i reached out to michael purves of tallbacken. the bond move is not an indictment of growth. over the next three -- of growth over the next two or three years as much as it is a healthier risk premium which affords more dip eyeing respectively. that is just dip buying -- more dip buying respectively. tom: i like that. he's picking up on the idea of traditional equity over to what we are going to see with earnings growth here in a boom economy. granted, it's my slow -- it may slow down. purves picks up on the tone of kailey leinz, which is the pendulum of optimism. jonathan: the pendulum of optimism. ken -- can kailey and lisa do a -- do a program? jonathan: do you want to mention our special? guy: we will have -- tom: we will have tang as part of our special. jonathan: are you excited about that, tom? on radio come on tv, this is bloomberg. ♪ jonathan: live from new york for our audience worldwide, let's get your monday morning price action. if you are bullish, cover your ears and eyes. down on the s&p. not that dramatic. you migh

we will talk spx with michael purves in a moment. instead, the headline today is the bond market safe haven, lower yields. jonathan: and yet it has done nothing to lead the equity bills to throw in -- the equity bulls to throw in the towel. the equity bulls are still bullish. tom: into the tech juggernaut next weekend after that, i would suggest the houses led by purves are getting out front and tweaking higher. maybe we will see a lot more of that. jonathan: after the close, netflix. kailey: second-quarter results, it is all going to be out -- going to be about the subscriber numbers. to what extent has demand bled through, when you thick about the fact that people were stuck on their couches? that story is no changing. what is the picture going to look like going forward? it could set the tone for some of these other tech giants in terms of what they are seeing as demand maybe wayne's in a reopening world -- maybe wanes from the reopening world. jonathan: have you been using netflix recently? tom: less. the pandemic is over. jonath

jonathan: i will speak to a big bowl, michael purves -- a big bull, michael purves.upgraded his target to 4800. while you are away. lisa: coincidence? jonathan: is a coincidence we have a record low real yield on the 10 year with you back? welcome back. i hope you are nice and rested because this week is a busy one. with lisa abramowicz, tom keene, jonathan ferro. with your equity market a little bit lower, this is "bloomberg surveillance." laura: jeff bezos has followed up his trip into space with an offer to nasa. the world's richest person wrote to the space station and said it must quickly return to the moon and said he would wave up to $2 billion in fees as it competes. the white house is shifting away talks about inflation. polls show there is increasing voter concern about rising prices -- president biden's plan to spend trillions on social programs is infrastructure project. democrats plant have the president use plain language explanations and ensure people the price hikes will fade in time. china has -- it wants to decrease workloads to students and overhau

here's the argument from michael purves.e says, this is part of the reason why he's optimistic on this equity market. we are seeing estimates for earnings coming in 2022 and further. the biggest increase in some decades. this might elicit some fears of peak growth, peak earnings. usually when this happens, history tells us that the gains in the equity market can continue on. this isn't a deterrent for continuing to buy. speaking of earnings, i want to bring you lines just crossing the bloomberg right now on roche first quarter core etf's coming in and beating analyst estimates. 10.5 swiss franc. that's exceeding expectations of 10 cents. they say the demand for covid-19 test kits is likely to decrease in the second half. it is something analysts expected. it's a good thing, les covid, less testing. they are confirming that 2021 outlook. analysts had been hoping for an upgrade. let's see how the rest of the market is doing so far this morning following those roche earnings. the indexes powering higher. japan is closed today.

tom: we spoke with michael purves yesterday. others begin to recalibrate, to take their earnings. the french luxury conglomerate. but there is benjamin laidlaw. i love what he says. it is a healthy pause. what we saw is not a correction. jonathan: 5% more common, averaging three year. history favors buying them. the fundamental outlook is unchanged. let us talk about this bond market. we went from 1.12 to 1.25 this morning. tom: a sigh of relief and may be more clarity on the delta variant. there it was a little bit of pandemic calm in the last 12 to 24 hours. jonathan: let us talk about the delta variant and united airlines. that did not sound like an airline too concerned about the future. kailey: a full recovery of demand by 2023. if you've been traveling, you would think there was a full recovery demand this weekend. we are hearing from companies like united. we will get some others later, really talking about this delta variant. it does not seem to be impacting the bottom line for now. jonathan: let us look through the price action quickly. on equity market, the s&p 500 advan

michael purves at tallbacken capital looking to get to 4800 on the s&p 500.o. dave: i wouldn't dream of it. i just pared into do what is out there. what jumped at me from his last report is a chart that compares s&p 500 forward earnings, so you are basing it on endless predictions rather than historical numbers, and the change that has happened over the last 12 months, you saw increase on a weekly basis of as much as 40% from a year earlier, in fact, 41%. you didn't see that after the recession of 2007 into 2009. you haven't seen that for at least three decades, according to our numbers. and the reason, according to purves, is what is happening at the more economically sensitive companies, the cyclicals, if you will. he called it a huge explosion in earnings. that is really what accounts for analysts' greater optimism this time around. he is saying that earnings growth is going to help all the way into next year. since he is looking at 4800, he's got to be considering stocks to be relatively cheap by that yardstick. taylor: we've been surprised as united airl

tom: that is the belief of michael purves. he's enthusiastic about q4, which is how he gets to s&p 4800. jonathan: we will have that debate with sam stovall of cfra, the chief investment strategist. from new york city this morning, good morning. alongside tom keene, i'm jonathan ferro, together with taylor riggs. your s&p 500 up 20. we advance 0.5%. in the bond market, just south of 1.30% at on .2837% -- at 1.28 37%. this is bloomberg. ♪ laura: a bipartisan group of u.s. senators is closing in on a 570 $9 billion infrastructure deal. they agreed to pay for it in part by delaying a costly trump era medicare regulation. details won't be announced until at least monday, and any deal could face opposition from democrats in both houses of congress. the head of the cdc says the u.s. is at another pivotal moment in the pandemic. rochelle walensky says covid cases are once again climbing, and some hospitals are filling up. the government says that by the second week of august, the number of cases may be up 39% from last week. a new su

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 the rest of the hour before we get to the markets with alisha levine -- with alecia levine --