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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.
00:08It starts now. Carol Masser, Tim Senevich join us from the radio room.
00:12Welcome to our audiences across all of our Bloomberg platforms,
00:15including our partnership with YouTube on an incredibly busy day for financial markets.
00:19I'm not sure where you want to start, Carol Masser.
00:21The president has been on fire all day long tweeting out a bunch of policy proposals,
00:26I guess if you can call them that, could affect a whole swath of industries.
00:30Take your pick.
00:30No, exactly.
00:31We've been talking to folks who are watching the market and like whether it's a headline
00:35and then you got to wait to see the details of ultimately does this turn into some kind of policy from the White House.
00:40But yeah, the defense industry, the housing industry, some of the big investment firms,
00:45the private equity guys, we've definitely seen them react to news out of the White House.
00:49Interestingly enough, it was enough to kind of change the overall tone of the trade this afternoon
00:53when the president did go on social media and make these proclamations, pronouncements.
01:00Proposals, perhaps?
01:00Proposals.
01:01I do have questions about some of the enforceability.
01:03Social media posts.
01:04Of some of these.
01:05But they're certainly moving markets and they move individual stocks, too.
01:08Yeah, absolutely.
01:09I mean, you take a look at Blackstone.
01:11There's a lot of questions about how exactly this ban might actually be implemented if it is more than a trial balloon.
01:17But you take a look at the shares, down 5.5%.
01:20Certainly, someone is taking this seriously.
01:22And we should just point out, too, just to be very clear, a couple of these proposals basically could only happen with the help of Congress.
01:28And as we know, Congress has had some serious issues with regards to getting anything done.
01:33Don't forget, there is still a budget battle that has to be resolved by the end of this month.
01:37And, of course, with the recent passing of a key member of the Republican caucus, you now have a much smaller majority to maybe potentially get things on.
01:47And we should also point out we are getting a headline crossing the Bloomberg terminal right now that President Trump is scheduled to deliver his State of the Union speech on February 24th.
01:56So a lot is going to be going on over the next few weeks for investors to keep an eye on out of Washington that will have a direct impact on what happens on Wall Street.
02:03As for what happened today, the Dow Jones Industrial Average lost 466 points, or about nine-tenths of a percent.
02:09The S&P lost 24 points, or three-tenths of a percent.
02:12The Nasdaq composite managed to hold on to its gains for the day, but only just up about two-tenths of a percent here on the day.
02:19The Nasdaq 100 up about a tenth of a percent.
02:21The Russell 2000 in the red down three-tenths of one percent.
02:25All right, back to the S&P 500.
02:26I go, and most names in that index lower in today's session, guys.
02:31389 names losing ground in the S&P 500.
02:34Katie, 114 to the upside.
02:36Yeah, breath was not too pretty when you take a look at this circle of sectors.
02:41In terms of what did well today, health care having a surprisingly good day, up about one percent.
02:45Communication services to information technology, that's only higher by about a tenth of a percent.
02:51But we know that that's a pretty big weighting.
02:53In terms of the downside.
02:54Why is it called information technology?
02:55I don't know.
02:56It feels very formal.
02:57I usually just call it tech.
02:59Old school, right?
03:01Listen, the circle says information technology.
03:03Do you want to talk to the S&P about this?
03:04I'll try.
03:05I'll try.
03:06If they're watching.
03:06Anyway, I have to tell you about utilities, Romaine.
03:08It was down about two and a half percent as a sector.
03:12Industrials, materials, also some of your biggest losers, Carol.
03:15How do you get anything done over there, Katie?
03:17Exactly.
03:19You know, it's a give and a take.
03:20You know, they keep her sequestered on the other side of the building.
03:23That's true.
03:24Just so she gets work done.
03:25I only see Romaine for two hours a day.
03:27That's all the doctor ordered.
03:30All right.
03:30Carol.
03:31You do it well.
03:31All right.
03:32Let's get to some of the individual gainers.
03:33Hey, guys.
03:33You want to see something really cool?
03:35Go to NDX, Index, DES, SPX, Index, DES.
03:39And the four top gainers in both of those averages are exactly the same.
03:45Intel, Regeneron, CrowdStrike, and is it Palo Alto?
03:49I just think that's kind of wild.
03:50All right.
03:51Cool.
03:51None of those names are on the screen.
03:52Okay.
03:54Intel is the number one gainer in the S&P 500, the NASDAQ 100.
03:59It was up more than 11% at its intraday high today, finishing with a 6% gain.
04:04That intraday high, highest level since April of 2024.
04:07Bond trading volume jumped on this one.
04:09Options trading surged, led by those $46 calls.
04:12Keep in mind that Mobileye Global, of course, buying that humanoid robot maker,
04:17Menti for $900 million.
04:19Mobileye's biggest shareholders is Intel, according to Mobileye.
04:23So I just, I don't know.
04:23That was the only news I could find, but I just thought it was kind of interesting.
04:26Okay.
04:26That's a stretch.
04:27By the way, did you see all the humanoid robots everybody's been parading out at CES?
04:30They've moved very slowly.
04:31They're very scary.
04:32No.
04:32You see the Boston Dynamics one?
04:34Yeah, that's one I've ever talked about.
04:35If I saw that walking down the street, I would cross.
04:37That guy can, that robot can do cartwheels.
04:40Is it still the little dog, or are we talking about a different dog?
04:42No, this is a, like.
04:43It's like your size.
04:44Oh, God.
04:45You're probably stronger.
04:45Keep it away from me.
04:46I doubt that.
04:48All right.
04:49Moving along, everybody.
04:50Anywhere Real Estate, ticker is H-O-U-S.
04:52That was definitely a gainer in today's session.
04:54Finishing the day with a gain of about 17.5%.
04:57Compass, also higher.
04:59We'll bring that one up, 9.5% to the upside.
05:02Anywhere Real Estate shares climbing to their highest level intraday since 2022 after announcing
05:07that its acquisition by Compass cleared regulators.
05:11So, again, that deal getting done.
05:13So, we saw both of those names to the upside.
05:16And then one more for you.
05:18LGI Homes.
05:19Oops.
05:20Maybe we shouldn't bring it up.
05:21But we did.
05:22There it is.
05:23It was up almost 10% at its highs today, finishing with a decline of 1.6%.
05:28For our viewers who don't know, or listeners, I should say, Carol, her job, her only job
05:33is every day to come out and tell you which stocks rose.
05:37But very frequently, she sometimes has something on the air that actually.
05:40Okay, not too frequently.
05:41Not too frequently.
05:42It's the first time it's happened this year.
05:43This is why, just to note our producers who give me a hard time about, like, why I don't
05:46send the names that are down until, you know, like 3.58 p.m.
05:49It's because I just want to make sure there's still declining.
05:52You know what?
05:52Not Happy New Year to you two anymore.
05:54All right.
05:55Let's move on, because I've got a few decliners for you guys.
05:59I have a decliner for you, too, Tim.
06:01You do.
06:01You do.
06:02Let's talk, though, about defense names.
06:04Lockheed Martin, Northrop Grumman, General Dynamics, all down to the tune of more than
06:084% today.
06:09President Trump pledging to block dividends, stock buybacks, and overcompensation of executives
06:14until defense companies speed up production and maintenance of military equipment.
06:19The president said execs at these companies should not be allowed to make in excess of
06:23$5 million until his concerns are addressed.
06:25When I see these companies, he talked about defense companies overall.
06:29He didn't name these companies specifically.
06:32Go ahead.
06:32Yeah.
06:32Well, just actually, now that you're saying that, Trump actually out with the truth social
06:35posts right now, this involving RTX.
06:38He refers to it as Raytheon.
06:40Of course, this change is named RTX.
06:41It was lower by 2.5% in the cash session, now down an additional 2% here in the after-hours
06:46trade.
06:47And he specifically calls them out, basically hitting, I'm not going to read this all, but
06:50basically hitting on some of these issues with their relationship with the Defense
06:54Department or Department of War, as he calls it, and wants them to stop paying dividends.
06:58I'm interested in what exactly prompted this.
07:00It sounds like delays of our equipment and just how long it takes for this stuff to come.
07:03But I would like to hear what exactly it was that prompted him to send out this post.
07:08According to him, he says he wants Raytheon, this is a quote, step up, start investing
07:14in more upfront investment like plants and equipment, or they will no longer be doing
07:18business with the Department of War.
07:20And if Raytheon wants further business with the United States government, under no circumstances
07:24will they be allowed to do additional stock buybacks.
07:28This goes on and on.
07:29I encourage our viewers to go and check out the full Truth Social post.
07:33Yeah.
07:34We should remind everybody, a lot of these contracts are long-term contracts.
07:37They're years in the making, and the fulfillment of these contracts are years in the making.
07:41There are not many companies that can actually do what these specific companies do.
07:45So I don't know how much, like, what the enforcement mechanism would be for certain elements of
07:50this.
07:51But look, it's a story that we're going to keep following, and it's definitely moving the
07:54names of these individual stocks.
07:55Also moving lower today, thanks to the president posting on social media, shares of companies
08:00that are in the space of owning homes, institutional investors that own single-family homes.
08:06So Invitation Homes spun off from Blackstone years ago, I think it was back in 2017, down
08:116% today.
08:12American Homes for Rent falling 4.3%.
08:15Blackstone itself, a major owner of single-family homes, down 5.6%.
08:20The president said that he would move to ban institutional investors from buying single-family
08:26homes.
08:26He said, well, learn more at Davos.
08:29The president said he was, quote, immediately taking steps to ban large institutional investors
08:33from buying single-family homes in a push toward promoting housing affordability.
08:37So these companies and more fell today.
08:40And finally...
08:40Why do I have to wait for Davos?
08:42That's where we're getting more details.
08:43Oh, okay.
08:43More details.
08:44When is Davos?
08:46It's coming up.
08:46It's soon.
08:47Soon, yeah.
08:47Two weeks.
08:48Okay.
08:49Also in the red today, Skyworks Solutions and Corvo down...
08:52Skyworks down 9.7%, Corvo down 7.5%.
08:55Notable laggards in the semiconductor stocks as investors await an update about regulatory
08:59paperwork for the planned merger of these two Apple suppliers.
09:03I just want to break in with some breaking news.
09:05This coming from AbbVie.
09:07Remember, we had a Wall Street Journal report earlier today that AbbVie is in, quote,
09:10advanced talks to purchase Revolution Medicines.
09:13It's now learning, AbbVie saying that it's not in talks to acquire the cancer drugmaker
09:19Revolution Medicines.
09:21That is according to a spokesperson.
09:22You take a look at the reactions in shares.
09:24AbbVie shares down about 1% after hours.
09:27Revolution down about 13% after hours.
09:30That's after a day in which it gained about nearly 30% in the regular session on this deal
09:36speculation.
09:37Some of that being reversed right now, Romain.
09:39Yeah, absolutely.
09:40We took a quick look at yield.
09:42You did see a lot of activity in the yield space today, but the net effect of it all,
09:46at least on the shorter end of the curve, was not a whole lot.
09:49You saw a slight uptick on the two-year yield, a slight downtick on the five-year and the
09:5410-year yield.
09:55But on the longer end of the curve, we were talking with Kevin Nicholson about this just
09:58about an hour ago here.
09:59Keep an eye on that 30-year yield.
10:01Down about five basis points today to around 4.8202 and change.
10:05All right, guys.
10:06Some earnings crossing the Bloomberg Terminal, Constellation Brands, and we see this stock
10:09moving higher in the after hours.
10:11The company reported comparable earnings per share for the third quarter.
10:14That beat the average analyst estimate.
10:16So we're talking about $3.06 a share versus an estimate of $2.64.
10:22Net sales, $2.22 billion.
10:24That's down 9.8% from a year ago.
10:26The estimate, though, that is above the street estimate of $2.16 billion.
10:30And again, you can see that stock up about three and one-third in the after hours.
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