00:00And right now we are two minutes away from the end of the trading day.
00:03Romain Bostic here with Katie Greifel taking you through to that closing bell.
00:07It's a global simulcast. Carol Masser and Tim Senevic join us now.
00:10Welcome to our audiences across all of our Bloomberg platforms, television, radio,
00:14our partnership with YouTube on one of the worst sell offs, actually, believe it or not,
00:19since the war started. I mean, we've had a lot of intraday sell offs here.
00:23But of course, we've seen a lot of dip buyers coming into the close.
00:25That's not necessarily happening today, Carol.
00:27Yeah, it definitely feels like a much more negative tone.
00:30And I just keep thinking about what's going on in the Treasury markets.
00:32I get it. Concerns about higher energy prices.
00:35And so we've seen Treasuries move up.
00:37I'm really curious about the inflation print tomorrow and just to kind of get an idea of,
00:41again, where we are in terms of inflation with or without war,
00:45even if some of these data points are older.
00:48You know, it just reminds us that the Fed maybe has to be on hold.
00:51Yeah. Carol, you mentioned higher energy prices.
00:53I mean, look, WTI and brand up more than 65 percent just this year.
00:57A lot of that happening in the last few weeks.
00:59Gas right now at $3.60 a gallon.
01:01That's the daily national average, according to AAA.
01:03You've got heating oil at $5 at some point.
01:06Like right now, that starts to hit consumers.
01:08If consumers are spending more money on that stuff, maybe they're spending less on other stuff.
01:12I have to wonder, I mean, what is the haven to bring it back to the investment community?
01:16Because, you know, as Carol mentioned, you take a look at Treasury bonds not providing sort of that safety valve.
01:22You take a look at gold right now, down about 1.8 percent on the day.
01:27It really feels like there's nowhere to hide.
01:28Absolutely.
01:29And we could talk about that big rally that we had seen in gold in the months leading up to
01:33this
01:33and the idea now that that has pulled back as the inflation concerns set in.
01:37I do just want to put a final point here on the sell-off that we are seeing today.
01:41Because the biggest intraday drop that we had since the war started, that was back on March 6th.
01:45We had about a 1.7 percent decline.
01:47But again, the dip buyers come back in.
01:49So on a closing basis, this is going to be the worst day, not only since the war began,
01:53but really going back to mid-February.
01:56The S&P losing 100 points or about 1.5 percent.
01:59The Dow down about 700 points or 1.5 percent.
02:02The NASDAQ down about 400 points or 1.8 percent.
02:05The Russell 2000 down two.
02:07S&P mid-caps down two.
02:09And Dow Transports, Carol Master, down about 3 percent.
02:12Wow.
02:12That is a big move to the downside.
02:14I'm just going to go back, Romain, if I may, to the S&P 500.
02:18Almost 400 names lower for the trade, Katie.
02:22111 to the upside.
02:23There were some gainers, and we've got one unchanged here at the close.
02:26There are also some gainers when you take a look at the sector level as well.
02:30Three sectors managing to finish in the green there.
02:33But you can see a lot of that circle is red.
02:35In terms of what did perform today, energy, no surprise, higher by about 1 percent as a sector.
02:40Also utilities and consumer staples.
02:43So pretty defensive read there.
02:45On the downside, industrials, consumer discretionary, health care, and tech.
02:49That is the big chunk of that pie.
02:51Tech down about 1.7 percent.
02:53All right, guys.
02:53Let's go to some of the individual gainers.
02:56We do have some earnings, and we'll bring them to you when they cross the Bloomberg terminal.
02:59In the meantime, I want to go to Palantir.
03:01That was definitely one of the outperformers here.
03:05It was up as much as 2.8 percent intraday, finishing the day with a gain of about 1.25
03:10percent.
03:11The company out saying it may turn to other AI models amid the spat between Anthropic and the Pentagon.
03:17So their CEO on CNBC saying our products are integrated with Anthropic,
03:22and in the future will probably be integrated with other large language models.
03:25So that's kind of going on, as we know the government has pushed back on Anthropic.
03:29I also want to point out that the company did unveil a software pack with NVIDIA,
03:35a defense partnerships, too, at an AI conference with a bunch of players in the space,
03:39including something like GE Aerospace and a few others.
03:42So whether or not that was fundamentally why we're seeing the stock move up,
03:47I'm not quite sure, but it definitely was an outperformer.
03:51Investors swiping right on Bumble today.
03:53I know that's really bad, but I just wondered I was going to go there.
03:57Stock was up as much as 49 percent intraday, finishing with a gain of about 34 percent,
04:03$3.81 is where the stock closed today, surging.
04:06Biggest jump intraday since February of 2021.
04:09The online dating company, they did forecast EBITDA for the first quarter.
04:13That beat the average analyst estimate.
04:15JP Morgan upgraded the stock to neutral,
04:17while analysts broadly noted that the focus now shifts to upcoming product overhaul planned for later in the year.
04:23So Morgan Stanley also coming out.
04:25Say the company's financial is starting to stabilize.
04:27Do you want to say something?
04:29No.
04:30Okay.
04:30Speechless.
04:31Just checking.
04:33Lightwave Logic, ticker is LWLG.
04:36That went up about 41 percent here.
04:39The now about $1 billion market cap company announced a development agreement with Tower Semiconductor
04:44to enable leading high-speed optical modulators.
04:48Stock is up more than 100 percent year-to-date.
04:51They, yeah, I don't know if you know, but they develop proprietary electro-optic polymers
04:56and polymer photonic integrated circuits.
04:59Romaine knew that.
04:59Fascinating.
05:00Yeah.
05:00Romaine did.
05:01I didn't.
05:01It has to do with faster transmission for Internet infrastructure, data centers, and AI applications.
05:06Yeah, I do just want to add a couple honorable mentions, just given the big move that we saw
05:10in a lot of the chemical companies and the fertilizer companies, CF Industries, are closing
05:14at a record high today, having the best day of going back to 2020.
05:18And it was all those names, Mosaic and Nutrient and others.
05:20And this has real potential economic impacts because, of course, we are right at the start
05:24of the spring planting season here, at least in North America.
05:27So not having the fertilizer supplies within the next couple of weeks could actually have
05:32material impact on our output.
05:33I think I did CF yesterday, perhaps.
05:36Yeah, today's a new day, Carol.
05:37Okay.
05:38I'm going to jump in here and talk about some of the stocks that moved lower on the day
05:41today.
05:42I want to start with just the entire MAG7.
05:44It's actually down more than 9 percent going back to those October highs.
05:48We had Tesla fall by more than 3 percent.
05:51Apple fall by 2 percent.
05:52Meta Platform's down today by 2.6 percent.
05:55Every single name in the MAG7 was lower on the day today.
06:00Speaking of every name lower, let's go to airlines because airlines were all lower today.
06:05This is the S&P 1500 composite index of airlines down 4.3 percent today.
06:11You had Southwest down more than 7.7.
06:13United Airlines down 4.6 percent.
06:16Delta down 2 percent.
06:17American down 4.5 percent.
06:20We know jet fuel prices are going up, could be going up.
06:24That's a big expense for these companies.
06:26Then you have the cost of plane tickets.
06:28That could jump as much as 9 percent as oil prices soar.
06:31This, according to Willie Walsh, the director general of the International Air Transport
06:36Association, every name in that index lower on the day today.
06:39And then let's flip on over to Dollar General.
06:41Those shares under pressure today, having the worst day going back to August, down more
06:45than 6 percent.
06:46The company did give an underwhelming annual and long-term forecast.
06:49The outlook is conservative.
06:50According to Jen Bartaschus, our analyst for Bloomberg Intelligence.
06:54Yesterday's close, though, through yesterday's close, it was up as much as 9.1 percent.
06:58In Romania, it was up 80 percent last year.
07:00So a little bit of selling today.
07:01Let's talk software.
07:03Seeing some selling in shares of Adobe.
07:04The knee-jerk reaction to an earnings report that just now is crossing the wire.
07:08For the fiscal first quarter, the company reported adjusted EPS of $6.06 a share.
07:14That is a beat.
07:15The street was only looking for about $5.88 here.
07:17And on the revenue side, they also beat $6.4 billion in revenue.
07:21The street was looking for $6.2.
07:23But here's your forecast.
07:24For the current quarter, the company says expect revenue in a range of $6.43 to $6.4 billion.
07:30The low end of that range is pretty much in line with the average of analysts' estimates here.
07:36We're also going to talk about the performance obligations, the remaining performance obligations,
07:41effectively the backlog, the company saying it stands right now at $22.22 billion.
07:45That's pretty much a smidge lower than what the street was looking for.
07:49So it looks like the numbers are relatively in line with estimates,
07:52but nothing really materially above those estimates to give investors a lot to chew on.
07:57And you can see shares moving lower after hours.
07:59Let's quickly talk about Ulta here, reporting results as well.
08:03Let's talk about the fourth quarter first.
08:05EPS missing estimates here, some of the figures.
08:09There's fourth quarter EPS coming in at $8.01.
08:12The estimate had been for $8.11.
08:15But it's pretty mixed because then you take a look at their fourth quarter comp sales actually beating estimates 5
08:20.8%.
08:21The estimate had been for 4.25%.
08:24And also their net sales coming in a bit heavier than the estimate.
08:28But when it comes to the fiscal year 2026 look ahead, they see net sales growth between 6% to
08:367%.
08:37Also comp sales growth of 2.5% to 3.5%.
08:42You add it all together, you can see Ulta shares moving lower by about 6.6% or so right
08:48now.
08:49But the bar coming in was pretty high.
08:52You know, I'm also going back to Adobe.
08:54Adobe, I'm seeing a headline and I'm looking through the press release that's out right now.
09:01Adobe CEO announces a decision to transition.
09:05Shanatun Narayan, who served as CEO of Adobe for 18 years, has decided to transition from his position as CEO.
09:10After successor has been appointed, Narayan will remain as chair of the board.
09:14The board of directors has appointed Frank Calderoni, lead independent director of Adobe, as chair to the special committee to
09:19direct the process that will consider both internal and external candidates.
09:24So that's another headline from Adobe today.
09:26All right.
09:26And the stock continuing to be under pressure in the aftermarket.
09:29It's down more than 20% so far here in 2026.
09:32The kind of main headline that we have so far highlighted is, again, what it has to say about the
09:37second quarter outlook for revenue.
09:39$6.43 billion to $6.48 billion.
09:42And the estimate on the street was $6.43 billion.
09:44So maybe investors were looking for something a little bit more in terms of a range.
09:49So certainly one we're going to keep a watch on.
09:50Adobe down just about 1.9% here in the aftermarket.
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