00:00And right now we are two minutes away from the end of the trading day.
00:03Romain Bostick alongside Katie Greifeld taking you through to that closing bell.
00:07It's a global simulcast.
00:08Carol Masser and Tim Stenevich join us from the radio room.
00:11Welcome to our audiences across all of our Bloomberg platforms.
00:15Another busy day after the bell tonight with some big earnings,
00:18including, well, from the second biggest waiting in the S&P 500.
00:21Yeah, looking forward to it when Apple reports at about 4.30 p.m. Wall Street time.
00:25And it'll be interesting to see, like, Meta did well off of their earnings and that AI story.
00:30Not the case for Microsoft.
00:32Tesla, which was up initially after it reported aftermarket yesterday.
00:35We're seeing it down in today's trade.
00:37So I'm curious.
00:38Apple is expecting a record quarter, but we'll see what we get when, you know,
00:42the AI story for them has not been so good to him.
00:44I thought Romain was talking about Decker's outdoor.
00:48Thanks, Tim.
00:49That company is reporting after the bell, too.
00:53It's not just Apple.
00:55Visa, KLA Corp, Sandisk as well, among others.
00:58We're going to bring you all of those names.
01:00I do want to point out something amazing happening on the S&P 500.
01:03We're down just tenth of a percent, Romain.
01:05We were joking about whether or not it was actually going to go positive,
01:09but it has about 40 seconds.
01:10It might get there.
01:11It might get there, but it gets to the idea of a bit of a holding pattern,
01:14particularly coming off of yesterday's, that sort of duality of earnings between Microsoft and Meta.
01:19But we were just speaking with Vinu Krishna over at Barclays,
01:21and he kind of gets to this idea here that this has basically become a single stock market.
01:25And there's a lot of bifurcation out there, according to him.
01:27He's saying that the correlations right now are at some of the lowest levels we've seen,
01:31at least when it comes to some of those big tech stocks.
01:34And you mentioned Sandisk.
01:35That could actually be a big part of the story for Apple
01:38as we take a look at memory prices hovering near record highs.
01:42As for the market, we're not going to close at record highs today here.
01:46A bit of a pullback, if you will.
01:47Let's just call it softness.
01:49The Dow Jones Industrial Average is in the green by roughly about 20 points as we wait for these numbers to settle.
01:53We're just going to call it unchanged on the day.
01:55The S&P down a tenth of a percent.
01:57The Nasdaq Composite down seven-tenths of a percent.
02:00And the Russell 2000, we're going to call it flat up one point on the day.
02:05Carol.
02:05All right.
02:06Let's get to the S&P 500.
02:08We've seen pretty much an even split throughout the session.
02:11And that's a little bit more to the upside.
02:14286 names in the S&P 500.
02:16Katie, higher.
02:17213 to the downside.
02:18Four unchanged.
02:19All right.
02:20Let's take a look at the sector level here.
02:22It's interesting when you break it down, looking at the circle, in terms of what was your big, gigantic winner today,
02:28it was actually consumer communication services that is solely, not solely, but a large part due to Meta and the huge rally that we saw there.
02:38Real estate also popping today.
02:41So, too, did financials and energy.
02:43In terms of what didn't perform overall, tech.
02:46As you probably aren't surprised, Microsoft having a terrible day.
02:50Consumer discretionary also off by about six-tenths of a percent, Carol.
02:53All right, guys, let's get to some of the individual gainers as we await earnings to cross the Bloomberg terminal.
02:59Got to go to Meta Platforms.
03:01This definitely was an outperformer in today's session.
03:03Of course, 24 hours ago, we were breaking down their earnings.
03:07It's the number three gainer in the S&P 500.
03:09I believe the number one in the NASDAQ 100.
03:12That stock, as you can see, up 10% here at the close.
03:15There's a lot to say about this company.
03:17Check it out on the Bloomberg.
03:18But just real quickly, EPS sales beats.
03:22The company also gave a revenue outlook that was much stronger than expected, which helped offset really the impact of higher AI-related spending.
03:29That has been on everybody's minds.
03:30But nonetheless, investors being pretty rosy when it comes to Meta.
03:34Just want to mention Southwest.
03:36LUV is the ticker.
03:37That is the number one gainer in the S&P 500, up about 19% in today's session, reporting results at top-down list estimates, signaling the fruits of a turnaround after a rather challenging year.
03:49A company working to add premium options and has transitioned from its long-time open seating system, we all remember that, to assign seats as part of a strategy.
03:56And some of us still love it.
03:57Well, I guess I can't love it anymore.
03:59I want my seat.
04:00I want to know where I'm going.
04:01And I want to be in boarding group number one.
04:03Okay.
04:03Sorry, princess.
04:04All right.
04:04I wear the crown probably.
04:07Do you want to do some earnings?
04:09Yeah, Visa crossing the wire right now here.
04:11Other numbers themselves here look to be relatively in line with expectations.
04:15317 on the bottom line.
04:16That's your adjusted EPS number for the first quarter.
04:20314, that was the average of analyst estimates.
04:23So a slight beat there.
04:24Net revenue at $10.9 billion.
04:26The street estimate was looking for about $10.7 billion across border volumes on a constant currency basis, up about 12%.
04:33We need to dive a little bit deeper into this release because the real story here is still a lot of concerns about any potential settlement on those exchange fees and how that might affect their business.
04:42All right.
04:42Well, I'll give you a moment to do that.
04:44I actually have a little bit on that.
04:47In the release, I'm going through this.
04:49The company says on November 23, 2025, Visa deposited $500 million into its litigation escrow account, which was previously established under the company's U.S. retrospective responsibility plan to insulate the company and Class A common stockholders from financial liability for certain litigation claims.
05:08The deposit has the same economic effect on earnings per share as repurchasing the company's Class A common stock as it reduced each of the as-converted Class B1 common stock.
05:17Okay.
05:18Well, anyway, that's the news there.
05:20Thanks, Tom.
05:21And it's a superseding and amended settlement agreement to release the interchange multi-district litigation injunctive relief issue claims.
05:27The settlement's subject to approval by the court.
05:28So the lawyers went through this press release pretty closely.
05:32I feel like that wasn't written by a PR person.
05:34Yeah, I agree with you on that.
05:36But anyway, that's your answer to the question about litigation, Romain.
05:39Thanks, Tom.
05:40You got it.
05:40You know what?
05:40You get an assigned seat on that.
05:44I'm still waiting for the interpretation on that.
05:46Hey, I'm going to go back to Gaynor's cruise ships.
05:49They were definitely some outperformers in today's session.
05:52We'll bring up the boards for your Royal Caribbean up more than 18% in today's session.
05:56The company came out.
05:57Fourth quarter financial really squashed investors' concerns over cruise demand.
06:01They said demand for cruise holidays keeps accelerating, which could see the liner and as many as six additional ships to its fleet.
06:08They had a lot more positive commentary, too, about the business.
06:12So Royal Caribbean up almost 19%.
06:14You saw Norwegian also up.
06:17Aren't you hip?
06:17I'm really cool, aren't I?
06:19Royal Norwegian up about 10%.
06:22And then Carnival up about 8.5% in today's session.
06:26I'm not really cool, but I try.
06:27Okay, stocks in the green, stocks in the red.
06:29Got to start with Microsoft shares having their worst day, going all the way back to 2020, down 10%.
06:35This after reporting record spending and slowing cloud sales growth, fueling investor concerns about the return on that spending.
06:42We spoke to Angelo Zeno of CFRA a little earlier.
06:46He's recommending people buy the dip on the sell-off.
06:48He said the valuation is compelling.
06:50Concert around the Azure number and concentration risk in open AI.
06:54Kind of sees those as overblown.
06:56He's still bullish on the stock, Katie.
06:58Yeah, there you go.
06:59Meanwhile, let's go to Decker's, which it owns Uggs, but it also owns Hocus, of which I am a huge fan.
07:05Their third quarter net sales beat estimates.
07:09They came in at $1.96 billion.
07:11The estimate had been for $1.87 billion.
07:14Third quarter EPS coming in at $3.33.
07:17You can see shares popping right now and higher by about 4.8% in the after hours, though I will note this company is coming off of a terrible 2025, falling about 49% or so last year.
07:30So they really needed some good news, and it looks like they got it.
07:34Their full-year net sales, they see that at $5.4 billion to $5.43 billion.
07:41They had seen $5.35 billion, and the estimate had been for $5.36 billion, so definitely an upgrade there.
07:50Well, let's go over to KLA Corp.
07:53That company reporting results and shares up this year by close to 40%, shares up last year by more than 100%.
08:01Second quarter revenue coming in above estimates at $3.3 billion.
08:05Second quarter CapEx coming in above estimates at $105.6 billion.
08:10Second quarter adjusted EPS coming in above estimates at $8.85.
08:14The company, as far as the outlook goes, sees third quarter adjusted EPS, $8.30 to $9.86.
08:22Estimates were for $8.96.
08:25In the after hours, shares taking a hit down about 4.4%.
08:29All right.
08:29Obsessed with these companies, including Western Digital.
08:33I mean, this space has been on fire.
08:34This one's up almost 300% last year.
08:37It's up a lot already this year.
08:38Let's go to second quarter adjusted EPS, $2.13 a share.
08:43Easily a beat.
08:44Street was looking for $1.95 a share.
08:47Let's get to the outlook.
08:48Always important.
08:49Sees third quarter adjusted EPS, $2.15 to $2.45.
08:54Sees third quarter adjusted margin, 47 to 48%.
08:58Sees third quarter revenue, $3.1 billion to $3.3.
09:02I'm looking for some comparisons there.
09:04But you can see the stock already up about 2.25% here in the aftermarket.
09:08Again, this is another one of those that plays into the AI trade specifically when it comes
09:13to storage and the like.
09:15And so here's another outlook.
09:17Sees third quarter adjusted EPS, $2.15 to $2.45 a share.
09:20The estimate on the street remain, only $2 a share.
09:23So that's a big up.
09:25And I'm fascinated by this, too.
09:27Not just because of the phenomenal run-up in these prices, but then it also offers a
09:30read-through into what we might hear from Apple a little bit later in the afternoon.
09:34Remember, as names like SanDisk and Western Digital rise on the back of pricing in the
09:39memory chip space, you have to remember that those chips actually go into devices, a lot
09:43of devices, of course, made by Apple.
09:45So we'll see how it all balances out, of course, with Apple expected to announce some progress
09:49on the AI front, but maybe getting a little bit of a drag from some of those prices.
09:54And speaking of which, SanDisk out.
09:55The share is getting a nice pop right now, Carol, up 10% in the after-hours trade.
09:59How?
09:59The company providing a revenue number, $3.03 billion.
10:02The street was looking for $2.67 billion, so a beat on that front.
10:06Got to dive a little bit deeper in to get the rest of the numbers here, but the knee-jerk
10:09reaction to the upside.
10:10Yeah, that one was up more than 1,400% last year.
10:13Yeah, I know.
10:14I'm crying.
10:15Are you?
10:15Yeah.
10:16Because you had no exposure?
10:17Yeah, I'm just in like these, you know, lazy little dividend, you know, what do you
10:20call them?
10:21Index funds.
10:21Index funds.
10:22It's not just about buying shares of Crocs.
10:25Warren Buffett?
10:25Warren Buffett, heard of him?
10:27Yeah, I mean, you know, he had a nice run.
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