00:00About two minutes away from the end of the trading day, Katie Greifeld and Bailey Lipschultz in for Romain Bostic.
00:06And here to help take us through the closing bell, it's a global simulcast.
00:10We're joined now by Carol Masser and Tim Stenevich.
00:13We bring together all of our various audiences in doing so.
00:17And Carol, it looks like on the S&P 500 we're going to end the day pretty dang close to
00:22session lows
00:23as investors really take stock of just how far apart the U.S. and Iran are right now.
00:29Yeah, investors keep hoping, right, some kind of resolution, steps towards a ceasefire.
00:33But you look at the headlines that we saw, some back and forth, but it doesn't seem like that's coming
00:38anytime soon.
00:39I'm looking at the S&P 500, guys, just hovering above that oversold level if you like technicals and you
00:45watch RSI.
00:46But we just continue to kind of bounce around it.
00:48I'm looking at oil and price for Brent at $108 a barrel up today, Bailey, by more than 5.5
00:55percent.
00:56WTI up by 4 percent, sort of the back and forth with at least what traders are thinking when it
01:01comes to ending this conflict.
01:02Look no further than what oil prices are doing for how they're thinking about the timetable of this.
01:08And it's really causing a knock-on effect.
01:10And that's one of the things we've been talking about with our guests is at what point does oil breaking
01:14higher, maybe towards 120 on Brent?
01:18How does that impact the ultimate consumer and kind of the entire supply chain the longer this drags on, Katie?
01:23And how does that impact, you know, the price of everything else?
01:25When you think about the bond market in particular, we're having the conversation with Venu Krishna that if you get
01:30the 10-year Treasury yield close to 5 percent,
01:33that's when things really could get hairy.
01:36Of course, we're not there yet, but we know where the direction of travel has been when it comes to
01:41yields.
01:41But let's take stock of where we are when it comes to the equity markets at the closing bell.
01:46The S&P 500 going to finish the day about 1.7 percent lower.
01:51Of course, wiping out that really small weekly gain we have been working on.
01:56NASDAQ down about 2.4 percent.
01:58We know it's an ugly day for a lot of the tech names.
02:01The Dow Jones lower by about 1 percent.
02:03I guess that's your outperformer on the day.
02:06But I can't read too much into that, Carol.
02:07Oh, hating on the Dow again.
02:10All right, all right.
02:11I know.
02:11Let's go back to the S&P 500.
02:14Most names in the index actually lower today, Bailey, about 316 to the downside, 186 to the upside.
02:20We've got, looks like, one unchanged here.
02:23Yeah, if you want to look at your outperformers on a rough day, look no further than energy and some
02:28of those safety plays.
02:29Utilities and real estate falling behind.
02:30Real estate, we'll call it unchanged, but it's flashing green on my screen.
02:33Standing opposite a deep sell-off, communication services, tech, industrials, and consumer discretionary.
02:39Again, really heavily weighted by Amazon.
02:40So, for the most part, you're MAG7 dragging down this benchmark.
02:45All right, guys.
02:45Let's get to some of the individual gainers, if I may, in the Thursday session.
02:49So, let's get to it.
02:50Brown Foreman, definitely some outperformance there.
02:53Bottoms up, everybody.
02:549.6 percent to the upside.
02:57Pernod Richard.
02:59Hmm.
02:59I think I'm saying it.
03:00Nice.
03:01Close.
03:01Sounds good to me.
03:02All right, thanks.
03:03Thanks, guys.
03:04Exploring a potential acquisition of Brown Foreman, the owner of Jack Daniels Whiskey, as alcoholic drink companies look for ways
03:11to consolidate amid an industry downturn.
03:15Deliberations are ongoing.
03:16No certainty that they will result in a deal, but nonetheless, investors certainly got keen on that one.
03:22Hey, let's go on over to some of the car rental companies.
03:24Tim and I were just talking about it on our end.
03:26You saw Hertz Global up about 9.5 percent, excuse me, about 9.2 percent to the upside.
03:34Avis Budget, a gain of about 13 percent in today's session.
03:37And this is what's happening.
03:39Travelers across the country looking at those lines, being on those lines, are looking for different options.
03:44And so they are seeing maybe that they rent a car rather than fly somewhere.
03:50Traffic to Hertz Global, their website jumped about 15 percent this week as customers look for ways around the congestion
03:56at U.S. airports.
03:58The company's been promoting discounts on last-minute reservations and one-way rentals.
04:03So we did definitely see Hertz up today.
04:06We also saw Avis as well up almost 13 percent.
04:10I've got to tell you, Avis is up close to, I think, 50 percent in the month of March, putting
04:15it on track for its best month since October of 2022.
04:19So quite a run there.
04:20And one more for you.
04:22This was courtesy of my co-host, Tim Stenevek.
04:25I don't know if he uses it, but Olaplex Holdings.
04:28Wow.
04:30I do not.
04:31There you go.
04:32I do wash my hair.
04:34That's awesome.
04:35We're so happy about that.
04:36That's great.
04:37Soaring on a percentage basis, keep in mind, it's about a $2 stock, $2.01, up 51 percent today.
04:45Henkel agreeing to buy Olaplex Holdings, the hair care brand that developed a cult following its shampoos and other treatments.
04:52It's a $1.4 billion deal.
04:54Henkel's going to pay about $2.06 a share for Olaplex, according to a statement today that confirmed our reporting.
05:00Do you like it?
05:01I used to use it.
05:01It was hot for a while.
05:03Yeah, I don't use it anymore.
05:04Then I feel like there were some nasty reports about it, but I thought the whole thing was that it
05:09would, like, glue together your split ends.
05:12Well, it's based in Santa Barbara.
05:13That's all Bailey and I need to know about.
05:15I did like it for a while.
05:17I like the color, like, the golden oil.
05:20Anyway.
05:20Some reports about hair falling.
05:22I think we were supposed to move on now to some of the decliners.
05:25I know you just added one.
05:26Pull up the board and see where we're starting.
05:29Oh, look at that.
05:31SanDisk fell by 11% today.
05:34Four names?
05:35I added one at the end.
05:36As you were talking, I added one.
05:37Well, Tim, I feel like normally you complain about how there's nothing to choose from.
05:39Today it was like the entire market for you.
05:41An embarrassment.
05:41It's true.
05:42It's true.
05:43I'm very lucky that we have such a great team in the control room that can.
05:46All right.
05:46Yeah.
05:48So SanDisk fell today by more than 11%.
05:51This after, well, Google publicized research on a new algorithm that could allow more efficient use of storage needed for
05:58AI development.
05:58So we saw a handful of names move lower on this news.
06:02Snap shares also under pressure today.
06:04The EU investigating Snap social network to examine how it verifies users' ages and tackles grooming and criminal activities that
06:12target underage users.
06:13Snap shares finishing just off their lows, but still down 10.7%.
06:18And here's a really interesting one.
06:20This is Miller Knoll, the maker and designer of Office Furniture.
06:24Fell today by 22%.
06:26Look at that line.
06:28I know.
06:28All day.
06:29Well, it reported earnings late yesterday.
06:31I think it was late yesterday, if I'm correct.
06:33The company expects about a 125 basis point hit to growth related to the conflict in the Middle East.
06:39Lost volume as well as higher transportation costs from the increase in oil prices.
06:44William Blair analysts say that's expected to weigh on EPS during the fourth quarter by about 10 cents.
06:49Look at this hit, down 22.4% today.
06:53Also, finally, because there was so much lower today, we do have to give a shout-out to the MAG
06:58-7 stocks that ended up falling today, which was all seven of them, except for Apple, which was barely higher,
07:04by one-tenth of one percent.
07:05Meta platforms fell by eight percent just a day after that ruling or the jury, what the jury found in
07:13California.
07:15And then NVIDIA was down more than 4%.
07:17Tesla down more than 3.6%, Katie.
07:20I don't know if that's a shout-out or it's a poor one-out, because that's another ugly line there.
07:25Let's talk about the bond market.
07:26Another sell-off, this time in fixed income.
07:30And you can see, really, it was across the curve.
07:32The two-year yield, in particular, higher by about 11 basis points.
07:36We did get another auction today, this time of seven-year notes.
07:40That also didn't exactly get a warm reception.
07:43So that's three auctions this week, twos, fives, and sevens that tailed.
07:48So certainly weak demand there.
07:51So this sell-off, I mean, it's cross-asset.
07:53The only thing that really rose was oil, which has been the dynamic for a while now.
07:59All right.
07:59So let's get to some stories that definitely caught our attention.
08:02We have one about Netflix, what they're doing.
08:04I haven't seen this in about a year, but they're raising subscription prices by as much as $2 a month.
08:10Standard streaming with ads up about $1 to $8.99 per month.
08:15That's the first time, Tim, in just a year.
08:17Standard plan without ads rose by $2.
08:19And then you like to live with a premium plan, don't you?
08:23That's the one where you can watch multiple things at once, right?
08:26Isn't that your world?
08:27Why would you want that?
08:29I think some people, what they do is they're like,
08:31I've heard they have different family members in different places that use...
08:38A source familiar, but not...
08:40Although Netflix has really cracked down on this.
08:42Or so you hear?
08:43Netflix has really cracked down on this.
08:45Yeah.
08:45Premium plan climbing $2 to $26.99.
08:49Oof.
08:49Adding to inflation, that's all I'm going to say.
08:51I'm paying more at the pump, and now I'm going to have to have my brother pay more on Netflix.
08:55Or whoever's Netflix are using is going to have to pay more.
08:57Yeah, my family members.
08:59I pay for Apple Music, so that's all I bring to the table.
09:01I think they cited continuing investment, but didn't they just get like $2.8 billion in a breakup fee?
09:07Yeah, but they are spending a lot of money on content.
09:10Yeah.
09:10Before we go, I do want to quickly bring our attention to another story on the Bloomberg Terminal today,
09:15getting a lot of eyeballs, and that is crypto is entering the mortgage market via basically crypto-back mortgages.
09:24Better Home and Finance Corporation and Coinbase are launching a product that links digital assets to down payments on Fannie
09:33Mae-eligible home loans.
09:35I'm really curious what the uptake looks like here.
09:38You can pledge your Bitcoin as collateral to buy a house at the market peak.
09:44I don't see anything that can go wrong, guys.
09:46I don't know about you.
09:47Yeah.
09:47So you don't...
09:48Possibly, right?
09:49It's just so you don't have to sell your crypto if you want to hodl that crypto, Bailey, forever.
09:55Hodl.
09:55It's an appreciating asset is what I'm saying.
09:57So they don't sell it right away?
09:59No, you pledge it.
10:01Borrowers pledge Bitcoin and USDC stablecoin.
10:04It's collateral for a separate loan used to fund the down payment rather than selling those assets to raise cash.
10:10What could possibly go wrong?
10:11Anyway, but hey, we like disruption and innovation, so we'll keep an eye on that one.
10:16All right, guys, that's a wrap.
10:17Our cross-platform radio, TV, YouTube, Bloomberg Originals.
10:20We call it the closing.
10:21Belle Bailey and Katie continuing there on The Close on Bloomberg Television.
10:25Tim and I are continuing right here on Bloomberg Businessweek Daily.
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