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00:00And right now we are two minutes away from the end of the trading day.
00:04Romain Bostic here taking you through to that closing bell with the Global Simulcast.
00:08Joining us right now from the radio booth is Carol Masser and Tim Stenevich.
00:11Welcome to our audiences across all of our Bloomberg platforms, including our partnership with YouTube.
00:17I hate to tell you this, Tim. We had to fire her.
00:20Wait.
00:21No, that's a joke. I'm sorry.
00:23I thought Matt Miller was speaking with you.
00:24She's on assignment today, so Katie will be back in a couple days.
00:27Okay, she's back in a couple days.
00:28You know, no, we love Katie.
00:29I thought Matt Miller was going to be with you.
00:31So we take a look at the markets here today, and we talk about a market that is still sort of clinging to, you know, modest gains.
00:38But we talk about two straight days of gains.
00:40And S&P actually not far off from reclaiming its record high.
00:44But this isn't the sort of meaningful all-in-the-pool oomph that we saw earlier in this rally cycle.
00:51Yeah, not a lot of oomph, if you will.
00:52But we will say there's more names in the S&P that are actually gaining some ground today.
00:56But it's kind of a weird market.
00:58I keep going.
00:59I think we're just waiting.
01:01Want to hear from the Fed what insight they have into 2026 and kind of where we go from there.
01:06I just want to prove I don't only talk about cryptocurrency when it's down.
01:10Bitcoin today up one and a half percent, above 92,000, close to 93,000.
01:14You are an equal opportunity crypto person.
01:15Yeah, we know we've been keeping a close eye on it.
01:17So worth repeating.
01:18Interesting to see that trying to bounce back, trying to reclaim some of that magic.
01:22Two interesting stories, though, to keep an eye on.
01:24Not a whole lot of movement at rates, but a huge downdraft today once again in the dollar.
01:28And then also you're seeing a huge bid higher in a lot of the bank stocks today, which also seems to be tied to what we've been seeing in the yield space here.
01:35As we head into next week, a week from today, where we finally get that Fed decision, a Fed decision that most investors seem to believe will include a 25 basis point cut.
01:47The closing bell is here in New York, and it does appear to be green across the screen, across the board.
01:51The Dow Jones Industrial Average up about nine tenths of a percent here on the day.
01:56The S&P 500 adding about 21 points or about three tenths of one percent.
02:00The Nasdaq Composite only up a smidge, and this is actually the story here.
02:04Big tech, the big laggard on the day.
02:06The Nasdaq Composite and Nasdaq 100 each only up by about a tenth or two tenths of a percent here on the day.
02:13But your outperform is on the day, and this should maybe provide some sort of comfort.
02:16Dow Transports up two percent on the day, and the Russell 2000 up 1.9.
02:21Wow, some significant outperformance there.
02:23Hey, let's go back, though, to the S&P 500.
02:25I mentioned most names in the index higher today, 337 to the upside, remain 165 to the downside, one unchanged.
02:34And, of course, we talk about sort of what led that charge.
02:37It was energy.
02:38It was financials.
02:38It was industrials.
02:39It was consumer discretionary, all posting pretty sizable gains here on the day.
02:44But the big laggards on the day, you saw that in communication services, which is largely a lot of the companies like your Meadows, if you will.
02:50You saw that in utilities, and you saw that in the S&P Infotech Index, which includes all the biggies, all those biggies here, down as a group by roughly about four-tenths of one percent.
03:01Now, speaking of the biggies, Carol, we are getting some earnings right now out of Salesforce.
03:05Yeah, we are indeed.
03:06So let's go through the numbers, folks.
03:07Let's go right to the forecast.
03:09Salesforce seeing fourth-quarter revenue $11.13 billion to $11.23 billion.
03:15And, folks, that is easily above the street estimate, and that's probably why you're seeing the stock up about six percent here in the aftermarket.
03:22$10.91 billion is the estimate.
03:25Let me go back to the third quarter.
03:27Third-quarter adjusted EPS, that was a big beat, $3.25 a share versus the estimate of $2.86 a share.
03:34Also, if I take a look at third-quarter revenue, that was pretty much in line, $10.26 billion versus an estimate of $10.28 billion.
03:43But, again, all right, so pulling back a little bit on the gains, but remains still up about 4.7 percent.
03:49So investors liking what they got in terms of that forecast.
03:52And I just want to stay on Salesforce for just one second because there was some concern, you guys, coming into this morning with that report from the information about, apparently, Microsoft's salespeople had missed, at least in the first half of the year, some of their AI sales targets.
04:05That actually led to a downdraft in both Microsoft and the broader market.
04:09Microsoft pushed back on that, and we saw a big bump up.
04:12So there are a lot of concerns about what we would hear out of Salesforce.
04:15This also comes in a day where we heard from the Anthropics CEO at a New York Times event saying that he thought some of the spending on AI had maybe gotten a little bit too risky.
04:23And some reports out of that Morgan Stanley was actually looking to do a strategic risk transfer in some of the loans tied to that data center build-out.
04:31Yeah, just back to Salesforce and staying on Salesforce, up 8.3 percent in the after hours.
04:36Revenue for the fourth quarter.
04:37The guidance beat the average analyst estimate.
04:40Fourth quarter forecast sees revenue $11.13 to $11.23 billion.
04:44That's ahead of estimates of $10.91 billion.
04:47The estimate for adjusted EPS was for $3.03, that coming for $3.02 to $3.04, so right in line with estimates.
04:56The company sees the current remaining performance obligation up at 15 percent.
05:00Yeah, we're going to dive deeper into this.
05:02But, yeah, on the surface, these numbers look pretty good.
05:04It'll be interesting to see what Mark Benioff and his team has to say on the call here.
05:09The idea of AI adoption and, of course, a company in Salesforce that has really bet the farm on it going forward.
05:15Meanwhile, we are getting some other earnings.
05:17This is out of the retail space, a five below.
05:19The retail are out with its earnings, and it does look to be a beat in the raise quarter.
05:23The shares had a decent little pop just a few minutes ago, pairing some of those gains.
05:28The company is saying that in the most recent quarter, net sales did come in up about 23 percent at about $1 billion even.
05:35That's above the average of analyst estimates.
05:37The company guiding for the next quarter, or the current quarter, the fourth quarter right now,
05:43seeing the guidance of net sales in the range of $1.58 to $1.61 billion.
05:48The low end of that range is above the average of street estimates.
05:51Similar story, Carol, when it comes to the EPS range, with the low end of that range higher than the average of street estimates.
05:57So important in terms of what it's telling us about the U.S. economy, the consumer, the retail reads.
06:02I want to go back, though, to Salesforce, if I may.
06:04We've got a great write-through on the Bloomberg by our Dina Bass and Brody Ford.
06:08Again, the company giving an outlook for revenue in the current period, that top-down list estimates,
06:13suggesting the software companies persuading customers to buy its AI tools.
06:18The company's AI tool, it's called Agent Force, has closed more than 9,500 paid deals since its launch,
06:25with annual recurring revenue for the division that includes AI-focused tools being $1.4 billion in the period ending October 31st.
06:32So, again, that AI trade remained mentioned.
06:34Like, some concerns may be heading into these earnings, but it looks like Salesforce is definitely delivering, Tim.
06:40Yeah, Mark Benioff calling out that 9,500-page Agent Force deals.
06:45He also says 3.2 trillion tokens processed.
06:48Some other numbers that he highlights in the press release, and, of course, we'll get more potentially on the earnings call,
06:54raising the fiscal year 2026 guidance, signaling a powerful pipeline of future revenue,
07:00Agent Force and Data360 products, their momentum drivers, hitting nearly $1.4 billion in annual recurring revenue.
07:07Yeah, we should point out, I mean, coming into this session, actually one of the worst performers in the Dow Jones Industrial Average
07:12on a year-to-date basis, and that caused some concern here.
07:16But at least the customer relations software company looks to get its mojo back.
07:21Meanwhile, we want to take a look at some of the database architecture companies, and that includes Snowflake.
07:25It's just out with its results right now.
07:27Those shares actually moving lower, down about 5% here in the after-hours trade.
07:31Here's what the company has to say with regards to the most recent quarter.
07:34It basically says that in the most recent quarter, revenue did come in in line with estimates at about $1.16 billion.
07:40EPS at $0.35.
07:42That's about $0.04 higher than what the street was looking for.
07:45For the fourth quarter, the company says, though, that product revenue will be in a range of $1.2 billion.
07:50Well, there is no range.
07:51It will be $1.2 billion, and that's basically on the nose of what the street was looking for.
07:55The company also says full-year product revenue, $4.45.
07:59That's slightly higher than what it forecast before, but only a smidge higher than what the street was looking for.
08:03And maybe that's why you're seeing some softness in the shares.
08:05I'm looking at another company reporting after-hours.
08:09AIUS is the ticker.
08:11C3 AI, it's the application enterprise software company.
08:17Shares bouncing around in the after-hours, but down 2.8%.
08:20In terms of the numbers, C3 AI, second quarter adjusted loss per share of $0.25.
08:26That came in ahead of estimates at $0.33.
08:29The company sees fiscal year revenue, $289.5 to $309.5 million.
08:34That's very much below what it saw earlier, which was $447 million to $484.5 million.
08:41Second quarter revenue came in above estimates at $75.1 million.
08:45Once again, and now actually the company sees the third quarter revenue, $72 to $80 million.
08:49The estimates were $75.6 million.
08:52Shares in the after-hours down about 1.4%.
08:55All right, so seeing a lot from certainly the tech community.
08:57I want to go back to the retail community.
08:59Five below remain breaking it down earlier.
09:01I mean, this is a stock that's up almost 60% year to date.
09:05The stock now up about 1.5% in the aftermarket.
09:08So it's been bouncing around a little bit.
09:10Going to the outlook, the company's seeing fiscal year EPS of $5.51, $5.51 to $5.69.
09:18It had seen $4.56 to $4.96.
09:21The estimate was below $5.
09:22So it looks like investors certainly feeding into that one and liking it remaining.
09:26And this raises a lot of questions.
09:27I mean, we're basically through the earnings season.
09:29I mean, this is it.
09:29We get a few tomorrow, like Dollar General and Hormel and I think DocuSign and HPE, Ulta Beauty as well.
09:36But we've kind of got the read now on what's going on with business spending, what's going on with consumer spending.
09:41The quarter's over.
09:42And it looks like overall it did better than what most people had thought.
09:46Yeah, I think you're right.
09:47But I have to say when it comes to retail, like you guys, we've done a lot of interviews on that.
09:51And it just feels like everybody talking about the consumer, yep, spending but being cautious.
09:55So anything that puts any more additional pressure on a consumer, I think we could see some problems.
10:01And we'll see whether or not they get an assist perhaps from the Fed in lower rates and how that can trickle through certainly the economy.
10:08Yeah, just a reminder, like the big picture that we've gotten from these retailers has been this bifurcated consumer where the high-end consumer is still spending.
10:15And even the middle-income consumer is trading down.
10:18And look at what we saw from some of the dollar stores as a result.
10:22Five below, up about 2%.
10:24You've got Salesforce guys up about 4.5%.
10:26Snowflake right now down about 6.5%.
10:28So watching all of this here in the aftermarket.
10:30So watching all of this here in the aftermarket.
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