. different story this time around. you look at their top line, $2.2 billion plus ahead of the average estimate by 20%. similar story with depreciation. also trading both 20% higher than the average projection. already more than double the average estimate. it goes to show you this is a company growing by leaps and bounds. 8 million what they call monthly transacting users, mostly individuals that are buying and selling on the coinbase exchange at least once a month. $8.8 million, your -- 8.8 million, a year ago it was one half million. you sign an increase of 30% from the first quarter. you are talking about some numbers for sure. you look at shares and it has been more of a mixed bag. this was a direct listing, you had a reference price set at $250 a share. stocks have going to from there, initially as much as

thanks very much, lynn berg's dave wilson., also the flying stuff in space, joby is listing today as trading. basically -- the company story about 12 years ago, it is looking to put an air taxi in the sky by 2024. that looks nice. guy: they have one parks down the nyc, i think. that is picking people's interest. potentially we are heading to a world where we could see a lot of the buildings in new york having ports on their roofs. you can go to the top floor, get in one of these things, get out to jfk, get out to laguardia. that's the future, apparently. alix: in terms of manufacturing these things, there are other companies that will be doing that as well. the how does that actually work for them? and also, regulations. ouch. we are going to talk to the exec the chairman of joby in the next hour, per sciorra. don't miss that. price pressures on businesses -- some may be easing, some may not. this is bloomberg. ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes

dave wilson had a good point that when you talk about the breath and sighed -- breadth and size and scope, the movement of the 50 day average not as high as it was a month ago. tom: we have done better in the last hour. futures up 6. dow futures up 28. stay with us. this is bloomberg. good morning. ritika: with the first word news, i am ritika gupta. hurricane ida battered new orleans and the louisiana coast with heavy rain and some of the strongest winds ever to hit the state. the storm has lost some of its strength, but it is released to -- expect it to release a potentially catastrophic amount of rain as it moves north. some homes may stay without powder -- power for weeks. jake's elemental fox news two members killed in an airstrike friday had been planning additional tax against the u.s. the president was at dover airport base for the arrival of 13 servicemember's killed last week in afghanistan. they were at the airport in kabul when a suicide bomber struck. the united nations says north korea may have resumed operations at its plutonium producing nuclear reactor in recent months th

david wilson looking at not the 30 year bond, but the 30 year moonshot known as moderna. davear moonshot, tom. this company hasn't even been around for 11 years yet, and here we are as a result of the success of their covid nine vaccine, their market value has just taken off. in fact, last week it surpassed strohmeyer squibb, which -- surpassed first omaira squibb, which -- surpassed bristol-myers squibb, which traces its origins back to the late 1800s. it didn't stay above mark because moderna -- above merck because moderna fell yesterday, but it shows you how much things are changing because of the success moderna has had with its messenger rna vaccine for covid-19. it is the best performing stock in the s&p 500 since going in there last month, and how many times have we seen companies go into the s&p 500 and falter, like tesla? tom: thanks for mentioning them in the triple leveraged all-cash fund. is it transitory? dave: that is the question given the magnitude of the gains we have seen. that said, moderna is looking to develop other shots with their technology. they are lo

tom: we are going to get to bitcoin with mike mcglone, but first, dave wilson looking at where i can vidend. utilities and real estate, discuss. dave: absolutely. you talk about interest rate sensitive stocks, those two industries certainly qualify. they haven't been moving together lately, though. it is something jonathan krinsky at baycrest partners pointed out. if you look at the s&p 500 utilities index tip to its real estate counterpart, the ratio between the two peaked in october. it has come down 25% through last month, and it is hovering near the low as we speak. krinsky is basically figuring it is time for a reversal. in his view, these utility stocks look "ready for a breakout." on the other hand, the real estate stocks are "think tired -- are "looking tired." over the last few months, they were even falling when interest rates were falling, which doesn't necessarily make a lot of sense because they are the kind of shares people tend to buy when they can't get all that much out of bonds. tom: for those of you on radio, utilities are not what we looked at years and years and e

we talked to dave wilson, he rattled to me on bloomberg radio a number of videogame makers getting hitd in this market. i am guessing china is a huge market for them as well. these things are not just played in their home territory. call of duty is something people play around the world. amanda: which is where the uncertainty gets problematic. it may be too broad to price in at the moment. every business looks at the chinese economy as a huge one, it wants to tap that growing middle class. these new reminders from the government that it is going to run its own show may change the to know little. it is hard to know in what way right now. matt: we are going to continue to pay attention. i am going to figure out what game that was. that takes us to our stock of the hour. senior stocks editor checking out the damage on tencent. they were telling me earlier that most videogame makers, even in the u.s. have been hit. >> to some extent, they have deals in china. this is important for them. focusing on tencent, they get about one third of their revenue from videogames of one sort or another. t

i'm going back to dave wilson's chart earlier in the week, where he was looking at the correlation, thenverse correlation between bond yields and tech stocks. i wonder how much that can continue. if you have these revenues and this secular story, how much do these have to be linked, or are they potentially going to try to go their own ways the world becomes a rosier place? tom: it is going to be interesting to see. francine, quickly here, the equity markets, many people saying go long europe, that you've got to own europe. francine:francine: a lot of people, and that is also a currency call. so if you were listening to salmon some of the others, janet henry this morning, it is also a eurodollar call. when you look at some of the budgets, it could be disrupted because of elections. if you look at the uncertainty of the elections, be it germany, france eight months from now, you don't know what comes next. so that could change the trajectory for some of these european equities, unless european equities skew towards the u.s. market. tom: ira jersey with us. no, not on premier football come

berg senior stocks editor dave wilson is looking at what is really quite the comeback. no question. this is a stock that fell 8.4% on its first day of trading after having been priced at the bottom of a projected range. yesterday up 24%, today it has been up as much is 82% and hung onto most of that gain, at least for the moment. then you look at how much trading is happening in this stock. typically you get a first day surge, and then things kind of settled down. yesterday you came close to having as many shares traded as you did last thursday in that debut, and today you have already seen more than 60 million shares change hands, and we have a projection that you may be somewhere around $217 million by the end of the day, which comes close to have each share changing hands four times. that gives you some sense of how much volume there is and how much volatility there is in this stock. alix: dave, thanks a lot. really appreciate it. i, you just like saying hood. you think that is funny come aright -- guy, you dislike saying hood. you think that is funny, right? but that

a wilson is taking a look at the numbers -- dave wilson is taking a look at the numbers. as far as the latest quarter, came up short on the top line. it is really all about slower growth across most of the company's businesses, whether you look at digital media or cloud computing or their main online retailing business, or what they call innovation. you had growth. it just wasn't enough for most of their units to really measure up to what analysts were looking for. on top of that, companies are spending more to promote a bargain shopping online, to promote local marketplaces, so it is a matter of that investment happening at a time when you look at the business and things are kind of slowing down a bit. this is a company that has certainly had its struggles for months. if you look at the american depositary receipts, they are headed for their eighth straight quarterly decline after earnings. that tells you something right there. more recently, you can go back to last october, when founder jack ma came out and, among other things, asked the chinese government to be more ac

that is something dave wilson will be concerned with when he measures and partitions growth and value growth and value, or do you correlate them into one big analysis? dave: it is altogether, more or less, at this point, which is a real departure looking at the russell 2000 growth and value indexes. oppenheimer ran the analysis. you go back to mid-may, and the russell 1000 value index was ahead of its growth counterpart by more than 13% for the year. so now you are talking about a gap that is basically nothing. earlier this month, it was 0.1%, so things have really closed up. just to give you an idea of how unusual that would be if it lasts through year end, you have to go back to 2014 to see the last time he growth and value indexes had comparable gains. since then you have seen a cap of more than 16 -- a gap of more than 16% on average. tom: it may be an unfair question, but you are so good at this, i am going to go with it. what is the duration of up for value? the perception is it does nothing for x number of years, then it moves. then what? what is the length of value success? da

no one cares anymore except dave wilson. dave: i wouldn't go that far.hat liz ann sonders cares over at charles schwab because today's chart is a version of one she had out yesterday. looking at the s&p 500, which is just setting record after record, relative to a cumulative ad line, for stocks listed on the new york stock exchange. the stoxx is important because you can do the same thing with n.y.c. securities, which -- with in why is he securities -- the stocks is important because you can do the same thing with nyse securities. it has been falling a bit since then. even though it has come back lately, we are talking about period since june 8 when the s&p 500 has set records 20 times, with the latest one yesterday. so the concern here is that there is a bit of a divergence going on that perhaps signals that the strength we are seeing in the s&p 500 is not necessarily all it is cracked up to be. tom: what is the distinction between the two indices, the two sets of stocks? is it weak financials, or one has a -- one has apple and the other doesn't? dave:

dave wilson has perspective.der gold etf and the spider s&p 500 etf, you look at the ratio between those two, and it is just taking a beating. this particular comparison doesn't even include dividends because you get theirs on stocks, not on gold. if you were to have those in the equation, you would be talking record lows for the gold etf relative to the s&p 500 etf. as it is, 10 years ago this ratio peaked. if you just focus in on the highs set last year as stocks were tanking, you're talking about a drop of 44%. either way, it just shows you the magnitude of the weakness in the gold market relative to the u.s. stock market. tom: to describe this chart the radio, it is a series of lower highs and a series of lower lows. technically, the chart doesn't scream gold turnaround. dave: no, it doesn't. that is the issue as anything. it has been a year so far we have seen gold down, other precious metals down. silver, platinum. you look across the group, you see declines. we have been talking about stocks setting record

lisa: there is also an issue that dave wilson raised which is what is the leverage being built into markets? is that leverage coming out of the system? you are seeing that on margins. what is it stock did-apalooza. how much are we seeing those pockets slowly deflated. at what point is there a seismic jump in the response in the market? tom: to both of you, i'm soarry, it goes to the family office tobacco at credit suisse. taylor, we didn't have transparency of margin or leverage. taylor: yeah. that's certainly the case. i continue to just go back to what bob michele says about moral hazard and what is the risk. i think muhammad has been really strong on this. what is the risk of not doing something. lisa, to your point earlier you asked the question, if it's not doing a lot, $120 billion a month, why are we still doing it? what is in the risk of a small little taper if it's not that big of a deal to begin with. lisa: i wrote this column about inequality since that is the topic of discussion at the fed. i bring this up, it's relevant to what you are saying, this idea of what effect has the f

lisa: dave wilson is not a nordstrom or a macy's guy. he's a louis vuitton kind of guy, i think.on, though, of how much there has been a shift away from brick-and-mortar, and now kind of back to brick-and-mortar, with even amazon opening some stores, distribution stores, but also this emphasis on a multifaceted storefront that can also do everything in terms of deliveries and pickups. how much have these stores adapted to that, and what kind of traction are they getting? dave: i believe the word you are looking for is on the channel -- is on the channel. that is -- is omnichannel. that is the kind of jargon of the industry, being able to buy online, pick up in the store, whatever you want. these companies have adapted to that, therefore making shoppers happier. so they have adapted to some extent, but the idea of amazon going in the other direction tells you that there is value in actually being in a lot of places so people can pick up stuff, even if they ordered online. tom: did you ever see nrbq, the new rhythm and blues quartet? dave: i can't say i did. tom: they were phenomen

host: just about 15 minutes left with ambassador earl anthony wayne currently with the wilson center. this is dave in florida, a democrat. good morning. caller: good morning there is a pattern, and the west always treat symptoms and never the source of the problem. it did not start with that first gop electoral college wonder boy, george bush who ignored all of the red flags like the presidential warning him of the terrorist attack coming on 9/11, and that is not even counting the economic ruin that he left behind. instead of dealing with that he played golf just like the last four years of incompetence that we have had to suffer through. the truth is that this goes back to 1947 when the allies dropped 750,000 eastern european refugees on an area the size of new jersey that they used to call the nation of palestine. you know, bin laden stated and is quoted in 2002 as stating " the palestinian cause has been the main factor since my early childhood, fueled by desire and that of the 19 freeman" he was referring to the bombers "to stand by the oppress and punish the oppressive jews and their allies."

the always handsome david wilson, what have you got? davef a corollary to what i talked about a couple of days ago. i looked at the russell 1000 growth and value index and basically pointed out this year's performance. then you do the same analysis with the russell 2000 index, smaller companies, and you see there's no convergence at all. you are talking about quite the cap between the two, so you could argue it is sort of a great vibe that we are seeing between these indexes. there are a few reasons for it. one is that if you look at the russell 2000 growth index, you see that health care is the biggest component. it also happens to be the only component of the russell 2000 growth index that is down for the year. turn to technology, you see it is about half of the russell 1000 growth index, and it is actually beating that benchmark this year. on the other hand, the russell 2000 is trailing. tom: in your reading of the zeitgeist right now, what is the distinction, the interesting thing you see in the growth versus value debate? what makes you

david wilson, what do you have? davelooking at is what folks at gmo are paying attention to, and specifically, share sales by u.s. companies, whether we are talking initial public offerings or subsequent sales. they have really taken off in the past year or so. you can argue whether that is part of the coronavirus pandemic , but basically, the concern is that we are well above where we were at the peak back in 2000, all according to data compiled by the federal reserve. tom: share sales or bond sales? dave: share sales, equity. there's a bit of a lag to it because the most recent data covers march. you are talking about 12 months basically an average over time. total it up, and you look at we were this past march, $26 billion over a 12 month period, 60% up since 2000. tom: the gmo has been very cautious over the years. do they still maintain tentativeness? dave: they are concerned about what lies ahead. the share sales, when the ducks are quacking, feed them seems to be the philosophy at this point. that is a concern for

host: just about 15 minutes left with ambassador earl anthony wayne currently with the wilson center. this is daveorida, a democrat. good morning. caller: good morning there is a pattern, and the west always treat symptoms and never the source of the problem. it did not start with that first gop electoral college wonder boy, george bush who ignored all of the red flags like the presidential warning him of the terrorist attack coming on 9/11, and that is not even counting the economic ruin that he left behind. instead of dealing with that he played golf just like the last four years of incompetence that we have had to suffer through. the truth is that this goes back to 1947 when the allies dropped 750,000 eastern european refugees on an area the size of new jersey that they used to call the nation of palestine. you know, bin laden stated and is quoted in 2002 as stating " the palestinian cause has been the main factor since my early childhood, fueled by desire and that of the 19 freeman" he was referring to the bombers "to stand by the oppress and punish the oppressive jews and their allies." the t

dave on our republican line, in hammond, new york. good morning. caller: i'm on the road, a beautiful view of the capital from the woodrow wilson bridge.ost: as far as the situation in afghanistan, what do you think about that? caller: we have to protect the personnel that are still there and get out the rest of the folks who want to get out that were helping us. i have no problem with that. i think the famous expression comes in that those who ignore or forget your history are doomed to repeat it. the history of afghanistan is that nobody wins there. we may as well quit trying in that regard. i heard from a taliban leader who was talking to an american counterpart and he said we own all the time. host: why not a stronger u.s. presence there? caller: why not a stronger presence there? host: right. caller: i don't see the need. they understand life a whole different way. they have a different understanding of life. they don't understand the democratic freedoms and liberties that we have in the constitutional republic like ours. how do you expect them to come around to our way of thinking? you can't change it in a generation. we have bee

dave on our republican line, in hammond, new york. good morning. caller: i'm on the road, a beautiful view of the capital from the woodrow wilson bridge.ost: as far as the situation in afghanistan, what do you think about that? caller: we have to protect the personnel that are still there and get out the rest of the folks who want to get out that were helping us. i have no problem with that. i think the famous expression comes in that those who ignore or forget your history are doomed to repeat it. the history of afghanistan is that nobody wins there. we may as well quit trying in that regard. i heard from a taliban leader who was talking to an american counterpart and he said we own all the time. host: why not a stronger u.s. presence there? caller: why not a stronger presence there? host: right. caller: i don't see the need. they understand life a whole different way. they have a different understanding of life. they don't understand the democratic freedoms and liberties that we have in the constitutional republic like ours. how do you expect them to come around to our way of thinking? you can't change it in a generation. we have bee