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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 Greifel taking you through to that closing bell.
00:07It's a global simulcast. It starts now.
00:09Carol Masser, Tim Stenevich, they're in the radio booth.
00:12Welcome to our audiences across all of our Bloomberg platforms,
00:14including our partnership with YouTube,
00:16here on a relatively modest day in financial markets.
00:20Carol Masser, the market waiting on something.
00:22Yeah, it is waiting on something. I'm not quite sure.
00:24I think with the Fed speakers out, we saw Lisa Cook making some comments,
00:27seeing the risk of further labor market weakness as greater than the risk that inflation will pick up.
00:33But she also stopped short of endorsing another interest rate cut next month.
00:36So I feel like, I don't know, we are looking for something to hold on to here.
00:39I was asking Megan Horniman all about valuations,
00:42given that there are some folks out there who say things are a little lofty right now.
00:45She said, OK, we're not going to talk like, you know, it's the tech bubble of the 90s and early 2000s again.
00:50She did say bubble-like.
00:51She said bubble-like, though.
00:53Bubble-like.
00:54But not a bubble. Bubble-like.
00:56We're all, uh...
00:57Aren't we always in a bubble?
00:58I'm somewhere.
00:59Who said that last week?
01:00I know.
01:01Yeah, thanks for watching our program.
01:02Yeah.
01:02There you go.
01:03It's always a bubble somewhere.
01:04It's always 5 o'clock somewhere.
01:06I do think it's interesting, though, that that skepticism seems to be coming back.
01:10You remember a few quarters ago, the narrative was all about ROI on spending from some of these big tech companies.
01:16When are we going to see it?
01:17Are we overspending here?
01:18It seems like that has sort of snuck its way back into the narrative around this earnings season as well.
01:24When you think about the reactions to Meta in particular, but also Microsoft to some degree.
01:29Microsoft, you had the big Alphabet bond sale starting to unfold here.
01:33I mean, we're talking about a sale coming in at $15 billion.
01:35It ended up coming in at $17.5.
01:37And they had, at least based on people familiar with the situation, $90 billion in demand for that.
01:43So it shows you whether we're in a bubble or not, investors, at least for right now, still want a piece of it.
01:48And that is kind of reflected on your screen there with the Dow Jones Industrial Average in the red, but the NASDAQ in the green.
01:54The Dow down more than 200 points or a half a percentage point.
01:57The NASDAQ composite up a half a percentage point.
02:00The S&P is going to finish in the green up two-tenths of one percent.
02:02And, Carol, the Russell 2000 down three-tenths of one percent.
02:06All right, right now we do have some earnings crossing the Bloomberg terminal.
02:09We have Corvo crossing.
02:11And let me just bring it up here.
02:12And we're looking at second-quarter adjusted revenue, folks.
02:15Slight beat, $1.1 billion.
02:17The estimate on the street was $1.04 billion.
02:20And second-quarter adjusted earnings per share, $2.22 a share.
02:24That's $0.11 better than what the street was expecting.
02:27It's a semi-device company.
02:28Stock's been on a run, like, a lot in the semi-space.
02:30It's up more than 30% year-to-date.
02:32Right now we're seeing initially that stock unchanged in the after hours.
02:37And we should point out, of course, they're being bought by Skyworks.
02:39So you're not going to see a whole lot of movement in the shares, given the pop that you had last week.
02:43All right, good stuff.
02:44Thank you for that.
02:45All right, S&P 500.
02:46Value add, Carol Masser.
02:47What?
02:48Value add.
02:49That's what we say here.
02:50Do you know I'm going to spend tomorrow in New Jersey?
02:52What?
02:53Yeah, pray for me.
02:54In Jersey City, actually.
02:55Is this part of the election special?
02:56No.
02:57No.
02:57No, they decided they want me out of the studio.
02:59Okay.
03:00Yeah, he's in timeout in New Jersey.
03:02This is just in Katie.
03:03She's right there.
03:04Wait, who wants you out?
03:05No.
03:06Everyone.
03:06Tell us who they are.
03:07It's a joke.
03:08He'll be doing a lot.
03:08We're going to talk to somebody for you.
03:10Okay.
03:11So S&P 500, folks, most names in the index lower today.
03:14316, Katie.
03:16Two, the downside.
03:17185 to the upside.
03:18And three, unchanged.
03:19Similar story when you take a look at the sectors.
03:21In terms of the breadth performance, you did finish in the green.
03:25But you only had four sectors actually rising on this Monday, the first trading day of November.
03:30Consumer discretionary.
03:31That's just another word for tech with Amazon having a heavy weight there.
03:35You did see tech perform as well.
03:37So, too, did health care and utilities.
03:39What didn't do too hot today, materials, consumer staples, and financials.
03:42Some of your biggest losers on the sector level, Carol.
03:45All right.
03:45Let's get to some of the individual gainers.
03:47Got to mention Amazon.
03:48Up 4% by the close for a two-day gain of just about 14, 15%.
03:54Analysts raising price targets for Amazon since the company reported earnings last week.
04:0145% raising price targets by an average of 11%.
04:04No cutting their price targets.
04:06And then, of course, you had their cloud unit doing a mega deal.
04:09$38 billion deal to supply a slice of OpenAI's bottomless demand for computing power.
04:14And we did see the stock definitely jumping on that news.
04:18So we continue to see that.
04:20Hey, kind of what exactly are all these servers doing, by the way?
04:22You know, we just talked to Mandeep Singh, and I'm like, are their servers sitting empty just waiting?
04:27And he's like, no.
04:29You know, the build-out continues.
04:31You see supply constraints.
04:33We saw that with some of the hyperscalers last week that they just can't meet demand, and yet you're seeing some strong numbers.
04:38We certainly saw that with Alphabet.
04:41So I don't know.
04:43The ROI and the demand is still there.
04:45So I don't know.
04:46We're trying to figure that out, too.
04:47On a related matter, Cypher Mining, I want to bring up, they also finished with quite a rally, up as much as 34% in today's session, finishing with a gain of about 22%.
05:00This company signed a $5.5 billion 15-year lease agreement with Amazon to provide turnkey space and power for AI workloads.
05:09So, again, that AI build and spend, as you mentioned, remain continuing.
05:13And then I've got to mention Kenview, up about 12%.
05:16This has Kimberly Clark agreed to buy the company for roughly $40 billion.
05:21A lot of questions about that one in terms of the Tylenol exposure.
05:25We'll have to see how that one plays out.
05:26But nonetheless, some outperformance there.
05:29Kimberly Clark investors have a lot of questions about this deal.
05:32That's where I want to start with today's decliners.
05:34Look at this.
05:35Kimberly Clark down 14.6%.
05:37This is the worst single day going back to October of 1987.
05:41Do you guys remember what happened in October of 1987?
05:45I do, actually.
05:46But I don't want to spoil it for you.
05:47Black Monday.
05:48Yes.
05:48This is the worst day going back to October 19, 1987.
05:53Kimberly Clark shares slumping the company agreed to buy Kenview in cash and stock deal.
05:57An enterprise value of $48.7 billion.
06:01We're not going to read up on that.
06:02What's that?
06:02Black Monday.
06:03Yeah.
06:03You need a refresher.
06:04I mean, that was before I was born.
06:05You're still stuck.
06:05Oh, yeah.
06:06No.
06:06Wait.
06:07Romaine, we were born.
06:08Katie was not.
06:09God.
06:10Yeah.
06:10He's pulling your leg.
06:12Okay.
06:12All right.
06:13Anyway, let's keep going.
06:15We've got some more decliners.
06:17Now you know why they're exiling you.
06:18I feel like we spent a lot of time on this deal already, okay?
06:21So we know what's going on.
06:23Charter communication shares also falling to a 5% lower.
06:27Key bank capital markets downgraded the cable company to sector weight from overweight.
06:30And then nine analysts, since the company came out with earnings on Friday, have cut price
06:36targets by an average of 17%.
06:37No analysts raised their price targets.
06:39Shares taken a hit by 5% today.
06:42And rare earth stocks also in the red today, focusing specifically on MP materials falling
06:478.6%.
06:48The White House announced that China will effectively suspend implementation of additional export
06:52controls on rare earth metals.
06:54Still MP materials up 280% so far this year.
06:57Palantir earnings crossing the wire right now.
06:59The stock hit a record high in the cash session.
07:01Looks like it's higher here in the after hours trade.
07:04Adjusted EPS in the most recent quarter, a big beat, 21 cents a share.
07:07The street was looking for 17 cents.
07:09Revenue coming in at about $1.2 billion.
07:12The street looking for 1.1.
07:13Here's your guidance.
07:14The company says that for its fourth quarter, it sees revenue basically at $1.33 billion.
07:20The street was looking for $1.2 billion.
07:23The company also says that it expects for the full year to close out the full year here
07:28with operating profit of $2.15 to $2.16 billion.
07:32Also, well above street estimates, that average was at about $1.93 billion.
07:37So it looks like a beat and raise quarter here for, of course, one of the biggest darlings
07:40in the market right now.
07:41Yeah, absolutely.
07:42And it seems like the raise is particularly what's exciting, the shares after hours.
07:46As you said, boosting their full year revenue forecast.
07:49You can see shares up by about 4.5% after hours, Tim.
07:53Which is pretty amazing when you consider that this company was up more than 170% through
07:58today's close through 2025.
08:00So the expectations were high.
08:02But the first blush read here is that this is more good news.
08:05Alex Karp, talking about the good news.
08:08He's the co-founder and CEO of Palantir.
08:10He says, year-over-year growth in our U.S. business search is 77%.
08:13Year-over-year growth in U.S. commercial climbed to 121%.
08:17We are yet again announcing the highest sequential quarterly revenue growth guide in our company's
08:22history, representing 61% year-over-year growth.
08:26Shares up another 2% in the after hours.
08:28Top quiz.
08:29Palantir is not the best performing stock in the S&P 500, despite the fact that it's up
08:33170-something percent.
08:34What is?
08:35Okay.
08:36Well, that was the quiz for you, Carol.
08:37I guess you're not good at quizzes.
08:39It's Robinhood, which is up about 300%.
08:41Hey, listen, Palantir was looking, the expectations were for revenue growth of about 50%.
08:48So we actually saw revenue increase 63% to that $1.18 billion in the period ending in
08:54September.
08:55So that was some outperformance.
08:57I'm just looking at Lizette Chapman writing through, so raising its annual revenue outlook
09:02to $4.4 billion and outpaced analyst estimates for third quarter sales, citing accelerating
09:07and otherworldly growth for its AI and data analytics products.
09:11So again, that AI trade alive and kicking for a stock, as you mentioned, remain up 173%
09:16year-to-date.
09:17We'll continue to follow Palantir.
09:19Let's quickly, though, talk about HIMSS and HERS Health reporting earnings.
09:22Their third quarter revenue beat estimates as well.
09:25You take a look at the look ahead.
09:27They see fourth quarter adjusted EBITDA between $55 million to $65 million.
09:32The estimate had been for $74 million.
09:34So a bit disappointing relative to expectations when it comes to the look ahead.
09:39HIMSS and HERS Health, one of your big outperformers this year, up more than 80%.
09:43You take a look at the after-hours trade, though, for HIMSS and HERS Health.
09:47A bit of a spike lower, but traders deciding what to do.
09:50All right.
09:51Yeah.
09:51And this is a stock that certainly has bounced a bunch.
09:53Hey, Palantir, just a quick check, guys, up about 3% here in the aftermarket.
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