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00:00And right now we are two minutes away from the end of the trading day.
00:04Romain Bostic alongside Scarlet Foo taking you through to that closing bell with a global simulcast.
00:09We're joined right now by Carol Masser and Tim Stenevich in the radio booth.
00:13Katie Grafell has the day off.
00:14Welcome to our audiences across all of our Bloomberg platforms.
00:17That includes our partnership with YouTube for you two giggly gusses over there in the radio booth.
00:23We're trying to figure out, we're playing planes, trains and automobiles over here.
00:27We're trying to figure out.
00:28The locomotives on the Amtrak and Acela are some of them diesel because I think they are.
00:32And some are electric.
00:33That's the conversation we were just having.
00:34Because we're trying to figure out, we have to take a trip.
00:36I'm just going to say, we have to go to Boston and it's like, do you get on a plane?
00:40Oh, this has been your debate all day.
00:42It's been several days actually.
00:44I think we're going with the train.
00:45And it's just pretty depressing.
00:46Okay.
00:47Fascinating.
00:47All right.
00:47Well, maybe we'll have.
00:48All right.
00:49Listen, the enthusiasm for the shutdown, I got to say we felt it a little bit yesterday,
00:53but not feeling it today.
00:54In terms of the trade, the Dow is surging a little bit.
00:56The S&P 500 up right now.
00:59The Nasdaq composite, under pressure, NVIDIA really weighing on these indices, Scarlett.
01:04Well, you know, I mean, we might actually get the government reopened by Friday.
01:08Henrietta Trezaveta was saying that she thinks that the bill will be passed and signed by
01:12President Trump on Thursday, which means we could get a stream of data coming out on
01:16Friday and at least, you know, things moving in the right direction by then.
01:20But I'm curious about some of the labor market data.
01:22I mean, the ADP data, which seems to suggest that we're actually seeing a contraction on
01:25the labor market.
01:26And of course, some of the individual layoff notices that we've seen from some of the
01:30companies.
01:31I don't know.
01:31I mean, what is that telling us?
01:32I don't know.
01:32I'm counting down at NVIDIA earnings next week.
01:34I want to see what's going on with this AI trade.
01:36I want to hear from them, guys.
01:38Just also, too, just a quick reminder to just give everyone an update here on some of that
01:42airline chaos today.
01:43A much better day than what we've seen over the past four.
01:46In fact, Sean Duffy, the transportation secretary, speaking right now, talking about that cancellations
01:51right now, tracking around 1,700.
01:54That's below the 2,000 to 3,000 that we saw over the past few days.
01:57Take a look at the chart there on your screen.
01:59An S&P 500 in the green, but only by about two-tenths of one percent.
02:03There was a big drag down because of NVIDIA's drop.
02:06You saw that particularly reflected in the NASDAQ composite, which is down about a quarter
02:10of a percentage point.
02:11The Dow Jones Industrial Average, though, up 600 points, 1.2 percent.
02:16That's actually a record high, 47.92 and change for the Dow Jones Industrial Average.
02:21You saw health care stocks, FedEx, and quite a few others moving higher on the day.
02:25And the Russell 2000 squeaking out a modest gain on the day, up a tenth of a percent.
02:29Which makes me wonder, like, what does that tell us?
02:31I don't even know.
02:32Kind of wild.
02:33S&P 500.
02:34Let's go back there, guys.
02:35343 names gaining on this Tuesday.
02:38Scarlett, 158 to the downside, 2 unchanged.
02:41Yeah, let's focus on the market cap weighted index, which is the S&P 500, rather than the
02:45price weighted index, which is the Dow.
02:47So within the S&P 500, there's only one sector in the red.
02:50It happens to be the most heaviest weighted sector, which is tech, down three-quarters
02:54of one percent, but everything else finished in the green, although industrials and utilities,
02:59little change on the day.
03:00The best performers, to what Romain was saying, was health care, up more than two percent.
03:04Energy and consumer staples also gaining at least 1.2 percent.
03:08All right.
03:08A lot of green on that screen.
03:10All right.
03:10Let's go to individual gainers, if I may.
03:12This one was pretty much top gainer in the S&P for most of the day.
03:16But here at the close, being edged out a little bit.
03:20So it's in the number two spot here.
03:22We're talking about Paramount Skydance.
03:24This stock up as much as 12.5 percent intraday, but closing just shy of 10 percent.
03:30The company rose after it raised its target for job cuts and cost-saving measures, a company
03:35planning an additional workforce reduction, aiming to achieve at least $3 billion in cost
03:39savings.
03:40It is, though, forecasting $30 billion in revenue next year and plans to invest much of that
03:44savings in the business, including $1.5 billion in additional 2026 spending for the Paramount
03:50Plus streaming service.
03:51So definitely some outperformance in that one.
03:53Check out the RealReal guys.
03:55Up 38 percent, pretty much finishing at its best levels of the session.
03:58And the company out reported EPS and sales above estimates.
04:02It also boosted its revenue guidance for the full year to beat the average analyst estimate.
04:06It's up about 40 percent year to date.
04:08But keep in mind, probably some short covering today as 25 percent of the float is short.
04:13So we definitely saw investors moving into that one.
04:16And last but not least, Maple Bear.
04:20I can never say that word.
04:21Maple Bear.
04:22Maybe I should just say Instacart.
04:23There you go.
04:24That's all right.
04:25Ticker is cart.
04:27Stack up 5 percent in today's session.
04:29Company posted better than expected order growth.
04:31Provided an upbeat earnings outlook for the current period, indicating that demand for its
04:35core grocery delivery service has been holding strong.
04:37And we've seen that for some of the companies.
04:41Uber Tech and DoorDash, they have also seen some expansion beyond restaurant takeout into the
04:47grocery category.
04:48So we're kind of seeing an all-in on that.
04:50OK, well, let's talk a little about some of the stocks in the red today.
04:54Decliners on my list included NVIDIA down 3 percent.
04:57Those shares took a hit after SoftBank sold its entire stake in the company for $5.83 billion
05:01to help bankroll AI investments.
05:04This sale coinciding with a growing debate about whether spending in big tech firms will
05:07actually produce commensurate returns expected spending surpassing a trillion dollars in the
05:12coming years.
05:13I get it.
05:13They think they can have a better return outside of the company, and maybe that got some investors
05:18in the company concerned about NVIDIA today.
05:21Shares sliding by 3 percent, weighing on the S&P 500, responsible for actually 16.8 points
05:26to the downside of the S&P today.
05:28CoreWeave down 16.3 percent.
05:31It fell the most since August, this after the company lowered its annual revenue forecast.
05:35This was due to a delay in fulfilling a customer contract that was caused by a third-party
05:39data center developer who is behind schedule.
05:42The company's CEO, Michael Entrader, was on Bloomberg Technology earlier today.
05:46He did say that it's a trusted partner and, you know, trusted customer, and they still
05:52have the contract, but these are the types of delays that they are dealing with.
05:55These are the choke points that the company is dealing with.
05:57That forecast for sales in 2025, now $5.05 billion to $5.15 billion, down from a previous
06:03high of $5.35 billion.
06:05CoreWeave shares down 16.3 percent.
06:08And then Beyond Meat fell today, 9.3 percent.
06:10The company's fourth-quarter net revenue forecast missed the average analyst estimate.
06:15The company sees net revenue in the quarter, $60 to $65 million.
06:19The Bloomberg consensus was $70.1 million.
06:21All right, let's get to some stories on our radar.
06:24And this one we've been talking about a lot.
06:26Walgreens cutting pay for hourly workers, no longer giving many of its retail workers
06:30paid vacation time for Thanksgiving, Christmas, and some other major holidays, as the company
06:35looks, I know, to cut costs.
06:36This is very grinchy.
06:37For what?
06:37I don't understand this.
06:40And I feel like when we talk about the K-shaped economy, I mean, people have come on and said,
06:45well, part of it is we've got to get companies to pay workers a living wage or more.
06:49I don't know.
06:50I understand it.
06:50I think it's a labor market story.
06:52It speaks to the fact that now it's easier to get these employees so they don't have
06:56to make the same offerings that they were making during the pandemic.
07:00It's also a private equity story.
07:01There you go.
07:02Okay.
07:03You get to the heart of it.
07:04It's now a private equity-owned company.
07:05And it's looking to cut costs.
07:06I do realize, like, these are, like, kind of people in the business of customer service
07:10and that they're not feeling good about themselves and their lot in life.
07:13Yeah.
07:14Are they going to treat me with a smile?
07:16Probably not.
07:17Can apply that to air traffic controllers who work without paying.
07:20And for that matter, not to bang up on private equity, but we've seen this playbook before
07:22where they buy some of these consumer products companies or, you know, consumer-facing
07:26companies, they start cutting costs, the employees get disgruntled, people stop going to the
07:30stores, and then, you know, what?
07:31The cash flow slows down.
07:33Okay.
07:33It seems short-sighted on me, but what do I know?
07:35It just seems kind of rough.
07:36All right.
07:36What do you guys got for us?
07:37You guys know about how Visa MasterCard finally settled this, like, 20-year litigation with
07:44retailers.
07:45And as a result, they've agreed to loosen their Honor All Cards policies.
07:50And what that means is if you have a Chase Sapphire card, one of those MasterCard World Elite
07:55cards, you might see your card rejected by a retailer next time you go in and try to
08:00pay for it that way.
08:01So I'm very confused by this.
08:03But basically what they're saying is that, you know, some of these premium cards also,
08:06they charge more to the retailer for transaction costs.
08:10Yes.
08:10So they can just say, okay, we're not going to take Chase Sapphire, but we'll take, you
08:14know, something lesser than that.
08:15But how do you know?
08:16Like, it's like most people don't have 15 credit cards, Scarlett.
08:20Most people have, you know, two, maybe three.
08:22So it's like, you know what?
08:23Are you just not going to buy anything?
08:25But do you make it, is there a setting on the point of sale that allows or denies a
08:29certain type of credit card?
08:30So if somebody pulls out their phone or does a tap to pay, the card is not accepted because,
08:35well, they have a setting that says we're not going to accept this.
08:37I mean, the infrastructure needs to be sorted out.
08:39The technology needs to be sorted out.
08:41And of course, this needs to be finalized.
08:43But the proposed deal could allow retailers to stop accepting certain types of credit cards.
08:48And we already see this with like, if you go to the pizzeria, for instance, or like the
08:51dry cleaner, they might say, oh, you're paying with credit card, then, you know, I'm going
08:55to have to charge you an extra surcharge.
08:57Or in my case, they'll say, I'll give you a discount if you pay cash.
09:00Well, that's fine.
09:00But that's kind of like across the board.
09:02But when you start saying, OK, we're only taking certain brands of cards or certain sort
09:06of brands of brands, it's like, you know, I'm supposed to keep track of that.
09:09And they're doing it on the premium cards, which are presumably more higher income individuals.
09:14It seems kind of odd that you would sort of, you know, you know, peeve them.
09:18That's what I was thinking.
09:18The premium cards, right, that are, you know, they have higher fees and, you know, charging
09:22individual customers.
09:23You get all these benefits, but you pay more for it.
09:25This is ridiculous.
09:25This is exactly what I'm just going back to cash.
09:28Well, look.
09:29Roll of quarters in the pocket.
09:30You know, a lot of bills in the sock.
09:32Just old school.
09:33I think.
09:34It's like my grandfather.
09:35You know, when he died, I found like $100,000 in cash.
09:36I don't want to be the Walgreens cashier who encounters Romain and his roll of quarters.
09:41Did you say $100,000 under?
09:43Yeah, he didn't trust banks.
09:45Okay.
09:45He came from a different time.
09:47Sometimes that different time feels better.
09:49All right, guys, that's a wrap, right?
09:50Our cross-platform coverage.
09:52Radio TV.
09:52If you ever wonder why some people just buy a cabin in the woods and write manifestos,
09:56I think these two stories we have today are exactly why.
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