that is a david kostin number, isn't it? jonathan: after a really tidy rally in yesterday's session. growth has made a bit of a comeback. is that just a little bit of a bounce of fate? what are the signposts you look for to try to understand whether that move is a little more durable? tom: i'm going to go to sector rotation. i do want to step in now, with every friday, it is the pendulum of gloom. there's no other way to put it. there's a whole cast of characters saying kostin is wrong. lisa: that's called bond investors. two jon's point about the growth names, it is big tech having a resurgence, coming intended with a flight to quality even within credit. you have seen this rotation into the higher grade bonds from the lower grade bonds recently, and you have seen extra yields fall to a postcrisis low. this comes at a time when people are concerned about inflation, which raises the question of why they are expressing this concern and a flight to safety. tom: there's a million news stories this morning. jon ferro, when i loo

you mentioned to david kostin's wonderful note on earning money with or without inflation. we haven't had a pullback. we got a bull market this year. a double-digit return, looks like a double-digit 2021. jonathan: credit market still buoyant, too. last week i think we saw ccc yields. what did we see from amazon? they are issuing forty-year debt at about 95 basis points over the treasury. they were issuing two-year debt 10 basis points over the treasury yield. that is unreal. 10 basis points over treasuries on two-year debt? tom: i believe it is aa plus, on its way to aaa. that important interview with caroline hyde today is with ibm, where they have gone to an a- rating. they will not get the yield that amazon got. jonathan: the ibm ceo sitting down with caroline hyde. 4152 on the s&p 500. we are down 0.75%. yields, 1.16 39% -- 1.6039%. tom: the five year yield down to a new negative low. that is just as important as the oft quoted 10 year yield. i want you to bring in michael, jon. for michael purves, it is cratered spelled correctly, not crated. jonathan: michael purves

wild animals 36 percent of the us humans and 60 percent of the livestock and that 60 percent needs kostin for a corpse which take up around 40 percent of us habitable labs so ecosystems are disrupted and viruses and wildlife are more likely to come into contact with livestock and with humans add to this obesity stroke and other illnesses which can be associated with excessive meat consumption and you've got a ticking time bomb the science is today clear so. it is so important that if we don't fix food we are very unlikely to fix the planet and over consumption of red meat continued towards undermining both planetary health and human health this does not mean that we all have to go for to tary and we carried out a global scientific assessment the commission trying to define scientifically a healthy diet from sustainable from systems and what we find is that a flexitarian diet gives the best outcomes in terms of life expectancy and healthy conditions what is a flexitarian diet will is a diet that drastically reduces red meat consumption compared to the high up at the levels in the industria

might happen but i think what is really happening is there a revulsion against faang again, and david kostin did the same thing, talked about how these stocks represent too much of the s&p. interesting to see again intel, amd is killing them but intel continues to persist and saying that they are doing well the oracle, the stock, is up so much bigger versus the earnings. and david, we're seeing everybody cut their price targets on the draftkings, anything that is high multiple and people are calling for basically multiple compression when it comes to nasdaq but not when it comes to the oil, not when it comes to the coppers or lumber, or the financials. >> which are performing well and we are seeing this diversion in the market and that's reflected today. at least a half hour from now, we will get started with trading. and the nasdaq will be down. where the broader market, embraced by the s&p is, going to be up. that has been the case lately. that has been the case this year and you and i have sat here a number of times at the beginning of the show talking about value versus growth and we're

to the streets here we're hearing near an illegal israeli settlement there is a building that one kostin official said whoever is in charge in that building is the de facto prime minister of palestine this is because this is the code got this is a piece of a section or the part of the israeli government that this consists of the israeli army that controls the aspects of palestinians lives almost all aspects of palestinians lives even when some of them want to work in israel they come here for permits of those who want to get treatment in hospitals in east jerusalem or in israel to come here so this is kind of one of the main manifestations of these radio station here in the occupied west bank and this is why this symbolism is why many palestinians are coming here to protest now in the past the palestinian authority has tried to prevent some of these protesters from reaching here the argument that they're making in the past that they don't want to loss of life they know that there is an imbalance of power when it comes to the israeli soldiers the 3rd army and when it comes to the palestin

tom: we had david kostin celebrating with his whole team in the office.urprised by how many banks have brought employees back to the office sooner than you previously expected? sonali: i am not because a lot of people at the executive ranks have been back for many months now. i think anybody pushing to stay at home have been isolated from their teams. once the cdc dropped their mask rules or recommendations, we have seen some banks also dropped those rules, so people are back to work. the restaurants are open again. people are in a different places, so all of my sources from miami are still in miami. romaine: they will be back in new york, i'm sure. the real question is what is traffic going to be like come tuesday. sonali: it is exhausting already. romaine: i'm i going to be able to get an uber? sonali: no, i've been walking home to try to escape that. the trains are full. the traffic is crazy. tom: if you appear on "surveillance" three consecutive days, you get to use the "surveillance" course. tom: sonali basak, thank you so much. see you at left-hand

sarah, what it comes down to is david kostin at goldman mentioned the duration framing of big tech stockssus a jack welch like pricing power. you are saying these people do have pricing power. to me, that is the huge debate of the end of the summer. jonathan: btig like consumer staples. morgan stanley likes consumer staples. i keep hearing they like consumer staples because they like the pricing aspect of it. do you? sarah: given where the multiples are, i am not sure they have as much pricing power as you have in some other areas. i see the argument, but i also think that in the end, you've got a lot of choices. consumers will trade down in consumer staples when budgets are tight. you can't trade down from microsoft to a different security system. i just don't see that kind of trade-off happening in some of the areas that are traditionally linked to industries that are better for them. tom: this is such a flashback to when toto's "africa" peaked on the billboard 100. [laughter] jonathan: sarah hunt, thank you. when did you decide that toto was the anthem for this program? tom: our techni

. >> look, steve, david kostin at goldman is talking about faang, he's saying with interest rates as low as they are faang multiples were justified however he said today it represents a potential headwind to faang, and we skipped ahead from the third inning at the beginning of april to the sixth inning in his mind in the span of six weeks so where does all of this leave us. >>> i've offset it with put positions in tele doc. in crowdstrike, because it's so crowded. i also have put positions in snowflake. the momentum has broken. these stocks are selling at an infinite level of earns on a pe multiple and the multiple revenues is ridiculous >> see what happens when you go on too long? your body self-corrects. [ laughter ] >> i've got to have training again. >> now you drinks your water, because i'm going to talk to joe. >> i've got to ask josh why his voice never breaks i have to get that training mechanism. >> joe, is this a mere moment in time or is cathie wood right in that sphere of stock, a lot of these high multiple ones, that you should, quote/unquote, love this setup like she's

yes, it is about revenues, but as david kostin said, looked down at margins, look at the quality of capexnd investment, and that is where you get people going from 3800 to 4000. maybe going from 4200 to 4600. jonathan: let's bring in matt maley, miller tabak chief market strategist. the data at 8:30 eastern time. do you still think we are underestimating the price pressure? matt: yes we do. one thing we may be a little care for off -- a little careful of is a lot of these commodities are getting incredibly overbought. copper, some of these things, they are probably going to come down at some point on a purely technical basis. that might if some people some relief that inflation is really not a big deal. but i totally disagree, that will be a head fake because inflation will do nothing but go higher. you look what happened before the pandemic. we had record levels of debt around the world, not just in the u.s. since then, the debt has exploded even higher. when we have a situation like that, you only have two ways out. it is default, or you can inflate your way out. the fed knows it. as ba

[laughter] jonathan: coming up, david kostin of goldman sachs, the chief u.s. equity strategist. keene and lisa abramowicz, i'm jonathan ferro. your equity markets doing a little bit better the last couple of days. a bounce for the nasdaq. on radio, on tv, this is "bloomberg surveillance." ♪ we know how much you count on us... ...and that's why we're here 24/7... ...and on the road maintaining a fast and reliable network. we're always working to ensure the internet meets your needs... ...by making access easier for all... ...with comcast lift zones and our internet essentials program. we're invested in making our apps easy... ...to give you personalized assistance around the clock. and we're committed to keeping our team and customers safe by working from home... ...and using precautions in store. see what we're up to at xfinity.com/commitment >> the risk that the data comes in hot or remains hotter is an important part of it, and the fed has so far -- the fed is so far behind the curve that it is hard for them to catch up. >> we already had a bit of a melt up in the first half o

on the david kostin note, it was all over wall street. the revenue chit chat, it wasn't even the free cash flow chit chat. david went much more to where i was off of amazon's earnings of the investment these faang's are putting into america. they sum it at $250 billion in 12 months. jonathan: they are doubling down and securing their dominance. that has been the story over the last 12 months. those have been the companies with the money due to it. tom: and there is a difference in share buyback and non-share buyback and dividend. but this is a social issue. you wonder, it's got to become a political issue almost like standard oil of another time and place. jonathan: it already is in a massive way. look at the data. tomorrow, cpi coming up in wednesday. retail sales friday. where is your focus? tom: my focus is citigroup published moments ago, saying core cpi really matters. which inflation data should we look at? jonathan: if it is what the fed is going to do or not do, it is pce. if it is cpi, at the moment, here's the estimate. 3.6% yea

tom: you don't get that from david kostin at goldman sachs. jonathan: no, you don't.reg boutle, thank you. i don't think you will mind that when we asked him about this situation, he said, most of the s&p -- most of the market is following the s&p 500, but my kids are following the nasdaq. tom: one of the great americans has died. the john warner story, they are going to play it off. he married an actress. i can't renumber her name. john warner -- i can't renumber her name -- i can't remember her name. john warner joins the military. he became a captain in the marines in korea. he was the navy guy on the hill. he was a textbook virginia politician of washington and lee. what this guy did, he was the last of the old guard liberal senators. in virginia with the geography to the south, he was the one that for years fought often the senate the real conservative tilt of the republican cell. jonathan: the former senator died tuesday at 94. ritika: with the first word news, i'm ritika gupta. the u.k. prime minister's former advisor has unleashed an onslaught of criticism tow

today, david kostin of goldman sachs some grated -- of goldman sachs upgraded his earnings estimates.highlights the divergence between the top down strategists and the bottoms up analysis. the white line s&p we know is near record highs, but the blue line is the bottom up analysis price target, how bullish individual stock calls are. the yellow line is the top-down strategists price targets. the macro guys that are adjusting the price targets like lori calvasina, rbc capital markets head of u.s. equity strategy, that joins us now. divergence between the bottom up and the top-down is the widest we have seen in four years. what does that do? what does that mean we are looking at price targets? lori: i can tell you what we have done on our side, and we do compare ourselves to the bottom up consensus on the earnings numbers. we look at valuation multiples in the context of 2022 eps, and we have haircut next year's earnings for corporate tax hikes, which takes our number from that bottom up consensus down to 200, so we think we are being a little bit more aggressive than your typical stock

wild animals 36 percent of the us humans and 60 percent of the livestock and that 60 percent needs kostin for across which take up around 40 percent of us habitable labs so ecosystems are disrupted and viruses and wildlife are more likely to come into contact with livestock and with humans add to this obesity stroke and other illnesses which can be associated with excessive meat consumption and you've got a ticking time bomb the science is today clear so. it is so important that if we don't fix food we are very unlikely to fix the planet and over consumption of red meat continued towards undermining both planetary health and human health this does not mean that we all have to go for to terra we carried out a global scientific assessment the commission trying to define scientifically a healthy diet from sustainable from systems and what we find is that a flexitarian diet gives the best outcomes in terms of life expectancy and healthy conditions what is a flexitarian diet will is a diet that drastically reduces red meat consumption compared to the high park up at the levels in the industria

. >> and david kostin pointed out this morning, buybacks are once again out there. >> i am tired of him are long and must-reads in the first quarter, the buybacks were very big and i know a lot of people are saying, where are they when stocks were down well, the answer is they thought they were going to go under for heavens sake that was the point the point was they couldn't buy back the stock because they're trying to figure out whether there is ever going to be an end to this pandemic, given the fact that it takes four years to develop a vaccine for mumps. and so why should we think, david, that this, a very complex, novel illness, would be solved this quickly, as it was >> because a lot of the technology was there to do it. and had been developed prior to it >> there were a lot of very smart people. >> a year ago, we would have been surprised at how rapidly we were able to have the vaccine. >> and remember when the numbers first came out, i think people take it for granted, 95%, a lot of people felt, listen, it could be 70% that would be big. >> yeah. >> but if we have the glut, like

would require a decline down to 26 k, and that would get some people's attention >> look, i want dave kostin to come on and say we think that g-sam says this is the level and fidelity to come on and say, we like it here, it's worth a lot >> what level? >> that's my point, david. >> what kind of deal does it have i sold my ethereum and i sold bitcoin and what did i get i purchased a farm >> does gold have a yield for you? >> gold -- >> i have to pay for life insurance. >> insurance. >> i have a policy the whole term level term. you have to buy that stuff, 30-year term. >> and become a farmer and raise the crops and that is a great way to create yield. >> and i've seen cows, cows belch methane, so i may have to bring ethan brown on from -- you know who is doing well, carl do not, do not overlook beyond meat here. >> how did you get from bitcoin to beyond meat >> because i want to get beef corn for cows but i'm worried about the belching methane so i would rather have plant-based food. >> which goes back to the fact that you had ethereum which you actually sold and bought a farm. >> and i don't