romaine: joe weisenthal will be joining us later. at the moment, the s&p 500 index fractional is a but the russell 2000 small caps closing in a record high. the question is, "what'd you miss?" caroline: paper talk. talk of more stimulus, the russell 2000 at a record high, there is growing chatter from some fed officials that tapering bond purchases might be the future. speculation that the yield curve is poised for steepening. we saw the spread between the two-year and 10-year note rising above one full percentage point for the first time since 2017. some fed officials thinking about how best to scale back asset purchases. romaine: the idea that we have seen this increase in the curve basically every day now this year so far, you see us over that 100 basis point level for the first time in quite some time. a lot of folks are saying, look, at some point this is not what is happening on the tens, the 30's, it is really what is happening on the short end of the curve. that is where the comes into play. we have heard from a lot of member

right now we join you tracy alloway, who with joe weisenthal has looked at these derivative excesses. i want to go back to what you and i observed a decade ago, which is distortions where conservator institutions -- i want to make this clear, folks, not pimco -- but where conservative institutions had to affect covers of derivative trades as things moved. is jean -- as gene frieda just said, are we in an equivalent analog this morning? tracy: a lot of people are likening what we see with came stop to the tech bubble. -- with gamestop to the tech bubble. people in social media forms are doing something strategic and are being targeted as to what they are buying. it is not just about buying gamestop stock, it is about buying particular options on the stock, which then leads to something called a gamma squeeze for the major dealers. so if you have a bunch of small retail triggers, you're all buying small call options. the end impact is much bigger than their actual spend. if you spent $350 on a gamestop call option, the dealers and up buying the underlying stock by a multiple of that, es

joe: i'm joe weisenthal. romaine: market ends the week on a record high.oe: the question is, "what'd you miss?" caroline: s&p 500 posting a best week since thanksgiving, and it is not just equities, it is liquid assets. bitcoin touching another record, around $40,000. investors kind of shrugging off the u.s. jobs are part that shows jobs were lost in december, first negative trend in eight months, but joe, there was positivity in the report. joe: exactly right. the headline number came in worse than expected. we thought this contraction in the number of jobs, but it was extremely concentrated in service areas of the economy. add the good news is that , layoffs job losses characterized as permanent, did come down for the month. we have a picture of extreme pain due to resurgence of the virus, but other economic indicators, sickle coal areas, manufacturing, showing improvement. it could be worse. . there is a glass half-full argument to be made about the quality of the jobs report. romaine: and there is concern here that in order to continue the trend of imp

joe: i'm joe weisenthal. romaine: the s&p 500, erasing all of its gains for the year.aylor: the question is, "what'd you miss?" caroline: what a week. the s&p has had its worst week since october, but it was euphoria and individual names like gamestop that's been a story we can't drag our eyes away from, inside, outside the market. everyone is talking about it. it's getting the attention of the sec. the regulator is ready to scrutinize this. cutting some purchase limits. it is just sensational one you take a step back. -- when you take a step back. it is what people in the twittersphere are fueled by, stories such as these. taylor: this is why we wake up in the morning -- joe: this is why we wake up in the morning. this is one of the most extreme every stories ever. at least in financial media. if you look at some of these reddit darlings for the week, gamestop, you have 400% gains. and say, 277% -- amc, 277%. romaine: i was surprised the head phone maker is not up there, 18% on the week. -- up 18% of the week. i have the sec apparently going to get involved in the u.s

joe: i'm joe weisenthal. romaine: let's take a look at where we are standing, first trading day of the year, the s&p 500 having its worst start to the year in years. is -- joe: the question is, "what'd you miss?" boris johnson with his lockdown announcement in the u.k., serving as a painful reminder of how far we still need to go to unlock the global economy from covid. this week, a barometer of where we stand in terms of handling the volatility of 2021, learning perhaps which industries will lead us in the country and what leadership will look like an d.c. with the biden administration hoping that the boat's in georgia will empower congress. at the same time, joe, we have this vote in the open with an onslaught of data about how the u.s. economy is faring. joe: some people will be watching political data, but the real data that we care about is this week, the onslaught of economic news to start the week. a great start to the year overall, lots of data culminating on friday with a jobs were. thursday, initial

joe: i'm joe weisenthal. romaine: i'm romaine bostick. on wall street, record highs.oe: the question is, "what'd you miss?" caroline: no matter what your political leanings, today is a historic day. joe biden, sworn in as the 40 sixth president. it was inauguration day, but much different, i heavy security presence, social distancing, masks everywhere. the scene at the capital couldn't be more different, juxtaposed to what happened two weeks ago when a pro-trump mob stole -- stormed the building. biden faces a raging pandemic, struggling economy and social divide across large parts of the country. today also holds significance for the republican party. former president donald trump departs, doesn't attend. let's start with the biden administration. joe: joining us now with perspective is bloomberg opinion columnist robert dirge. robert, a very different image than what we saw just two weeks ago with that violent insurrection at the capital. -- at the capitol. what was your take on the tone, the incident clearly acknowledged in the speech with biden also attempting to

joe:joe: i'm joe weisenthal. >> i'm romaine bostick. everything closing out a record high today. joe:joe: the question is, "what'd you miss?" caroline: we take a beat, we take a breath. stocks and power that might surprise some people out there considering the pictures we saw 24 hours ago. this though is nothing new. over history, there has been various examples of protests and unrest has not caused major indices to lose. markets choosing to focus on finally some sort of clarity and certainty amid the chaos. joe: in d.c. yesterday, it does not scream clarity per se, but we seem to be getting closer to something of a clear idea of what the next administration and senate makeup is going to look like. but who knows what's really going on, other than the fact that stocks are going up in a straight line? here's the last five days of the major indices. the blue line is the blue line is the small caps. that makes sense. then you look at a day like today with the nasdaq rallying 2.5% and people piling into tech and momentum names, so everything goes up. romaine: when you talk about small

emily: anthony scaramucci of skybridge capital, and joe weisenthal, thank you both.f bloomberg's "what'd you miss?" really appreciate her commentary and analysis. coming up, he's a short seller known for taking down luggage maker, samsonite. he joins me next. this is bloomberg. ♪ ♪ emily: a reminder my six days ago, the short seller of citron research said it is pre-much in decline. that pushed off the buy into gamestop shares by those in the reddit group, wall street bets and more. he's got respect for those traders, even relates to them. they collects and -- take a listen. >> before there was instagram, before there was even facebook, there was citron research. we were the voice of the individual investor against the institution. emily: so, do short-sellers even cells as the individual investors? let's ask soren aandahl, chief investment officer of blue orca capital. what are your thoughts on this, who do you relate to? >> absolutely, short sellers, for sure. emily: so then, how does the original rebel alliance view what is happening now? >> i view it with a lot of

stiglitz, speaking about the long-term damage from the coronavirus pandemic, in conversation with joe weisenthaleantime, this is what the market is looking at. there seems to be an uneasiness, resurgence of the virus making stocks go down a touch. it has been denting some of the optimism that we saw over earnings come also denting some of the optimism that we saw with additional stimulus. looking at dollar strengthening for the first time this week, i am also looking at some of the german ones and the british pound weakening come after prime minister -- german bund and the british pound weakening after the bridgepoint minister said the lockdown could last until the summer. tom, locked down into the summer. don: the day to day movement here, -- tom: the day to day movement here, i would suggest that there appeared to be a victory, spx up 18%, francine. so we have come awfully far, awfully fast. we will discuss that theme with steven eisman, really one of our most popular guests, gets a huge response when he is on. we have him on for a good amount of time. talk with steven eisman about banking and

what did you and joe weisenthal observe yesterday? what was the behavior of the long crew? what was their behavior yesterday? romaine: if you want to good microcosm, look at the price action. you started to see a significant selloff in some of these names. as soon you would drop a couple of dollars you would see a flurry of buying activity to push this back up. who is buying? the general theory is that has to be some of the shorts. at some point the marginal return between that drop down and pop up will get smaller and smaller. that would be the theory you generally subscribe to. lisa: there is also a question about the call options and the role of derivatives. sarah ponczek pointing out that nearly 38 million call options traded yesterday, the most ever. can we get a sense of what proportion of this is the retail investor and how much is professional sophisticated investors taking advantage of this mass hysteria in calls to invest in specific stocks? romaine: the easiest ways to look at what the size of these orders are. we are seeing in 10 or below, which seems to suggest