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.
00:08Carol Mazur and Tim Stenevich join us now.
00:11Welcome to our audiences across all of our Bloomberg platforms, television, radio, our partnership with YouTube.
00:16Another interesting day on Wall Street.
00:18And in just a few minutes, it might get even more interesting.
00:20Earnings scheduled to drop from Intel.
00:23Yeah, which makes me think about that one.
00:24I mean, it's little change in today's session.
00:26Keep in mind, it's been on quite a run this year.
00:29Last year, I mean, it gained nearly 12% in yesterday's session.
00:32Even the Sox, which has been on a bit of a run, very mellow in today's trade, underperformance.
00:38So we'll see what we get from Intel.
00:39The expectations, certainly based on that run, I would say are pretty high.
00:43We're also seeing that rotation into small caps continue.
00:46The Russell 2000, again, outperforming, Katie, the S&P 500 today for a 14th day in a row.
00:52Yeah, we've been keeping a close eye on what's going on with those small caps.
00:55What exactly the fundamental story is?
00:58Again, I'm not quite sure.
00:59We've had this conversation before.
01:01I do want to, speaking of fundamentals, I do just want to kind of touch back on Intel.
01:04Because we talk about a company, we should point now, expectations are for revenue to be down.
01:08But the idea is that that slowdown in revenue is actually slowing itself.
01:12Remember, on an annual basis, this is a company that saw revenue drop in 2022, 2023, 2024.
01:18And it's going to be, again, in 2025, unless they surprise us in a couple of minutes.
01:22But the big expectation right now is what does 2026 look like?
01:26Analysts are pricing in a return to revenue growth.
01:29Are they going to meet those expectations?
01:32Yeah, exactly.
01:33So these are things that we're looking at.
01:34You know, I'm just looking at, you know, Intel, I think, actually having, is it a bigger market cap than TSM?
01:41I'm going to look this up.
01:42Yeah, look that up here as we walk through the numbers here.
01:44Green across the screen, though, a little bit more subdued than the gains that we saw yesterday.
01:48The Dow up six-tenths of a percent.
01:50The S&P up five-tenths of a percent.
01:52The NASDAQ composite up nine-tenths of one percent.
01:54And the Russell 2000 closes out the day higher by about eight-tenths of a percent on the day.
02:01All right, just going to the S&P 500, folks.
02:04Taking a quick look here, and you're seeing kind of an even split here.
02:07You've got about 285 names to the downs, to the upside, excuse me, at 214 to the downside.
02:12And you've got four unchanged.
02:14Let's take a look at the sectors as well.
02:16Not quite an even split.
02:18You do have seven sectors in the green, seven or four, rather, finishing in the red.
02:23In terms of what outperformed today, communication services was your big winner.
02:27You also had consumer discretionaries show up.
02:29So, too, did tech.
02:31In terms of what didn't have so great of a Thursday, real estate down by more than one percent.
02:36Utilities, industrials, and consumer staples as well.
02:39All right, guys, let's get to some of the individual gainers as we await earnings.
02:43And I'm going to start with arm holding.
02:46Chips, though, certainly have been on our mind.
02:48Arm holdings, though, you saw that one gain as much as eight and a half percent intraday at its highs.
02:53Yeah, I'm going to interrupt you now here, Carol.
02:54My apologies here.
02:55Intel earnings crossing the wire right now.
02:57Let's go straight to the revenue forecast.
03:00For the first quarter, the company says adjusted EPS will be zero.
03:04The street was looking for eight cents a share.
03:06As for the revenue side, the company says revenue for the first quarter, the quarter that we're in right now, $11.7 to $12.7 billion.
03:14The street was looking on average for $12.6 billion.
03:18So the top end of that range is right around what the street was looking for.
03:22But, of course, it's a wide range of about a billion dollars here.
03:24That might be why you're seeing some softness in the shares.
03:27As for the quarter that just passed, the fourth quarter, revenue did beat $13.67 billion.
03:32Adjusted operating margin did beat 8.8 percent.
03:36Adjusted EPS also beat at 15 cents a share.
03:39The street was looking, guys, for 8.7.
03:41Yeah, that's the thing.
03:42You can see shares actually pairing their decline right now down about 1.3 percent, but it's volatile out there.
03:48I mean, Romain makes a good point that the look back, when it comes to the fourth quarter, they actually beat there when it comes to the adjusted EPS.
03:54But certainly that first quarter outlook, Tim, is going to be disappointing for a stock that, as Carol said, has had quite the run-up.
04:01Yeah, down 4 percent in the after hours.
04:03I'm going through the press release and looking at commentary from Intel's CEO, Lit Boutan, who says,
04:08As our conviction in the essential role of CPUs in the AI era continues to grow, he continues to say,
04:15Our priorities are clear, sharpen execution, reinvigorate engineering excellence, and fully capitalize on the vast opportunity AI presents across all of our businesses.
04:25Intel shares in the after hours, bouncing around a little bit, but down about 4.8 percent.
04:29Just going to layer some commentary from the CFO, Dave Zinsner, also on Intel, saying it sees the lowest available supply in the first quarter before improving in the second quarter and beyond.
04:39So we have seen this with a lot of the players in the chip sector.
04:42The demand is there, but the supply, they're not able to meet it.
04:45You know, it's kind of interesting.
04:46We were speaking with Jay Goldberg over at Seaport earlier today.
04:48He's actually relatively bullish on Intel.
04:51We should point out, this is a stock that has something like 36 holds, something like seven or eight cells.
04:55There's only nine analysts out there on the street that have a buy, and Jay is one of them, and he actually thinks that they can actually start to ramp up production on some of these chips.
05:02His biggest concern was whether they can do that in a cost-effective way.
05:06He said he's going to be really laser-focused on what this company has to say on the conference call about those costs going forward.
05:12It was also interesting to hear him explain why we saw such a huge surge in Intel last year.
05:18The question was whether Intel was going to be able to continue to exist.
05:22Of course, now it has the Trump administration's backing.
05:25The Trump administration does have a stake in this company.
05:28You have a stake in this company.
05:30Romaine has a stake in this company.
05:32We own 10 percent of this company as Americans.
05:34Yes.
05:35I think you bring up a really good point.
05:37So is this the U.S. backing trade, or fundamentally, is this company getting on a better trajectory?
05:42And I think that's where we've got to kind of watch and see what else commentary we get from this company.
05:47And is it able to stick around for a long time?
05:50I think it'll be interesting how they address that on the conference call.
05:53And I think it's kind of, to answer your question, it's kind of yes and yes, right?
05:55This is still about basic good old-fashioned corporate fundamentals, but also like its place in the AI space.
06:01Does that relationship with the U.S., that 10 percent stake and whatever sort of things the White House can use their bullying pulpit for to sort of help this company build out, does that become the fundamental story?
06:11I don't know.
06:11I also want to point out its foundry revenue.
06:14Excited to get more color there.
06:16Foundry revenue coming in in the fourth quarter, $4.51 billion.
06:21The estimate had actually been for $4.36 billion.
06:25So actually a bit of a surprise there.
06:27The big question is, you know, what does the customer acquisition strategy look like?
06:31Are they adding new clients there?
06:33One of the big fundamental questions about Intel at this juncture and their place, to Romaine's point, in this AI space.
06:40Just to reiterate some headlines as we watch, Intel shares down about 5 percent in the after hours.
06:44The company says it's making good progress in 14A production.
06:48Lib Boutan says production yield is not up to its standards.
06:51And the CEO says chipmaker missed a lot of opportunities and says they can't get enough supply to meet orders, though demand is quite strong.
06:58All right, guys, let's go to Capital One Financial, also reporting its earnings after the closing bell.
07:03And you've got a couple of headlines, but let's get to one from The Wall Street Journal that it is planning to buy Brex for $5.15 billion in a cash and stock deal.
07:14So some movement within another financial, another banking company in terms of an acquisition, a pretty sizable one, if you will.
07:20The stock right now is down about 2.6 percent.
07:24So, again, confirming that pact.
07:28And I'm just going to kind of do a quick look at fourth quarter adjusted.
07:31What? Go.
07:32Sorry, but I just want to say on the Brex deal, because that's a big deal, because we've been talking a lot about these credit card potential caps on credit card rate fees.
07:38And Brex is, I mean, this is basically rewards and kind of everything not really fee related.
07:43At least that's their sort of bread and butter, the technology and the rewards that go along with it.
07:47So it's kind of interesting to see Capital One leaning deeper into that reward space.
07:51Yeah.
07:51I'm looking at The Wall Street Journal write-up of this.
07:53It oversees, Brex oversees close to $13 billion in deposits held at partner banks and money market funds.
07:59The acquisition is expected to close in the second quarter of this year.
08:03Brex's CEO will plan to continue in the role after this deal closes.
08:07Capital One financial shares down in the after hours by about 4.3 percent.
08:11All right, folks, back to Intel We Go, because we've seen this one kicking around in the aftermarket.
08:15Again, the headline, the company giving a lackluster forecast for the current quarter, talking about supply shortages are making it harder to meet customer demand.
08:24So once again, a disappointment for investors who kind of were looking for more of a boost from new products.
08:29And you can see Intel shares, they are just trading down about 3 percent here in the aftermarket.
08:35And keep in mind, this has been a top performer among the semiconductor names over the last year or so.
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