00:00And right now we are two minutes away from the end of the trading day.
00:04Romain Bostic alongside Christine Aquino taking you through to that closing bell with the Global Simulcast.
00:09We're joined now by Carol Masser and Tim Stenevich.
00:11Welcome to our audiences across all of our Bloomberg platforms, television, radio, and our partnership with YouTube
00:17here to parse the most crucial moments of the day, a rebound rally here on this Tuesday afternoon
00:22and some big earnings up ahead that could maybe aid or hinder further gains.
00:27Yeah, I think about that, right? Workday, Lucid, GoDaddy, Kava, HP Inc.
00:32We're going to get those earnings after the closing bell. We'll see what it says.
00:35Certainly any of those that play into the AI world that can give either some support or create some new
00:41worries.
00:41But it does feel like the AI scare, definitely not a part of the trade today, but we'll see what
00:46tomorrow brings.
00:46I was just going to say, wait till tomorrow and we'll see what new tool comes from Claude and Anthropic.
00:51Hey, I do want to take a look at Bitcoin as we do get toward the end of the month.
00:55It's heading for the worst month since the crypto collapse of June of 2022.
01:01Down about $90 today, or as we speak, $64,471 is where it's hovering.
01:08Yeah, well, tech still very much is a story for me today, of course, looking at that Meta AMD deal.
01:13I mean, very interesting that Meta not only buying chips from AMD, also buying shares.
01:18If there's any concern about circular funding, it's not showing up today.
01:22Both of those shares up and going with the gains that we're seeing in the broad market.
01:26I also want to make sure that everyone keeps their eye on what's been going on in the health care
01:29space.
01:30So one of the weaker sectors, particularly when it comes to insurers, we are expecting that State of the Union
01:34speech tonight.
01:35Typically more sizzle than substance, but a lot of talk here about the president's push for affordability and how insurers,
01:42health insurers, might be right in the crosshairs of that.
01:45As we await those earnings, let's walk you through the numbers here on this Tuesday afternoon.
01:49The S&P looks like it's going to close higher by roughly about 50 points or about eight tenths of
01:53one percent, clawing back most but not all of the losses from yesterday.
01:57The Dow Jones Industrial Average up a similar percent, about eight tenths of a percent on the day.
02:01The Nasdaq Composite adding about one percent, and the Russell 2000, Carol, up 31 points or 1.2 percent.
02:09All right, good stuff.
02:10Let me go back to the S&P 500 remain taking a look inside this index.
02:14Most names in the S&P 500 higher today.
02:17In fact, 356 gaining ground on this Tuesday, remain 145 to the downside and two unchanged.
02:23Yeah, consumer discretionary stocks, that is your outperformer here on the day, with nine of the 11 S&P sectors
02:29in the green, industrials and tech also getting in on a lot of action.
02:33But to the downside, it was energy and health care.
02:36All right, guys, let me go to some of the individual gainers.
02:39AMD, number two gainer in the S&P 500, also the number two gainer in the Nasdaq 100, this one
02:45rallying almost nine percent in today's session.
02:48You know the news, Meta Platforms will be spending billions of dollars on AMD gear and has plans to buy
02:53AMD stock.
02:55Meta is going to deploy data center gear based on processors from AMD in a deal worth double-digit billions
03:00of dollars per gigawatt.
03:02Get into the story.
03:03It's on the Bloomberg, all the details, but definitely moving that name.
03:06And I know we got some earnings.
03:07Yeah, we actually got Workday, of course, the application software company, out with the results here.
03:12Remember, this is a stock that has actually been decimated down 39 percent just to start the year.
03:17And it looks like in the after-hours trade, it's moving even lower.
03:20The company says that adjusted EPS in the most recent quarter did come in above estimates, $2.47.
03:26The street was looking for $2.32.
03:28Revenue did grow at about a 15 percent clip to $2.53 billion.
03:32That's relatively in line with estimates.
03:34Subscription revenue on the nose as well at $2.36 billion.
03:38The company, though, is saying that for the current quarter, the fiscal first quarter, it sees $2.34 billion in
03:47subscription revenue.
03:48And for the full year, okay, this is the real guidance here.
03:51For the full year, subscription revenue of $9.9 to $9.95 billion.
03:55The top end of that range is below the average of street estimates.
03:58The street was looking for $10 billion on average, Tim.
04:02And on an adjusted operating margin, the company says expect about 30 percent for the full year.
04:07The street was looking for about 31.
04:09So it's one of those companies, as you mentioned, that people have been concerned that could be displaced or at
04:13least disrupted by AI.
04:14Shares down about 8 percent in the after-hours.
04:16The company now calling itself the enterprise AI platform for managing people, money, and agents.
04:22The statement in the press release coming from the company's co-founder, CEO, and chair says, quote,
04:28We built Workday to bring innovation back to the worlds of HR and finance, and AI gives us the chance
04:33to do it all again.
04:34We operate at the heart of global enterprise.
04:37It gives Workday a unique opportunity to bring AI directly into the HR and finance workflows our customers rely on
04:43every day and to deliver real, measurable value.
04:45From a communications perspective, we hear from these software companies over and over again, we're not scared of AI.
04:51We're embracing AI.
04:52That's the message that they want investors to get.
04:54It's just not clear if investors are buying it.
04:57Well, investors have been sending a pretty clear message.
04:59I mean, the stock's down about 40 percent year-to-date and taking another 9 percent to the downside in
05:03the aftermarket.
05:04So that message pretty clear.
05:05But we'll see what else we get maybe on the call with analysts and investors to see if there's more
05:09clarity around that AI component.
05:12All right.
05:13I'm going to go, as we wait for some more earnings, go back to a few other gainers in today's
05:17session.
05:19Ticker KEYS, Keys, Keysight Technologies, number one gainer in the S&P 500.
05:25It's a measurement instruments company, and the stock surging 23 percent in today's session after it forecast fiscal second quarter
05:33earnings, which beat the average analyst estimate.
05:35It also reported stronger-than-expected first-quarter results.
05:38Speaking of AI, booming AI workloads, along with faster growth in other business areas, including wireless and defense, are all
05:45boosting growth, according to analysts for this company.
05:49And one more.
05:49This was your number one gainer in the NASDAQ 100.
05:52Thompson Reuters, ticker TRI, stock up about 11.5 percent, shares soaring on heavy volume in today's session, biggest intraday
06:01gain, too, in about 17 years.
06:03Company said it reached 1 million professional users of co-counsel, its legal and business artificial intelligence tool, and announced
06:10that it was working with Anthropix Claude Model.
06:13Stock's still down, though, about 31 percent year-to-date.
06:16But AI, just in everything, and it definitely gets stocks moving, sometimes to the downside, sometimes to the upside.
06:23Well, let's look at some stocks that did move to the downside today.
06:25It wasn't the worst performer in the S&P 500, but among them, Texas Instruments down close to 3 percent
06:31on the day today.
06:32This after the company indicated that spending on new plants and equipment will remain higher than some investors had anticipated.
06:38The company gave a presentation on Tuesday and said that expenditures will be $2 billion to $3 billion this year.
06:45That was the previous stance.
06:47Over the last four years, it's increased spending far above historical levels, citing the need to bring manufacturing back in
06:52-house and reverse an outsourcing trend.
06:55Also, taking a look at shares of Whirlpool Corp on the day today.
06:59This after it said it launched a concurrent separate underwritten public offerings of common shares and depository shares.
07:06Shares fell by close to 14 percent.
07:09The depository shares each represent a 120th interest in a share of a newly issued Series A mandatory convertible preferred
07:14stock.
07:14And the proceeds aggregate from the offerings are anticipated to be $800 million.
07:20And finally, Novo Nordisk and Eli Lilly both falling today.
07:24This after Novo said it plans to slash the U.S. list prices for its blockbusters.
07:28We go, you know, Zepic next year by as much as 50 percent.
07:31Novo Nordisk ADR is down 2.6 percent.
07:33Eli Lilly down 1.6 percent.
07:36All right.
07:37Not much movement in yields today, up about two basis points on the shorter end of the curve, up about
07:42two basis points on the longer end of the curve.
07:44We are continuing to get some earnings.
07:46This is on electric vehicle maker Lucid.
07:48The company reporting an adjusted loss in the most recent quarter of about $3.08 a share.
07:53That's wider than what the street was looking for.
07:55Revenue at $522.
07:57We'll round it up to $523 million.
07:59That's actually a beat.
08:01The street was looking for roughly about $459 production of vehicles right now for 2026.
08:07Company says look for about $25,000 to $27,000 vehicles.
08:12The share is down, though, about 6% to 7% in the after-hour straight.
08:15All right.
08:15Let's go to some more earnings.
08:17Tanger out with its results.
08:19And we're looking at fourth quarter total revenue, $160.3 million.
08:24Folks, that's a beat.
08:24Street was looking for $146.2 million.
08:27Right now, the stock unchanged as these headlines just start to cross the Bloomberg terminal.
08:32And also, I'm looking for a little bit more clarity in terms of some of their results.
08:39Again, the stock unchanged here.
08:41But it looks like they are beating estimates in some metrics.
08:45And just taking a look real quick, again, not really much of a trade here.
08:48Stock is up about 6.5% so far year-to-date.
08:52This is a retail REIT.
08:54Of course, you know their outlets and so on and so forth that are around.
08:57So, good read on the consumer but also on the REIT market.
09:01But right now, again, not much moving on that stock here unchanged in the aftermarket.
09:06Let's just go to GoDaddy right now.
09:08Up about eight-tenths of 1% in the after-hours.
09:11The outlook.
09:12The company sees first quarter revenue $1.25 to $1.27 billion.
09:16That's just shy of estimates of $1.28 billion.
09:19Shares down about 1% in the after-hours.
09:21Looking backward, fourth quarter revenue came in in line with estimates at $1.27 billion.
09:27Fourth quarter EPS did come in above estimates at $1.80.
09:32All right.
09:33Just going quick back to Workday, if I may, because we're seeing that stock definitely moving a bunch in the
09:37aftermarket.
09:38You still got it down about 6.7%.
09:41We went through some of the metrics, but, again, the outlook sees 2027 subscription revenue $9.93 billion to $9
09:49.95 billion.
09:50Street estimate was at $10 billion.
09:52And also looking at 2027 adjusted operating margin of 30%.
09:56That's below the street estimate of 31.1%.
09:58So the stock, as we know, has been beaten up in this year already, down 40%, but we're looking at
10:04some more selling in the aftermarket.
Comments