US Equities Hit Records; Stock Soars on Moon Landing

Bloomberg Audio Studios, podcasts, radio news. 0:00:09.480 --> 0:00:12.719 Good morning, I'm Nathan Hager and I'm Amy Morris. Here 0:00:12.760 --> 0:00:14.680 are the stories we're following today. 0:00:15.000 --> 0:00:17.320 Wall Street's going to close out the trading week following 0:00:17.360 --> 0:00:20.840 a powerful rally that has seen all three major indexes 0:00:20.880 --> 0:00:24.119 in this country close at all time highs. It is 0:00:24.160 --> 0:00:28.400 an artificial intelligence fueled rally, as Chip, Darling and Nvidia 0:00:28.840 --> 0:00:31.880 added two hundred and seventy seven billion dollars to its 0:00:31.920 --> 0:00:33.400 market value on Thursday. 0:00:33.440 --> 0:00:36.240 That is the most in stock market history. 0:00:36.720 --> 0:00:40.159 Cole Smeed, portfolio manager at Smeed Capital Management, warns, though 0:00:40.280 --> 0:00:43.320 this rally may be overdone. 0:00:42.800 --> 0:00:44.200 There's a lot of risk out there. 0:00:44.960 --> 0:00:47.520 If you took the old tech right, you took consumer 0:00:47.560 --> 0:00:49.640 discretion and you pulled out the tech companies there and 0:00:49.760 --> 0:00:51.640 communication service. You pulled out the tech companies and you 0:00:51.680 --> 0:00:54.920 put back the old tech together. This is way worse 0:00:54.960 --> 0:00:56.840 than dot com bubble that was twenty eight percent of 0:00:56.840 --> 0:00:58.320 the S and P. This is forty five. 0:00:59.120 --> 0:01:02.000 Investor Colesmith notes the S and P five hundred registered 0:01:02.040 --> 0:01:04.240 its twelfth record close of the year, putting it up 0:01:04.280 --> 0:01:07.440 nearly twenty four percent since late October. 0:01:08.040 --> 0:01:11.880 The huge rally in Nvidia shares has catapulted chief executive 0:01:12.000 --> 0:01:15.320 officer Jensen Wong to new heights. He is on the 0:01:15.440 --> 0:01:18.200 verge of becoming one of the twenty richest people in 0:01:18.240 --> 0:01:21.560 the world. Huang's wealth jumped nine point six million to 0:01:21.640 --> 0:01:25.120 more than sixty nine billion dollars yesterday. It's again that 0:01:25.200 --> 0:01:27.720 Leip rogged him ahead of Charles Coke to twenty first 0:01:27.760 --> 0:01:29.920 place on the Bloomberg Billionaire's Index. 0:01:30.120 --> 0:01:30.600 Well Amy. 0:01:30.600 --> 0:01:35.360 The rally inequity markets comes despite more FED officials preaching patients. 0:01:35.400 --> 0:01:38.920 When it comes to rate cuts, Philadelphia Fed President Patrick 0:01:38.959 --> 0:01:42.160 Harker says now is not the appropriate time to cut. 0:01:42.440 --> 0:01:45.080 Yes, I do believe that we may be in a 0:01:45.160 --> 0:01:47.920 position to see rates decrease this year, but I would 0:01:48.000 --> 0:01:51.800 caution anyone from looking for it right now and right away. 0:01:52.280 --> 0:01:56.040 We have time to get it right as we must. 0:01:56.360 --> 0:01:59.640 Philadelphia Fed chief Patrick Harker does not vote on monetary 0:01:59.680 --> 0:02:02.480 policy this year, but FED Vice Chair Philip Jefferson and 0:02:02.480 --> 0:02:05.560 Governor Lisa Cook are also saying they want more evidence 0:02:05.600 --> 0:02:08.680 that inflation's headed back to the two percent target before 0:02:08.960 --> 0:02:10.359 lowering borrowing costs. 0:02:10.919 --> 0:02:14.919 Former Treasury Secretary Larry Summers is warning that financial markets 0:02:14.960 --> 0:02:19.280 are underestimating the risks of political and social turmoil around 0:02:19.320 --> 0:02:22.600 the world. He says many aren't taking populist policies, and 0:02:22.639 --> 0:02:24.839 they're downsides seriously. 0:02:25.040 --> 0:02:30.320 Nationalist populist policy, both at home in terms of the 0:02:30.400 --> 0:02:37.120 rule of law, internationally in terms of protectionism and restrictions 0:02:37.160 --> 0:02:41.800 on flows of goods, flows of capital, flows of people. 0:02:42.360 --> 0:02:46.160 But they are very real risks and they seem to 0:02:46.240 --> 0:02:50.760 me to be insufficiently priced. 0:02:50.800 --> 0:02:54.720 In Summer, who is a paid contributor to Bloomberg TV, 0:02:54.880 --> 0:02:58.800 has called becoming us election the most consequential vote since 0:02:58.840 --> 0:02:59.560 World War Two. 0:03:00.080 --> 0:03:02.560 I mean, we're learning more this morning about that widespread 0:03:02.639 --> 0:03:05.800 service outage that affected tens of thousands of AT and 0:03:05.840 --> 0:03:08.760 T customers. The wireless carrier now says it was caused 0:03:08.760 --> 0:03:10.680 by its network improvement efforts. 0:03:10.800 --> 0:03:13.079 We get the details now from Bloomberg's at Baxter. 0:03:13.639 --> 0:03:15.560 AT and T is now saying that the outage was 0:03:15.600 --> 0:03:19.280 caused by work being done to expand the network coverage. 0:03:19.320 --> 0:03:23.760 It says incorrect processes were followed. It says not a 0:03:23.800 --> 0:03:27.720 cyber attack already in process, though investigations by a number 0:03:27.760 --> 0:03:31.480 of federal agencies. Henness spokesman John Kirby. 0:03:31.280 --> 0:03:34.920 DHS and the FBI are looking into this as well, 0:03:34.960 --> 0:03:38.280 working with the tech industry and these network providers. 0:03:38.440 --> 0:03:41.800 Tracking service website down Detector says more than one and 0:03:41.840 --> 0:03:47.000 a half million outage reports were made. ED Baxter Bloomberg Radio. 0:03:46.880 --> 0:03:47.920 All right, thank you, Ed. 0:03:48.040 --> 0:03:52.280 Meanwhile, the private space race has reached a new milestone today. 0:03:52.320 --> 0:03:54.920 For the first time in more than a half century, 0:03:55.480 --> 0:04:00.040 the US has returned to the Moon today for the 0:04:00.080 --> 0:04:04.200 first time in the history of humanity. A commercial company, 0:04:04.240 --> 0:04:09.120 an American company, launched and led the voyage up there. 0:04:09.800 --> 0:04:13.040 That was NASA administrator Bill Nelson. After the lunar lander 0:04:13.120 --> 0:04:16.719 owned by Intuitive Machines touched down on the lunar's surface, 0:04:17.040 --> 0:04:21.600 former NASA astrobiologist Keith Cohing says the lander, nicknamed Odysseus, 0:04:21.839 --> 0:04:23.200 still has a lot to tell us. 0:04:23.440 --> 0:04:25.919 The most exciting thing will be the images of either 0:04:26.040 --> 0:04:28.880 the landing or from the lander. That's always the eye candy. 0:04:28.920 --> 0:04:31.680 That's because it's like universal, people say, yeah, oh, look 0:04:31.680 --> 0:04:31.960 at that. 0:04:32.120 --> 0:04:32.480 Yeah. 0:04:32.680 --> 0:04:35.640 Second of all, the importance of it will be the 0:04:35.680 --> 0:04:40.280 ability of it to survey the area around it and understand, 0:04:40.320 --> 0:04:43.640 you know again, waters, the regular other things like that. 0:04:45.160 --> 0:04:48.120 Former NASA employee Keith Cohing says Odysseus will need to 0:04:48.160 --> 0:04:51.640 tick off all the boxes before lunar Landers send astronauts 0:04:51.640 --> 0:04:54.800 back to the moon. Intuitive machines stock is off like 0:04:54.920 --> 0:04:57.960 a rocket after that landing. It's up more than forty 0:04:57.960 --> 0:04:59.200 six percent in early trading. 0:04:59.279 --> 0:05:02.279 All right, let's turn to geopolitics now, Amy Tomorrow marks 0:05:02.320 --> 0:05:06.040 two years since Russia's invasion of Ukraine. Today, the Biden 0:05:06.080 --> 0:05:10.120 administration will announce its biggest sanctions package yet against Vladimir 0:05:10.120 --> 0:05:12.960 Putin's war machine. The Treasury Department says more than five 0:05:13.080 --> 0:05:15.720 hundred people and entities will be on the sanctions list. 0:05:16.080 --> 0:05:18.840 President Biden met yesterday with the widow and daughter of 0:05:18.920 --> 0:05:20.839 Russian opposition leader Alexi Navani. 0:05:21.080 --> 0:05:22.839 As you stated the obvious, he was a man of 0:05:22.880 --> 0:05:29.559 incredible courage and it's amazing how his wife and daughter, immy, 0:05:29.640 --> 0:05:30.000 I do that. 0:05:30.279 --> 0:05:33.359 And the President spoke after that meeting in San Francisco. Today, 0:05:33.520 --> 0:05:37.240 Senate Majority Leader Chuck Schumer is leading a delegation to Ukraine. 0:05:37.279 --> 0:05:41.400 He wants to reassure President Vladimir Zelenski. More usaid is coming. 0:05:41.680 --> 0:05:45.360 That sixty billion dollar package remains stalled on Capitol Hill. 0:05:46.160 --> 0:05:48.560 Turning back to the markets now, Reddit filed for an 0:05:48.600 --> 0:05:52.760 initial public offering, revealing the social media platform's shrinking losses 0:05:52.800 --> 0:05:55.839 and helping to propel a resurgence in US listings. The 0:05:55.880 --> 0:05:58.359 San Francisco based company and what is said to be 0:05:58.400 --> 0:06:00.919 one of the biggest listings of the US, filed with 0:06:00.960 --> 0:06:04.160 the SEZ more than two years after first submitting its 0:06:04.200 --> 0:06:05.400 plan confidentially. 0:06:05.640 --> 0:06:08.520 In Asia, China's home price has declined at a slower 0:06:08.520 --> 0:06:11.760 pace for both new and existing units last month. Bloomberg 0:06:11.800 --> 0:06:13.960 day Break Asia anchor Brian Curtis has more on that 0:06:14.000 --> 0:06:14.680 from Hong Kong. 0:06:14.920 --> 0:06:17.920 It's the first sign of improvement in ten months. New 0:06:17.960 --> 0:06:20.920 home prices in seventy cities dropped zero point three to 0:06:20.960 --> 0:06:24.120 seven percent last month from December. It was slightly better 0:06:24.200 --> 0:06:26.960 than a drop then of zero point four to five percent. 0:06:27.400 --> 0:06:31.039 The second head market also improved, with price declines narrowing 0:06:31.120 --> 0:06:34.200 to zero point six to eight percent. No one's breaking 0:06:34.200 --> 0:06:36.839 out the champagne here, but it may mean the worst 0:06:36.920 --> 0:06:41.839 is over in China's property crisis. In Okong, Brian Curtis Bloomberg. 0:06:41.440 --> 0:06:46.360 Radio Time Now to take a look at some of 0:06:46.400 --> 0:06:48.720 the other stories making news in New York and around 0:06:48.760 --> 0:06:50.800 the world, and for that we are joined by Bloomberg's 0:06:50.880 --> 0:06:51.599 Michael Barr. 0:06:51.640 --> 0:06:53.240 We made it to Friday, Michael. 0:06:53.000 --> 0:06:57.039 Hooray, thank you. Nathan. New York State's attorney general says 0:06:57.080 --> 0:07:00.320 she is exploring all options against a Long Island count's 0:07:00.480 --> 0:07:05.640 executive order batting transgender athletes from competing in women's and girls' 0:07:05.640 --> 0:07:10.520 sports in county facilities. Nassau County Executive Bruce Blickman announced 0:07:10.560 --> 0:07:12.840 the new band, saying it will take effect immediately. 0:07:13.360 --> 0:07:19.280 If a league or team and identifies themselves or advertises 0:07:19.360 --> 0:07:23.760 themselves to be a girls or women's league or team, 0:07:24.720 --> 0:07:30.400 then biological males should not be competing in those leagues. 0:07:30.640 --> 0:07:33.600 Blakeman called it a form of bullying from people born 0:07:33.640 --> 0:07:36.720 as biological males, though he did not provide examples of 0:07:36.760 --> 0:07:41.120 it in Nassau County. Meanwhile, protesters demonstrated outside the county 0:07:41.160 --> 0:07:45.920 office building. They slammed the Nassau Republican's action as illegal 0:07:46.040 --> 0:07:50.560 and discriminatory. Katie Hawklin is with a Long Island Progressive Coalition. 0:07:51.200 --> 0:07:55.440 I am floored and horrified by this executive order. 0:07:55.600 --> 0:07:59.880 Protesters also accused the county executive of playing politics with 0:08:00.160 --> 0:08:03.960 lives of vulnerable transgender kids. The judge who has been 0:08:03.960 --> 0:08:07.560 presiding over Donald Trump's New York civil fraud trial is 0:08:07.640 --> 0:08:10.960 denying the former president's request for a month long delay 0:08:11.000 --> 0:08:14.080 of the penalty the judge set last week. Judge Arthur 0:08:14.120 --> 0:08:17.800 and Goren already ruled that Trump committed fraud and ordered 0:08:17.880 --> 0:08:20.080 him to pay three hundred and fifty five million dollars 0:08:20.080 --> 0:08:25.040 plus interest. Now Judge in Goren faces flat now flatly 0:08:25.080 --> 0:08:29.040 rejects Trump's request for delay of that judgment, and Goren 0:08:29.080 --> 0:08:32.640 told Trump's lawyers that they have failed to explain, much 0:08:32.760 --> 0:08:36.960 less justify any basis for state. The former president now 0:08:37.040 --> 0:08:39.840 has just thirty days to pay the fine in cash 0:08:40.120 --> 0:08:42.800 or to post a bond for the full amount in 0:08:43.040 --> 0:08:46.719 order to appeal the ruling. Meanwhile, Trump's legal team has 0:08:46.720 --> 0:08:50.320 filed multiple motions urging a Florida judge to dismiss the 0:08:50.360 --> 0:08:56.160 criminal case charging him with illegally retaining classified documents. They claim, 0:08:56.200 --> 0:09:01.000 in part that presidential immunity protects him from prosecution. Manhattan 0:09:01.000 --> 0:09:04.800 District Attorney Alvin Bryan gave an angry response to Maricopa 0:09:04.960 --> 0:09:10.200 Attorney Rachel Mitchell's decision not to extradite murder suspect rod 0:09:10.200 --> 0:09:14.720 Almansuri to New York from Arizona. Almansuri is being held 0:09:14.760 --> 0:09:18.080 in Arizona in connection with two stabbings, but is also 0:09:18.200 --> 0:09:20.000 wanted in New York for the murder of a woman 0:09:20.360 --> 0:09:24.360 in Soho in a hotel. District Attorney Mitchell said in 0:09:24.400 --> 0:09:27.440 a press conference yesterday that she does not want to 0:09:27.480 --> 0:09:30.760 hand almansuriy over to New York, where she says he 0:09:30.840 --> 0:09:34.360 could be released pending trial. Bragg hit back Thursday, saying 0:09:34.400 --> 0:09:36.240 suspected killers are kept in custody. 0:09:36.640 --> 0:09:38.760 I do not know what they do in Arizona, but 0:09:38.920 --> 0:09:41.360 I know that here in this county, New York County, 0:09:41.760 --> 0:09:44.920 we routinely seek and get remands. 0:09:45.160 --> 0:09:48.320 She means, the person's in custody in our murder case. 0:09:48.559 --> 0:09:50.800 Global News twenty four hours a day, whenever you want 0:09:50.800 --> 0:09:53.640 it with Bloomberg News Now. I'm Michael Barr. This is Bloomberg. 0:09:53.720 --> 0:09:54.839 Nathan, Michael, thank you. 0:09:59.200 --> 0:10:01.240 Time now for the bloom Sports update brought to you 0:10:01.320 --> 0:10:03.880 by Trice State. How do you hear's John stash. 0:10:03.559 --> 0:10:06.640 Out, Thanks Nathan, good night for the inhabitants of Madison Square, 0:10:06.640 --> 0:10:08.680 Guard and Road wins to the Knickson Rangers. Knicks in 0:10:08.679 --> 0:10:11.920 Philadelphia won ten ninety six. They led by twenty six 0:10:12.000 --> 0:10:13.800 saw the league get cut to seven, but they held 0:10:13.840 --> 0:10:14.559 on to end of four game. 0:10:14.559 --> 0:10:15.040 Moving straight. 0:10:15.080 --> 0:10:17.920 The new nick boy on Bob Danovic took six three 0:10:17.920 --> 0:10:20.280 point shots and made them all eighteen points for both 0:10:20.360 --> 0:10:23.440 Josh Hart and Precious at Chua, they combined for twenty 0:10:23.440 --> 0:10:26.600 three rebounds. Tymee Maxi led Philly with thirty five six 0:10:26.640 --> 0:10:29.280 Ers are struggling without Joel mb They've lost ten of 0:10:29.280 --> 0:10:31.920 the last thirteen. Big game Tomorrow night at the guard 0:10:31.920 --> 0:10:34.400 of the Knicks and the league leading Celtics, who won 0:10:34.400 --> 0:10:36.640 in Chicago won twenty nine to one. Twelve Boston is 0:10:36.679 --> 0:10:39.280 forty four and twelve. Nets got blown out in Toronto 0:10:39.400 --> 0:10:42.600 lost by twenty eight. Wizards lost by twenty. In Denver, 0:10:42.640 --> 0:10:45.240 the Warriors beat the Lakers, who played without Lebron James. 0:10:45.280 --> 0:10:47.680 As for the Rangers, may g it nine wins in 0:10:47.679 --> 0:10:49.000 a row, five to one. 0:10:48.880 --> 0:10:49.600 At New Jersey. 0:10:49.640 --> 0:10:52.160 Pair of goals for Alexei la Frontier, three assists for 0:10:52.160 --> 0:10:54.360 our Timmy Paner and he's got forty six on the season. 0:10:54.679 --> 0:10:57.160 Thirty nine saves for Igor, assists Durk and he also 0:10:57.200 --> 0:10:59.800 assisted on a Ranger goal. If they win tomorrow afternoon 0:10:59.840 --> 0:11:02.880 in Philly, the Rangers will have tied the club record 0:11:02.920 --> 0:11:05.880 for longest winning streak ever. Islanders got shut out in 0:11:05.880 --> 0:11:08.240 Saint Louis. The Bruins lost in overtime at Calgary. The 0:11:08.240 --> 0:11:09.720 Capital's won at Tampa Bay. 0:11:10.040 --> 0:11:10.640 Yankees had a. 0:11:10.600 --> 0:11:13.800 Busy off season, bringing in Juan Soto, Alex Verdugo, Marcus Stroman. 0:11:13.880 --> 0:11:16.040 They may not be done, said to be talking to 0:11:16.080 --> 0:11:19.160 the still unsigned free agent pitcher Blake Snell. The Yankee 0:11:19.160 --> 0:11:20.920 owner is hal Steinbrenner. 0:11:21.120 --> 0:11:22.400 I'm not going to get into free agents. 0:11:22.400 --> 0:11:24.040 I'm just going to tell you that we continue to 0:11:24.040 --> 0:11:27.440 look at a lot of different options, and you know, 0:11:27.679 --> 0:11:30.640 given where we are payroll wise, any addition to the 0:11:30.640 --> 0:11:32.199 club is going to be a costly one. But I'm 0:11:32.240 --> 0:11:35.600 still willing to consider anything that comes my way. Anything 0:11:35.640 --> 0:11:37.160 cashing his team brings my way. 0:11:37.280 --> 0:11:39.760 If the Yanks were to join Snell with Garrett Coley, 0:11:39.800 --> 0:11:41.800 will have both the cy young winners from last season. 0:11:41.800 --> 0:11:44.240 The Mets will start the season with code I Senga 0:11:44.320 --> 0:11:46.199 on the injured list. He would have been the likely 0:11:46.280 --> 0:11:49.360 opening day pitcher. Short dot Tim Anderson signed with Miami. 0:11:49.400 --> 0:11:51.600 Ex Yankee g R. Shell As signed with Detroit. The 0:11:51.600 --> 0:11:54.640 Pirates extend at Ash pitcher Mitch Keller, John Stashia. 0:11:54.679 --> 0:11:55.680 We're Bloomberg Sports. 0:11:56.120 --> 0:11:58.120 Okay, John, thanks, so maybe don't I get right back 0:11:58.160 --> 0:11:59.839 to this market now. We're going to be ending the 0:12:00.000 --> 0:12:01.959 week get all time highs for the S and P, 0:12:02.120 --> 0:12:04.000 the Dow, and the Nasdaq on the back of that 0:12:04.600 --> 0:12:08.600 magnificent outlook we got earlier this week from Nvidia. How 0:12:08.679 --> 0:12:12.880 much further can this renewed AI bowl run. Let's bring 0:12:12.920 --> 0:12:16.240 in Daniel Morris for some analysis, Chief market strategist at 0:12:16.280 --> 0:12:17.640 BNP Pariba. 0:12:17.800 --> 0:12:19.200 Daniel, thank you for being with us. 0:12:19.200 --> 0:12:21.680 We're watching a little bit of a pullback from the 0:12:22.240 --> 0:12:25.440 big time rally that we saw yesterday. When you have 0:12:26.200 --> 0:12:29.080 the S and P at end of your price targets. 0:12:29.080 --> 0:12:31.719 For many analysts already, I guess the question's got to 0:12:31.720 --> 0:12:33.400 be asked, is this an overshoot? 0:12:35.440 --> 0:12:38.560 Well, I don't think anyone would dare to say they 0:12:38.600 --> 0:12:40.800 can accurately estimate whether it is. 0:12:40.840 --> 0:12:43.480 I mean, we know where it's such a nascent stage even. 0:12:43.320 --> 0:12:43.959 Now with AI. 0:12:44.080 --> 0:12:46.000 Try to predict what the implications are going to be 0:12:46.440 --> 0:12:49.520 for corporate profits, I don't know if it really is, 0:12:50.000 --> 0:12:52.040 not to say, worth the effort, but I think we 0:12:52.080 --> 0:12:54.400 need to think about the long term potential here, which 0:12:54.440 --> 0:12:56.600 is what the market's pricing in. I mean, go back 0:12:56.640 --> 0:13:00.440 to when the Internet first became ubiquitous in the world. 0:13:00.520 --> 0:13:03.360 I mean, most economist estimate it took a decade for 0:13:03.600 --> 0:13:05.600 companies really to be able to leverage that. 0:13:05.720 --> 0:13:06.960 So we're just at the beginning. 0:13:08.000 --> 0:13:10.520 It may, in retrospect turn out that these estimates are 0:13:10.520 --> 0:13:12.280 too high, who knows, but for now, I don't think 0:13:12.280 --> 0:13:13.679 that's what the market is thinking about. 0:13:13.720 --> 0:13:15.960 Well, we are really getting into this debate, though, aren't 0:13:15.960 --> 0:13:19.000 we about whether what the differences are between the dot 0:13:19.040 --> 0:13:21.840 com rally from the late nineties and this AI rally 0:13:21.880 --> 0:13:25.560 that we're seeing now. What kind of differences do you see? 0:13:25.800 --> 0:13:28.840 Is this different from what we saw back in the nineties. 0:13:30.520 --> 0:13:32.200 We certainly, I think in some important ways. 0:13:32.200 --> 0:13:35.439 I mean, hopefully investors did learn lessons from the dot 0:13:35.480 --> 0:13:38.480 com bubble and looking at revenues as opposed to sales, etc. 0:13:38.760 --> 0:13:41.439 But it certainly doesn't seem to be a worry here. 0:13:41.520 --> 0:13:45.000 I think in companies center for reporting, our reporting real numbers, 0:13:45.600 --> 0:13:45.959 so that. 0:13:45.960 --> 0:13:49.280 Profitability is there and clearly is rising. 0:13:49.440 --> 0:13:51.600 I think that the challenge is going to be and 0:13:51.640 --> 0:13:54.120 I think perhaps what we need to think about is 0:13:54.160 --> 0:13:57.600 perhaps to look beyond as everyone discusses maybe if since 0:13:57.600 --> 0:14:00.720 seven or even the tech sector, because arguably, in the 0:14:00.760 --> 0:14:04.320 long run, the impact of AI may well be felt 0:14:04.360 --> 0:14:08.600 more in non technology sectors, as it gives industrial companies 0:14:08.640 --> 0:14:13.199 and so indiscretionary stable companies the ability to increase our profitability, 0:14:13.240 --> 0:14:15.880 increase our sales without necessarily having to rely on what 0:14:15.880 --> 0:14:17.480 we know is a constrained labor market. 0:14:17.760 --> 0:14:20.120 That's a really long term view, isn't it. But is 0:14:20.160 --> 0:14:23.080 there a way that we can see this rally that 0:14:23.120 --> 0:14:26.840 we're under now start to get more breadth and what 0:14:26.880 --> 0:14:27.600 would that look like? 0:14:29.120 --> 0:14:31.080 Well, if we want to think about breath, that we 0:14:31.120 --> 0:14:32.960 need to go back to what the outlook is for 0:14:33.240 --> 0:14:36.280 the FED, because behind all of this growth, not just 0:14:36.320 --> 0:14:38.760 some corporate profits, but the US in general, you know, 0:14:39.000 --> 0:14:41.640 is a worry about the outlook for inflation and then 0:14:41.680 --> 0:14:43.440 the response from the FED. So one of the key 0:14:43.480 --> 0:14:46.520 things over the last month or so, as the market 0:14:46.560 --> 0:14:49.000 has taken out the cuts that they had put in 0:14:49.040 --> 0:14:51.320 for the FED this year, the markets really have just 0:14:51.320 --> 0:14:53.680 shrugged that off because on the other hand, the growth 0:14:53.680 --> 0:14:56.240 outlook has been so good. You know, at this point 0:14:56.280 --> 0:14:58.600 we've got through there any season that was great we're 0:14:58.640 --> 0:15:02.160 going to be looking as for new indicators on the 0:15:02.160 --> 0:15:04.960 growth side, whereas what we may see is more worries 0:15:05.000 --> 0:15:07.240 again about inflation. So I think what we need to 0:15:07.320 --> 0:15:09.680 keep very much in the forefront of our minds is 0:15:09.720 --> 0:15:12.680 number one, will the growth really meet up to those 0:15:12.720 --> 0:15:15.680 expectations with the risk of disappointment? And then if growth 0:15:15.760 --> 0:15:18.000 doesn't disappoint, what does that then mean for the outlook 0:15:18.000 --> 0:15:18.960 for inflation in the FED? 0:15:19.360 --> 0:15:21.040 And to your point, we are hearing from a lot 0:15:21.080 --> 0:15:24.240 more FED officials preaching patients when it comes to the 0:15:24.280 --> 0:15:28.320 outlook for interest rate cuts. In our last thirty seconds here, 0:15:28.600 --> 0:15:32.360 do you have any concerns about the growth picture for 0:15:32.440 --> 0:15:35.680 this country and what that could mean for the policy 0:15:35.760 --> 0:15:37.440 path later on this year? 0:15:39.000 --> 0:15:42.880 I think it's concerns about the outlook relative to expectations, 0:15:42.920 --> 0:15:45.600 because now expectations are so high we appreciate, you know, 0:15:45.600 --> 0:15:48.360 there's just a whole lot of good news that's in 0:15:48.400 --> 0:15:51.160 the market, so you see any disappointment, it seems more 0:15:51.280 --> 0:15:53.560 likely from here if there is a surprise, it's going 0:15:53.600 --> 0:15:55.680 to be a negative surprise that e growth turns out 0:15:55.720 --> 0:15:59.120 to disappoint relative to those high expectations. Then from here 0:15:59.160 --> 0:16:02.000 you get another poseative impultseng grows because we've got to 0:16:02.000 --> 0:16:04.160 remember where FED funds are today, that is at a 0:16:04.160 --> 0:16:05.080 restrictive level. 0:16:05.480 --> 0:16:07.120 This should be slowing growth. 0:16:07.200 --> 0:16:09.520 It will eventually slow growth, and we don't want to 0:16:09.520 --> 0:16:11.800 dismiss that risk to the market. 0:16:12.880 --> 0:16:15.800 This is Bloomberg day Break Today, your morning brief on 0:16:15.880 --> 0:16:19.520 the stories making news from Wall Street to Washington and beyond. 0:16:19.600 --> 0:16:22.600 Look for us on your podcast feed by six am 0:16:22.720 --> 0:16:26.920 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:27.000 --> 0:16:28.080 get your podcasts. 0:16:28.360 --> 0:16:31.040 You can also listen live each morning starting at five 0:16:31.080 --> 0:16:33.680 am Wall Street time on Bloomberg eleven three to zero 0:16:33.720 --> 0:16:36.560 in New York, Bloomberg ninety nine to one in Washington, 0:16:36.680 --> 0:16:39.560 Bloomberg one oh six to one in Boston, and Bloomberg 0:16:39.640 --> 0:16:41.320 ninety sixty in San Francisco. 0:16:41.480 --> 0:16:45.000 Our flagship New York station is also available on your 0:16:45.120 --> 0:16:50.600 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus. 0:16:50.680 --> 0:16:54.240 Listen coast to coast on the Bloomberg Business app, serriusxmb 0:16:54.400 --> 0:16:57.280 iHeartRadio app, and on Bloomberg dot Com. 0:16:57.320 --> 0:16:58.480 I'm Nathan Hager. 0:16:58.360 --> 0:17:01.880 And I'm Abe Morris. Join us again tomorrow morning for 0:17:02.080 --> 0:17:04.800 all the news you need to start your day right 0:17:04.840 --> 0:17:12.480 here on Bloomberg Daybreak