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00:00And right now we are two minutes away from the end of the trading day.
00:04Romain Bostic here with Bailey Lipschultz in today for Katie Greifeld.
00:07We're taking you through to that closing bell.
00:09It's a global simulcast.
00:10Carol Masser and Tim Senevic and I believe a third party also joining us there from the room.
00:15Welcome to our audiences across all of our Bloomberg platforms, television, radio,
00:19and our partnership with YouTube.
00:21Final trading day of the month, Carol Masser.
00:23And for a lot of folks, it's a month to forget.
00:25Yeah, not so great unless you're, you know, bearing this market or shorting it.
00:29But I'm looking at what the S&P down, maybe about 1% for the month, a little bit more
00:33overall.
00:34And the NASDAQ 100 down about 2.5% for the month overall.
00:36So not a great one.
00:38But I got to tell you, like, the path to it has not been an easy one.
00:42That's for sure.
00:43No, I mean, what, worst month going back to April of last year,
00:48which is actually interesting given that it's actually not down that much.
00:52It wasn't that bad of a month for the S&P 500.
00:56But it just goes to show how much we've seen stocks go up over the last year.
01:00And looking at some of the weakness, Tim, on the day, information technology is down more than 2%,
01:05as was financials.
01:06We were talking about that on the desk when you look at these moves that we're seeing in Morgan Stanley
01:11and Goldman Sachs.
01:13It's not just a normal 1% down day.
01:15We're talking about 6%, 7%, 8% moves on an intraday basis on some of the largest U.S. banks.
01:20Yeah, and also, too, I mean, we're going to get into this a little bit later.
01:22But when we talk about some of the moves to the downside this month, yeah, at the index level,
01:26you're certainly right, Tim.
01:28It's certainly not as bad as it could have been.
01:30But when you start to go through some of those individual sectors,
01:32you have some significant weakness, particularly in that asset management space,
01:36definitely in the software space, deep now into a bear market.
01:39But as we get the closing bells here on this February 27, 2026,
01:46all of the major indices here in the U.S. are going to close in the red on the day
01:51and on the week.
01:52But the monthly story is definitely a lot more textured.
01:55The S&P right now losing about 29, 30 points, down about 4 tenths of a percent.
02:00It's going to close out the month of April, down about 9 tenths of a percent.
02:03The Dow Jones Industrial Average down 500 points on the day, or about 1%.
02:07But it is clinging to a modest gain on the month of about 2 tenths of a percent.
02:12The Nasdaq composite down 74 points today, or just about 3 tenths of 1%,
02:18but down 2% or more on a month-to-date basis.
02:22And take a look at the Russell 2000, and I want to point this out.
02:24A 1.6% loss, 1.7%, excuse me, on the day, 1.4% on the week,
02:31but still holding on to a 7 tenths of a percent gain on the month and a 6% gain
02:35year-to-date.
02:36All I'm going to say is I can't wait until you talk yields, but we'll get to that in just
02:39a moment.
02:40I'm going to go back to the S&P 500.
02:42Kind of an even split, guys.
02:44Bailey, we've got 278 names higher for the Friday trade in the S&P 500, 225 to the downside.
02:51Yeah, looking at that on a sector level, again, tech and financials, the biggest drags.
02:55But we are seeing outperformance in the health care and energy spaces.
02:58Just want to call out, guys, the S&P equal-weighted index closing in the green at a record,
03:02a fourth consecutive day of gains.
03:04So as much as we want to talk about tech and banks leading to the downside,
03:08there is some green going on.
03:10All right.
03:10So let's get to some of the individual gainers, if I may.
03:13Let's go to Paramount Skydance and Netflix.
03:16Definitely some outperformance.
03:17Paramount Skydance up almost 21%, guys, today.
03:21And you have Netflix up about 14% here.
03:23We know Paramount clinching that deal, finally, for Warner Brothers Discovery,
03:28outmaneuvering Netflix after a months-long battle by agreeing to pay $111 billion
03:33for the legendary Hollywood studio.
03:36We should point out, though.
03:37Outmaneuvering.
03:37Well, here's the deal.
03:39We could have a lot of conversations, because Tim and I have talked about maybe Netflix
03:42was just really smart in pushing up the price.
03:46Well, you know who has $2.8 billion that they didn't have yesterday?
03:47Yeah.
03:48Netflix.
03:48Right.
03:49They have, right.
03:50It's also interesting, too, because, I mean, we didn't really talk about it.
03:52This happened while we were on air, because Ted Sarandos was at the White House,
03:56and he did come out of the White House.
03:58Reporters asked him what happened.
03:59He was like, I'm not doing any media.
04:01And then, of course, a few minutes later, we got the headlines that they were moving on.
04:05But there's been a lot of speculation here about what Paramount is paying,
04:08whether it's too much, and a lot of jokes online saying, hey, maybe if Sarandos just
04:13waits a couple of years, he can actually maybe buy some of those assets at a fire sale
04:16when Paramount, you know, maybe if Paramount doesn't execute on that.
04:20Yeah.
04:20Let's be conspiracy theorists for a moment.
04:22Yes.
04:22What if Netflix was all about just pushing up the price and increasing the cost of this
04:26deal and, like...
04:27The cut of your jib there.
04:28Increasing the debt.
04:29Where's your tinfoil hat?
04:30Is that down there?
04:31On the balance sheet.
04:33I mean, come on.
04:34Like, I don't know.
04:35All right.
04:36We're moving along.
04:36It's been a great saga to watch.
04:39But anyway, Paramount and Netflix definitely outperforming in today's session.
04:43Let's go on over to Dell.
04:45Number one gainer in the S&P 500.
04:48Shares jumping by the most in two years.
04:49Stock up about 21, almost 22% today.
04:52Pretty much finishing at its highs of the session.
04:55This is after the company gave an outlook for sales of its artificial intelligence servers
04:59that exceeded estimates.
05:02Definitely a sign of robust demand for machines helping fuel the AI data center build.
05:06That company, by the way, saying it will generate about $50 billion in AI server revenue
05:11in the current fiscal year, which ends in January of 2027.
05:14And investors liking what they heard from that company.
05:17And then I've got to mention Block, ticker XYZ.
05:20This one finishing up just shy of 17% here.
05:24Up the most in about two years, at least intraday, after the company said it was reducing its
05:28workforce by nearly half in a bet on AI.
05:30Yes, Mr. Bostic.
05:31No, but this is important before we move to Tim's decliners here.
05:34Because, I mean, obviously, if Block does pull this off, the idea that they have these
05:38efficiencies and are able to continue generating the same revenues and profits with a lot less,
05:42that's great.
05:43But what does that mean for the economy?
05:45If a company can look at their workforce and say, we can get rid of 40% of y'all,
05:49at
05:49some point, this is like, isn't this the AI gloom and doom that we were all kind of dismissing
05:54a few months ago with regards to, you know, how it's just going to kill all the jobs?
05:57And then what?
05:58I mean, who's going to be left to buy these services if nobody has a job?
06:01Who uses Square if nobody has any money to spend?
06:04Thank you, Tim.
06:05What if it's just overhiring, you know, just trying to cut costs, Mr. Dorsey, who some
06:12have questioned before in terms of his management?
06:14That's what I'm saying, though, Carol.
06:15If we're on conspiracy theory a little bit adjacent, I mean, you're talking about a stock
06:19that's down how much from a 2021 peak and you continue to expand headcount?
06:23It's easy to say, oh, well, we're going to be more efficient.
06:25OK, look in the mirror.
06:26Maybe you overhired by, I don't know, 50%, 60%.
06:29Bailey, you can come on anytime.
06:31That's still lost jobs.
06:33I will say he did address that.
06:34Speaking from the economy, right?
06:36Where are those people going?
06:37But is it indicative of AI and what it's going to do in the future?
06:41I don't know.
06:41We don't know.
06:42I don't know.
06:42Or is this a very block-specific Jack Dorsey story?
06:46I don't know.
06:47We'll tell you in 18 months.
06:48I think that's what happens.
06:50Yeah, what did our team say?
06:51That you've got to watch in terms of some of the business expansions and things it's
06:54done, whether or not we see the growth in those areas.
06:57If you don't, then maybe it isn't just AI helping out here.
07:02OK, the jury's still out on that, but the conspiracy theories live on.
07:07Let's get to some of the decliners on the day today.
07:09Do you want to start with the banks?
07:11Look at this.
07:11The KBW Bank Index falling close to 5%.
07:14Financial firms grappling with signs that private credit issues are starting to emerge
07:18following a series of blows from the threat of AI.
07:21The KBW Bank Index earlier in the day fell as much as 6%, all 23 members sliding to end
07:28the day.
07:29You have Goldman Sachs down 7.5%, Morgan Stanley down 6.1%, Capital One down 6%, JP Morgan
07:37down 1.9%.
07:38Every member in the red today.
07:41Credit spreads also started widening.
07:43Wall Street backed UK mortgage lender collapsed, adding to fear that banks could face rising
07:46defaults in the opaque world of private.
07:49And you saw the great story that we had about that letter that was circulating around Goldman
07:53Sachs asset management.
07:54The idea here that basically, you know, trying to reassure clients that what's happening right
07:58now, redemption rates, software exposure still relatively low and contained.
08:03Yeah, we're going to be doing a deep dive.
08:04And I'm going to have a little more on Blue Owl in a minute, but with James Crombie, who
08:07edits credit, he's your editor for credit in just a few minutes.
08:11So if you guys want to come over and join that conversation.
08:14Well, Bailey can come over.
08:16Wow.
08:18Let's look at what happened to NVIDIA after yesterday's route post earnings on Wednesday.
08:22Shares NVIDIA today fell another 4%, this after a 5.5% decline, adding to the sell-off
08:29today.
08:29The stock priced at less than 22 times forward earnings, well below its five-year average
08:34of 37, basically even, with the S&P 500's multiple.
08:38So some people, at least according to that valuation, are seeing this, dare I say, as a value
08:43right now.
08:44Now, investors are concerned that the hundreds of billions of dollars in spending pledged
08:47by AI developers will have to be scaled back, which would likely hit NVIDIA's revenue hard.
08:52And finally, Blue Owl, to finish out just a tough month for the company, shares on track
08:56for their biggest monthly decline in nearly four years.
08:59Shares fell today by 6%.
09:01Anxiety, turbulence over the private credit industry, concerns over the industry have
09:06mounted after Blue Owl halted redemptions in one of its funds and decided to sell some
09:09assets to help pay investors.
09:11That sparked a drop in the firm's market value.
09:14Blue Owl shares down by 6% today.
09:16I'm so fascinated by this story.
09:17And I'm fascinated by just how much all these other names are getting dragged down, like
09:20Goldman and KKR and Apollo and others.
09:22And it gets to the idea, too.
09:24It's not even so much whether there truly is a crack going on underneath the surface.
09:28It's the idea of transparency.
09:29And some of these companies are more important than their CEOs.
09:32They need to get out there and start talking about this, assuming that there is nothing
09:35to hide there.
09:36I do want to quickly, though, point out what we saw in the move in yields, because there
09:40was a bit of a flight to safety, not only here on this day, but quite frankly, for the
09:44month as well.
09:45I mean, you take a look at that drop in yields.
09:47In fact, this is actually the best month for treasuries.
09:49On a price basis, in about a year, TLT up 4%.
09:53That's the main ETF that tracks long-dated bonds, 4% gain right now for the month of
09:57February.
09:58And that's pretty much the gains for the year.
10:00So that gives you a sense of just how much things have flipped and sentiment in the past
10:04month.
10:04On a hot inflation print.
10:07Yeah, inflation's back.
10:08Did you not know that?
10:08No, I did.
10:09Did you think it was gone?
10:10No.
10:10Oh, you probably don't do shopping.
10:11You probably have somebody do your shopping for you.
10:13Yeah, it's called my husband.
10:14Yeah.
10:15All right.
10:15But for us, you know, salt of the earth people.
10:17He cooks, too, by the way, Romain.
10:18You try to go to the grocery store and see it firsthand, interact with the community.
10:23Bailey, I don't know how you'd do this.
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