00:00All right, we're about two minutes away from the end of the trading day.
00:03Katie Greifeld and Bailey Lipschultz in for Romain Bosick.
00:06And here to help take us through the closing bell, it's Global Simulcast.
00:10We're joined by Carol Masser and Tim Stanovic.
00:13We bring together all of our various audiences as we do so.
00:16And Carol, you take a look at the market action today.
00:19As I was saying to Bailey, you might have thought we'd see a little bit of a bounce today
00:23after five straight weeks of losses, but those dip fires, they just disappeared.
00:28Yeah, for the most part, right?
00:29We're down on the S&P and NASDAQ with just a few minutes to go.
00:33Having said that, you did see some folks coming in in the last, I don't know, 15, 20 minutes,
00:37half an hour, pulling those major averages off their lows of the session, but still down here, Tim.
00:42So we're in correction for the NASDAQ 100.
00:45The S&P 500, though, it's close to a correction.
00:48Down from those highs on January 27th, 69.78.
00:53Down right now, Bailey, to 63.40.
00:56That's about 9.2% from those January highs.
01:00So we're on correction watch.
01:01That means my entire team, Tim, will be glued to their seats and glued to their terminals
01:05every moment of the trading day for the rest of this week.
01:07As they should be.
01:08As they should, as they are at Bloomberg.
01:09But I also want to, Tim, want to call out the fact that the semiconductor index right now,
01:13three days losing streak, down more than 10%, Katie.
01:16We saw semiconductors hanging in there while software was dumped.
01:19But right now, it doesn't seem to be the case.
01:21Yeah, it's been interesting that it's really the chips, it's really the tech space overall
01:24that's been hardest hit over the past month.
01:27And a lot of those concerns, they started really in October or so,
01:32and they've just been exacerbated since then, Carol.
01:34Yeah, MAG7, take a look.
01:36Year-to-date, down about 16%.
01:37So you're spot on, Katie, in terms of what sectors are feeling the pain this year.
01:42Let's take a look at where we're finishing up on this Monday.
01:45Again, off-session lows, but still another red day on Wall Street.
01:50In a holiday-shortened week, the S&P 500 going to finish about four-tenths of a percent lower,
01:55even more so when you take a look at the NASDAQ, down about seven-tenths of a percent.
02:00The Dow chose the industrial average, got to hand it to the Dow, higher by about a tenth of a
02:05percent.
02:05But what signal can you glean?
02:06I don't think there is one.
02:08Anyway, the Russell 2000 also lower on the day,
02:10even though we did have that big bond market rally not helping the little guys, Carol.
02:15I just got to say, Katie, the Dow says thank you for mentioning.
02:18Because it does feel like it's too.
02:19I didn't want to.
02:21All right, S&P 500, back there we go.
02:23Billy, you've got 273 names in the index, higher on this Monday, 229 to the downside, one unchanged.
02:30Looking at the sector level, you would have thought we would see weakness across any and all big tech.
02:35But really, your biggest underperformer, biggest drag was industrials down more than 1.5%.
02:39On the upside, though, financials, utilities, and staples.
02:42So that kind of a market where investors are avoiding riskier assets.
02:46All right, so let's go to some of the individual gainers, if I may, in today's session.
02:51And I've got to talk about Fannie Mae and Freddie Mac because these were on a tear today.
02:56Shares of Fannie and Freddie pairing a month-long slide after Bill Ackman, who has bet heavily on the companies,
03:02called the mortgage finance giants, stupidly cheap.
03:06Surprise.
03:06Carol, is it different than what he was saying a year ago?
03:09I know, I know.
03:10It's almost like he has a stake in them.
03:12It's like, you know, but listen, look at it.
03:15It's crazy.
03:16You got what?
03:17Fannie up 51%, Freddie Mac down, up about 47%.
03:21Keep in mind, these trade over the counter, they tend to be volatile.
03:24We often see this.
03:26So steepest jump since, I think, about May of 2025.
03:29But you're right.
03:30Ackman's Pershing Square Capital Management was the single biggest private sector shareholder of the two companies at the end of
03:36last year.
03:36That's according to our data here at Bloomberg.
03:38Over the weekend, Ackman, who's been pitching the White House on plans for releasing the companies for government control,
03:44said in a post on X that Fannie and Freddie offered a symmetry at its best.
03:49They could be a 10 times, and it could happen soon.
03:52But, you know, you talk to some other folks who say these folks as public entities may be not such
03:57a good idea.
03:58So two sides to every coin.
04:00All right, let's take a look at aluminum stocks.
04:02U.S. listed aluminum stocks gaining after a rally in the metal price following Iran's attacks on Middle Eastern aluminum
04:08facilities played out.
04:11So take a look at names like Alcoa.
04:13It was up about 8% in today's session, more than 7% gain for century aluminum.
04:18And then Rio Tinto up about 2.5%.
04:21And then we did have J.P. Morgan, Alice Bill Peterson putting out a note to clients.
04:25He said, while sentiment and positioning may drive further volatility, the fundamental risk to supply outweighs demand destruction for now,
04:32making the outlook for aluminum notably bullish amid heightened geopolitical and logistical uncertainty.
04:37So investors took note and sent that whole space higher today, Tim.
04:41Well, the whole space that was lower today were semiconductors.
04:44As Bailey mentioned just a few minutes ago, I want to start with Micron.
04:46Down another 9.9% today.
04:50Memory and storage companies extending their recent slide.
04:53Remember, it was last week that the entire group came under pressure.
04:56This was after Google talked about that breakthrough that analysts say may curb demand for certain types of storage.
05:02The reason I'm picking on Micron, though, is because it's down more than 30% since March 18th.
05:10That's when the company reported its most recent earnings.
05:13And that's when it said it would have more spend more on CapEx this year than analysts wanted to see.
05:18It has been on a slide since then.
05:20Tim, it's still up more than 270% on a 12-month basis.
05:24I'm just going to call out the winners in the long term.
05:26OK.
05:26Wow.
05:27We'll see what happens tomorrow.
05:27There's two sides to every trade.
05:29We'll see what happens tomorrow.
05:31Thank you for the additional context.
05:33Appreciate it.
05:34Hey, also in the S&P 500 falling today, let's go to Boston Scientific.
05:38BSX is the ticker.
05:40Down today by more than 9%.
05:41Shares tumbled after results from the company's trial of the Watchman heart implant fell short of investor expectations.
05:48The trial studied patients with non-valvular atrial fibrillation.
05:53It's a heart rhythm disorder.
05:54The trial did meet all preliminary and secondary safety and efficacy endpoints.
05:59Still, though, investors said it fell short of expectations.
06:02Or analysts, I should say, say it fell short of investor expectations.
06:05And finally, a little M&A on this Monday.
06:08Taking a look at shares of Cisco.
06:10This is the food company, not the, you know, tech company.
06:15Down more than 15.2%.
06:18SYY is the ticker.
06:19They're acquiring Jetro Restaurant Depot for $29.1 billion.
06:23That includes debt in a deal that will create one of the largest food service groups in the U.S.
06:28Cisco plans to raise about $21 billion of debt to help fund its acquisition of the closely held Jetro Restaurant
06:34Depot.
06:35That's according to a statement on Monday.
06:36The financing would also include hybrid debt as well as $1 billion of cash on hand equity or equity-linked
06:41securities.
06:42Once again, Cisco, the food services firm, down by more than 15% today.
06:46All right, let's take a quick look at yields here.
06:48What happened in fixed income?
06:50And we saw a big rally across the curve, as you can see, down seven to eight basis points.
06:56The 30-year down about five basis points.
06:59We heard from Jerome Powell earlier today.
07:01He did say that longer-term inflation expectations remain in check and that officials may need to respond to the
07:06impact from the Iran war.
07:08Not the case yet, but they may need to respond.
07:11So, you add it all together, it seems like the market flipped from being really concerned about inflation, or at
07:16least the bond market,
07:17that concern about inflation flipping to concerns about growth expectations, and finally seeing a bit of a rally here.
07:25Though I will mention that the absolute levels on these yields are much, much higher than where we were a
07:31month ago.
07:31All right, guys, it's time to improve your aura points.
07:35What does that mean?
07:36I don't know what that means.
07:37I think we're the youngest people in this chat, and I have no idea what you're talking about.
07:40I don't know.
07:41It's something about, like, your social standing, doing some, like, cool things.
07:45Anyway, you can actually do some aura farming or mogging.
07:48I don't even know what that is.
07:50There's also mall maxing.
07:51Apparently, teens are putting down their phones.
07:55I feel really old.
07:56Cheryl, none of those were words.
07:57I just want to go ahead and say, just to be clear, for any viewer or listener, none of those
08:00were words.
08:01Just add it to the dictionary.
08:02It's just time to go back to the mall.
08:04Apparently, kids these days are going back to the mall.
08:07They're getting their ears pierced, buying jewelry, trying on outfits.
08:12But what I don't understand is that they're still then posting this on socials, which then says to me they're
08:16picking up their phones.
08:17I'm glad you said that, because the whole reason that some of these places are now popular is because of
08:23the TikTok feedback loop.
08:25So it's actually supercharging teens' obsession with going all in on anything that catches their fancy.
08:30That's what's called maxing, guys, okay?
08:31Okay.
08:32Influencers post from stores.
08:33They show off their shopping bags, so they want to do the same.
08:37The friends see their posts they want to go to, and so on.
08:39You don't need any more aura points.
08:41That was pretty cool.
08:42I will say we have been talking about it a bit on the close.
08:45I don't think I've ever heard Romaine say aura farm.
08:49But we have been talking about it from a real estate angle.
08:51You know, if you think about real estate investors, they're psyched that the mall is back.
08:56How about space, though?
08:58How about the moon?
09:00Because in some ways that's back as well.
09:02On Wednesday, April 1st, NASA is going to send a crew of astronauts around the moon for the first time
09:10in more than 50 years.
09:12I think this is fascinating.
09:14And you think just about the training that these astronauts have to go through, it's pretty wild to think about.
09:21Yeah, and Katie, it's a 10-day journey, the second flight of NASA's Artemis program, to help, Tim, create a
09:27lunar outpost as a stepping stone to Mars.
09:30So if your eyes are set on the moon, Katie, Mars is just a little bit further is what I've
09:34been told.
09:35Yeah.
09:35Much better than mall maxing.
09:37That's a lot of aura points, I'm just going to say.
09:39Only if you post about it, though.
09:41That is the key point.
09:43It's great that you physically went there, but you can't aura max if it's not on your socials.
09:48Nothing, Tim?
09:49No, I told us to wrap.
09:53He actually listens.
09:54I listen.
09:54He does listen.
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