00:00And right now we are two minutes away from the end of the trading day. Romain Bostic here alongside Katie
00:05Greifeld taking you through to that closing bell with a global simulcast. Carol Master, Tim Stenevek, they join us now
00:11as we welcome our audiences across all of our Bloomberg platforms, television, radio, our partnership with YouTube to parse the
00:17most crucial moments here in the trading day. Carol Master, Tim Stenevek, great to see you once again here on
00:22this Tuesday afternoon.
00:23Did you bring us back any Olympic chocolate or anything like that? Olympic chocolate? I don't think that's a thing.
00:29They passed out some other things at the Olympics.
00:31You did bring back some goodies. How about a medal? Nothing coming this way in the newsroom. I'm just saying.
00:36I'm just saying.
00:36I walked by your desk earlier today, Carol, and you weren't there. I just assumed you had the day off.
00:41No, I've been working. I've been working. Anyway, good to have you back. Even split in the S&P 500.
00:46I feel like this is a market looking for direction, whether we get it from earnings as Walmart reports and
00:52retailers.
00:53We also get Fed Minutes tomorrow. And then, of course, you have an inflation print later on this week, an
00:57important one.
00:58So maybe we're just looking for something to help us figure out what happens from here.
01:02Well, in the early part of the day, it was looking like it was going to be tech under pressure
01:06with the S&P down as much as nine-tenths of one percent.
01:09And a lot of those mega-cap tech companies falling. But like Carol said, the S&P 500 is searching
01:15for direction a lot of the day.
01:17By my count, more than a dozen times, Katie, moving between gains and losses today.
01:22Wow. So you really had your microscope out taking a look at that S&P 500. I will say the
01:27NASDAQ 100, it looks like it will finish.
01:29Real shoe leather recording there.
01:30Always do, guys.
01:31It will finish in the red.
01:32That's how I roll.
01:33These are small moves overall. It really feels like this was sort of a wait-and-see sort of day.
01:39Well, after coming off one of the worst weeks in quite a few months here, you saw the dip buyers
01:44come back in here on this Tuesday afternoon.
01:47But the net effect of it all is really a market that is going to end the day effectively going
01:52nowhere.
01:52It takes a while for these numbers to settle.
01:54The Dow is going to finish in the green, but only up about a tenth of a percent.
01:57The S&P is going to finish in the green, but only up about a tenth of a percent.
02:01The NASDAQ composite is going to finish in the green, but only up about a tenth of a percent.
02:05We should point out that NASDAQ 100 is going to close out the day down a tenth of a percent.
02:10And you take a look at the Russell 2000, we'll just call it a wash here, down about one point.
02:15So basically unchanged on the day.
02:17It's a one-tenth of a percent kind of day in a big way.
02:20As I mentioned earlier, though, if you dig inside something like the S&P 500, more of an even split.
02:25So there were some stocks that actually moved big time to the upside and big time to the downside.
02:30241 names, though, overall, Katie, gaining ground in the S&P 500 on this Tuesday.
02:35261 lower on the day, one unchanged.
02:38Absolutely.
02:38Things got a little bit more interesting.
02:40When you take a look at the sector level here, you can see the circle is really a mix of
02:45colors, basically, too.
02:47But there's a lot of them.
02:48Anyway, real estate was your biggest gainer on the day.
02:50That sector gaining by one percent.
02:53Financials also having a pretty good start to this short week.
02:56Tech higher by about half a percent.
02:58And meanwhile, in terms of what didn't perform, Consumer Staples, your biggest loser on the day, down one and a
03:03half percent.
03:05Energy, Carol, also down as a sector by about 1.4 percent.
03:10All right, guys, let's get to some earnings crossing the Bloomberg Terminal.
03:13We have Caesars Entertainment crossing as we speak, bringing up the numbers.
03:17Just a few headlines here.
03:19Let's look at fourth quarter loss of $1.23 a share.
03:25Fourth quarter store net revenue, $2.92 billion.
03:29That compares a little bit above the estimate on the street of $2.89 billion.
03:34Right now, you're seeing the stock a little changed here in the aftermarket.
03:37So maybe looking for a few other headlines when it comes to their business and getting an idea on the
03:41world of gambling.
03:42So we'll keep an eye on that.
03:43In the meantime, I'm going to go to some of the individual gainers.
03:48Number one gainer in the S&P 500.
03:49In fact, up about 12 percent in today's session.
03:52We're talking about Norwegian Cruise.
03:54This one, after activist investor Elliot Investment Management said it built a more than 10 percent stake in Norwegian,
04:02also sent a letter and presentation to the company's board urging changes to unlock what it believes is more than
04:07150 percent upside for shareholders.
04:10So, again, about 12 percent upside in today's session alone.
04:13Let's go to another one.
04:15Massimo.
04:16This went up 34 percent.
04:17No surprise.
04:18It was a target bought out by Danaher, agreeing to buy the medical equipment firm for $180 a share.
04:25That's a 40 percent premium over Friday's close, a total enterprise value of about $9.9 billion,
04:31allowing Danaher to gain a foothold in the medical supply business.
04:35So some M&A Tuesday action happening.
04:39And then TripAdvisor.
04:40Let's go on over to there.
04:42Up about 9 percent in today's session.
04:44This is after Starboard Value delivered a letter to TripAdvisor's leadership highlighting prolonged underperformance
04:51and announced plans to nominate a majority slate of director candidates for the 2026 annual meeting.
04:57Keep in mind, TripAdvisor's down almost 30 percent year-to-date.
05:00We've got some more earnings.
05:01Romain, take it away.
05:02Yeah, Cadence Design, of course, makes software to design chips.
05:05Out with its report right now, 4Q-adjusted EPS, a beat at $1.99 a share.
05:10The street looking for $1.91, revenue beating slightly at about $1.44 billion.
05:15Here's your guidance.
05:16For the full year, 2026, the company says expect revenue in a range of $5.9 to $6 billion,
05:22the low end of that range right around the average of street estimates.
05:25As for EPS, for the full year, $8.05 to $8.15 a share.
05:29That's the guidance, the low end of the range, basically right around the average of street estimates.
05:34A slight pop in the shares now on change, actually, but they were up about 7 percent here in the
05:38after-hour street.
05:39All right.
05:40You are looking at some earnings.
05:42We're still waiting for a few more companies to report it.
05:44Then, of course, the big one coming next week.
05:46I do want to take a look at some of the stocks that were on the decline today.
05:50I want to start with the worst performer in the S&P 500.
05:52This is the owner of Napa Auto Parts, genuine parts company, GPC.
05:56Shares fell today by more than 14.5 percent.
05:59This is after the company announced fourth-quarter earnings that fell short.
06:03Net sales also came in below expectations.
06:06The company, though, is going to split into two public companies following a review of options for its automotive and
06:11industrial business lines.
06:13The split comes during a volatile stretch for the automotive business.
06:16It's grappling with higher prices, higher costs, economic uncertainty, and affordability challenges for consumers.
06:22Do you know how to change your oil, Tim?
06:25Sorry?
06:25Do you know how to change the oil in your car?
06:27I know how to take it somewhere to be changed.
06:29Nobody changed—Romaine, here's the deal.
06:30Here's the real thing.
06:31Nobody changes their oil anymore because what do you do with the oil?
06:35That's the old oil.
06:36You pour it down the sink.
06:36No.
06:38Sorry, Mr. Environmental.
06:39That's what—
06:39I don't want to burst your bubble, but—
06:41That's what people used to do.
06:43Yeah.
06:43And it wasn't good.
06:44Okay.
06:45But that's the real reason why it's so hard to change your oil.
06:47Well, what do you do with the oil, Tim?
06:49You're supposed to take it somewhere to recycle it, and by the time you do that, you might as well
06:53just take your car somewhere to have the oil changed for you.
06:55Like the sewer, you know?
06:57Oh, okay.
06:58You guys are killing me.
07:01Katie, you're watching Palo Alto Network.
07:03Yeah, we do have some earnings back to business here.
07:05These results coming out.
07:06They see full-year adjusted EPS, $3.65 to $3.70.
07:12The estimate had been for $3.87.
07:15So that range, of course, falling below the estimates here.
07:19The full-year revenue seen between $11.28 billion to $11.31 billion.
07:26They had seen $10.5 billion to $10.54 billion, so a bit higher there.
07:33You can see the shares right now trying to decide what to do, but the initial read is higher here.
07:39They also see next-generation security ARR for the full year between $8.52 to $8.62 billion here, again,
07:49for Palo Alto Networks.
07:51Okay, we've still got some more names that are expected to report today, including Toll Brothers.
07:56We'll bring those numbers to you as we do get them.
07:58In the meantime, a couple more decliners here.
08:00Also a worse performer in the S&P 500 today was General Mills.
08:03The company lowered its fiscal 2026 outlook, citing a more challenging consumer environment.
08:09The company said weak consumer sentiment, heightened uncertainty, and significant volatility have weighed on category growth and affected consumer purchase
08:16platforms.
08:16This is the parent company of cereals such as Cheerios, down 7% on the day today.
08:23And finally, Danaher.
08:25Carol had the news with this company agreeing to buy Mossimo Corp in a deal with an enterprise value of
08:30about $9.9 billion.
08:32Mossimo shares moved higher.
08:35Danaher fell today by just about 2.9%.
08:37All right, let's get a quick check here on yields here.
08:40A mixed day here.
08:41You saw on the shorter end of the curve, a slight uptick in yields, about three basis points for your
08:45two-year yield.
08:46On the longer end of the curve, we don't have it on the screen.
08:49We should start putting it there, though.
08:50The 30-year yield did actually decline, but only by less than one basis point here.
08:55So something to keep an eye on, particularly as we head deeper into the month of February and into March
08:59and the next big Fed meeting.
09:01All right, guys, just watching those earnings.
09:02Cadence now up about 1.6%.
09:04You got Palo Alto down about 2%.
09:06And Caeser now up about almost 3%.
09:09Caeser's entertainment.
09:10So some movement.
09:11And we'll continue to track some more earnings after the close.
09:14All right, that's a wrap.
09:14Our cross-platform radio, TV, YouTube, Bloomberg originals.
09:18We call it the closing bell.
09:19Katie and Romaine continuing there, of course, on the close on TV.
09:23And Tim and I continue on Bloomberg Business Weekly.
09:25Is that what they say?
09:26Is that what you learned?
09:26Yeah, I've been speaking Italian.
09:28Wow, I'm very impressed.
09:28They're driving everyone.
09:29Still waiting for those Olympic chocolates.
09:32It's just saying, we'll see you again.
09:34They're by my desk.
09:35You can come again.
09:35We'll see you again.
09:37Same time, same place tomorrow.
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