john silvia is the chief economist at wells fargo.resident trump's budget proposal is unlikely to gain traction in congress. we will have the latest. we will have a conversation about the united states and about credit ratings in the united states as well. that?es the fed navigate much more to come, next. this is bloomberg. ♪ retail. under pressure like never before. and its connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. manus: it is 1:30 a.m. in the city of new york. of fog. a little bit equity futures on the bottom of your screen. of the day, the s&p 500 took 25 minutes to completely erase its losses of 1.9% at the close of business on friday night. --t is what you call thebattle remains between bond tra

just a little more than 2 1/2 hours from the jobs report john silvia from wells fargo securities joins john, the market seming o ingse this week, particularly this morning. does the data this week or what you expect at 8:30 a.m. play into that or does the data remain strong? >> i think the data is playing into the market selloff, in the sense that what you're seeing, with the prices index that came out for the ism yesterday, the higher wage number that you will see at about 2.6% year over year, that's telling everybody that the fed is at least going to move three times this year. a lot of people had one or two forecast for the federal funds rate, they have moved to three higher short interest rates meaning more difficulty for the equity market. if we see a sign of wage growth, what does that tell you? >> in the last three, four years we had a situation with the fed forecasting inflation and never got it i think you're seeing now more and more confidence that you are getting those numbers. the fed benchmark will probably hit 2% by the second quarter of this year and people will say we'r