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00:000.6% gain on the S&P 500, but a 1.6% gain, Carol Masser, on the Russell 2000 outperformance
00:07by the small caps. Don't poo-poo it. No, I'm not poo-pooing. It's your favorite index. I know
00:11you love those little critters. Having said that, I'm looking at the semiconductor names,
00:17because if you want to see some outperformance, check it out. The socks, most of the names are
00:21higher today, and you're looking at the index up about 3%, almost 3%. You know, I'm having
00:26trouble kind of making sense of the excitement. Look, the stock market is not the economy. We
00:30know that. The exuberance that we're seeing. I disagree, but go ahead. Excuse me? I disagree,
00:34but go ahead. You disagree? Okay. I do, strongly. Okay, we don't have time to talk about that
00:38right now. We can talk about that maybe after the bells. But comments from the CEO of Dollar General
00:43earlier today about a weakening consumer, wealthier consumers trading down. That's why we're seeing
00:47shares of Dollar General higher today. How are we making sense of the sort of conflicting signals
00:51that we're getting about the health of the consumer in the U.S. economy? It's interesting,
00:55right? I mean, we've had this conversation with Anthony Chucumba earlier that if you were looking
01:00for reasons to get worried about the economy, the fact that you do have the CEO saying that
01:03higher income consumers are coming to Dollar General, you could build a case to get a little
01:08bit bearish about the state of where we stand right now, Romain. All right. Well, I'm going to focus on
01:12one of the positives, and that is the outperformance that we're seeing in the small caps. And that is
01:15because of some of those names, like those dollar stores. Signet Jewelers up about 13%,
01:20leading the charge in the Russell 2000. Floor, Bloom Energy, Garden, and Credo,
01:24also in the mix as well. So you're getting a bit of a broadening, at least for one day. And of course,
01:29you know, as a hat tip to Carol Massell, we've been here before, and we know this can reverse
01:33in a big way over time. Before we get to the closing bell, just a quick note here,
01:38crossing the wire right now, a big headline on Wells Fargo. The Federal Reserve here in the United
01:43States has finally lifted the asset cap restriction on Wells Fargo. This, of course, has been in place
01:49for years, and we're seeing a big pop in the shares in the after hours, up by about 6%. We're
01:54going to get you some more details on that in just a second, but let's walk you through the
01:58broad market numbers with the Dow Jones Industrial Average up by a half a percentage point, the S&P up
02:03by six-tenths of a percentage point, the NASDAQ up by eight-tenths of a percentage point, and the
02:07Russell 2000 up 1.6%. Hey, I'm just going to piggyback on that. That cap on Wells Fargo has been in place
02:13for more than seven years. We know that it went through a really tricky time with a lot of issues
02:19and a lot of different problems that caused that cap to be there, but now you've got, what, the
02:23removal of that cap, allowing the bank essentially to pursue growth again, closing the door on nearly
02:28a decade of scandals, and marks a major, major win for the company's CEO, Charlie Scharf, and as
02:34Remain said, we're seeing it pop certainly in the aftermarket. And I just, just real quick, I just want
02:38to stay on this for just one second. So the statement from Michael Barr, of course, the Fed
02:41governor kind of oversees all of the banking supervision, saying that the removal of that
02:45asset cap does represent, quote, successful remediation to the required standard based on
02:51focused management, leadership, strong board oversight, and strict supervision, holding the
02:56firm accountable. Of course, we've talked a lot with the CFO on this program. Every earnings season,
03:00every earnings season, we ask about this asset cap. This has been a huge constraint on the company's
03:05ability to grow. And of course, that means a constraint on the shares. That constraint, at least for right now,
03:10has been lifted. Yeah. And you can see it with investors, right, moving into it in a big way
03:14in the aftermarket. Right now, up about four, roughly 4% here, Katie. Yeah, we'll continue to
03:20follow that story. Of course, like you said, Wells Fargo shares popping aftermarket. But let's take a
03:24look at what did well today, because there's a lot to talk about here. If you take a look at the sector
03:29level, broadly in update, breadth was pretty good relative to yesterday. And you can see that it was tech
03:34that was in the lead here when it comes to what was gaining, what was losing, when it comes to sectors.
03:40You also had energy higher as well. If you take a look at what didn't do too well, you could find something
03:46to peck out when it comes to communication services. That sector falling about 8 tenths of a percent.
03:52Real estate, consumer staples also taking a little bit of a dive, but 8 out of 11 sectors in the green, Carol.
03:58All right, guys, let's get to some of the individual gainers. As you said, Katie, a lot of
04:02winners in today's session. Hey, a lot of names in the nuclear energy space definitely gaining in
04:08today's session. Not everybody, though. If you take a look at Constellation Energy, we did see
04:12initially a pop, but it lost a lot of that, and I think all of it by the end of the close.
04:17Vistra, though, did hold on to most of its gain, up about 5%. That's a $59 billion power generation
04:24company that's up about 30% year-to-date. But again, the big reason we've been talking about this
04:28sector today has to do with Constellation Energy agreeing to sell a bunch of power from one of
04:34its operating nuclear power plants in Illinois to MetaPlatform. So again, we're thinking about
04:39AI demand, we're thinking about how we power, and nuclear tends to increasingly be the way forward.
04:45I mentioned semiconductors. I think all 30 names in the socks were up today, and that includes
04:50Broadcom, up about 2.9% here at the close. The company began shipping a new version of its data
04:56center switch chips that can boost the efficiency of AI accelerators, aiming to take a bigger role
05:01in the booming market for AI computing. So yeah, all eyes on Broadcom. Keep in mind that it does
05:07report after market close. That happens on June 5th, so a little bit later this week. Dollar General,
05:13I think this is the number one gainer, yep, in the S&P 500, finishing the day up more than 16%,
05:19its highest intraday ever as well. Began, I should point out, we talked about this earlier,
05:25the company reported first quarter profit and sales that topped expectations, and management
05:29also boosted its comparable sales forecast for the full year, as well as the low end of its EPS
05:34target. And Tim, of course, gave some more color into Dollar General about kind of richer consumers,
05:39wealthier consumers, maybe trading down in this environment. So we wonder what that all means.
05:44Have you ever been in a Dollar General, Carol?
05:45I've been in some kind of dollar store at some point. What are you saying? Have you ever been in?
05:52Of course not. You know I'm a snob.
05:53I know.
05:55Wow.
05:56No, I can just do that everywhere.
05:59I'm going to move on. I'm going to move you guys on. How's that? I want to start with Kenview.
06:03It was the worst performer in the S&P 500 on a percentage basis, down 6.2% today,
06:09following the most intraday in more than a year. It comes after the company's CEO warned that seasonal
06:14demand is behind last year and behind Kenview's own expectations. Here's what he said, quote,
06:19it's not a great year so far for allergy, and the sun category is more or less the same.
06:23He said a longer winter season pushed spring later into the second quarter. It caused allergy
06:27products to see a later start to the season. He also said we definitely see that the consumer
06:31continues to be under pressure regardless of the geography for slightly different reasons.
06:36Got to interrupt you, Tim. Sorry. Hewlett Packard Enterprise is reporting earnings right now
06:40for their fiscal second quarter. The company says revenue coming in at about $7.63 billion.
06:46The street was looking for $7.46. So that is a beat on the top line. On the bottom line,
06:52adjusted EPS at $0.38 a share. The street was looking for $0.33. That's also a beat.
06:57Here's your guidance. I'm going to start with the quarter. For the quarter, the third quarter,
07:01which is the quarter we're in right now, $8.2 to $8.5 billion is the range they're giving.
07:05The low end of that range is above the average of street estimates. On the bottom line for the
07:10quarter, $0.40 to $0.45. The street, on average, was looking for $0.42. And the company says that
07:15for the full year, it still sees free cash flow of about $1 billion. The street looking for $1.4
07:22billion. So it looks like a beat on the top and the bottom line and the guidance on both the top
07:27and the bottom line just around what the street was looking for. All right, guys, let's get to
07:30CrowdStrike, man. This stock has been on a tear this year, up about 40% or so.
07:34So the company out in terms of first quarter revenue matching estimates. But let's get to
07:40actually the outlook because the company sees second quarter adjusted EPS from $0.82 to $0.84
07:45a share. Street estimate is $0.82 a share. Also sees fiscal year adjusted EPS of $3.44 to $3.56 a share.
07:55Looks like it's upping that estimate because it had seen $3.33 to $3.45. I'm looking at CrowdStrike,
08:00CrowdStrike, excuse me, though down about 6% here in the aftermarket. So it looks like some
08:06investor disappointment. I'm just looking through first quarter revenue. That was $1.1 billion,
08:12the estimate. That was smack in line in terms of what the street was expecting. And first quarter,
08:17adjusted EPS, $0.73. And that was a beat of about $0.07 a share. So maybe some concern potentially
08:23about the outlook in the range, but we'll see.
08:26I'm looking at shares of the enterprise software company Asana. They're shooting higher in the
08:30after hours, down from about 20% higher moments ago, up about 14% in the aftermarket. The company
08:36posted first quarter revenue that came in above the average analyst estimates at $187.3 million.
08:44First quarter adjusted at basic EPS coming in at $0.05 versus a loss per share of $0.06. So
08:50obviously investors like to see that. Shares jumping in the after hours right now higher by about 14%.
08:56I want to go back to CrowdStrike because you're seeing losses deepen in the post market right
09:00now. CrowdStrike shares currently down almost 6% right now. And Carol, you had mentioned it,
09:05that this stock has been on a tear. Expectations were certainly high with the stock up 43% year to
09:11date. But it's that outlook that didn't quite exceed expectations. Second quarter adjusted EPS,
09:17just to reiterate, seeing at $0.82 to $0.84. The estimate had been for $0.82. So you think
09:23with the stakes that high, maybe a little bit of disappointment. And that's certainly what you're
09:27seeing in the shares right now, Carol. Right. You also do have CrowdStrike reporting a share
09:31buyback authorization of up to a billion dollars, but that's not certainly getting investors excited
09:36again. The stock down 6.3% in the aftermarket. All right, folks, that's a wrap. Our cross-platform
09:40coverage, radio, TV, YouTube, Bloomberg Originals. Katie and Romain continuing on TV. Tim and I are
09:46going to hit the road. So you guys are going to have surprise anchors tomorrow. Anyway, we will see
09:53you soon. All right. That's a wrap. We'll see you again. Same time, same place tomorrow.
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