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00:00And right now we are two minutes away from the end of the trading day.
00:04Romain Bostic here with Katie Greifeld, taking you through to that closing bell with a global simulcast.
00:08It starts now. Carol Masser and Tim Stenevich in the radio booth.
00:12Welcome to our audiences across all of our Bloomberg platforms, including our partnership with YouTube and S&P 500 with only 108 names in the green.
00:21But that's good enough to push the entire index into the green and to a record high.
00:25Isn't it amazing as we get ready for so many big earnings and I feel like there's as we have conversations, there's still questions about the outlook out there.
00:32But having said that, you're right. We are on track for another record close here on Wall Street.
00:36So what's the disconnect between what's happening out there in the economy and what's happening out there in the market?
00:41We just had Danielle DiMartino Booth on the program over at QI Research, and she said asset prices, they're surging despite the weakness that we're seeing in the labor market.
00:50It's a disconnect that the Fed is going to have to deal with that. It's a policy meeting.
00:54We're going to hear from Fed Chair Jay Powell tomorrow.
00:56Yeah, cannot wait. Of course, that meeting kicked off today, and it will be interesting to hear him weigh in on the economy, some of the policymakers' views around that.
01:05As we are well aware, the government is still shut down. We're not getting any official updates.
01:09But even still, this central bank has to make policy amid all this fog.
01:13But this has to be kind of a difficult one, right, because we talk about financial conditions.
01:17I don't know what argument you can make that financial conditions are tight, given what we've seen, not only in equity markets, but in other asset classes as well.
01:24But then you overlay that with the labor market, where we're not getting official data.
01:28But how many sort of job cut announcements have we heard just in the last couple of weeks?
01:33I mean, tens of thousands of workers, and we're not even halfway through this earnings season.
01:37No, it's a really good point, right? It's hard to ignore them.
01:39And it does feel like the momentum is building in terms of jobs being cut at companies remain.
01:45I just want to point out, too, of course, NVIDIA has dominated the headlines all day long.
01:49We continue to get additional headlines out of Jensen Wong and the other folks at NVIDIA.
01:53An interesting one crossing the wire right now, with Jensen Wong saying that the government has not offered to take a stake in the company.
02:01We're going to talk a little bit more about NVIDIA, which helps to lead the charge, pushing the S&P and the NASDAQ to record highs.
02:06The S&P up 16 points or two-tenths of one percent. The NASDAQ Composite up 190 points or eight-tenths of one percent.
02:12The Dow Jones Industrial Average up 160 points or three-tenths of one percent.
02:17While the Russell 2000, that's getting left out in the cold on the day, down 14 points or a half a percentage point.
02:24All right, we do have some earnings crossing the wire right now.
02:27This coming from Booking Holdings here. And here are some of the headlines.
02:31Third quarter adjusted EBITDA coming in at $4.23 billion.
02:34That is a beat for booking, at least on that line item. The estimate had been for $4 billion.
02:40Third quarter gross bookings coming in at $49.7 billion.
02:44That's also a beat of expectations that were just a hair below $48 billion.
02:49And the night sold when it comes to the third quarter, the room night sold coming in at $323 million.
02:56That is also ahead of expectations.
02:57You can see the after-hours trade, though. Not too much reaction yet.
03:01We'll have to parse through that. But again, a beat when it comes to adjusted EBITDA.
03:05All right, guys. As we wait for some more earnings, just a couple of the big outperformers in today's session.
03:10PayPal at its highs up almost 13 percent, finishing the day with a gain of about 4 percent,
03:15a top gainer in both the S&P 500, NASDAQ 100 company, raising its full-year earnings guidance
03:20and announced a tie-up with OpenAI to embed its digital wallet into ChatGPT,
03:25sending its shares up the most in more than six months.
03:28So a big deal there.
03:29Nokia, speaking of deals, thank you very much, NVIDIA.
03:34We did see Nokia ADRs that trade in the U.S. soaring in today's session, up about 22 percent.
03:40NVIDIA planning to make a $1 billion equity investment in Nokia.
03:43Nokia, that's, as we have reported out, kind of a vindication that Nokia's pivot from mobile networking
03:49kit into AI by the sector's kingmaker.
03:53I mean, listen, that is a big endorsement from NVIDIA for Nokia.
03:57And then UPS, just want to point that one out, up almost 8 percent in today's session,
04:01smashing Wall Street's profit expectations.
04:04The company cutting costs.
04:05They have been on that maneuver for a while.
04:07They cut 34,000 jobs this year, which goes to what Romain was talking about earlier,
04:12about the job cuts that we are seeing at the company's closing, owned buildings.
04:17It's all this cost-cutting initiative.
04:19They expect to achieve $3.5 billion in total year-over-year cost savings in this year alone.
04:24So investors liking that.
04:26Can I just add an honorable mention?
04:27Wayfair, 23 percent jump today, Carol Masser.
04:31Highest, best day, I should point out, going back to January of 2023.
04:35I heard you had the CEO on earlier today, right?
04:38Or the CFOs.
04:39Yeah, Kate Gulliver joined us for an extended conversation.
04:42She was, look, this company absolutely surging this year.
04:45Remember, it's a marketplace, so they're not, like, actually seeing the inventory.
04:49They don't have the inventory.
04:50Yeah.
04:51They're just, they're a marketplace that connects buyers and sellers.
04:53Yeah.
04:54But she's saying, you know, she's seeing, she's optimistic.
04:57She's really optimistic, and she was obviously pleased with today's performance.
04:59Yeah, I guess Carol Masser's been buying a lot of pillows.
05:02Yeah.
05:03Yeah, she's not allowed to buy anymore.
05:04No, I'm not allowed to.
05:06My husband's like, there's no more room on the bed.
05:07Okay.
05:08Romaine, thanks for watching.
05:09I'm team Mr. Master there.
05:10Thanks for watching the show, really.
05:11I don't know what it is with you women in a pillow.
05:13I've got 38 pillows on my bed, and I'm only allowed to sleep on them.
05:15Just 38?
05:17I'm always like, don't touch them, don't touch them.
05:18I know.
05:19It's like, what?
05:19And the only one I'm allowed to touch is, like, the worst pillow.
05:23It's so true.
05:23Okay, let's go to some of the decliners before we get some more earnings, guys.
05:28How many pillows do you have, Katie?
05:30I actually only have four on my bed, which is interesting.
05:32All right, you've got to step it up.
05:33She's only been married a little bit, right?
05:35Like a few years now?
05:35She's been married like eight years.
05:36Oh, well, come on.
05:37Step up your game, girl.
05:39All right, all right.
05:40JetBlue shares falling close to 12% today.
05:42The company talked about the challenges that it would have through the holiday travel season.
05:46Rising fuel prices, hurricane, a U.S. government shutdown.
05:49Executives, though, said demand for premium offerings is stronger compared with the main cab
05:54and his air travel rebounds.
05:55Investors, though, growing impatient with executives' ability to meet cost-cutting targets.
06:00Once again, JetBlue down about 12%.
06:02And then watching what happened with a couple of gaming stocks today,
06:05DraftKings down 5.5%.
06:07Flutter Entertainment, it's the parent company of FanDuel down 3%.
06:13Those companies extended a decline following a Bloomberg report that Polymarket is preparing
06:18to return to the U.S. in the coming weeks to focus on sports betting.
06:22But shares were already down because Trump Media and Technology said it plans to make prediction
06:27contracts available on its Truth Social Network.
06:29That's called or will be called Truth Predict, which is interesting because there are other
06:33companies out there that do this, but they have relationships with the Trump family already,
06:37like CallShe and Polymarket as well.
06:40So it's getting a little crowded when it comes to those predictions.
06:43And finally, VF Corp down 12.2%.
06:47Biggest intraday decline going back months.
06:49The North Face and Vans owner issued third quarter adjusted operating guidance that missed
06:53the consensus expectations.
06:56Shares, once again, down 12.2%.
06:57All right, let's do a quick check on yields here.
07:01I mean, they actually went nowhere, but I really just want to use this as an excuse to remind
07:04everyone, actually, a Fed meeting started today.
07:07I know everyone was focused about 15, 20 blocks away down in Washington, D.C., where Jensen Wong
07:12was giving that keynote address.
07:14But this is a pretty pivotal meeting, not so much as to what they do tomorrow, but what they
07:18telegraph here for the potential rate cuts that could be ahead for the rest of the year
07:22and into 2026 here.
07:24So a bit of a holding pattern as we wait for that decision.
07:27Let's go back to earnings right now with Mondelez crossing the wire right now.
07:30All your fan favorites there under that umbrella of the food company, including Oreos.
07:34Operating margin looks like it did come in above estimates.
07:37Adjusted EPS also looked like it came in above estimates.
07:4073 cents a share.
07:41The street was looking for 71 cents a share.
07:44The revenue relatively in line with estimates at 9.74 billion.
07:48That's pretty much what the street was looking for there.
07:50Adjusted gross margin, though, coming in light, and that might be the reason why you're actually
07:54seeing the shares lower in the after hours trade.
07:5730% adjusted gross margin.
07:58The street was looking for about 33.1%, so almost a three percentage point difference here
08:03from what they reported and what the street was looking for.
08:06All right, we got more earnings crossing.
08:07I want to start with EA reporting net bookings for the second quarter that missed the average
08:12analyst estimate.
08:14I don't know.
08:15The net books came in at $1.82 billion.
08:18The estimate was for $1.88 billion.
08:20Total net revenue at $1.84 billion.
08:23The estimate was for $1.81 billion.
08:26As you can imagine, we're not seeing shares move that much in the after hours, considering
08:29this transaction is in progress, but down about just ever so fractionally in the after hours.
08:35All right, guys, let me just get to Frontier Communications.
08:37Stock up about 8% here in 2025.
08:41Frontier third quarter revenue, a slight beat, $1.55 billion.
08:45The estimate on the street was $1.54 billion.
08:47Third quarter adjusted EBITDA of $637 million.
08:50That, too, was some outperformance in terms of the number.
08:53$596.5 million was what the street was looking for.
08:57Right now, that stock's unchanged, so we'll look for some more headlines on this one.
09:00Yeah, and let's also zoom in on Visa here, also reporting earnings.
09:03Their fourth quarter adjusted EPS beat estimates.
09:07That came in at $2.98.
09:09The estimate had been for $2.97, so a very slight beat there.
09:15And then you take a look at some of the other headlines coming through.
09:17Fourth quarter net revenue came in at $10.7 billion, again, slightly ahead of estimates,
09:22which were for about $10.6 billion.
09:26So very slight beats overall.
09:28You can see that the stock, not too much direction right now, down slightly in after hours trade
09:32to the tune of about 1% right now.
09:33Let's take a look at Enphase, a solar company whose stock was down almost 50% year-to-date
09:38coming in today, now moving lower in the after hours trade.
09:42For the third quarter, adjusted EPS did beat $0.90 a share.
09:46The street was looking for $0.65 on average.
09:48Revenue, though, in the quarter also beat $410 million.
09:51The street was looking for $364.
09:52Here's your guidance.
09:53So the company says that for the fourth quarter, revenue will be in a range of $310 to $350 million.
10:00The top end of that range is well below the average of street estimates for $381 million.
10:06That does appear to be why you're seeing some weakness in the shares.
10:09Yep, continuing to be down about 1.5% here in the aftermarket.
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