00:00And right now we are two minutes away from the end of the trading day.
00:03Romain Bostic here with Katie Greifeld, taking you through to that closing bell.
00:07It's a global simulcast. Carol Masser and Tim Senevic join us now.
00:11Welcome to our audiences across all of our Bloomberg platforms, television, radio,
00:14our partnership with YouTube here.
00:18Guys, on a day, Katie, we're seeing a pretty solid rally.
00:22We're not well up the highs of the day, but a little bit of conviction,
00:25a little bit of sticking to some of these numbers as we get closer to the bells.
00:28Absolutely not the same sort of muscle behind this rally that you saw on Monday.
00:33And certainly we gave back some of those gains yesterday, but still nothing to sneeze at, Carol.
00:38The S&P 500 higher by about half a percent right now.
00:42And you can see that really reflected across most of the major indexes.
00:45Yeah, but you go to the commodity markets, right?
00:47You take a look at something like what we're seeing in the oil trade.
00:50We have seen a little bit of a pullback. We were down, though, a lot more.
00:53So, again, it goes back to kind of trading and watching the headlines and really waiting for some conviction
00:58that maybe there is going to be a different outcome, maybe a ceasefire when it comes to the U.S.
01:04war in Iran.
01:04But we're not there yet.
01:06Yeah, I mean, to your point, Carol, Brent fell as low as $97.15 a barrel, now at $1.03,
01:12let's say.
01:13But it was down as much as 7% earlier in the session on that optimism, Romain.
01:18But you have to look no further than what's happening in commodity markets to really get an understanding
01:22for how at least traders are thinking about a solution here.
01:25Yeah, and of course, you also have to look, at least when it comes to energy, those refined fuel products.
01:29Day 26 of the war and day 25, where we've seen prices at the pump rise, now up more than
01:3530% since the war started.
01:37And, of course, a lot of other commodities, including heating fuel, jet fuel, for that matter, are also still elevated.
01:42And based on a conversation we had earlier on the close, not necessarily going to fall sharply any time soon.
01:48Let's walk you through the numbers here on this Wednesday afternoon.
01:52I'm going to start with the S&P 500 because at one point on the day, it did actually trade
01:55above its 200-day moving average,
01:57but it's going to close just below it, 65.91 and change, 65.92, up about 36 points or a
02:03half a percent.
02:03The Dow Jones Industrial Average, adding 300 points or seven-tenths of a percent.
02:07The NASDAQ Composite, up about eight-tenths of a percent.
02:10The Russell 2000, that's your outperformer, once again here, adding about 31 points or 1.2 percent.
02:15All right, Romaine, let's go back to the S&P 500.
02:18Most names actually higher for the trade, about 322 names, Katie, gaining on this Wednesday, 180 to the downside, one
02:26unchanged.
02:27Yeah, you take a look at the sector level.
02:29You can see that breadth, nine sectors of 11 in the green.
02:33What a beautiful circle we're looking at our screens.
02:36Energy is your underperformer on the day, down about half a percent.
02:40That's your biggest loser.
02:41I believe that was your biggest winner yesterday.
02:44Your biggest winner today, though, consumer, discretionary, and then materials up at the top, higher by about 2 percent, Carol.
02:51All right, let's go to individual gainers.
02:53And the number one gainer in the NASDAQ 100 and the number three gainer in the S&P 500, that
02:58is Arm Holdings soaring in today's session.
03:02And we did see this one, of course, moving a lot higher.
03:06So we're talking about a, what, a 16 percent gain there.
03:08That's after the company will begin selling its own chips.
03:11We got this information late yesterday.
03:14It's called AGI CPU.
03:16They're going to be having meta platforms, their first major customer.
03:19So pretty big customer to have.
03:21I'm expecting revenue from the new chip business to generate about $15 billion annually within five years and total sales
03:27to reach roughly $25 billion.
03:30So investors definitely liking that news that I want to get over, go over to Space and Satellite Company, because
03:36as a whole, we saw this group move to the upside on the report of the SpaceX IPO filing.
03:42So you had Echo Star up about seven and a half percent.
03:45You had Rocket Lab up about 10 percent.
03:48You also had AST Space Mobile again of about 10 and a half percent.
03:52And then you had, I'm just throwing in Tesla there, since this was obviously related to this company, just up
03:57about three quarters of a percent.
03:59But SpaceX, considering a fundraising target in its IPO that would dwarf the previous largest ever debut, that's according to
04:05people familiar.
04:06And so we're talking about weighing a ballpark figure of about $75 billion in its IPO, according to those in
04:13the know.
04:15Information had also reported this earlier on this higher fundraising target.
04:18So it's really fascinating to see.
04:20But all of these companies, and let's not forget that Echo Star, it was back in September that we reported
04:26out how SpaceX was buying Echo Star's Spectrum for $17 billion.
04:29But the whole space, no pun intended.
04:32The whole space space?
04:33No pun intended.
04:34Higher.
04:34And I've got to mention JetBlue.
04:36Let me just quickly go there.
04:36Oh, let's try to mention data centers.
04:39Surging up about 13 percent here.
04:42JetBlue said to be considering the option of selling itself to a competitor.
04:45Here's Semaphore reporting this out, citing people familiar, and that the U.S. airline has hired advisors to explore the
04:50viability of a deal and is considering some scenarios of a tie-up maybe with United or Alaska.
04:57You know, we'll see where this goes.
04:58But we know that this has certainly been a carry that's been under pressure, losses in its last reporting.
05:03So certainly on our radar, up 13 percent, way off the highs of a few years ago.
05:07Okay, but under pressure over the long term.
05:09Yeah.
05:10Why?
05:11Under pressure on the short term are the stocks I'm going to talk about right now.
05:13Oh, okay.
05:14Go there.
05:14Let's talk about some of the energy and chemical stocks falling today as investors weighed Iran, rejecting a U.S.
05:20ceasefire proposal.
05:22Valero among those falling 3 percent.
05:24Valero, though, a bit idiosyncratic due to a refinery fire this week.
05:27On that, the company is preparing to restart its Port Arthur oil refinery in Texas after shutting the plant yesterday
05:35due to a fire.
05:36Reuters reported, citing two unidentified people familiar with operations.
05:39Those shares today falling by about 3 percent.
05:42Also, among the worst performers on a percentage basis in the S&P 500, got to throw Generac Holdings in
05:48there.
05:48This, the company fell today as investors digested what they learned at an investor day.
05:54But off its lows of the session, down more than 6 percent at one point, finished the day down just
05:59shy of 2 percent.
06:00The company did report 2028 targets that discussed developing partnerships with hyperscalers during its investor day conference.
06:06It also said it would recognize reorganize into two separate reportable segments effective at the end of this month.
06:12Analysts from William Blair said that investors were disappointed with the absence of a hyperscaler agreement, though they were positive
06:17about Generac's backlog growth and guidance.
06:20And finally, let's talk shoes on holdings, falling more than 11 percent today.
06:27Ouch.
06:27Yeah, I'm wearing my ons, too.
06:29No kidding.
06:31Martin Hoffman, somebody I know you guys have spoken to him.
06:33We've spoken to him on our program, too.
06:35He's going to step down from his role.
06:37He's the CEO.
06:38COO Scott McGuire will assume the title of president.
06:41The co-founders, Casper Capetti and David Alleman, will take over as co-CEOs in May.
06:48The decision designed to preserve ON's, quote, entrepreneurial speed.
06:51It was made mutually.
06:52That's according to the company.
06:54Analysts, though, say co-CEO structure could add complexity to the company's decision-making process.
07:00Shares fell by more than 11 percent today.
07:03Yeah, that was a very diplomatic way of putting it.
07:06What, complexity?
07:07Co-CEOs?
07:08Complexity of a co-CEO.
07:09Yeah, other companies have co-CEOs, right?
07:11That's true.
07:12Not very good ones.
07:13Let's check in on the yield space here, because we did actually see yields drop today, modestly, to be sure,
07:18here.
07:18But once again, we continue to see these almost, not quite parallel, but near parallel shifts in the curve here.
07:24You see there at the long end of the curve, still seeing the most activity with your 30-year yield
07:29and that 20-year yield.
07:30I believe that is down about four basis points.
07:33All right, guys, let's get to some stories that certainly caught our attention.
07:37This has to do with insurance executives.
07:39Expecting a U.S. recession to happen in the next two, next three years, excuse me.
07:43And what they talked about is an economic slowdown in geopolitical tensions as the two issues that pose the greatest
07:49macroeconomic threats to their portfolios.
07:52Having said that, they're still in on something that we talk a lot about, Tim.
07:56Yeah, private assets.
07:57New to two-thirds of insurers plan to increase their allocation to private assets.
08:01Interest in asset-backed finance and senior direct lending strategies.
08:04Insurance execs expect private equity to be the best-performing asset class over the next 12 months, though most remain
08:10optimistic about the S&P 500.
08:12The interesting thing here is, you know, private equity and the lack of liquidity that you have with private equity.
08:18You're supposed to get paid more as a result of that.
08:20But, you know, that's the quote-unquote patient capital, right?
08:24Yeah, absolutely.
08:25I mean, I feel like we're all learning about sort of the liquidity and the relative illiquidity of private credit
08:31in real time when you take a look at some of these headlines.
08:34I will say, though, I did want to shift gears and talk a little bit about Hannah Montana, which feels
08:40like quite a departure from what we're hearing from the insurance executives.
08:45So this is good news for a certain subset of the population.
08:48Hannah Montana's Malibu Beach House will be available to rent on Airbnb.
08:53I don't know if anyone else on this simulcast was a Hannah Montana or a Miley Cyrus fan.
08:58But she had a really, you know, recognizable house, and Airbnb is recreating it as part of a broader anniversary
09:08push around the 20th year of the show.
09:11Well, the insurance executives said that was their third thing that they were thinking about over the next three to
09:15five years, about going to the Hannah Montana Beach House.
09:18Yeah, it's a potential thing that, you know, could avert a recession, perhaps.
09:21Yeah, exactly right.
09:23A little momentum, tourism.
09:24Who stays there?
09:26Probably millennial women.
09:27Okay.
09:31Look at Romaine.
09:33He smiles.
09:34You booked it already, right?
09:35No, I'm not familiar with this.
09:37Hannah Montana?
09:38Hannah Montana.
09:39Miley Cyrus, you know, she's an icon of what's in the generation.
09:42Did they ever determine who Hannah Montana really was?
09:44It was Miley Cyrus.
09:46It was her the whole time.
09:48Oh, so the history's been solved.
09:49Young Miley Cyrus.
09:50So who lived there?
09:51Was it Miley Cyrus or Hannah Montana?
09:54Both, actually.
09:55You know, Romaine, go on YouTube.
09:58You can probably catch, you know, a recap.
10:00I prefer to watch this.
10:03Right.
10:03Okay.
10:04Very well.
Comments