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00:00Right across the screen here on this Friday afternoon, right across the screen on a weekly basis as well, Carol Masser, the volume is light.
00:06Yeah, and I feel like, yeah, absolutely, we're heading into a long holiday weekend, the official, I guess, start to the summer, you might say, so no surprise to see light volume.
00:14I think it's interesting, just kind of the headlines, the flooring headlines.
00:17No, I thought it was supposed to be nice.
00:19It rained earlier, so it's not going to rain.
00:20I saw my weather app. It said Saturday and Sunday is going to be nice.
00:23I heard that, too.
00:24Not nice enough for the beach, but not raining. How's that sound?
00:27Do we have, like, a weather person here? We need, like, a blue marines like a zone.
00:30It's not going to rain. That's the weather app.
00:32We have weather people. We have weather people.
00:34All right. We have weather people.
00:36Yeah, we do.
00:36We are in a fishbowl.
00:39Anyway, it's kind of interesting.
00:41I feel like the Salesforce news, Informatica off and running, and then more news out of the White House, maybe about U.S. Steel and Nippon Steel.
00:47So, God, it's not quiet, guys.
00:49It's really quiet because it's the Friday before a long weekend.
00:52And we know that people don't want to be too long or too short heading into any weekend these days,
00:57because who knows what the president might say or tweet or post on social media.
01:01But maybe people got all their positions cleared on Wednesday when the 20-year bond auction didn't do well,
01:06and we saw stocks and bonds tumble.
01:08The S&P 500 losing 1.6 percent that day.
01:10And the next day, nothing much really happened.
01:13I just want to point out, my app on my iPhone here, Carol, says it's a high of 62.
01:16That's nice.
01:17But is it so rain?
01:18She said the rain.
01:18But no rain.
01:19Where was your iPhone made?
01:22I don't know.
01:22How much is this app going to cost me next year?
01:24Where was your phone made?
01:25I've got to hold onto this phone for, like, the next 20 years.
01:27Oh, my God.
01:28All right, we get the closing bells in New York.
01:29Let's walk you through them here.
01:30Right across the screen, fractional losses across the board.
01:34The Dow Jones Industrial Average down about 250 points or six-tenths of 1 percent.
01:38The S&P dropping about seven-tenths of 1 percent.
01:40It is going to hold, though, right at that 5,800 level.
01:435,802.83, though it takes a while for these numbers to settle.
01:46The Nasdaq Composite lower by about 189 points or 1 percent even.
01:51And the Russell 2000, that's actually a relative outperformer on the day, only lower by three-tenths of 1 percent.
01:57All right, quick check on the S&P 500, guys.
01:59Most names in the index to the downside.
02:01We've got 329, excuse me, names losing ground on this Friday.
02:06172, Scarlett, to the upside.
02:08All right, let's take a look at our IMAP.
02:1011 sectors in the S&P 500.
02:13Four managed to finish higher.
02:14Unfortunately, they're all the smaller indexes.
02:16So that's why there's a lot of red on that screen.
02:19Infotech, communication services, and consumer discretionary.
02:22Those are the three sectors that the MAG-7 are distributed throughout, and they're down by at least nine-tenths of 1 percent.
02:28Your better-performing sectors, utilities.
02:30I heard Alex give them a shout-out earlier.
02:32What does it say when utilities are the best-performing sector on a day like today?
02:36A lot of movement to the defensive sectors.
02:38No, I'm sorry, President Trump, to sign executive orders on nuclear.
02:42That, too.
02:4231 members of the S&P 500 utilities index are higher.
02:45You can hear my snoring?
02:46Oh, okay.
02:47Yeah, but there was some fundamental news here.
02:49Okay, whatever.
02:49There was fundamental news.
02:50I mean, I've got to tell you, I was changing my gainers to the last minute.
02:53Just ask our producer, Meredith, because I was like, wait, can I do this?
02:56Can I do this?
02:57All right, Constellation Energy.
02:59Speaking of stuff out of the White House, you did see nuclear power stocks, thank you, guys, soaring.
03:05We did see President Trump signing that executive order.
03:07So there was expectation, speculation earlier in the day.
03:11So a name like Constellation Energy, one of your top performers in the NASDAQ 100.
03:15That's the one you chose?
03:17Seriously?
03:18Sorry.
03:18Okay.
03:18You don't know what?
03:19You want to know what?
03:20All right.
03:20It's up 2 percent in today's session.
03:22Listen to this.
03:23Our Bloomberg Intelligence team, here's why I chose that one, noted that Constellation Energy
03:27is among the biggest beneficiaries of data center power demand and the Inflation Reduction Act
03:31as it controls more than 20 percent of U.S. nuclear capacity.
03:35Over 85 percent of its annual generation is supported by nuclear production tax credits.
03:39That's why, Remy.
03:40Take that.
03:41Are you happy?
03:41Yeah.
03:42Okay.
03:42So from nuclear to solar we go.
03:44First solar, guys, up about 1.3 percent in today's session.
03:47Again, we saw them selling off yesterday concerns about the bill, the spending tax bill would
03:52roll back clean energy initiatives and support.
03:54Well, some coming out today, noting that maybe the House bill, some of those clean energy
04:00cuts may not actually fly.
04:01So you had that going on.
04:03Jeffries also raised its price target in first solar to 157 from 127.
04:07First solar closing above at 158 and change.
04:10But again, up 1.3 percent.
04:12Two quick ads I did late in the day.
04:14You had Informatica rising in a big way, up 17 percent by the close, up as much as 28 percent.
04:20That's after that headline crossed on the Bloomberg.
04:22Salesforce said to be in talks to buy Informatica.
04:25So that's out there.
04:26Well, that's it.
04:26Buy them again, though, right?
04:27Remember, they tried to do this about a year ago and then they kind of walked.
04:30I think it was Informatica maybe walked away or not quite sure what happened there.
04:33Kind of interesting to see that back on the table.
04:35Yeah, you're right.
04:35Okay.
04:36Good stuff.
04:36Good stuff.
04:37Good ad remain there.
04:38Nice.
04:38Thank you so much for that.
04:39I love when you patronize.
04:40I'd love to patronize you.
04:41And then you'll say President Trump backing what's said to be a partnership, although we don't
04:45know exactly what this means, of U.S. steel and Nippon steel.
04:50And so you have U.S. steel up about 21 percent.
04:53No, no, no.
04:53President Trump might have different ideas when he says partnerships.
04:55Scarlett, can you stop interrupting Carol, please?
04:57Oh, I tell you that.
04:59Come on.
05:00Scarlett can interrupt me anytime.
05:03Just saying.
05:03Go ahead, Tim.
05:04Oh, okay.
05:06Let's look at shares of Apple.
05:07They fell today by 3 percent.
05:09It's actually down for an eighth day in a row.
05:11Fell as much as 4 percent earlier in the session, but managed to close off its lows.
05:16The president pressuring Apple to manufacture its iPhones in the U.S.
05:19It threatens a tariff of 25 percent if they don't comply.
05:23The supply chain for iPhones are concentrated in China.
05:26Moving production to the U.S. would be a very difficult thing to do.
05:29Our own Mark Gurman has reported on this extensively.
05:32My favorite anecdote that he shared via his reporting was that it would basically be like
05:37taking the entire city of Boston and having them stop what they're doing to manufacture
05:41iPhones, everybody in the city.
05:43That's what the scale is like in different parts of China where they manufacture these
05:47products.
05:48Down 3 percent on the day today.
05:50Booz Allen Hamilton really fell in today's session.
05:53Earlier fell as much as 19.4 percent.
05:55Closed down 16.5 percent.
05:58That was the worst close going back to 2017, or worst single day, I should say, going back
06:02to 2017.
06:03At one point, fell the most ever on record.
06:05The company said it's going to cut about 7 percent of its close to 36,000-person workforce.
06:10This is wild.
06:12I didn't know this.
06:13They get almost all of their revenue from the U.S. government.
06:16Yeah, I've been following this company for a long time.
06:17And it's just, I mean, that's fine, but it's like, why is it that some of the defense contractors
06:22and the other tech contractors are doing okay, but this company, which is right in the middle
06:25of that sweet spot, it's not like they're just, you know, just selling random stuff.
06:29I mean, this is pretty high-tech stuff.
06:31It is, but, you know, maybe the concentration of, like, those defense, yeah, I don't know.
06:35I mean, look, I don't know the answer to this.
06:36And I think it caught investors off guard as well, and that's why shares fell so much
06:39today.
06:40Finally, I do want to end with Salesforce.
06:42Carol talked about Informatica shares rising.
06:44As soon as we reported that news on the potential acquisition, we did see shares of Salesforce
06:48fall today.
06:49Fell, at the end of the day, by 3.6 percent.
06:52All right.
06:52Taking a look at the bond market.
06:54Today wasn't that interesting, but it's really over the week that we got some real action.
06:58So the long end flat on the day, we were selling off a little bit earlier when equities were
07:02also trading, excuse me, we were buying a little bit, yields were actually lower when
07:06equities were selling off, but we reversed that.
07:08But the week, quite interesting, 30-year at one point hit the highest since 2007 and breached
07:14the cycle high of 5.17 percent, but then fell back from that.
07:18You also saw the 5.30 curve, the steepest since 2021.
07:22So clearly the stressors are going to be felt in that back end.
07:25All right, guys, you know, it's the official start to summer, right?
07:29Memorial Day weekend.
07:30Sure, like 40 degrees, but whatever.
07:33All right, all right, all right.
07:34Put a sweater on.
07:35Hey, but it's also the official start to kind of the summer blockbusters and the Mission
07:40Impossible series has got a new movie coming out.
07:43It's already out and hitting theaters today.
07:44Have you seen this, Alex?
07:45No, I literally bought my tickets while you guys were doing Winners and Losers.
07:48Well, apparently there's a line in the movie about...
07:51She's actually not lying.
07:52I'm literally not lying.
07:53Rude.
07:56All right, so there's a line in the movie about giving, I guess, Tom Cruise, his character,
08:01an aircraft carrier.
08:02And it turns out the U.S. Navy and Air Force Special Operations actually gave him an aircraft
08:08carrier and the team to actually film on.
08:10Nothing new when it comes to sort of the marriage between Hollywood or the government's support
08:15of Hollywood.
08:16The Pentagon has a long history of being a supporting character.
08:19Another, famously, The Hunt for Red October going back to 1990.
08:23Great movie.
08:24Top Gun.
08:25That was a huge one.
08:26Top Gun 2, which is, you know, The Return of Maverick.
08:28I think it's the 31st anniversary of Top Gun this month, by the way.
08:31Really?
08:31I believe, I believe, yeah.
08:32If I get my math right.
08:34Yeah, I know.
08:35Pirates of the Caribbean.
08:37Really?
08:37Wait, what?
08:38Really?
08:38What?
08:38Wow, that didn't do anything.
08:40That landed not so well.
08:42What was that promoting?
08:44Wait, the Pentagon, the U.S. military played a role in...
08:47There were ships involved, right?
08:49Oh, I thought we were talking about Memorial Day movies.
08:52Oh, okay.
08:53No, you're too busy buying your tickets.
08:55You gotta pay attention.
08:56I was.
08:57That was earlier.
08:57So are we all going to go see Mission Impossible?
08:59Who saw it?
09:00You saw it, Scarlett?
09:01I saw the first.
09:02I saw part one, but half of part one, up until the point where they start explaining things.
09:05Then I lost interest.
09:06Mission Impossible?
09:07This actually tracks for me.
09:08Okay, what about, like, parts, you know, the other parts?
09:10Oh, no, no, no.
09:10Part one of the latest version, Dead Reckoning.
09:13This is part two of Dead Reckoning.
09:14Clearly, Romaine has not seen it.
09:15He doesn't know what we're talking about.
09:15I have no idea what's going on.
09:16I've seen it a million times.
09:18Oh, okay.
09:19Yeah.
09:19Sorry.
09:19I'm going to go see it tomorrow.
09:20Tomorrow at three.
09:21You definitely did.
09:22Tomorrow at three, and thanks.
09:24Anybody else go to the movie?
09:25But which part?
09:26Is it part one or part two?
09:28Part two.
09:28This is part two.
09:29This is the end.
09:30This is for real, final reckoning.
09:31But I haven't seen part one.
09:32Then you can go.
09:33All right.
09:34This is like, who's on first?
09:36Yeah, yeah.
09:36We'll save the day.
09:37We're never going to get out of this.
09:38All right.
09:39Good luck at the movies, Alex.
09:40Tell us.
09:41She can report back on Monday.
09:42All right, guys.
09:43Have a good and safe weekend.
09:44Stitch part six.
09:45Have a good and safe, cold weekend.
09:48All right.
09:48You're done.
09:48You're so done.
09:49You're so done.
09:50That's a wrap.
09:51Our cross-platform radio, TV, YouTube, Bloomberg or Rachel's.
09:53We call it the closing bell.
09:54Alex is heading out to the movies or somewhere else.
09:57And of course, Romaine and Scarlett finishing up on TV.
09:59Tim and I right here on Bloomberg Business Week Daily.
10:02Guys, see you on Monday, Tuesday.
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