david kostin right now at goldman, 4300. tom: let's talk about this. david kostin, 4300. and cash flows and go up. tony dwyer, you've got to be in the market. to me, the great call on this show, jon kyl up published -- john golub published and said you've got to ignore it. it is arguably the call of the first half. ben laidler, killing it. jon: 4600 the top end on wall street. the medium right now, 4300 on the s&p year-end. romaine: i think that is going up, and a lot of people talk about the disconnect between the s&p 500 and the rest of the economy. the s&p 500 is out in front of that, and those numbers have to come up. jon:>vat coming up in the next , rick mishkin, former federal reserve governor. from new york, this is bloomberg's -- this is bloomberg. ♪ ritika: the president of haiti reportedly has been assassinated , according to the associated press. the country's interim prime minister says the gunmen killed him at his private residence and wounded his wife. things have grown increasingly unstable since he took office in 2017. the biden administration official has

david kostin of goldman sachs joining us.oming up, zoom wants to make sure it keeps growing as workers go back to work and kids go back to school. more on that strategy, coming up next. this is bloomberg. ♪ alix: just breaking for you, the s&p is extending its decline past 2%. most of the subsectors are in the red, and the flipside is you're seeing the money continued to move into the bond market. yields down by almost 11 basis points in the u.s. and in the ok it is going to be eighth -- and in the u.k. it is going to be a super ugly day. it just depends on how bad we get and how bad we close. in terms of the business flash, we want to dig a look at the business stories in the news right now. we will go to leigh-ann gerrans. leigh-ann: robin hood hopes to raise up to $2.3 billion in an ipo. the trading app company at the center of this year's meme stock frenzy says it will still more than 55 million shares. robinhood expects the ipo to price between $30 to $42. at the top of that range, the come but he would have a market val

equity strategist david kostin. e you. >> thanks, carl, nice to be there. i was helping to be there in person i am in the office i don't know what's wrong with the technology here. maybe next time. >> it's an argument for ipo work, david, when you don't have to work about the zoom issues. i want to ask about 4,300 year end, which i know is contingent on a ten-year that ends the year around, what, one-nine you have talked about that this week you also talked about the key questions for earnings season and a lot involves how corporates are going to manage inflation. >> correct so i think the target of 4,300 which is roughly where we are now is predicated on a couple of assumptions. the first over the next 90 days probably going to get most of the news flow and focus will be on tax and fiscal negotiations in washington, d.c and the assumption that we are making for profits for 2022 are 5% below consensus i would expect after the legislation is passed there will be increases in taxes and you will get a wave of negative e

we thought david kostin was a crazy man at 4400 on the s&p 500 . we are at 4400 now going into tuesday. tom: it does go back to the reaffirmation of earnings. when you suggested apple, microsoft, alphabet, google, the rest of them really matter to the empire s&p 500? -- would you suggest that apple, microsoft, alphabet, google, the rest of them really matter to the entire s&p 500? jonathan: i would. right now we are at 1.2954%. tom: washington almost with another stimulus in the infrastructure. mentioned that wonderful idea on labor participation. it is two americas. lisa: it is eking its way through washington, but not fast enough or some people. tom, you said you were in cash. so was everybody else. numbers coming out showing $17 trillion of deposits. this perhaps supporting all asset prices. what indication are we actually getting at this point from markets? tom: overnight repose, but i call the trust market, that very short term paper up a little bit to go through $1 trillion would be a huge deal. let me do the real yields here. the 10 year rea

david kostin of goldman sachs going into last weekend, i think we are at 180 days now without a 5% drawdownso drumroll, could this be it, the tech earnings coming up a little bit later? put it on a plate for you. go on. . lisa: thank you. the filibuster is if anyone wants to get on the show, just send us an email that says jon is right, and you will come on this show. so you can keep filibustering now. [laughter] jonathan: if i had to call this market the way julian had to call this market, i would be absolutely terrible at it. better off asking the questions. the s&p down five, -0.1%. from new york city, what a lineup we've got for you. big tech reporting after the close a little bit later. we have apple, or soft, we have alphabet -- apple, microsoft, we have alphabet. this is bloomberg. ♪ laura: the two koreas have agreed to rebuild ties. that could lead to a possible opening for president biden to push for a breakthrough in nuclear talks. north korea's kim jong-un and south korea's moon jae-in have reopened hotlines had been silent for a year when kim's regime symbolically blew up a liai

david kostin said in a note, "the new strain should not pose a major market risk."e recommend tactical positions in virus exposed cyclicals alongside longer-term investment in high-quality, secular growth stocks. let's get more on this growth trade and the trade our next guest wants to be in. that is david lebovitz, j.p. morgan strategist. would you may making -- would you be making a tactical allocation to cyclicals right now? david: you don't want to completely abandon the cyclical trade. we come into the year with the view that cyclicality was going to outperform quality. obviously that has been put on ice as growth concerns have percolated and interest rates have come back down. but it does feel like the rates market is priced given our outlook for the economy. i would agree with the guys at goldman that the recovery is going to be more uneven than perhaps a lot of people penciled in, but still very solid, particularly on historical basis. i think you want to stay the course, and the back of my mind there's also the issue of valuation. the big roast -- the big r

. >> and we just talked with goldman's david kostin in the last hour, specifically about a subset of those names and that is the main population his general point is even if there is a downtrend in the amount of google searches related to those names that there is still such a huge war chest among retail households and their budget for spending on stocks that it can survive on that for a while. >> sure. i think there is no doubt that we're not living in a world of scarcity, scarcity of retail brokerage accounts or money that could be shifted into equities and it is really kind of folly to try to call the end of a lot of the individual story lines or amc or gamestop, because they feed off their own energy. it is almost they're separate from the broader market. however, the trillion dollars in money market funds which is over and above where you would expect it to be right now goes up against an equity market that is up 20 trillion from the lows of march, you know, of 2020 so, in other words, we got a lot of allocation in equities relative to what's in cash i think there is a way to ar

tom: with david kostin in our studio's yesterday of goldman sachs, it is a recalibration for the bulls. michael purves lead the way yesterday, 4900 spx. jonathan: this is 3% from all-time highs. i want to understand where the leadership comes from as we start to make our way out of this. the likes of mike wilson at morgan stanley has talked a lot about it. dave wilson mentioned it about 10 minutes ago. they've boosted the view on staples, and when things get tricky, get boring, and staples fit into that. tom: there's a lot of different correlations going on right now. we heard yesterday of the gold-bitcoin link that is not so tight right now. kailey: i want to know a bunch of people not sitting on a pile of cash, wanting to buy this dip in the equity market and having to sell their bit going to do it. i think it does raise the question of whether we're going to see a dip in the equity market that is in bought. it just seems like over and over again, it is buying of the dip. is that narrative ever going to change? maybe not. tom: key support for bitcoin this morning. we have to set up t

just how much of a risk is it to the market in goldman's david kostin telling investors he sees minimalk thanks to widespread vaccinations and even if infections rise he says there is limited economic downside that note was eng owed by scott godly on squawk this morning with hopeful comments. take a listen. >> the u.k. is turning the corner it's a good indication maybe we are further into this than we think and two, three weeks away from starting to see our own plateau here in the united states >> specifically, he writes we think the delta variant should pose a minimal risk to the u.s. equity market from on economic perspective, widespread vaccinations and strategies focusing on containment suggest limited medical and economic downside even if infections continue to rise morgan, that's definitely those who are in energy and epicenter t stocks were hoping this doesn't trickle down to the stock market. >> we will keep talking about that we bring in for more on the markets with the major averages basically at the flat line right now we will bring in meghan, wilmington trust, and jeffrey at