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00:00We're about two minutes away from the end of the trading day and week. I'm Scarlett Fou. I'm in for
00:04Romaine Bostic and Isabel Lee is in for Katie Greifeld. We are here to take you through the
00:09closing bell with a global simulcast and we're joined now by Carol Lassar and Tim Stenevich.
00:14How did you guys decide who's Romaine and who's Katie? I guess based on where we're sitting but
00:18you know it's kind of you know you pick you choose. Thank you for laughing Carol. They can only be
00:23Scarlett and Isabel. I'm just gonna say. Thank you. Dynamic duo. Really fun to have you guys here on
00:28this Friday. On a day and a week where what we're looking at the sixth consecutive weekly gain for
00:34the S&P 500 we've just seen the move forward and forward. The market just wants to continue to go
00:40higher. It does. That said oil is still historically high right now. Look at this 65 percent higher this
00:50year and look it's down in recent days certainly but Brent crude is still hovering around $100 a
00:54barrel. Isabel and WTI still close to $95 a barrel. That aside it's really also the earnings that are
01:00really powering markets higher. Overall earnings trends and better investor sentiment has prompted
01:04RBC to raise its rolling 12-month forward price target for the S&P to $7,900. That's up from
01:10$77.50.
01:12So lots of bullishness there from strategist Lori Calvacina. Yeah everyone points to earnings as the
01:17driver here for stock prices. So if in doubt about what's going on here you can look at oil prices,
01:23you can look at consumer sentiment. But they point to earnings and how durable that is and that is
01:27underpinning this rally. Right Scarlett we talked about the fundamentals and so investors are all
01:31of a sudden like wait a minute we're seeing out performance in terms of earnings. The fundamentals
01:35are there. So let's buy stocks. All right there you have the closing bell. We are getting ready to
01:40close out a sixth straight week of gains for the S&P 500. That is the longest stretch of weekly
01:46gains since going back to 2024. You have the S&P closing at a record high. You have the Nasdaq
01:52Compton index. The Nasdaq 100 closing at record highs as well. The Nasdaq up 1.7 percent. The
01:58Dow little change. The S&P up eight-tenths of one percent. All right let's get to the S&P
02:02500 going
02:03back there. You know what's interesting even though we're seeing a move up generally again in the major
02:09averages guys. We've got 208 names in the S&P 500. Yes gaining ground but Isabel more names are
02:16actually losing ground on this Friday. 295 to the downside. Exactly. I'm looking at my IMAP here and
02:21unless I'm looking at the right thing it's actually interesting how it's not all green. You see
02:26their tech up by almost two percent. Materials also higher but you have a couple of red there. I'm
02:31seeing health care down by six-tenths of one percent. Consumer staples. Energy and financials
02:35also in the red. All right guys I want to go do some of the individual gainers if I may
02:39in today's
02:40trade. I got to talk about the semiconductors. Man just on fire. Intel up almost 14 percent. You had
02:47micron up about 15 and a half percent and you had a lot of options activity around micron as well.
02:53I think it was 75 dollar puts where you saw a lot of activity. Philadelphia's semiconductor index that
02:58was up about five and a half percent. Nearly all names in the socks. There are 30 of them higher
03:03in
03:03today's session. Socks is up 65 percent roughly year to date. We did see it come under pressure like
03:09a lot of the market following the U.S. war in Iran when that started. Apple and Intel. Let's get
03:15to some
03:15news and fundamentals for Intel. Apple and Intel have reached a preliminary agreement for Intel to
03:19manufacture some of the chips that power Apple devices. According to people familiar, intensive
03:24talks between the two have been ongoing for more than a year. They hammered out a formal deal
03:29in recent months. These people said it's still unclear though which Apple products Intel would
03:35make chips for. These people said this was in the Wall Street Journal. But if you remember on Tuesday
03:39our team of Mark Gurman, Ian King and Ryan Gould had talked about Apple having exploratory
03:44discussions about using Intel and also Samsung Electronics to produce the main processors for
03:50its devices in the U.S. So anyway, this certainly got the stock moving. But if you read what Bloomberg
03:55says, you would have had a little bit of a heads up. Carol, you have no excuse then. I know.
04:01Oh,
04:01I said darn, I wish I had everything in semiconductors because they've been just on a run certainly this
04:08year. Hey, let's flip it on over to Dell Relling today. This is President Trump said, go out and buy
04:12a Dell.
04:13They're great. Repeating his praise for founder Michael Dell and really the whole Dell family
04:18for its philanthropy and backing and giving contributions to those Trump accounts. This
04:23was at a Mother's Day event at the White House. So you did see Dell getting a kick to the
04:28upside up
04:29about 13 percent. That's more than a kick. I know. Isn't that amazing? And then here's for something
04:35non-tech, low-tech, no-tech, monster beverage. This was certainly an outperformer in today's session.
04:41Top in the S&P and NASDAQ. It was up about 13 and a half percent, hitting an intraday high
04:46of as
04:47much as 17 percent. The company reported first quarter adjusted earnings per share that beat
04:51the average analyst estimates. J.P. Morgan raising its price target, RBC2. Options today also surging
04:57around this one. Actually, it was, I'm sorry, I think I said options around Micron. Oops. Sorry,
05:03it's Friday. Option surging around Monster. That was led by $75 share puts. I'm really sorry, guys,
05:09but I did correct it. All right. I'm going to get to some of the decliners today. It's been a
05:13long
05:13week. She has to travel back from L.A. Thank you. Thank you. I love you, Scarlett. Look at Cloudflare
05:18down 26, 23.6 percent today. It's the worst day ever for this company. Interestingly enough,
05:25though, trading at 196.13, it's only down to levels that were seen just last month. So it had quite
05:31a run
05:31up over the past few weeks. Still, it's important to note the company said late yesterday it would
05:36slash jobs. It gave a forecast for revenue that fell short of analyst expectations. It's going to
05:40slash its current workforce by about a fifth of the total 1,100 employees. It's prioritizing AI tools
05:46in the operating model. The company also projected revenue for the quarter that fell short of estimates.
05:54Also, let's take a look at what happened to shares of Expedia today. They posted quarterly revenue
05:59that was up 15 percent from a year earlier, but gave a tepid gross bookings for the second
06:04quarter forecast, down 9 percent today. Analysts pointed to macroeconomic pressures weighing on
06:10the guidance, though Expedia did say we expect healthy demand from the FIFA World Cup and forecasted
06:16second quarter revenue between $4.11 billion to $4.19 billion. Shares fell by just over 9 percent.
06:24And finally, CoreWeave today. Shares dropped after the company gave a disappointing forecast for the
06:28current quarter. It sparked concerns about slowing growth. Revenue for the second quarter will range
06:33from $2.45 to $2.6 billion. That was short of the $2.7 billion, Scarlett, that analysts wanted to
06:39see. CoreWeave down by 11.4 percent today. All right, good stuff. Let's move on to the fixed income
06:44space. We saw a bid for U.S. Treasuries. Higher price means lower yields, especially at the short end
06:50of the curve. We had a better than expected April jobs report, but nothing that forces the Fed's hand.
06:56So you're seeing yields come down for the two-year. We're now sitting at 3.89 percent for the 30
07:02-year.
07:03People have been eyeing that 5 percent level. We got there earlier this week, but we're ending the
07:07week away from it now at 4.94 percent. And the 10-year, currently at 4.36 percent, well within
07:12the
07:12range that it's established. All right, guys, this is really important. You know, we talk about concerns
07:17about private credit or the over-AI spend. Well, apparently gelato is getting a bit odd and weird,
07:24and not everybody's happening as happy about it. Sablé?
07:28Uh, hey.
07:29I don't know. It's a gelato shop in Bologna. It produces small quantities of gelato using high-quality,
07:36meticulously sourced ingredients without thickeners or emulsifiers. I think the point of this story
07:41that our Joel Hart did here at Bloomberg is that they're also getting into some different weird
07:45flavors. Oh. I thought the point of the story was so Joel could go to Italy and eat gelato.
07:51Because... Is that sent to Italy to do a story on gelato?
07:53That's what it seems like... Can you just say to the editors, hey, like,
07:56we should be doing... This is a really important gelato story. There's concerns, like,
07:59playing around with the ingredients, and I gotta go. I gotta pitch for our produce.
08:02In all seriousness, it's one of the most read stories on the Bloomberg Terminal. It's about
08:06the evolution of gelato in Italy, how it's particularly focused on the northern region,
08:10with gelato shops there offering innovative flavors, techniques, and it showcases gelato
08:15as this key component of Italian food and cuisine. It's enough for me to go there.
08:19There's one with a... It's a reconstructed cheese gelato made with whey starter, penicillium
08:25candidum, I guess, and a parmigiano garum topping.
08:28It's too innovative for me. I just want to stick with my nice dark chocolate. There's
08:33morel, mushroom, and sake. I mean, I guess it's for a small niche group of people, or maybe
08:39a big group, but not for me, I guess. I'm with you, too.
08:42A shout-out to Minimal, which is a gelato shop in Taichung, Taiwan, which has a Michelin star.
08:48Oh, wow. We should pitch that, Scarlett, and we can go.
08:51I have a pitch already in mind for gelato around the world. All right, the other story that I'm keeping
08:56my eye on. I don't know if you guys have any kids in college. I know, Carol, you once did.
08:59I have two in school right now, and there's this online platform that all these college
09:04students need to use. It's called Canvas. There's a hack into it, and it came yesterday. It actually
09:09came a few days ago, but it really got publicized the last few days. Now, as a result, the University
09:13of Illinois, Virginia Tech, and Southern Methodist University, among others, have postponed
09:18their finals because of this. Kids can't get onto the platform. They can't check the study guides.
09:24Professors can't communicate with the students. It's a big mess.
09:27I got to tell you, this is terrifying to me, and I have these bad dreams that I'm like,
09:30I'm going to, one day my phone, like, all my accounts are going to be hacked. There's going
09:34to be no money in my bank account, no money in my investment account. Like, it just terrifies
09:39me, and I just feel like these are the kind of things that were, I don't know, I just find
09:42it really upsetting.
09:43I took about a decade between undergraduate and then going to graduate school, and by the time
09:48I got, there was like no technology when I was an undergraduate, truly.
09:51So much now.
09:52And then by the time, 10 years later, which was actually 10 years ago, I got to graduate
09:56school. They were using Canvas, and it was a completely different experience. There were,
10:01there was, every syllabus was on there. I can't, just given that this is the backbone, and this
10:07was like a decade ago, this is the backbone of how every class is done in certain universities,
10:12of course it makes sense that they'd have to delay finals, because this is, this is the
10:17infrastructure that that academia runs on.
10:19And the market share that this company has in structure, which is owned by private equity,
10:24owned by KKR, in fact, it's incredible. Everyone seems to be affected in one way, shape, or form.
10:30I miss analog days when I had to bring a paper slip to my parents and make them sign them.
10:36I know. I like, I like paper. I like paper. I'm just going to say that. I still have a
10:40calendar
10:41book.
10:41Like, we all grew up with paper, so, you know, there's a, it's, it's comforting, right?
10:45So, you know, there's a, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's,
10:45it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's,
10:45it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's,
10:45it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's
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