Episode summary
Bloomberg Surveillance TV: June 16th, 2026 | Bloomberg Surveillance
Bloomberg Surveillance
· · Hosts: Tom Keene, Paul Sweeney, Lisa Mateo, Michael Barr · Guests: Victoria Fernandez, Torsten Slok, Ariana Salvatore
Summary
U.S. stocks were near fresh records as investors weighed a new Fed regime, sticky inflation, and a market rotation that still leaves room for select growth names. Victoria Fernandez said the rally can continue if earnings and margins hold up, but she was cautious on the consumer because wages are stagnating, savings are being depleted, and small-business sentiment remains weak.
Fernandez argued that investors should focus less on sectors and more on quality factors such as free cash flow, profitability, and earnings yield. She pointed to Nvidia, Fortinet, and Adobe as examples of names that can still work, while also favoring some fixed income at the short end of the curve. She said the bond market looks more cautious than equities and is waiting for clearer evidence on inflation and policy.
Torsten Slok said the market is really trying to understand how Kevin Worsh will communicate as Fed chair, especially whether he changes the statement, forward guidance, or the dot plot. He said the Fed still faces inflation around 3%, a strong labor market, and little sign of a slowdown, which argues for a more hawkish stance even if communication becomes simpler.
Ariana Salvatore focused on politics and affordability, saying gasoline prices matter because the rate of change can shape voter sentiment into the summer and fall. She said Democrats remain favored to take the House, but markets care more about tariff and regulatory power in the president's hands than about control of Congress, except in areas like healthcare and SNAP where legislation could soften policy cuts.
Key takeaways
- Fernandez said the bull market can broaden if companies with strong free cash flow, profitability, and earnings yield keep outperforming.
- Fernandez warned that consumer weakness is building as wages stagnate, savings fall, and small-business confidence stays low.
- Slok said Kevin Worsh's first test as Fed chair will be whether he changes communication, removes forward guidance, or alters the dot plot.
- Slok argued that sticky inflation near 3% and a strong labor market still point toward a hawkish Fed stance.
- Salvatore said the rate of change in gasoline prices may matter more politically than the absolute level heading into November.
Notable quotes
“We believe there is still room to run even if we get higher rates. As long as earnings and margins remain strong, the market can digest a rotation of leadership”
“The names that are going to be able to run are those that have those positive factors like good free cash flow, good profitability like return on equity”
“The number of words in the FOMC statement could move down to levels seen under Allen Greenspan”
“No signs essentially at this point of the economy slowing down. So too high inflation, strong labor market”
How the episode opens
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Stocks hovering at fresh records as investors await the first policy decision under a new regime. Victoria Fernandez of Cross Global Investments, writing, "We believe there is still room to run even if we get higher rates. As long as earnings and margins remain strong, the market can digest a rotation of leadership." Victoria joins us now. Victoria, where else do you see this market having more room to run?
Yeah. Well, I think when you look at the rotation that we've seen, we saw those high momentum, those high beta names really come back over the last week. Um, and so other areas have started to pick up a little bit.
You saw it in some transportation, you saw it in healthcare, you saw it in some energy names. Obviously, we've seen energy names come back a little bit um based on the the information of the last few days, but it's still not in an oversold position. I think at this point in time, what you're looking for is maybe not necessarily specific sectors.
The names that are going to be able to run are those that have those positive factors like good free cash flow, good profitability like return on equity, looking at strong earnings yield, right? not just earnings growth, those high um growth names, but relating that to PE.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- market outlook
- us public policy
- economic outlook
- investment strategy
- finance and macro
Companies and tickers mentioned
- APO
- MS
- Crossmark Global Investments
- Apollo Global Management
- Morgan Stanley
- Bloomberg
Watch the episode
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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