goldman sachs up .1%. similar story for morgan stanley. that doesn't. big earnings from morgan stanley, from goldman, the likes of jp morgan as well. let's think about regulation. that will be a big feature of the conversation in davos. we know they are unhappy about the prospect of higher capital requirement. where's that conversation headed? sonali: is headed in a direction that is getting quite ugly because you have the banks pushing back hard and sing to lawmakers that not only will it constrain lending to have these were fireman's, but remember -- to have these requirements, but remember they have constraints they are beholden to as well as other constraints on their trading activity they argue would be a pain to the treasury market. certainly there fighting back hard. none of these bankers, it was a staunch person to advocate against those rules, they do not think they will pass this forum. another thing to consider is what does this look at into the election cycle. to these banks have the same sort of difficult regulatory environments here they h

we are live from goldman sachs annual asian conference in hong kong. will be hearing from their chief economist and head of global investment research shortly. first, motley fool asset management tells us they are still finding opportunities in small caps. this is bloomberg. ♪ that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy. >> the fed has not done well in the past three or four years or five years in terms of trying to find the magic fed funds rate that will either increase inflation or produce deflation. are they wise enough now to know exactly what the fed funds rate should be at any point in time or even six to 12 months down the road? i would be cautious. paul: bill gross on what he thinks about the fed's rate strategy to joining us to talk about this and the market, shelby mcfaddin, investment analyst at motley fool if. we consider some of the data we have seen out of the u.s., it is p

. >>> two big results from goldman sachs. we will have to hear it. what we think about the possibility of the c.a.p. markets? >>> we have new data out today. as usual, this morning. should we still be looking for growth in the chinese economy? >>> rapid power of tonight's lightning round edition. stay with cramer. there are some things that work better together. like your workplace benefits and retirement savings. voya helps you choose the right amounts without over or under investing. so you can feel confident in your financial choices. voya, well planned, well invested, well protected. [♪♪] your skin is ever-changing, take care of it with gold bond's healing formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond. the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com >>> we have the two top inves

goldman sachs upgrading mirsky.e of the logic and goldman's call, does that hold water with you? >> there is a near-term benefit. most of the minors were below breakeven. what has happened in the red sea has pushed rates higher, taken capacity out of. ships have to go around africa, which will take 10 to 12 extra days. let there is a long-term structural issue in the market where there is way too much capacity coming onto the market. while this will benefit first-quarter earnings, we suspect this is not going to be a long-term challenge for the industry. hopefully, cooler heads will prevail and we will be able to police the red sea and make sure ships can traverse through the suez canal. guy: i hear what you are saying. this will be a relatively short-term phenomenon. that you have also got the panama canal facing some big issues. they are trying to figure out how to make that work and taking some big risks. what is the tail risk for this industry? where will we see these problems persisting? will this become a more

casone we go with the numbers. >> goldman sachs certainly is a stock to watch. s you can see, it was up a little more than 1%, it's drifted back a tiny bit. earnings per share, 548, the estimate was 341. revenue a beat, 11.32 billion, analysts were looking for 10.8 billion. as far as where profits came in strong, profits jump 51% for goldman. investment banking fees were down 12%, fixed income, corn circumstance commodities trading, down 24%. it was the equity trading desk at goldman that really brought in the profits for the company. also at goldman, remember, they've kind of changed their direction. consumer banking really fell apart on goldman in 2023. now what they've been doing is loaning to hedge funds, private equity funds ultra rich, people with $60 million bucks and up in their accounts, that's the customer goldman has been targeting and the ceo making comments m they the press release, talking about the strength and growth of the equity side of the business. there's pressure when it comes to deal making. we didn't see a lot of that in the fourth quarter

the annual goldman sachs global macro conference is underway in hong kong. let's get back to the event where our markets, and yvonne man is standing by with our next guest. >> there is lots to talk about anklet and japan but i want to bring in the chief aipac strategist running us in hong kong. good to see you back here in your old home. we have got to talk about the elephant china. it seems like there is renewed intense selling. are you seeing signs of panic? there are definitely >> couple things that explain it. there is a clear recognition china is facing significant structural challenges. those are well-known. they are broadly more concerns over the property market, demographics, slowing growth and so forth. there has also been concerned there is not a forceful a policy response as people had been hoping for. it has been this progressive slide in the market punctuated by occasional rallies but when the policy which has been hinted at does not fully come through, people have been selling the. the last thing i will say is there are checkable -- there are t

the ceo said this was a year of expectation, or execution i should say, for goldman sachs. with everything achieved in 22 and three, he says coupled with their clear and simplified strategy, they have a much stronger platform for 2024. calling the results decent and relatively solid, saying goldman results were not as bad as feared. a lot of the analysts are aware of the difficulty the bank experience. the goldman ceo in particular under pressure. goldman more reliant on dealmaking which has remained depressed. haidi: meanwhile morgan stanley warning of lower margins when it comes to the wealth unit. su: the new ceo officially takes over this month after james gorman moves on. his first order of business was the earnings call and having to warn about lower margins in the wealth unit which has been an area of strength. investors now turning their attention to the firm's ability to meet its goals and expanding its wealth business. shares dropped the most since the last earnings call, down as much as 4.3% at one point. fixed income trading fell short of expectations and executi

goldman sachs and morgan stanley will report in under two hours today.vestment of banking division with goldman posting losses. investors will listen to comments for the leadership. david solomon has been under pressure due to the series of strategic missteps and morgan t stanley will discuss as well let's talk about this with nancy. good morning great to have you here >> thank you, frank. >> nancy, as we see the second week of bank earnings, what are you looking for and what did you make of what we saw last week? >> particularly with the big banks, goldman sachs and morgan stanley, we are looking at the deals gore forward one of the things we heard from jpmorgan chase was some optimism on deal flow picking up. we know that deal flow was bad last year. we know the numbers were down in the 20% range. we are seeing an improvement on the m& a front particularly in healthcare we think it is likely to hear optimism about that and optimism on the ipo front going forward that would be good for the stocks as that is an excellent business for them. in addition fr

and morgan stanley goldman sachs share up by 25 cents.ght back. you bring a lot back to civilian life. leadership skills. technical ability. and a drive to serve in new ways. syracuse university's d'aniello institute for veterans and military families has empowered more than 200,000 veterans to serve their communities and their careers. from professional certifications, to job training, to help navigating programs and services, we give veterans access to support from anywhere in the world. >>> bny melon shares were up on friday now joining us now, the bny mellon ceo, mr. vince. just in terms of the results, they were solid and the stock reflected that >> good to be here in davos on a sunny day. friday was a good day for us what we were trying to do is tell the story for our focus of 2023 we made three key commitments to the market and our investors and we delivered on all of them and are pleased with that. the focus for 2023 was having a pivot in our company, our clients and our culture, and we did that >> what are banks supposed to do >>

>> i bought goldman sachs recently. i think it's one of the top capit market plays as a shareholder. yes, obviously sorry to see such a talented executive to leave goldman sachs but i believe goldman sachs is positioned in the right direction now, and stock trading at 376. i see the stock going above the november high at 426. i like where they are. we are thinking about a capital markets recovery, think goldman sachs. >> weiss, you own goldman, too? >> yeah, and he has changed the game plan at goldman, so you could be surprised that he's gone more to an asset management firm. his brother left a few years ago, mike, goldman, it's the culture and the people and the next person up, so i think dave solomon has done a great job, and by the way, you know, this is not just goldman. when stely left jpmorgan, we thought, there goes the apparent, and then here comes ebstein. we don't talk about those companies which don't have as deep a bench and don't have half the talent like johnny ives in certain people and not expansive, and

goldman sachs and morgan stanley don't have that. so i think a lot of investors are going to be questioning where will their earnings growth come from this year? guy: there have been some layoffs but not an enormous amount. if we continue with these kinds of numbers, does that become a more difficult argue mght to sustain? -- argument to sustain? >> i think so. on friday we heard from citigroup saying that they are going to be cutting 20,000 jobs over the next two years. so i think we're going to start hearing some of those bigger numbers finally come out. but again, two years is a big time horizon for those kinds of cuts. they might have time to change their minds if things really get better. so we'll see. i don't know that we're going to be hearing anything that drastic from these banks tomorrow but certainly if things kind of continue the way they have, that becomes a more real reality. guy: what's happening on the asset management front, particularly for morgan stanley? >> that's a good question. that's an area that was weak in t

at the top of the list is goldman sachs.he cohead of global mergers and acquisitions joins me now. when you think about the exuberance, just alaska police of the year, they came out swinging with a couple of mega deals. >> it was quite remarkable. after multiple years of it being relatively quiet, you saw renewable energy being quite active through that period, but this was classic energy. it really drove the fourth quarter. >> you think big deals out there. the question is, how many are left? >> we look at a lot of statistics. if you look at it as a percentage of gdp, it has been running two to three over the last year to year and a half. 25 years, it runs in the 25% range. there has been pent-up demand. we will talk about private equity. but when you think about what really drives the future, we think there is a lot of pent-up demand. there has been relatively little consolidation. there is a little bit of ed and flow. >> what does the pipeline look like now? it is interesting when i talk to you and your peers, everyone ha

we have not seen that since july of 2022, that's not why i'm buying goldman sachs. i am buying in sacks because they have done a phenomenal job in taking the business over the last 18 months and shedding a lot of the investments that have been underperforming related to getting involved in consumer oriented businesses and getting back to the true of what goldman sachs is. i agree with that, at the end of the year sitting here with the markets higher, you're going to see activity going to increase. investment banking is going to be really strong. and i think during the ride to the end of the year there is going to be tremendous amount of opportunity in the capital markets, in trading. and i think goldman sachs is returned to being one of the preeminent players when you think about training. >> yeah, short term i like the regional banks a little better, because they are still cheap. but i can see the case for activity picking up, and unbiased because i am a morgan stanley guy. i'm always going to like morgan stanley better than goldman. >> you can't take the jersey of

i know they spoke today at the goldman sachs conference, but merck still makes sense for a myriad of different reasons. >> agree. $117 from $100, not bad. still has room to go. the comments today on m&a were essentially, they're looking at anything from 0 to 15 billion, which is 95% of the xbi, ibb, whatever index you look at. i think they are still on the hunt. they have only spent $23 billion over the past couple of years. pfizer's spent way more than that. other companies have spent way more than that in the s&p. so, there's room for me deals and i think there's more room for the stock to inflect. the one important thing is, obviously keytruda is still there. a lot of those estimates for keytruda are understated. and so, if you move through the years, you're going to be -- you're going to be presented with a bigger base business and a bigger earnings base when it starts to erode and i think that's really important, too. >> so, a lot of analysts going, you know, looking out to 2024 say that the best times are ahead for health care, that it's going to be a return to the glory days,

guy: yes, goldman sachs having a relatively good day. looking at the kbw, it is up.organ stanley is certainly not up. it looks like there has been a few misses and the market looks disappointed. sonali: there is reason to be. morgan stanley just told investors net interest income will probably be that for the quarter and have to look at the regionals, super regionals. pnc expected to be down on the year, and the question is, rates were as high as they have been for a long time. in interest income could come easy to everyone by j.p. morgan. how did the rest start to fair? guy: going to get a new environment? interesting what having a day off does to the psyche. the dollar well bid across and i am thinking maybe this is a market looking to reprice the fed. while there will be speaking at 11:00 a.m. eastern. fascinated to hear what he says. are we going to get pushback from the idea that we will get six cuts this year? feels like the market starting to reprice that. sonali: blackrock coming up with a note saying they are expecting a rise in equities this year but they a

i actually like goldman sachs here.out the retail business and then spending it off. it will be a good thing for them. so they can get back to their bread and butter. our guest earlier pointed out, david was talking about how investment banking is likely going to be a beneficiary next year when you are looking at banks, business rates come down. i think that is where they will benefit. >> scott nations, thank you very much for that three-stock lunch. according, you are sticking around. >> we've got some more power much coming back at you after this break. trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. trade brilliantly with schwab. [♪♪] your skin is ever-changing, take care of

you can show morgan stanley and goldman sachs as well whether they beat top and bottom, it hasn't mattered. there is morgan stanley down 4%. >> the stocks were up anywhere from at that 25% to 40%. they had to be perfect quarters, beat expectations not just meet expectations a lot of them just met expectations including jpmorgan. okay, fine, maybe they had better net income. it by no means was a blowaway quarter. i'm looking at morgan stanley, i can't believe was down when they had far better than peer industry numbers in terms of m&a, fees, even fic but better than wealth mappingment fees up as well. to me the problem with morgan stanley is their expenses were up the new ceo has to prove himself. >> didn't you trim it, though? >> i trimmed it to buy something that we'll talk about later. >> wealth management was up or flat >> wealth management fees beat 41 bips up and expectations were up for '24 they did beat the number >> they beat it but it was flat, right? >> a beat is a beat. people expected it to be down. >> i disagree. >> well, fine -- >> wealth management is 50% of the business and

we were just talking to tim mauve from goldman sachs. he said there are signs of capitulation in this market. it's not just the policy. the lack of policy response, the structural challenges of this economy are weighing on this market. obviously state buying and the rescue fund will help on the margin. but then again you need they say more policy, not just in terms of talk, but implementation, that's going to be keep. david: inviting people back in the door is a different conversation and keeping them in this market. we have more information on this. we are talking to trillion yuan, that translates to 217 billion u.s. dollars that will mainly come from offshore accounts of chinese state-owned enterprises. the fund will effectively according to the plan, we will see, will be buying shares onshore via the hong kong stock connect link. that is according to people who are familiar with the matter. it is important to emphasize that nothing official has been made just yet. in terms of timing, policy measures could come as soon as the next few

joining us is goldman sachs' ceo david solomon in town. >> good to see you guys.new york yesterday because you had your earnings report. let's talk earnings, then we'll get into the broader geopolitical issues and market issues >> sure. >> one of the things is the market likes this. they like when your asset management and the wealth business go up because that's where people will ascribe a higher multiple to the business. where do you think you are in terms of the transformation at this point of the goldman sachs, theys like to say? >> we made a lot of progress in 2023 we made a bunch of strategic decisions in the last few years to invest and grow that asset wealth management franchise, get it organized i think we've got the firm in a position entering 2024 where we have two key businesses where we really are in leadership positions and have a right to win. the first is global banking markets, where i think we performed very well. one of the things the market liked yesterday was our relative performance in that business in what's not an a good environment. but we

and a quarter percent, why no spike in prices, so far no supply losses due to the engagement, goldman sachs is putting out a note saying the geopolitical risk premium is a really priced in oil and now appears modest. meanwhile it is freezing in iowa with wind chills expected to drop to negative 30 degrees when the sun goes down tonight, that is exactly where the republican presidential race is hotter than ever and as you look at everything that is going on specifically, what we have on your screen which is a lot of snow we're less than five hours away from the kickoff of the iowa caucus, the first official leg of the 2024 race for the u.s. presidency. the polls show donald trump dominating, former south carolina governor nikki haley and florida governor ron desantis say they are in it to win it, grady trimble is live in urbandale iowa at the trump campaign headquarters, grady? >> you said it, former president trump is really in the driver seat of this race we are at trump campaign hq where the volunteers have been working the phones all day because they are not taking the polling for grante

morgan stanley and goldman sachs on the move after beating estimates. down about 3% goldman just above the flat line we'll break down those numbers later this hour. boeing downgraded to neutral by wells fargo. it comes as the company plans to add more quality inspections for the 737 max as well as reports today the long awaited delivery resumption of 737 max jets to china could face fresh delays. boeing off almost 6% on the deal front, semiconductor design and software firm synopsys announcing plans to acquire ansys in a cash and stock deal valued around $35 billion. >>> meantime your read on the markets as we try to get -- coming off ten positive weeks in 11 and every sector red, financials and materials not helping. >> last week's gain probably overstated the underlying strength there we really have been in hangover mode coming into january the way i've been thinking about it is, the rally in the last couple months of 2023 raised the market's pleasure threshold. everyone pretty much got on board the soft landing idea. most of what we're seeing is rout

i want to bounce something off goldman sachs had the view from the s&p. the road to 5100 for the first half of the year, they see the s&p hitting 4,900 about a 7% rise for the year d what do you think about the goldman sachs outlook? >> i think the outlook is reasonable in the first half the 4,900 call is reasonable you are looking at 5,300 they are pessimistic for 2024. we had a great run up in 2023. 2024 has so much cash on the sidelines. if we get a drop on interest rates, you have people who say a dividend stock is paying more. move it out of bonds and back into stocks. i think you will see 5,400. >> i want to get to picks. one is the vbk i have to ask, vance, small caps were hardest hit why do you think now is the right time for small caps? >> i recommended vbk it did very well >> the yields went down. >> i understand that let's face it, this market is broadening out you had the magnificent seven. small caps are attractive. there are small cap companies you should own you see the pull back in 2024. this is more technical than it is fundamental any ti

the goldman sachs traitor. so clinton the winds are against him. >> so i really appreciate the history. i want to maybe try another sort of by social portion on the background which is the changing of who is in the republican party. even under carter they're pivoting toward the college educated suburbs. it's no longer the social base that it once was and the clinton presidency is like a reflection of that and that it was the house and the party where you have to get the presidency back and then they lose the house for the first time since 1952. that as social industry there's actually a very political base as who is the party catering to and who is clinton. >> clinton could have captured the perot vote. that was 19% of the vote. that wasn't a huge, he could have captured it. but of course, policy is politics. so he goes with nafta. perot. everybody thinks, al gore won the debate with perot the famous debate in 93. it doesn't matter. he lost. he really lost the consolidation of the perot vote which would have be

goldman sachs and bank of america expect the cuts to begin in march. jpmorgan sees five quarter point moves but he sees it in june. jonathan pringle from u.p.s. expects the fed to bring rates down by december. but one noted investor thinks the market is being too aggressive. steve ieisman the cnbc may only cut one time in 2024. >> even if inflation comes in. if i'm the fed and i'm looking at the volker lesson, i'm saying to myself, what's the rush? if the inflation comes in, i can always cut tomorrow. but if inflation is flying why don't i keep rates here. >> gene goldman is chief investment officer. happy new year. great to see you. >> how are you? >> bond yields moved slightly higher, 10 basis points. with we see the s&p and flaz dak have their worst day since october. how do you see your rate impact impacting the markets going forward? >> i think we're optimistic operates. i know the fed is saying three for 2024 based on their dot plot and you're seeing everyone out there saying anywhere from one to five to seven. i think we're in sort of that 4 lev

>> well, i don't want to bead up on goldman sachs, david sullivan too much but they just purchased chinese0 years goldman sachs announced that themselves, just yesterday. so they are -- they know about evergrande community property economy slowing from 10% average growth to -- 5% they see that as opportunities for wall street to get in deeper with china increase number of ipos not decouple but opposite might call it reexpecting wall street seems to be happening prop up china would have leverage the kaindz every leverage donald trump wanted if economy in trouble we can say we will lend you a helping hand but you got to do 10 things before we do that. instead helping them without getting anything in return this is something president trump would he never do, it is basically madness. maria: why isn't biden doing anything why isn't he using the leverage? >> again the house republicans, as you know kevin mccarthy set up, up a excuse me select committee on china, took away the power from that committee, the mike gallagher committee they don't have power to proposes legislation or get anything pa

we'll get thoughts from goldman sa sachs. >>> and later, place your bets. flutter entertainment making its debut on the new york stock exchange. we'll talk to an investor in rival draft kings for the outlook on sports betting. it's great to be here. we'll get to that in a few minutes. but let's kick things off here in miami beach with the funding announcement that fueled a late-day rally. both the s&p and dow notching reports at the close. the s&p closing above 4900 for the first time. and the dow is less than 3% off the all-time high set in november 2021. the moves came as the treasury suggested its balance sheet is in stronger shape than originally thought. the government estimated it would sell $760 billion in bonds. that is down from what it borrowed in q-4, about $55 billion less than its previous estimate. the treasury plans to reduce actions even more sharply in q-2. the news sending yields lower across the board, with ten-year falling close to the 4% handle at its lows and plenty of other headlines to watch this week, of course. earnings from five o

and ruben, you know, he played a role, which i don't fully understand, but goldman sachs and all the wall street firms, what they really wanted was to be able to capitalize and market ties the chinese state owned enterprises, and the chinese government wanted to do that, it was almost overdetermined.>> maybe we can take one more. so, political institutions. thinking about the structure of the american state, what really mattered. >> okay, there were two institutions completely not in control of the president. one is the treasury department. i mean, every democratic president feels they must appoint a wall street head of treasury, yellen is not, but w they were afraid of the confidence of the market. and alan blinder who was moderately liberal, he had an oral history, he says when a there is a dispute between treasury and the council of economic advisers, it doesn't matter who is right, it doesn't matter who has got the right data, treasury wins. and there were a number of times when clinton, you know, wanted to do something a little more progressive, whether he wanted a second breath

he has been on the goldman sachs board now for 12 years. i know he's sad to leave a great firm, but happy to be part of the new firm. >> how does this change blackrock? there was a transformational deal with bgi and brought in ishares years ago. that was transformational. you put this in that same kind of bucket or context. >> i would put it in the context when we bought bgi and ishares in it. today, ishares has $3.5 trillion. these are long term trends we see in how the markets evolve. much of this we made a fundamental belief that the world's capital markets and this is good for cnbc that it will be a larger component of economic activity across countries and across the globe. as i said, if we are going to really elevate our infrastructure as a world and the need for stronger, better airports and power grids, and infrastructure as an asset class must grow. we believe we are seeing that. we are making a large statement that we believe in the private markets and the future of growth and infrastructure will be faster than almost any other. >

earnings from goldman sachs and morgan stanley due out today. jennifer ceraintly, local wall street expert, joins me now this morning. what do we need to know here? >> some of the big takeaways from last week were really that 2023 was the last really bumper year for net interest income. you had a lot of banks revising things down, talking about the fed, if they are on pause or start to cut rates, that is not good for interest income. we will probably hear more of that. the banks tomorrow, like you said, are much more focused on trading and investment banking. we're going to hear more of the same in terms of we didn't see that revival in investment banking these ceos had been calling for. trading was softer in the fourth quarter. the pressure will be on the ceos to answer for that. if that doesn't materialize, where does the earnings power come from this year? kriti: jenny will be back to dive into more of the nitty-gritty later in the hour. coming up on the show, we got from the united states to the continent of africa. nigeria's inflation hitti

goldman sachs raised their target to $78. so the street continues. i remain long on the stock.to you. >> victory lap over. bryn, you're up next. >> uranium. i cthink it will be another strong year. >> brenda? >> abbott labs. the story has been muddied up by covid tests, but the underlying business is strong and i think that will be a focus this year. >> jim? >> vertex sets an all-time high. this is a very good pharmaceutical play. >> the markets are off their lows. the dow down about 150 points. the nasdaq, the hardest hit, down almost three quarters of 1%. that's going to do it for us. "the exchange" starts right now. ♪ ♪ >> thank you, frank. welcome to "the exchange." i'm kelly evans. here's what's ahead. cpi, it did come in hotter than expected this morning. stocks are lower as a result. could the first rate cut not come quite as quickly as the market was hoping for? we'll talk about that and how to position from here and we'll hear from the white house in a bit on their plans to tackle all of it. >>> coinbase ceo calls the etf approval a great victory, but our analyst says

the goldman sachs cohead of m&a. not a convincing bounce in european markets.e strongly but maybe not as strongly as anticipated. there's been a cracking day today for next but it's not all good news for u.k. retailers. coming up, we will talk with ubs. this is bloomberg. ♪ you know what's interesting these days? bitcoin. look for bitwise, my friends. ♪ dramatic music ♪ [flight attendant alert] [baby crying] [snoring] [luggage rattling] [baby crying] ♪ dramatic music ♪ ♪ upbeat music begins ♪ for everyone who's endured the bad seat, finally, sweet, sweet redemption. the lexus tx. three-row luxury that treats every seat like the best seat. (♪♪) guy: tuesday the fourth of january. it is a balance, it is just not a very convincing bounds. we have much to discuss. countdown to the close starts right now. >> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. guy: so, as i say, we have a balance. -- bounce. we are up by

goldman sachs nonprofitable tech down 4.2%.ex that has been hit hard and this is the stocks, worst four days going back to february of last year. this can often be a tell on the rest of the markets, given the fact that chips are used in everything this kind of selling can be a problem, especially since some of these stocks were up so much last year. russell 2000, different range but it does suggest more serious pullback. over the last year, we have a beautiful uptrend, nice consolidation. on leaving the exuberance of the end of the year rally, firmly going down, it would not be surprising to see these stocks drop back into this range. why this pressure? there are fundamental considerations, but when we keep it simple, we have the bloomberg dollar index up for a fourth day in a row. yields higher again. vix starting to come alive. volatility, it was telling us, would increase this weird -- this year. earlier, it was down more than 9%. worst day since november of 2020, can coming today's risk-off mood. guy: interesting. e tree. i

i should have liquidated and sat on the sidelines i'm happy to be in goldman sachs, but morgan stanleyults are disappointing. i feel better. >> i'm glad. you got it all out good >> therapeutic >> okay. the last one to you, jenny one of the stocks they don't like is one you own, kohl's, which they continue to rate a sell >> right >> so why do you continue to rate it a hold >> i thought you were going to disney what a relief. where do i go? >> we go here. >> i continue to hold kohl's because each is created quite differently. you look at their numbers, their earnings, the dividend, the dividend coverage. almost 8% yield. they're super committed to it and they kind of crank along the thing that worries me on ko hl's is this biden administration thing where they're going to put a cap on late fees because kohl's makes a lot of money on late fees. >> i think down 14% year to date >> but it had a huge -- this goes to the beginning of the show -- it had a huge, huge run into year end. it's big moves but overall it's a well managed company. the cash flows are consistent. if you believe the cons

i own goldman sachs, the breakout in goldman sachs. i'm talking about small caps which were supposed to participate and to get the yield relief -- >> not before powell. not before powell. >> the yield relief already. >> joe -- >> they're getting it already. >> you have a large number of small cap stocks are regional banks within the russell 2000. if you have renewed concerns about regional banks, thank you, new york community bankcorp cutting the dividend, the stock is getting destroyed. the worst day ever. you're not going to get a big runthrough from the russell. steve liesman is our senior economics reporter. the other big story of the day down in d.c. let's not go bancorp first. let's go powell. it's all in the language. >> reporter: it is. that's the opposite of the way i ended up thinking you were going to ask about it, scott. let me go to the last two screens i gave you rather than the first two. it is about the statement, and the statement in question, scott, is the one that says the fed had telegraphed it was going to be hikin

. >>> coming up, the goldman standard goldman sachs bhoeing away earnings estimates plus, top executiveseighing in across the network today we'll recap the key take aways in three-stock lunch "power lunch. we'll be right back. dad, we got this. we got this. we got this. we got this. life is for living. we got this. let's partner for all of it. edward jones >>> welcome back to "power lunch. earnings season heating up today with results from more big banks. let's bring in leslie picker hi, leslie >> hey, contessa yeah, morgan stanley results weighing on the stock today. currently down a little more than 5%. most analysts have described the quarter as effectively just okay and the stock reaction is reflective of that there was a slow down in net new assets into wealth management leading to flat revenue in that division during the quarter. here is the title of the note, they describe morgan stanley's quarter as, quote, similar to the cowboy's and eagle's the potential is much better than how they ended the year this, of course, was ceo ted pick's first earnings call, having taken over that r

>> i'm not in it, but goldman sachs looks like a breakout in progress.hink above $400 this thing goes crazy. >> what do you got? >> newcor, earnings looking good. >> can't wait to see you on "closing bell." "the exchange" is now. ♪ ♪ >>> thank you very much, scott. welcome to "the exchange." i'm dominic chu in for kelly evans. here's what's ahead. another day, another stronger consumer number. confidence hitting its highest level in more than three years, but the labor market is flashing caution signs. could that put the fed on pause? with the fomc meeting kicking oftoday, paul mccullough tells us when the rate cuts may be. and five of the magnificent seven stocks

i have bad news for goldman sachs. shelter, transportation, it's still way up. -- that's what goldman is calling for. it's more like unconditional surrender for inflation. if we can only get five rate cuts, it would have a spike in the homes, went, all of those that have to come down for beating inflation. and it's going to be very tough. you have three rows to take. they're going to give us a real one -- but or get the stuff on rails. i think it's going to be very strong, very similar to what golden is looking for. there are estimated to have taken and millions of immigrants -- they have a don't ask, don't tell a philosophy. because the governor has no policy to get done with, it help these people, they don't have any choice but to take the work they can find. they do the work so they can avoid inflation. the job no one wanted, nobody can be found to do them. you pay them more than a minimum wage. in other words, it's the same spiking which is that we have had as -- we still don't have wage rollbacks. a lot of it has

the ceo of sun run will join us live from the goldman sachs energy conference.ompany shares trading at a fraction of where they were in 2021, under pressure from norton short seller carson block. all that and more when power lunch comes back. in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business. ♪ ♪ ♪ >>> welcome back to power lunch. shares of eli lilly are up today after they announced their popular weight loss drug can now be order directly from the lily website. recently, weight loss drugs have become wildly popular with companies talking about shortages, warning a fake version, and -- my next guest says lilies service could improve access and lower drug costs for consumers. joining us now is a practicing physician

goldman sachs came out with its earnings and the equities-trading unit was a huge standout with performancee what analysts were expecting. we have seen shares up on the day close to 0.5%. morgan stanley by comparison stock is moving in the other direction, concerned about what is happening on the business going forward on the wealth management business. there were some charges that investors had to consider. christopher kotowski is a long time bank watcher with oppenheimer and joins us with reactions. great to have you with us. what do you think of a reaction to goldman being up and morgan stanley being down? chris: honestly when i got the press releases -- you get the press releases within the company of minutes of each other in the morning and you go through them, i thought morgan stanley was a little bit light and goldman was a little bit better than expected. but also a big part of goldman's beat was equity investments. i didn't think we would get this kind of reaction that we seem to be getting today. i suspect may be your prior story about the block trading also weighs on the stock to

of the big wall street players have to say as we get quarterly results, citigroup among them, goldman sachs moving into next week. a lot of the stocks of had a nice run over the last few weeks, the most analysts had -- analysts had comments. sonali: many of those names reporting, i'm not sure how i got myself into this mess. moving into the treasury market, 37 billion auction of 10 year treasury notes. the offering held by have a basis point, stopping a 4.024%. it signals hesitation from traders to pay up ahead of tomorrow's u.s. inflation print. the rates strategist joins us now. how willing the writers to put money to work when we still has its critical economic data ahead? >> we always do, we have said there is a cadence every single month where we have treasury auctions and at the same time you have some the cpr reports and the retail sales report, kind of on the heels of that. traders have to try to determine are we going to take some risks here and buy some of these treasury securities before these data groups and how are we want to manage risk limits when then that -- within that? qu

[laughter] real quick with, goldman sachs is coming i out tuesday. piece of what they're going to tell us, and i'men wondering about goldman's quarter -- i'm wondering about goldman's report on tuesday. i think it might be good. >> i think you might be good. you saw today -- cheryl: it was a miss. >> we know where interest rates are going to be, they're going to be coming down, right? so is that that's great for m&m activity. and also they've kind of got rid of their consumer business which was not great, so i think -- cheryl: good though. >> well, it is good to get rid of that and do what they do best, investment banking. and it trades for half of the multiple of the s&p 500, 10 times forward earnings. there's so many stocks that trade like that right now that, again, ooh i'm a kid in a candy store. just don't concentrate into those momentum names that basically where everyone's putting their money. i think that's going to be a big mistake. cher cheryl yeah. kind of look around, maybe see some smalls and mid caps. i think there's some financials tha

goldman sachs economist was talking about it, that was ahead of the number. maybe he will change his tune today. let's talk about the bond market on the dips we're seeing, obviously treasury yields. is that something you're focused on? >> we've been aggressive in curation since middle of last year. i think wonderful opportunity, buying real bonds or bond mutual fund. remember everybody as interest rates come down we think they come down pretty significantly this year. we see bond prices go higher. inverse relationship. simply put i think we're more in deflationary world than inflationary world. we'll have a manufacturing recession, globally and recession. contraction, stuff being played, especially the united states. will be first indicator on the other side of this very soon. for that reason rates come down. i'm with you i don't think the fed cuts right away but remember the spread between feds fund rate and inflation is can't be very wide. they want to make that close. as inflation false rates need to fall even if we're -- cheryl: we'll get fourth quarter e

by the way, goldman sachs today, -- first to come in march. i know there are those who think the market is way ahead of itself on that perspective but again, why does the how many matter? >> i think it's really important that we don't have too many because if you have six great cuts, breaks nimble, you could start arguing what is the economic data supporting that? that could cause a fear infusion into the market as well. so i think the rate cuts happening is very good for stocks. it continues. there are a lot of areas that have not as you know participated in this market rally, so we are really starting to see some broadening. we saw it a bit in hue for. if you look at the magnificent seven, if you pull them out of the snp for just q4 in fact, he would've done better. so that has completely reversed -- >> what if the broadening was in fact a head fake? that we will go back to that same playbook that worked so well in 2023 for a variety of reasons. economic slowdown, balance sheets that are just better than everyone else, you can count on the g

he'd spent 25 years at goldman sachs, the arbitrage desk. and what that meant was, you know, you you went to companies are going to merge. you know, you figured out, you know, where the imperfections he knew there were imperfections in the market and you you know place your bet on that as it were. and that and to make that really work, you had to have complete that that was essential. otherwise everything went chaotic. so he was favor of lack of liquidity, of capital. it's it's it's a trans you know but internationally nationally and he also thought thought this war you know if we can get low interest rates and liquidity of capital would mean that the japanese and the chinese buy our bonds and interest rates would go down. and also if we had balanced the budget, this would convince bond traders, you know, interest rates be low then then we'd enormous investment he and so robert reisz is advocating a very modest $50 billion stimulus program in 93 and rubin says that's chicken feed that's feed. how if if we balance the budget, get interest rat

here on bloomberg television, i will sit down exclusively with a global cohead of m&a at goldman sachs. coming up next, i'm going to talk about disney because executives continue to draw support to stave off pressure from billionaire activist nelson. they find support in an unlikely place, another activist. the stick with us. this is bloomberg. ♪ i'm going to sell my life insurance cuz i don't need it anymore. my kids are grown, my wife is great, let's settle up the score. it's time to travel to paree, spend retirement happy. call 877-sell-easy. 877-sell-easy. 877-sell-easy, and sell your policy. you can sell all or part, live your life and play it smart. 877-sell-easy, and sell your policy. if you've had a change in health, or you're over 65, and paying for $100,000 or more in a life insurance policy you don't need, get paid for it instead. then take the money that you get, go to live it up, you bet. call 877-sell-easy. 877-sell-easy. 877-sell-easy, and sell your policy. how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun ev

nor is the loan underwriter, goldman sachs. >>> new developments in the investigation into the fiery, deadly crash following two planes colliding at a tokyo airport. ahead on nbc bay area, the piece of evidence that investigators are taking a look at. >>> also, preventing snow-related sports injuries. expert advice. you didn't choose cat allergies. you didn't choose your hairline. hot flashes, the flu, or that thing when your knee just gives out for no reason. you didn't choose your bad back or this. or... that. you didn't choose depression, melanoma, or lactose intolerance. but with kaiser permanente you can choose your doctor who works with other best-in-class specialists to care for all that is you. when migraine strikes are the tradeoffs of treating worth it? ubrelvy is another option, it quickly eliminates migraine pain. do not take with strong cyp3a4 inhibitors. allergic reactions to ubrelvy can happen. most common side effects were nausea and sleepiness. ask about ubrelvy. >>> welcome back. iranian officials calling two deadly explosions a terror attack. iran state media says m

all of this happening is the backdrop of goldman sachs predicting 300 million jobs will disappear orchange thanks to ai and you can expect voters to be asking about that impact in the year ahead. >> absolutely. in the immediate term, the biden administration has been concerned about what this will mean for our politics on the campaign trail, the use of deep fakes or misleading voters. what are the companies doing to prevent that? >> the social media companies are telling me they're throwing every resource they have to stop misinformation and disinformation. this is a sprawling endless game of whack a mole. that information spreads constantly online and it is continuing to be very hard to stop, especially with the arguments and protections of free speech. now meta, the parent company of facebook and instagram, says it removes ma nip plated media and voter misinformation and the company does use fact checking organizations. taking down bad information has always been an impossible task on platforms of that size. you cannot forget about x, formerly twitter. elon musk and his team have b

the whole plan is the brain child of the former goldman sachs trader, his effort and passion is now set on building the unnamed community to be a haven of walk ability and urban lifestyle. >> conte has some of the amazing communities. what it doesn't have is a denser place that maybe has more of the amenities that you see in the bigger cities. >> reporter: the group proposes $400 million for solano county residents to invest in homes and new businesses in the same town. they have to win the votes of 13,000 voters like kathleen to support a ballot initiative to give the green light for city planners to move forward and overturn existing policies that protect agricultural land from being turned into urban areas. >> my hope for the people that some of them will take a second look. >> reporter: for kathleen, it's a gamble that could disrupt their history in rio vista. >> we fight for our way of life. it's not easy. >> reporter: but for others, an exciting new potential of a nearly unheard of affordable lifestyle in the great ire bay area. even if voters approve the plan, they still need two

peter oppenheimer , chief operating officer at goldman sachs. structural changes and super cycles in markets. great to catch up with you. congratulate us on the book. what a fantastic title. will talk about in just a moment. how would you frame the numbers overnight? peter: as lisa said, these are good numbers but the expectations were huge and there is a real issue of traveling and arriving. the markets have been rallying strongly not just in mega-caps tech but broadly speaking since october, equities are almost 20%, one of the strongest rises we have seen for a very long time as very positive expectations are priced in about soft landing and the speed and extent of interest rate declines. these are not bad numbers. these companies are generating fantastic revenue growth and they are in a strong position. the upside from a market perspective in the short-term was likely to be limited given the expectations that have been priced in. lisa: i like how you phrase this. even though equities have entered the optimism phase, you think a lot of the goo

more with his needs to have a crash and how, how do you vote against northrop grumman and, and goldman sachs, i mean it's, it's impossible with the serious problem that we have us country right now though. i mean, it's how do we mean, i'm an american and then i want this country to do. right. and i'm not saying i don't, we don't want to be involved, they'll generally from time to time. but it starts to look like it's just the front of the game. that's the problem. unfortunately, as long as the us dollar continues to be the global reserve currency, which is starting to rain but only slowly and the not a process that will happen then the us can keep printing more money and borrowing more money and it's called, you know, quantitative easing and they can continue spending these enormous military budgets . but i think that there's more than just personal interest. there is a broad bi partisan consensus on the goals of us for and in military policy in pursuit of primacy and had gemini ben rhodes called this a norm as establishment that really decides us foreign policy. mark your delight to talk to