warning from mike wilson he'll join us exclusively ahead. plus, boeing takes flight. the stock soaring as one major airline doubles down we'll break down the trade all over the after hours action. shares of zoom, that stock is higher by 9% on earnings as the analyst call gets underway we're on that zoom call, muted of course. we'll bring you all the big headlines. we start off with a bull charge on wall street stocks ripping higher with the s&p 500 heading in the best day since june the dow and nasdaq seeing the biggest gains in four months every single sector finishing firmly in the green led by financials the rally with a pull back in yields big news on the vaccine front. so, guy, 27 points below last week's selloff almost like nothing happened, guy. >> unbelievable. i'd like to think that i know myself decently well who knows really at the end of the day. if i had been with you on friday i would have said, mel, i'm surprised the market sold off as much as it did late in the day on the back of the bond market which i know ten years went above 1.5%, but the way it re

mike wilson of morgan stanley.his is bloomberg. ♪ ritika: it is time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. applications for u.s. unemployment benefits fell to the lowest level in a year last week. the labor market is picking up steam as more americans get vaccinated and more states ease business restrictions. initial jobless claims fell by 97,000 684,000 -- by 97,000 to 684,000. the securities and exchange commission has started an inquiry into the frenzy over spac's, special purpose acquisition company's. they have sent letters to wall street companies on their dealing with spac's. they want to know about deal fees and compliance. kailey: i have to say, i am not too surprised that regulators are going to look at spac's at this point. two and a half months into the year, they have raised $70 billion. it is insane. guy: i think there is this concern about the phase one, phase two, and whether or not the whole process is openly rewarding to the phase o

we'll talk to you soon mike appreciate it as always mike wilson of morgan stanley picking of stock picking and enterprise software and looking forward to that. he always has broad market views and he always has stock picks to talk about that and we'll catch up with brad gerstner. i can't wait for that tomorrow boeing is a winner today disney is a winner of late sarat, so disney's got a shareholders meeting today i know you wish you could be there, stand up. raise your hands in the air, right? you've been riding this since last march you bought a ton of it and i don't really remember that, i don't think i beat you up over it >> i might have been a little snarky about it. >> oh, yeah. >> yes >> you've clearly -- >> i was beat up. >> you've come a long way in a year you've clearly gotten over it. >> you know i'm sensitive. >> i know. i know i was probably a little snarky it was down 200 bucks. where is disney right now? it's 200 bucks >> it's 200. it's done everything and more, scott. if you ask me, would it be 200 a year ago i would say absolutely not and it was a strong management team and

morgan stanley mike wilson on small caps went long in april last year and is telling investors to reduce that position. i think that's where things get different. -- get interesting. is that the peak or is it peeking? tom: that's the game of wall street. i looked up transitory on merriam-webster, and the big bed of transitory inflation, merriam-webster quotes john cochran of the university of chicago and their use of transitory. i would say that a more recent word. jon: i would imagine we are going to hear more of that tomorrow. lisa: i would argue that we are going to be hearing a lot of that, how is the fed going to parse through the economic boom and maintain easy money policies, i think it's important to point you bring up, where are we in the cycle? the discussion about morgan stanley and fading the small-cap trade speaks to that. if you follow the monetary stimulus or fiscal stimulus, have we already got in the bulk of that and is that behind in the u.s.? jon: how quickly this cycle moves will be a theme of this program. from new york here is the price action. shaping up as follows

coming up on the open, mike wilson of morgan stanley will be joining us.sting call on going long small caps. it was april of 2020. tom: that was lonely. jonathan: everyone laughed. now they ship the other way. tom: this is great. i am set up for tomorrow, the next day into the weekend, this is fascinating. jonathan: you will join us? lisa: he might saunter off to the radio instead. jonathan: alongside tom keene and lisa abramowicz, i am jonathan ferro. downside surprise from retail sales. the price outlook dominates the market worldwide. this is bloomberg. ritika: with the first word news, i am ritika gupta. a bipartisan group of senators wants to revamp the law covering tariff used on national security grounds. section 232 of the trade expansion act imposed to duties without a vote by congress. those tariffs have been challenged in the u.s. and by the wto. the proposal would give congress more of a role. top u.s. officials are trying to rally asian allies around a common approach toward china. secretary of state antony blinken and defense secretary lloyd

mike wilson saying we are downgrading small caps. since then, we are down about 9%. it is not just the small caps in america. e.m. on the brink of wiping out the gains year to date. in the context of the huge gains in the last several months, maybe not a big deal but it's got a lot of people's attention. a lot of people felt uncomfortable with the moves in the last day. >> how much does this have to do with china coming out and perhaps backing away a little bit from their stimulus? how much does it have to do with the fact that global growth is really centered on the united states, the fact that the dollar is actually emergent, ascendent? >> the year has been far more nuanced that i think a lot of people would have given a credit for. joining us now is daragh maher, hsbc's head of research at affect strategy. can you give me a better understanding of what you mean by that? daragh: everything we are seeing now makes sense if you believe u.s. exceptionalism, strong u.s. growth, if you believe that is meant to translate into a shift in federal rhetoric and policy. that'

. >> steve weiss, an interesting point by mike wilson at morgan stanley, the thing that worries him the most in the next 6 to 12 months, is the ability to keep up with demand demand is going to be so strong comingout of this pandemic that, you know, services, manufactured goods, all of that might not be able to keep up that could be a hiccup in the recovery do you see that? shannon was just talking about consumer demand and manufacturing. >> i think that's a good problem to have in one respect, that the economy will be just barreling ahead, but what that also leads to is inflation. inflation will ramp up, if mike's right, quicken than anybody is anticipating. realistically, i don't think that's going to be the issue i'm with shannon, and i've been saying it for a while, is that the manufacturing boom is going to really boom out of control, in a good way. if you take a look at cap ex spending the last two years, it was falling over meanfully, because ceos didn't have confidence in which direction the company was going to go. with all of that cash on the sidelines, with buybacks, we're co

optimism in the economy, goldman sachs rejiggering their first and second quarter look, as you saw mike wilson and the team do at morgan stanley this weekend. i would say the cite ice right now, correct me if i'm wrong, the motel 6 i was at -- the site guist right now, -- the zeitgeist right now, correct me if i'm wrong, the motel 6 i was at had bad wi-fi -- jonathan: we need to discuss the beard. for our audience tuning in on radio and across the united states of america right now, the beard is in with tom keene. i've seen this before post-vacation. i am just trying to work out if it stays. tom: we've got our interns at our call banks. you can call in now if you like. but we started out a little light, but the score is it is building out. jonathan: let's do this for you. i will put this back on for the 9:00 show. tom: no, no. i put it on tuesday. jonathan: tired is going to stay on for the 9:00 show -- tie is going to stay on for the 9:00 show. i'm going to have note high on this show for as long as you keep that beard. tom: if we went and saw the tots, which i think we are scheduled to do in

and morgan stanley's mike wilson saying u.s. equity indices have priced in much of the economic and earnings recovery for 2021, but opportunities still lie beneath the surface and technology should be a fertile hunting ground who agrees with that who doesn't agree with it. who wants to talk first? i'll go with you, shannon. >> i don't agree that technology can be a stock picker's area over the next couple of years. the faang m underperformance the show me story for stocks like apple and amazon. particularly for amazon with such a big year last year in the e-commerce space how can they continue to grow on top of that over the course of the next couple of years we think we have a lot of confidence in amazonbeing able to do that when you go down into the technology sector, if you look at names like ibm and cisco, those are names that haven't necessarily kept up with the ad spent stories as i think about alphabet and facebook and so i think that there are opportunities to add a few names here into your technology basket trimming nam

he's mike wilson, morgan stanley. but in terms of hitting small caps much more, small caps can't pass on those price increases to consumer as well as larger corporations can and absorb that cost of whatever it is by just taking some off the margin >> yeah. no question. and, you know, you ask mike what the trigger was for him or what it will be the trigger for me and we'll see if it's right or wrong for me it was getting through one-and-a-half percent on the ten year it's really manifesting itself you just brought it up on a decent tiptoe day, the russell was down 1%. if you look over the last couple years, i mentioned this i think on thursday, the russell let us up by a two week head start and let us down by the same amount it is interesting to see if that's going to be the case here i think it will be extraordinary hard for these companies to pass on those costs and i do think, like james said, i think inflation is absolutely here in spades it is just a question of when the market acknowledges it, and i think we're p

warning from mike wilson he'll join us exclusively ahead. plus, boeing takes flight.ubles down we'll break down the trade all over the after hours action. shares of zoom, that stock is higher by 9% on earnings as the analyst call gets underway we're on that zoom call, muted of course. we'll bring you al

we saw mike wilson at morgan stanley downgrading small caps this week, given how far they have run extended valuations at this point. jill: we got positive on small caps back in the fall, and we have seen a really great run in small caps so far, but we don't think it is over yet. i think from a number of perspectives when you think about what is going on within the overall market, we are less positive on the s&p 500 then large-cap equities, where if you look at the gdp growth we are expecting for this year, 6.5%, small caps are more similar to the makeup of the u.s. economy then small caps are. they are more domestic, closer to the makeup of gdp in terms of services spending, where there is a lot of pent-up demand. small caps should benefit more if we see a capex cycle in the u.s., which we are expecting could be not only the cyclical rebound, but if we see an infrastructure bill or if we continue to see restoring of u.s. manufacturing -- see re -shoring of u.s. manufacturing, which we expect. you are still seeing small caps trade at historical discount to large caps, so i think there is mo

responding, agreeing with what tepper was saying, and david, you know, over the weekend, morgan stanley, mike wilson is, i think everybody is sort of where cramer has been the last couple of weeks and i wish jim were here, but the general point being the economy is going to be on fire, q2 growth is going to be huge, i think goldman is at 116789 by the way, goldman year end unemployment forecast now donut to 4.1, so the table is set for a good year, but the rotation is so big, and the portfolios are so out of position, on these new cyclical names, that wilson says, the mdx goes back to the 200-year year-end target 3900 so it's a big boat to turn >> it is, and it's one that we will continue to watch closely, and it's a story that of course is going to play out over these next coming month, the growth target targets as you say are quite significant, at least at many firms in terms of where they see gdp at, with 19.9 trillion, we're on the precipice, of course the house is going to be and we will get an update from elon shortly on where things stand but very likely as the president indicated that checks

this is bob wilson in missouri saying that the h, investigator to the business of finding the truth, make a recommendation to resolve incidents. mike in new jersey saying 26 women accused him ofsexual misconduct . 26 women accused the democrat of such things what would we be saying? what would president obama have been president if he said the thing trump said. his hypocrisy is overwhelming as usual. sam in bakersfield saying at this point he's not going to be akable to govern effectively really needs to resign. taking us at 202-748-8000 three. that's the line you can also call if you wish if you are a resident of new york. highland park newjersey democrats line. go ahead . >> caller: thank you for taking my comments and while i am a democrat, i am a human being first. and a born american.ir consequently, i believe that governor cuomo should resign if it's found that the accusations against him are true. and he's deemed culpable for those actions. >> host: mary in new mexico, independent line, you are next up. >> caller: in regards to andrew cuomo in this situation i remember watching andrew cuomo on cnn during chris cuomo's show d

mike trout. that is a cloud. cueto with three innings, gave up five hits, two runs and the giants make a game of it. in fact, former angels number one pick will wilson hammers a shot with the bases loaded? it down the left field line that is going to go for a basis clearing double. the giants briefly lead 3 to 2/6 inning. the angels now 53 stephen douglas tried that get hot with the back finds a hole up the middle wilson's in the score. cut it to 5 to 4, but you're seven inning final is 5 to 4. all right, let's get right to the video of check this out tournament play. a c c. syracuse and the top seed virginia five seconds left. it's a freshman with the ball re speakman knows what to do with it hits a buzzer beater from three virginia win 72 69 that is the sporting life right now, christina, get back to you guys. thank you so muchuit? nah, i'm good. fine. i'll have some. phil! slow down! (chuckling) i'm sorry, claire. unlike at home, i'm the captain here. (ship horn blares) damn it, phil, knock it off! copy that. you know, i like having these. we should get some for the house. no, you're not going to ask me "what time is lunch?" every day through a t

mike. >> baby bruin. >>> speaking of final four, stanford's women's basketball team one step closer to a national championship. the seahawks quarterback rustle wilsonster anna plays for cardinal and last night's regional final, louisville almost pulled off a major upset leading by 12 at the half. stanford roared back winning the game by 15. 78-63. this will be stanford's 14th final four appearance. they'll face south carolina listen friday. good luck, cardinal. >>> are you ready for some football? well more football that is? for the first time since 1978 the nfl is expanding its season. league owners approved an additional 17 games for the year's regular season schedule and even things out, the team will play one less preseason game and the super bowl now being pushed back a week to february 13th. >>> coming up next, a growing amount of southern california college students being forced to quarantine. the spike in covid cases now being seen and the thread the new cases have in common. >>> governor newsom's all new numbers showing the likely results if the recall vote was held today. >>> the right now at 5:30, rolling into the orange tier. the bay ar

mike out. not a good idea. that's way way gun. cueto three innings five hits the two runs right there can't pick it up later, former angels number one thick will wilson went down the line and left. he's gonna have one of those everybody going to score doubles three runs on that former angels number one pick comes back to haunt his old mates. 32 giants angels now up 53 and the six stephen duggar right back up the middle wilson will come in to score easily to cut it to 54. but that is his closest it gets in your seven any final 54 giants or 35, and three ties this sprig. pretty close to perfection for the a's. meanwhile six nothing over the rangers kind of a weird angle here as we take it off a twitter edward d. s actually doubled and it's buddy read holland around all the way from first jesus, lazaro for any scoreless, worked five strikeouts. rangers had only one hit on the afternoon in the a's win it. six to nothing. well they call it can like the second, the fifth major in professional golf down in florida. actually they ought to call it the brinks truck tournament because this thing is just all about money. $2 million. as a matter of fact, he goes

and defense -- >> that's the focus, that's the focus of mike wilson's note this morning out of morgan stanley, is his line is the cat's out of the bag, investors are no longer wondering if rates are going to go up but by how much. p/es will come in and the stimulus effect may delay some of that drag but in the long term their year end target is 3900 on the other hand, david costen our friend at goldman, says the equity market could digest deals as high as 2% the 10-year without much difficulty. >> i'm still with him. he's been making a lot of money. i think where people will make money is very different. i was doing some valtion analysis look acaterpillar. caterpillar is going to, it sells at 21 times earnings, next year, sells at 17 times earnings w david, we're going to take one of the most hated stocks even by ann windblat, very informative pers in the previous show, facebook, 19, 16 times next year's earnings i can't find, i mean other than general motors, can i find 16. >> 33% top line growth last quarter. >> it's interesting. but those are, that name is not performing well this