joining me now is yardeni research president ed yardeni.ming on the show. >> thank you. jack: so you recently wrote that, quote, there's never a dull moment in the highly competitive sport of forecasting the economy. and you should know, you've been doing it brit well for about 40 years including stints at the federal reserve in new york and as a chief investment strategist at deutsche bank. recently, you've been looking at a productivity. can you tell us what you see and maybe just explain its role in determining gdp growth? >> well, productivity is almost like the fairy dust of the economy. if you spread it around and you really have a lot of productivity, there's a lot of benefits. you get stronger economic growth. it all goes to economic growth. and you get lower inflation, wages rise faster than prices, profit margins are up and profits are up. so everybody benefits. it's probably the best variable that you want to root for in the economy. jack: yeah, that does sound like fairy dust, especially if it can solve inflation. interesting, t

we have ed yardeni at the top of the show. and any anthony pomly lawn know, where does it go from here and more importantly is apple watching the move. apple giving up on evs and silicon valley giving up companies that would make terrible ip-es. a.i. disrupting best laid plans out of. breaking news. senator mitch mcconnell giving up his role as leader. all that and so much more on "making money". ♪ never met a girl who makes me feel the way you do, you're all right ♪ charles: listen, get ready bit temptation, one of those songs makes you want to switch into gear. if you're in fourth gear you go to fifth. if you're into fifth it doesn't matter. it is happening on wall street. more and more these firms are learning to love this rally. yesterday we had barclays go up to 5300 but check this out, going back to december last year, ubs 4600. they're 5300. barclays, 4300, they're at 5300. goldman sachs lifted theirs, rbc lifted theirs. wall street getting excited about it. there is other folks. those are tone deaf. they don't hear the

i want to bring in yardeni research president, ed yardeni.you're a fan of the fifth dimension. you've been a lone are voice a lot of times, sort of an outlier when it comes to the market. although a lot of people, believe it or not, have more innuance than you do when it comes to -- influence than you do when it comes to moving the market. the doom and gloomers lay it on thick, the titans of wall street with, how does someone like you -- how do you handle it when you hear ray dalio talking about doom and gloom? do you think for a moment maybe i should make adjustments? >> well, what i really like about the pessimists, especially the ones who are very rich, is they have a lot of time to think about everything that could go wrong, so they do a lot of the homework for what can go wrong. it's pretty well advertised, and it's pretty well gone over. what i try to do is produce some balance to that view, and it turns out that there are reasons to be optimistic, and i've pointed them out and so far so good. charles: so i started with that music up, u

i want to bring in yardeni research head, ed yardeni.day, you called the october 2022 bottom. we haven't talked about it a lot. at the time overwhelmingly, the consensus it was only a retest. by the way i have it up here. the return has only been 23% in the first year. it was only 23% in the first year which is a little bit less than normal. but i want to get understanding from you, you called that but it has been a grind, somewhat of a grind, and if we really look at this thing it has been very selective as well. how does that make you feel perhaps about the next 12 months? >> well i'm still using 5400 by year-end. i may have to move that up by the end of next week the way things have been going. it has been really real an amazing move, since last october a huge hitup, following a brief correction that took down 10% of the market this has been a bull market for a while. it has been skewed clearly to the megacap stocks. that is frustrating for a lot of people that these small cap and mid-cap haven't moved. charles: right. >> i think the

joining me now, yardeni if research president ed yardeni. i'm not typically one that buys this weather thing when it comes to data. most people who come together the estimates say, you know, it's cold in january, they know it tends to do this and that, but you have found some specific areas where it may have made a difference. >> yeah. well, we definitely saw that industrial production of electric utilities and gas utilities soared to a record high during january, and this is seasonally-adjusted data. so it should already reflect the fact that it's always cold in january. i'm in long island, and i didn't notice we had a very mild winter, but i guess the rest of the country got hit pretty hard, and i think it might have impacted retail sales. that's why they were weaker than expected and the same thing for housing starts. charles: yeah. what's ironic is if i'm really cold, i shop online. internet sales were down and department stores are up, so go figure, you know? >> yeah. stuart: charles: i want to talk about your valuing tine's day note be

ed yardeni has the highest price at 5,400.he goldman team on friday says big tech must do most of the heavy lifting. they say the upgrade reflects expectation for economic growth and higher profits for the i.t. and communications services sectors which contain five of the seven magnificent stocks. let's talk to ryan detrick. ryan, is it pretty much the case they will have to do all of the heavy lifting if the s&p 500 will have another big rally? >> good morning, dom. it's pretty early. that is a tough question this early in the morning. yes, they have to do a lot of the lifting. you look at the earnings growth and revenue, it is coming from a lot of the big companies, no question. does it mean they have to do so? there are other parts of the market that are doing well. dom, last week, if you look at the s&p 1500 decline line, it was at an all-time high. there are a lot of stocks participating. the large names do matter. they make up so much of the overall market and if they were to crack, like last week where they cracked a li

ed yardeni was only one saying that was the bottom. everyone was saying that is not the bottom.hen last summer market went down everyone cheered we told you so, we told you so. so now the rally is being called a bubble by a lot of these people. take a look at this fantastic chart by data trek. it is be a sure to think we're in a bubble right now. one of the character irks of these bubbles they go up. you see this line 100%? they all rally 100% over a three-year rolling period. this one bact to october of 27. this one right before the great tech bubble crash. we had the post-financial crisis there. december, 2021, same thing over and over again, what we see they rally more tan 100%. well, this particular rally so far is up only 40% from the october 12th, 2022 low. you by the way since 1974 the s&p generated returns of at least 100% during this time during this period. if you are going to think this is a bubble, we have a long way to go at least from a historical point of view. with that in mind the quote h question though is maybe we're not a bubble. maybe we're not going to cras

outside of a few, have been maybe bold enough, ed yardeni, saying hey this will be a great market.eems like grudgingly they nudge these targets up. in your mind is that good or bad? i kind of like when wall street is not on the bandwagon. >> there is no overwhelming enthusiasm from the wall street institution side of things where i spend my day. i speak to a lot of these strategists. it is a job i used to have. no one is tripping over themselves to raise their price target. the problem a lot of people on the street, guys and girls, the con strange is in the large cap stocks. everyone sees this knows they're outperforming fundamentally is hesitancy and retuck tans to fully embrace it because a lot of those valuations have gotten -- charles: crazy for lack of a better word. >> for lack of a better word. charles: here we go full circle again. 29, some even higher than that the magnificent six. wait for that to go up? >> they have a better valuation because they have better fundamentals. charles: these are great companies. these are not presidents.com. >> funny thing about presidents.c

ed yardeni said cleveland fed now is looking for 0.3 which he thinks would spark a rally in stocks andwer than expected. >> we continue to get color from companies as well during this earnings season about disinflation. inflation pressures have come down. the latest dominos. what cfo is saying about prices. >> we're expecting a food basket to be up 1% to 3%. this has been driven by moderation on cheese prices. we expect the q1 food basket to be deflationary as we lap the only quarter from 2023 when the basket increased followed by moderate increases for the remainder of 2024. >> deflationary food basket in q1 and moderate increases for the remainder of 2024. continued good news there. especially on food. i always pay attention to that because that's where we've seen the biggest spikes and where we spend the most off our wallet share. the other chart, just on the macro data and what economists were writing about ai. because of the nvidia move last week and what this is doing to the market and economy and all economists are wondering when this is going to show up in the macro data. it sh

he has to keep doing the salami cutting, another piece, another piece, versus ed yardeni who reiteratesessure of the incremental piece. can i also mention, if you look at who rang with the opening bell here, ad week, the trade desk quarter last week was a breakout quarter, ttt. they're using trillion dollar ad market. i remember five years ago it was $660 billion. you sit there and think about what walmart is making -- it's a wholesale shift. by the way, i'm sick of linear is dead by people who watch linear. what i'm watching is dead. are you watching rigor mortis? the size of the ad market has expanded because of someone like shantanu. you can make your own ads. >> you talk about yardeni. he's used the word exuberance. we're coming into this week where we say so much rides on nvidia. did you see the stat, jim, about what we'll call the mighty mega caps. according to deutsche bank which looked at this, the combined market cap alone of the mag 7 would make it the second largest country stock exchange in the world. >> that's because those country stock exchanges are nothing. look, let's g

coming up on monday we will be talking about the jobs report, ed yardeni from yardeni research.e open. ♪ you can make money the hard way as a bullfighter or a human cannonball... or save money the easy way, with xfinity mobile. existing customers can get a free line of our most popular unlimited plan for a year! not only will you save hundreds but you'll also be joining millions who have connected to america's most reliable 5g network. sure is a lot safer than becoming a stuntman for money. get a free line of unlimited intro for a year when you buy one unlimited line. plus, get the new samsung galaxy s24 on us. from new york city i am and for jonathan ferro. we have been blown away by the jobs report. capped out to the open starts right now. everything you need to get started in u.s. trading. this is bloomberg's the open with jonathan ferro. manus:

yardeni research. and half the time when we have you on, ed, you -- whatever the overreaction of the day is you kind ofou probably do that with some calm today as well >> i try. >> you feeling that? we may not get seven rate cuts, but you think inflation is trending lower maybe it will be uneven? and the economy is doing pretty well so, we're somewhere in the middle between panicking on either side. >> well, joe, you covered everything i was going to say. yeah, look, i -- i think inflation is continuing to come down, the cpi both core and headline excluding shelter is around 2% right now. and that's on a year over year basis. there tends to be an effort by economists to microanalyze the inflation numbers and looking at auto insurance and so on and the fact is the fed really has to focus on the overall inflation rate they can't control individual components and the overall inflation rate is moderating, the rate, the labor market is great, some people just get people who are disagreeing with me on that, that's the macro economic data, looks just fine. from the fed's point of view, i believe their story,