- 7 hours ago
Category
🗞
NewsTranscript
00:00And right now we are two minutes away from the end of the trading day.
00:03Romain Bostick here with Katie Greifel taking you through to that closing bell.
00:06It's a global simulcast. It started. Carol Massa, Tim Stenevich pop up on the screen.
00:11Welcome to our audiences across all of our Bloomberg platforms, television, radio,
00:14our partnership with YouTube here. A down day here in the market, really the second straight
00:19day that we've seen meaningful selling, particularly meaningful selling. Carol Massa
00:23into the closing bell. Yeah, absolutely. Like ending on a down day as we get ready to kick off
00:28the start of a third week of the U.S. war in Iran. Having said that, you dig deeper
00:32into some of the indices, even the S&P 500, kind of an even split guys in terms of names
00:37that actually
00:37gained and lost on this Friday. Yeah, just taking a look at what happened with commodities and
00:43specifically with oil. I mean, Katie, we are seeing another day where Brent closes above or settles
00:49rather above $100. It's at $102.63 right now, WTI at $98 a barrel. So far this year, both of
00:57those up
00:57close to, well, WTI up more than 70% and Brent up 69%. Yeah, absolutely. As I said at the
01:05top of
01:05our show, it feels like oil is really the key to so many different asset classes right now,
01:10especially true when it comes to equities. I will note, Carol mentioned, we're about to enter the
01:14third week of the war. We're about to close out the third week straight of losses on the S&P
01:19500.
01:20And again, it looks like we're going to finish up around our session lows of the day on this Friday,
01:24the 13th, by the way. Yeah, you keep bringing that up. I keep trying to ignore it. Triska dekaphobia.
01:29Let's say it all together. I just point out that the Bloomberg commodity index up for a fourth
01:33straight week here. And that big rise that we've seen in oil. Mo Hagman was talking about this idea
01:37that the real pain point for financial markets, for equity markets, is really a lot higher than
01:42where we are right now in that 120 to 150 range. But we can't ignore the fact here that just
01:46this month
01:47alone, basically since the war started, we're up 40 plus percent here on WTI crude. And that doesn't even
01:53take into account. The big moves higher in jet fuel, in gasoline prices, in fertilizer prices,
01:58et cetera, around the board. Red across the screen in U.S. equity markets. I guess they're
02:02contractually obligated to clap and cheer. But the Dow Jones Industrial Average down 100 points
02:07on the day, down two tenths of a percent on the day. And it's going to close out the week
02:10lower
02:11by about two percent. Similar moves are the other indices with the S&P down six tenths of a percent
02:16on the day, about two percent on the week. The Nasdaq composite down about nine tenths of a percent
02:20on the day and one percent on the week. And the Russell 2000, that's actually a relative
02:25outperformer. It's only down about four tenths of a percent on the day, but still losing about two
02:29percent to close out the week. All right, Romain, back to the S&P 500. I go. 257 names in
02:35that index,
02:36actually higher here on this Friday. You've got 243 to the downside and KD3 unchanged.
02:42Yeah, it's interesting. I mean, to your point, Carol, the internal is not as spooky as you might have
02:46expected here. You do have about five sectors finishing in the green, six in the red, though.
02:52In terms of what performed today, it was pretty defensive. Utilities, your top performer, higher
02:57by about nine tenths of a percent. Consumer staples, higher by about half a percent. Energy,
03:03also higher on this Friday. In terms of what didn't do too hot, information technology down
03:09about 1.3 percent on the day. That was your biggest loser. And we should point out a headline
03:13crossing now with that, well, the MAG-7 index, guys, now in correction territory. Not quite a
03:19surprise here. I do also want to point out, Carol, before you get to the movers here, the S&P
03:23500
03:23basically cradling that 200-day moving average. It did close above it here, but only by about,
03:29looks like about 20 or so points. Yeah, those technical levels matter, certainly for some
03:33who've got trades connected to that. Hey, let's go to, as I mentioned, kind of half the names in the
03:38S&P 500, actually higher. So you're going to put a happy face on this? She's an optimistic
03:42person. It's great. I try to. I try to. Let's go to it. It's kind of a mixed bag, so
03:46do not judge.
03:48Micron technology up about five percent in today's session. Top gainer in, I think, both of the major
03:54indices today. Micron set to benefit from stronger than expected dynamic random access memory. We're
03:59talking about DRAM. Yes. And NAND flash memory price increases. Do they report next week?
04:05They do, Carol, Master. Thank you so much. This is why we keep you around,
04:09Romain Bostic. I also want to point out, not to make this all about me, which I frequently do,
04:13but as somebody who just bought a new computer, let me tell you, memory prices are insane.
04:16Which one did you get? The spring for the Neo? No, no. I got a, you know, Microsoft PC.
04:23Okay. Well, nobody cares then. All right. Let's go to, that was a wicked, holy kidding. Hey,
04:29who's interrupting me twice? But I was talking about Micron, Wedbush Securities, who put out this
04:35note and we're making these comments. They reiterate their outperform rating, raised its
04:38price target to 500 from 320. And you can see Micron closing at 426 in chain. Stock is a stock,
04:44by the way, is up about 50% year to date. Let's go on over to a little. Some people
04:48are doing,
04:48they're saying, taking their old computers and like pulling out the, you know, the RAM and stuff out of
04:52there because, you know, and then I guess they can resell that for like a song. You know, I do
04:57need to
04:57buy a new laptop and I have been kind of scared. And, you know, maybe that's an option for me.
05:01Okay. Now I am not liking you as well for interrupting. It's just that none of my devices
05:08charge Carol. It's a real problem. Anyway, it's like being around my siblings. All right. Lenar,
05:13let's go to Lenar. If we may, that one, definitely a little bit higher in today's session up as much
05:18as 4% at its high intraday, finishing with a 2.6% gain. Lenar reported adjusted diluted earnings
05:24per share and revenue that missed the average analyst estimate. So it's like, huh? But the company CEO came
05:29out and said, while the broader market remains challenged in the near term, exacerbated by
05:33current events, we are continuing to operate with conviction and clarity and says as affordability
05:38gradually improves, as rates find a more stable footing and as the nation begins in earnest to
05:42address the regulatory and entitlement barriers that constrain supply, Lenar is extremely well
05:47positioned for long-term growth. So there's some optimism for you. And then I just want to put out
05:51one that we don't talk about, but we actually had the CEO. It's a Ukrainian company, telecom,
05:57mobile communications company, Kyivstar Group, and shares were up about 8.5% in today's session.
06:03Company reported earnings per share for the fourth quarter that beat the average analyst
06:06estimate. We wanted to bring this to your attention. This is a company that's got workers in Ukraine
06:11continuing as that war. Ukraine, excuse me, and Russia is now in its fifth year. It's using portable
06:18power to keep things going. It's operating, moving more to mobile to keep everybody connected,
06:23using Starlink. So interesting conversation that we had with the CEO. And I highly recommend that you
06:28check it out because they're also doing things to keep the company running, but they're also
06:31thinking about longer-term strategies. So I thought it was an interesting company for you.
06:36I got some interesting companies for you on the downside too. I want to start with Adobe.
06:39Shares falling today down by 7.6%. By now, you know the news. Shantanu Narayan,
06:45the company's CEO, will step down as CEO. He's going to resign from his position.
06:50And amid deep skepticism about the company's ability to thrive in the AI era, he'll be in
06:56the position until his successor has been appointed and will stay on board as chairman. That's according
07:00to Adobe. Also, shares of Meta Platforms taking a hit today. This after the New York Times reported
07:06that the company's latest AI model has underperformed expectations and will be delayed. Shares of
07:11Meta Platforms, one of those MAG7 companies that Romaine was referring to down 3.9% on the day
07:17today. Analysts did say the company could license Alphabet's Gemini model. Also, I want to take a
07:23look at Ulta Beauty. Shares tanking on the day today. Performed very well last year, down today by 14.2%.
07:29This after the company offered guidance for the current year that was toward the low end of Wall
07:34Street's expectations. And you know, they just hit like a record high, like in late February. And
07:39they're now down like 24, 25% since that record high. So basically a bear market in the span of
07:44about three weeks, right?
07:45Is there a consumer story there? Is there a consumer story there about how consumers have
07:49changed how they're feeling?
07:51I don't know. I mean, every time I sort of was going through that report yesterday, I was like,
07:54is this really about the broader consumer? Is this specifically about Ulta?
07:58I love when the guys talk about like the cosmetics.
08:01And it's like when guys try to explain shoes to me, man-splaining shoes.
08:07Where do you think I, where do you think I get my fashion advice from, Carol?
08:10Katie, I wish you could just push those boxes of them away.
08:14All right. I do want to check in on yields real quick because we had another sell-off this
08:19week in the yield space. The short term, short end of the curve, we should say at least for today,
08:23we actually did see a drop in yields. It was just about down about one basis point. And
08:27some of that had to do with the idea of that somewhat weaker economic data we got this morning
08:32on the personal spending side, as well as that revision lower on fourth quarter GDP. Much
08:37backward looking here, but maybe some folks thinking maybe we got, might get a more accommodative
08:41Fed, but still on the longer end of the curve. You did see a yield higher on the day and
08:46on the
08:46week. In fact, overall on a price basis here, we're actually seeing some of the biggest losses
08:50that we've seen on a weekly basis in the treasury market in quite a few weeks.
08:54Well, I got to say, Romain, speaking of the Fed, that meeting on Wednesday has just gotten
08:58a lot more interesting. As you know, you guys have been covering this. We have this judge
09:02rejecting those subpoenas.
09:03Is Janine Carroll allowed in that meeting?
09:04She doesn't know who Kevin Warsh is.
09:06No.
09:07Which she said, which I thought was really interesting.
09:08Never heard of him. Okay.
09:09Doesn't know that man.
09:10No, she's not. I don't think she's allowed in that meeting. I think it's only members
09:13of the other reserve court.
09:13I think he was calling her during that press conference.
09:15Someone was.
09:16I think they would probably lock the doors.
09:18Well, okay. So, Kurt, one thing that Carol and I were talking about nonstop was why appeal
09:23this if then Senator Tillis will not drop his block of Kevin Warsh to move to get confirmed?
09:33Because essentially, you know, as Elliot Stein explained to us, this could have been an off
09:36ramp for the president. It could have been an off ramp for the Justice Department.
09:41But do you remember, Tim, when they filed, when those subpoenas were first issued, there
09:45were a lot of questions as to whether the president knew about it in advance, whether
09:49he was actually on board, or whether this was the attorney going out on her own and
09:54basically just saying this is what needs to be done?
09:56Well, that would be kind of, it would kind of be mind-blowing, right? That they're, I
10:00don't know, that if it was really truly independent, I don't know. Or maybe that's the way it should
10:06be. I don't know.
10:08There's a lot of questions.
10:09Yeah, there is a lot of questions.
10:10We don't have the answers, so we just report.
10:11Okay.
10:12We decide.
10:12Well, thank you for laying that out. All right.
10:15I don't think you could say that.
10:17It's out there.
10:18I'm sorry. Context changes everything.
Comments