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00:00And right now we are two minutes away from the end of the trading day.
00:04Romain Bostic alongside Katie Greifeld taking you through to that closing bell with a global simulcast.
00:09It starts now. Carol Masser, Tim Stenevich joined us from the radio booth.
00:12Welcome to our audiences across all of our Bloomberg platforms, including our partnership with YouTube.
00:17A very consequential day in markets on a very consequential week.
00:21A big focus on earnings, a big focus on geopolitics in Washington, and of course a big focus right now on the state of the economy.
00:27You know, and I was just thinking, I actually have a pinky ring for you, Romain, in case you're interested in buying, you know, consumer spending.
00:35Buying? Oh, I thought it was a gift.
00:37Our audience has no idea why you're bringing that up.
00:40No, I thought you were just talking about a pinky ring. Were you not on air?
00:44How did you listen to that? Because we're, you know, you on air?
00:46We have our peeps.
00:47Oh, for sources, I think.
00:51Listen, I do feel like 24 hours from now, right, we're going to be all over NVIDIA. That's a big one.
00:56Do we just get a confirmation, a rehash of everything we heard from their big event in Washington, D.C. recently?
01:02Or do we get something more that is more supportive of the AI spend?
01:06Well, for the market's sake, I think we need more, right?
01:08Well, or maybe we need some of the fluff to come out.
01:11We've had quite a bounce back, some would say.
01:14A little bit of a normal correction or a normal...
01:17See my crickets.
01:18The NASDAQ composite, or NASDAQ 100 down about 1.2%.
01:22Earlier in the session, it was down as much as 2%.
01:24So I thought the tone, you know, of today's trade, I thought was going to be a lot more negative.
01:29It's still, don't get me wrong, negative.
01:31But things could have been a lot worse earlier in the session.
01:33Yeah, you definitely saw a little bit of dip buying here on this day.
01:36But still a lot of trepidation about where we go next.
01:39And as Carol says, a bit of a holding pattern until we see what NVIDIA has to say about 24 hours from now.
01:46Meanwhile, in the here and now, 4 p.m. in New York, we get the closing bells and we get the clapping.
01:51I assume that's obligatory even on a down day like today with the Dow Jones Industrial Average closing lower by roughly 500 points or about 1%.
01:59The S&P down about 55 points or eight-tenths of 1%.
02:02The NASDAQ composite down 1.2%.
02:05And we should point out, all of those indices right now, not only below the 50-day moving averages, but now within reach of testing the 100-day moving averages.
02:14One of the few bright spots there on the day, though, was a Russell 2000 up about seven points or three-tenths of 1%.
02:19Yeah, really fascinating.
02:21Back to the big caps, large caps in the S&P 500.
02:25At the close, a little bit more negative and kind of an even split here, guys.
02:29250 names, Katie, to the upside, 253 to the downside.
02:33Wow.
02:34Yeah, almost even.
02:35Almost even.
02:36Pretty dang close.
02:37Same thing, too, when you take a look at the circle here.
02:39You had six sectors finish in the green, five in the red.
02:42But take a look at what is red on that pie.
02:45Information technology, that was your biggest points loser on the day.
02:50That's why we had such a negative day in the markets.
02:52In terms of what did well, health care, energy, communication services, consumer staples as well.
02:57But, again, tech, consumer discretionary, and industrials, the biggest weights, Carol.
03:01All right.
03:01You mentioned health care, and kind of I'm looking at the medical space here as really a top performer in today's session.
03:07In fact, the number one gainer in the S&P 500, Medtronic, ticker MDT, that stock, finishing with a gain of 4.6%.
03:15We did see it up the most in five years, its highest intraday in about three and a half years.
03:21The news, the medical device maker, lifted the bottom end of its range for adjusted profit forecasts for the year.
03:26Company also boosted its organic revenue outlook following better-than-expected results in the second quarter.
03:31As I said, I just want to clarify, up the most in five years and its highest intraday in about three and a half years.
03:35So, anyway, some outperformance, not a name that we talk about on a regular basis.
03:40Merck, also an outperformer here.
03:42This went up about 3.9% in today's session.
03:45The drug maker said a mid-stage trial of its drug for a rare form of high blood pressure met its main goal.
03:53So analysts see this as a win, a trial win, as a potential for an expanded market for its drug, WinRivere.
03:59Stock, though, still down about 2% year-to-date.
04:01And then I just want to mention strategy, because this one, up about 5.8%.
04:07I'm not exactly sure why, you know, Bitcoin has fallen so much, about 30% from its 2025 peak.
04:16So we did have a story in the Bloomberg, a rare euro-denominate preferred stock offered by Michael Saylor's Bitcoin.
04:21Treasury company has fallen below its offer price.
04:23I don't know.
04:24I'm not quite sure why.
04:26Bitcoin bounced off its lows, recent lows today.
04:28So maybe that had something to do with it.
04:29I don't know.
04:30Yeah.
04:30And you're also talking about a stock that's down, you know, 37% in the past six weeks.
04:34So that could have something to do with it, too.
04:35Thank you, guys.
04:36Thank you for the answer.
04:36It's a group effort.
04:37Now we can help.
04:38I will give you a pinky ring now.
04:40Okay.
04:41All right.
04:41Let's talk about what's going on on the downside.
04:44Stock's in the red today.
04:45NVIDIA shares falling 2.8% down for another day.
04:47The company, of course, reporting after the bell tomorrow, just after 4 o'clock, we'll have special coverage in those results live as soon as we get them.
04:54Shares falling as much as 3.7% earlier in the session.
04:57They're now down 12.4% from those all-time highs back in October.
05:02We should note, too, Microsoft, along with NVIDIA, committing to invest up to a combined $15 billion in Anthropic.
05:07That's a move that ties Anthropic, which makes Claude closer to two of the biggest backers for its rival, OpenAI, which, of course, makes ChatGPT.
05:17In tech, also today, Amazon shares fell 4.4%.
05:20Microsoft closed the other day 2.8% to the downside.
05:24These companies saw their ratings cut to neutral from buy on Tuesday as Rothschild & Co. Redburn's Alexander Heisel downgraded the stocks for the first time since initiating coverage back in June 2022.
05:34He writes that the industry's, quote, trust us, Gen. AI is just like the early cloud 1.0 narrative looks increasingly misplaced.
05:43He stated that underlying economics are, quote, far weaker than assumed.
05:47And finally, Home Depot shares falling 6% today.
05:50The company cut its full-year earnings guidance.
05:52It warned that some unsteady consumers are hitting the pause button on big-ticket home purchases.
05:57We're going to get more numbers tomorrow.
05:59We'll get Target.
06:00We'll get Lowe's.
06:01We'll get Williams-Sonoma.
06:02We'll get TJX.
06:03We got Walmart later this week.
06:05So we'll get a better idea of what the consumer is doing, seeing if this is more of a one-off or if this is something bigger.
06:10Well, just an honorable mention.
06:11I was keeping an eye on shares at Klarna.
06:13They finished down more than 9% on the day, worst day since they went public just a few months ago.
06:17And the idea that they're setting aside a lot more money, Tim, for potential credit losses, that seemed to rattle a lot of folks.
06:23And when you start to talk about consumer spending, it's not always just about whether people want to spend, but also the idea that if you have a more holistic environment where things are deteriorating, does that then become a factor with regards to, you know, people continuing to spend?
06:36Yeah, I feel like these buy now, pay later.
06:39You know, you think that just because these companies are busy, it's a good sign.
06:41But, you know, in terms of for them.
06:44But what it says about the economy and maybe consumers feeling a little bit constrained is not a great thing.
06:48Yeah, like what are people paying later for?
06:51That's the big question.
06:52Yeah.
06:52And are they paying later?
06:54Yeah.
06:54Right.
06:55Yeah.
06:55And these are some of the things that, of course, the Fed is going to have to debate at its meeting in about three weeks.
06:59And you take a look at where yields went today.
07:01And I think it really shows you kind of the breakdown, I think, in bets and exactly which direction the Fed would go.
07:07We should point out that the implied probability on the Bloomberg terminal of a rate cut in December is still under 50%.
07:12But when you consider some of the deterioration we've seen in labor market data, maybe some of the deterioration that we're seeing in some of the consumer company earnings,
07:21maybe that changes what exactly the Fed has to do when they meet in three weeks.
07:26All right, guys, let's get to some stories that are certainly on our radar here.
07:31You know, we've been focusing, I'm sure you guys, too, out of the nation's capital, the White House, President Trump's meeting with MBS, Mohammed bin Salman.
07:40Well, what?
07:41I thought you were going for the other story out of Washington.
07:44Oh, OK.
07:45Sorry.
07:45Sorry.
07:46This is a market show, Carol.
07:47I know.
07:48I know.
07:48I'm trying to keep it, you know, family show.
07:49Hey, having said that, the Trump organization planning a luxury resort in the Maldives with a Saudi Arabian partner and plans to tokenize the hotel development project.
08:00That sounds interesting.
08:01It's the Trump International Hotel Maldives.
08:03It'll include 80 ultra luxury beach and overwater villas.
08:06It'll be built with Darglobal PLC, the two companies said in a joint statement on Monday.
08:11It'll also launch the mark, the launch of the world's first tokenized hotel development tied to the project.
08:17Very dark outside behind you, right?
08:18Yeah.
08:18That tends to happen this time of year.
08:21You know, if you actually go to the southern hemisphere, it's light and warm this time of year.
08:27Did you have nothing to share on our story?
08:29Absolutely not.
08:30I can tell.
08:31Katie, over you.
08:32Godspeed for all you investors in tokenized, Maldives, Saudi Arabian backed hotel.
08:38You can buy digital shares, perhaps, in the form of tokens.
08:42Sounds exciting to a certain type of investor.
08:44Let's talk a little bit about Topgolf.
08:46Someone will make money off it.
08:47I don't.
08:48Golf.
08:48That's for sure.
08:48Romaine, sitting to my right, does.
08:50Apparently, Topgolf has agreed to sell a 60% stake in Topgolf and Toptracer businesses to Leonard Green and Partners.
08:58That is a L.A. private equity firm.
09:00All I have to say, I just hope they don't mess this up.
09:03I mean, this is actually, Topgolf is really kind of one of the big success stories.
09:06Mm-hmm.
09:07Yeah.
09:07When you think about kind of what they did and kind of the, you know, gamification of a game.
09:10But the idea they just made it a lot more accessible.
09:12It's fine.
09:13You can take everybody there.
09:14It doesn't matter your skill level.
09:15And, of course, we know whenever private equity gets involved in something, you know, we got to put something up.
09:18That's the thing.
09:19If you're trying to get into golf, it's a little bit of a chew.
09:21Really, the only intermediate step is mini golf, which I understand is not very close to the actual game.
09:27Not at all, Katie Greifel.
09:28Do you golf?
09:29No, not much of a golfer.
09:30What about you, Carol?
09:31Carol doesn't.
09:31No, no.
09:32But my dad was a big golfer.
09:33My brothers were a big golfer.
09:34Obviously, I'm not a golfer.
09:36Okay.
09:37Obviously.
09:37This is the wrong crowd to talk to.
09:39Yes.
09:40And a great one, too, by the way.
09:41Loves to hit the lengths.
09:42Like 110?
09:43Like what you're saying?
09:43110?
09:44How dare you?
09:45He's well under.
09:46I'm like 18.
09:47Under what?
09:47I'm like 18 handicap.
09:48There you go.
09:49Wow.
09:50Not the brag.
09:50All right.
09:51All right.
09:52Where do you have the time to do that, Romain?
09:54That's what I'm saying.
09:55A full-time job.
09:56Yeah.
09:56Imagine if I get laid off on the PGA Tour.
09:59Don't say that.
10:00That's like Steve Cohen's big bet that, you know, we'll become so much more productive
10:04in the coming years that we'll have more time to play golf.
10:06That is a long time.
10:07Will we have money to do that?
10:08Because, you know, that's why we work.
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