00:00And right now we are two minutes away from the end of the trading day.
00:03Romain Bostic here with Katie Grappell taking you through to that closing bell.
00:06It's a global simulcast. Carol Master, Tim Senevic, they join us now.
00:10Welcome to our audiences across all of our Bloomberg platforms, television, radio,
00:14our partnership with YouTube here on a day where we normally focus on the S&P, Carol,
00:19but I'm going to focus in on the NASDAQ 100, the biggest gap down at the open in about four
00:23weeks.
00:23And that was all based on a Wall Street Journal story that said maybe open AI ain't selling enough,
00:29as some people had thought.
00:30Yeah, and open AI said basically, in a nutshell, these weren't their words,
00:33but, you know, don't worry about it. We're doing OK.
00:35But I will say you are seeing it play out in some different names,
00:39whether it's CoreWeave and a few others.
00:42But this has been that big question, right, before we were so focused on the war.
00:46Understandably, this concern about the AI spend, the return on investment,
00:49we're going to get some big reads on that tomorrow after the closing bell.
00:52Yeah, our reporting indicates that the company's CFO, Sarah Fryer,
00:56has told leaders internally that she's worried that the firm might not be able to pay
00:59for future computing contracts if revenue doesn't grow fast enough.
01:03We should note, Carol mentioned CoreWeave and the like.
01:05Oracle shares took a hit as well.
01:07SoftBank ADRs took a hit today as well.
01:10So sort of like anywhere there's exposure to this trade kind of got beat up there.
01:13But isn't this the issue, though, guys?
01:15I mean, because the whole thing is every time we make these announcements
01:17about this investment here and this investment there,
01:19it's not actually money spent.
01:21It's a commitment to maybe do something in the future.
01:24Yeah, well, I mean, to CoreWeave's point, Tim, you mentioned one of the companies here.
01:29They did say that OpenAI is a terrific partner, but not the only one.
01:34I thought that was pretty interesting.
01:36Terrific, but we have a diverse and expanding set of customers.
01:39All right.
01:40We are off the lows of the session, but definitely solidly in the red
01:43for all of the major indices here in the United States.
01:47I just do want to point out, we don't have it on the screen,
01:49but the Philadelphia Semiconductor Index, which had been on a tear,
01:52dropping 4% on the day.
01:54You see that reflected in the drag in the NASDAQ composite,
01:56which is going to finish the day lower by about nine-tenths of a percent.
01:59The S&P lower by about a half a percent.
02:02The Dow Jones Industrial Average only down a smidge,
02:04about 31 points or less than a tenth of a percent.
02:06And the Russell 2000 selling off by about 32 points or 1.2 percent.
02:10All right.
02:10What does it mean for the S&P 500 in terms of the mix, guys?
02:13It has 232 names, Katie, to the upside, 270 lower in the trade,
02:18and you had one unchanged.
02:21All right.
02:21Meanwhile, you take a look at the sector level as well.
02:24And it was interesting.
02:25Even though it was a down day on the S&P 500,
02:27you did have more gainers than losers.
02:30Six sectors in the green, five in the red.
02:33Your big winner today was energy.
02:35That sector higher by about 1.7 percent.
02:37Real estate also having a pretty good Tuesday.
02:40So, too, did consumer staples.
02:42But then you take a look at the downside.
02:44Information technology down 1.3 percent as a sector.
02:48That was your biggest loser when it comes to points and a percentage.
02:52Materials, industrials also bringing up the rear.
02:54We are expecting quite a few earnings after the bell,
02:56including from Starbucks, Enphase, and a few others booking.
02:59The travel agency out with theirs.
03:00And they said that in the first quarter,
03:02gross bookings came in at about $53.8 billion.
03:06That's a little bit light.
03:07The street was looking for 54.2.
03:09Overall, revenue did rise about 16 percent in the quarter in line with estimates.
03:14Agency revenue, that was down by about 2.3 percent.
03:17And we talk about the bottom line here.
03:19Adjusted EBITDA, a rise of about 19 percent.
03:22A slight beat here.
03:23But you did see a little bit of touch of margin pressure there.
03:26They are on the bottom line here.
03:28So, again, a big focus right now on the travel sector,
03:31particularly in light of that increase that we've seen in jet fuel prices and inflation.
03:35And you can see the stock getting hammered after hours right now, down about 8 percent.
03:40And this was a company that had sold off into this report year-to-date,
03:44shares down about 19 percent on a total return basis, Tim.
03:49So we'll see, of course, if these losses sold.
03:51But more bad news for booking.
03:53Yeah, I'm looking in their outlook and sort of commentary for guidance for the second quarter
03:57and for the full year.
03:57The company says that they're assuming the direct and indirect impact from the conflict
04:01in the Middle East continues through the end of June.
04:04Specifically, their outlook accounts for continued fluctuations in travel demand
04:07across Middle Eastern, inbound, outbound, and intra-region routes,
04:10as well as ongoing disruptions to major transit corridors.
04:15They're looking for a recovery in bookings by the second half of the year.
04:19The company, though, says they're mindful that a sustained disruption could introduce
04:22broader inflationary pressures, including fluctuations in jet fuel prices,
04:26airline capacity reductions, as well as weigh-on traveler sentiment more broadly.
04:31And those dynamics can create headwinds.
04:33The stock-facing headwinds after hours down 8.3 percent.
04:36All right, guys, I want to go to T-Mobile, bouncing around here in the aftermarket.
04:39The company adding 217,000 new monthly accounts.
04:44That's a 6 percent year-over-year increase compared with analyst estimates for about
04:47192,000 or just shy of 193.
04:50So that's a big beat.
04:51The company no longer reporting changes in wireless customer additions.
04:55It said it's focusing on tracking relationships that can include multiple customers' phone lines,
05:00connected devices, and home Internet service.
05:03The company, T-Mobile, you can see bouncing around just a little bit lower as we speak,
05:07bumping up its full-year guidance for several metrics, including full-year net account additions,
05:12and now expects new monthly account additions in the range of 950,000 to 1.05 million.
05:18So, again, beating Wall Street expectations for the number of new customer accounts it added
05:23in the first quarter. New CEO, remember, at this company looking to put his stamp on the
05:27company. Right now, stock down about four-tenths of a percent.
05:30I do want to go back to booking, and those shares remain under pressure. And a lot of this,
05:34of course, has to do with some of the concerns about travel trends, not only, of course, because
05:38of the cost of jet fuel on the planes, but overall, the drop-in consumer sentiment and whether that
05:44weighs on some of the plans there. We should point out Brent crude prices, oil prices overall,
05:47at least in the future markets, have been elevated for seven straight days. It's always a reminder
05:52here that despite some of the look-through that a lot of investors have had with regards to the
05:56situation in the Middle East, that situation, of course, still far from resolved. The Straddle
06:01Hormuz still choked. Yeah, booking for their point, saying that impacts from the conflict to continue
06:06through the end of June there. So, interesting to see that sort of timeline on it. I will say,
06:12when you take a look at T-Mobile, it's interesting to see this new metric that they're promoting,
06:16shifting from reporting changes in wireless customer additions, instead focusing on tracking
06:21relationships that can include multiple customers' phone lines, connected devices, and home internet
06:26service there. Again, now you can see our T-Mobile shares actually popping into the green, Tim,
06:33though. It's been a sort of jerky trade. My first instinct when I hear that, Katie, is that,
06:38you know, investors and analysts don't love getting less information. And I wonder how they're
06:44going to track that compared to, like, a Verizon or AT&T, which already reported for the quarter,
06:49and how that compares. But, yeah, the company says it sees fiscal year post-paid net account ads,
06:55$950,000 to $1.05 million. The estimate was for $973,000. T-Mobile shares bouncing around,
07:02but now down about one-tenth of one percent.
07:03All right. Speaking of stocks being down, let's go to Robinhood, down about three percent here in
07:08the aftermarket. Just a few headlines. First quarter net revenue, that's coming in a little
07:12light. $1.07 billion. Street estimate was for $1.14 billion. First quarter adjusted EBITDA,
07:19that, too, is coming below the street estimate. Coming in at $534 million. Street estimate was for
07:25$583.8 million. First quarter transaction-based revenue, obviously closely watched. That, too,
07:31is light. $623 million. Street estimate was for $661.3 million. And the company not providing
07:38a 2026 outlook for operating expenses. And you guys can see that's stacked down about three and
07:44a half percent here in the aftermarket. Starbucks shares up about five percent in the after-hours
07:48trade. A beaten, a raised quarter. We came in today with most investors hoping that Starbucks
07:52would actually raise its full-year guidance. And it actually did, boosting its full-year comp
07:57sales growth as well as an adjusted EPS outlook. And that's a big part of the reason why you're
08:01seeing the move in the shares. As for the quarter that just passed, the fiscal second quarter comp
08:05sales, they came in at 6.2 percent plus. The estimate was for 3.65. So a big beat there.
08:11U.S.
08:12comp sales, 7.1 percent. The street was looking for 3.7 percent. But there is still some softness
08:18here with this company, and that involves international sales. They missed estimates, up about
08:222.6 percent. The street was looking for 3 percent even. And China comp sales, up 0.5 percent. The
08:28street was looking for 3.4. So basically, right now, this is a story about the U.S. and North
08:33America for the most part, but still some concerns there about what's happening overseas.
08:37Meanwhile, let's also talk about Mondelez, those results crossing the wire as well. When it comes
08:42to the look back, first quarter adjusted EPS did beat estimates coming in at 67 cents. The estimate
08:48had been for 61 cents there. And then you take a look at the look ahead, reaffirming some of their
08:55guidance here. Mondelez still sees full-year adjusted EPS unchanged to growth of about 5 percent.
09:01They also still see full-year organic net revenue also unchanged to 2 percent. The estimate had been
09:07for a growth of 0.91 percent here. So maintaining some of those forecasts, you can see shares rising a
09:15little bit after hours, higher by about 1.7 percent or so. Shares of Visa also rising just a little
09:20bit
09:20after hours, up about 1 percent. Second quarter adjusted earnings per share for Visa coming in
09:24above estimates at $3.31. Second quarter net revenue beat there at $11.23 billion. Second quarter
09:32adjusted EPS, as I mentioned, beating there. And second quarter total Visa process transactions
09:36coming in just shy of estimates at $66.1 billion. A headline, though, the company saying that consumer
09:42spending remained resilient, which I think is an interesting comment, given that they have such a
09:48good view of what consumers are doing at any given moment when they swipe their cards. Shares of Visa
09:52up right now by just about half a percentage point. All right. And just real quickly, you've got
09:56Robinhood down about 6.5 percent, booking down about 6.5 percent. And then you've also got
10:02Caesars, which also came out. And it's a little bit lower in the aftermarket, down about 3 tenths of a
10:07percent. All right, guys, a lot of earnings. And of course, tomorrow after the close will be
10:11the Big Mag 7 for them actually reporting. So we'll be breaking that down.
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