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00:00All right, we're about two minutes away from the end of the trading day.
00:03I'm Katie Greifeld, and I'm all alone because Romain Bostic is not here,
00:08but thankfully joining me has happened.
00:10What did you do with that?
00:11Let me introduce you first.
00:13Tim Stenevich, Carol Master, we bring together all of our various audiences,
00:17and I don't know, he got on a plane and he left, so.
00:20He, okay, I didn't know we had a choice.
00:22Yeah, no, they let him leave.
00:24It's just you and I that have to stay here,
00:26but he's missing a big rally and he's missing a big round number
00:30when it comes to the S&P 500.
00:32Maybe, just maybe, depending on what happens in the next 75 seconds,
00:35we're going to see 7,500 at the closing level on the S&P 500.
00:40Yeah, we could also see a record close on the NASDAQ 100.
00:43You know, everything is awesome.
00:44It's kind of fascinating, Katie.
00:46We've got wars going on.
00:47We've got inflation that's outpacing wage growth.
00:51I mean, I don't know.
00:52I still can't make sense with everything going on
00:56and how equities just continue to move higher and higher.
00:58We've also got a pretty big appetite among some investors for IPOs,
01:04at least when it comes to companies that play in the AI inference space.
01:08Oh, yeah.
01:08Cerebra Systems up 68% right now.
01:10It's trading at more than $311 per share.
01:13That's up from $185 for that IPO price.
01:16So, off the best levels of the day, right when this opened, Katie,
01:19you were probably watching, paused for volatility right at the opening at $350 a share.
01:25Pretty stunning reception, especially when you think about just how hyped this IPO was.
01:30There was the question as to whether or not, you know,
01:33maybe we'd see a little bit of a fizzle just given how many times this was upsized, etc.
01:37But certainly, what a debut for Cerebras here.
01:42You take a look at the broader market rate now, though.
01:44The S&P 500 looks like we are going to do it, finishing maybe 0.8% higher.
01:50The Nasdaq, 0.9% higher.
01:53Similar gain when you take a look at the Dow.
01:56So, a big rally here.
01:58And, Carol, like you said, I mean, just risk appetite defying what we're seeing when it comes to the headlines.
02:04Like I say, right, everything is awesome.
02:06All right, let's go back to the S&P 500, folks.
02:08Just pulling it up on my Bloomberg.
02:10You dig deeper.
02:11Not quite an even split, Katie.
02:13You've got about 297 names in the S&P 500 higher today, gaining ground.
02:18205 to the downside, and you've got one unchanged.
02:21Well, you take a look at the sector level.
02:23Slightly more green than red.
02:25You had six sectors finish in positive territory, five in the red.
02:28In terms of what led us to this new record high, it was tech, that sector higher, by about 1
02:34.9%.
02:35That is the bright green slice on your screen right there.
02:38You also saw a good day for energy and for utilities, interestingly enough.
02:43Then you take a look at the downside.
02:44Materials lower by about 0.8%.
02:46Carol, real estate down as well.
02:49All right, let's go through some of the individual gainers, if I may.
02:52And no surprise, I'm going to start with that big IPO, Cerebrus.
02:56That went up, what was it, 108% at its highs today, finishing the day with a gain of about
03:0168%.
03:02Yes, you could say some money left on the table, but a very strong IPO.
03:06We know it was oversubscribed.
03:08I mean, pick your superlative.
03:10And I've got to say, all my gainers have kind of an AI component to them.
03:13So Cerebrus jumping, as you know.
03:15Trading debut, it raised $5.5 billion.
03:17Market cap is way above that.
03:19An upsized, hotly anticipated IPO.
03:22This year's largest so far.
03:24First-time share sales, raising nearly 60% more than its target when it launched.
03:30And again, like I said, above the marketed range and so on and so forth.
03:34So we should point out that our Ed Ludlow did talk to the CEO, Andrew Feldman.
03:38He talked about the IPO was more than 25 times oversubscribed.
03:44He said the company is prepared to work on further developing its unique AI computing,
03:47aiming to take a place among the leading providers of technology in the lucrative market.
03:51So a lot there.
03:52And I highly recommend that you check out that interview.
03:56I said there was kind of an AI theme.
03:58So let's flip it on over to Cisco, your number one gainer in the NASDAQ 100 and the S&P
04:02500 today,
04:03up more than 13%, jumping by the most in more than 14 years.
04:07The company did deliver a better-than-anticipated sales forecast and announced plans to cut thousands of jobs
04:13and attempt to focus on the fast-growing AI market.
04:16The company also announcing those layoffs will affect more than 4,000 jobs, or fewer than 4,000, I should
04:21say.
04:21And the reductions will result in as much as a billion dollars in severance costs and other one-time expense.
04:27I'm talking tech, and I know we've got another tech name crossing the blooper.
04:30We do.
04:30Applied materials, these numbers crossing now.
04:33Second quarter net sales coming in heavier than expectations, $7.91 billion.
04:38The estimate had been for $7.67 billion when it comes to second quarter adjusted EPS coming in just about
04:46at expectations, $2.86.
04:49But the reason that you see the stock climbing after hours right now has to do with their third quarter
04:53net sales forecast.
04:55They see that figure between $8.45 billion to $9.45 billion, so a billion-dollar range there.
05:05The estimate, though, had been for $8.15 billion, so boosting that outlook for their net sales.
05:11And you can see that's boosting the stock.
05:13This was a stock, Carol, that was higher by 70%, 80% year-to-date through today's close.
05:19So the bar was high as well.
05:20Yeah, absolutely.
05:21But looking like, at least initially, we'll see what happens on the call, that it might gain certainly into tomorrow's
05:27session,
05:27certainly gaining in the aftermarket.
05:29Hey, I'm going to go back to one more that also has a little bit of an AI slant to
05:33it, and we're talking about Ford.
05:34Ford up about 6.6% today.
05:37The rally in this name continuing for second day.
05:40I think it's a two-day gain of about 20% of enthusiasm for Ford's pivot toward energy storage,
05:47the latest sign that investors are eager to embrace companies that stand to benefit from power-hungry data centers.
05:52Remember, companies investing $2 billion to get into the energy storage business,
05:56which includes producing large energy sales for the storage business.
05:59You did have one analyst make a call yesterday over at Morgan Stanley who kind of sparked the enthusiasm in
06:07this story or this narrative.
06:08But another one, and I know, Tim, you pointed this out, Dan Levy over at Barclays put a note out
06:13today.
06:14He cautioned that the automaker must still deliver on the promises that it's making in this bet.
06:18But nonetheless, investors buying in, again, rallying big time for a second day here, Tim.
06:23Will the cars drive themselves?
06:24I don't know.
06:25One can only hope.
06:26Let's talk a little bit about some stocks that fell today.
06:30Boeing shares down 4.7%.
06:33This came after China agreed to buy 200 planes from the company.
06:36It's a multibillion-dollar deal.
06:38It would mark the nation's first purchase of U.S.-made commercial debts in close to a decade.
06:43200 sounds like a lot, but not when analysts were expecting 500 737 MAX to be ordered from Chinese airlines,
06:51as well as some wide-body aircraft as well.
06:54George Ferguson over at Bloomberg Intelligence said that an order for 200 jets, quote,
06:58is a disappointment for a market looking for 300 or more, and details around the type.
07:03China has only placed orders for 39 Boeing planes this decade.
07:06So if it is carried through, and that's an important part of the conversation,
07:09if it is carried through, it could mean a return to buying from the U.S., according to Bloomberg Intelligence.
07:14All right.
07:15Oh, I'm sorry.
07:16Oh, got an application software company, Figma, reporting some results here after the close.
07:21Just real quickly, I'm going to go to the outlook, see second quarter revenue.
07:25$348 million to $350 million.
07:27Folks, that is above what the street was forecasting of, $329.7 million.
07:31Go backwards to the quarter that was.
07:33First quarter revenue, that, too, came in better than forecast, $333.4 million.
07:38Street estimate, $316 million.
07:41And, yeah, the company's seeing fiscal year revenue, $1.42 to $1.43 billion.
07:47That, too, is fairly above the street estimate of $1.37 to $1.37 billion.
07:54That's not a range, folks.
07:55That's just a number.
07:57And nonetheless, Figma is up about almost 20% here in the aftermarket.
08:01Yeah, I mean, but remember, don't forget, back in August, Figma was at $122 a share.
08:06And, you know, Adobe was going to buy it before it went public.
08:09I remember.
08:10There were concerns about now about, like, what AI could do to this business.
08:14And it's been on a steady move down since then.
08:17So, yeah, some good news for Figma here.
08:19But broadly speaking, still off of those highs from last year.
08:2222% of the float is short, so investors could be doing possibly some short covering here as a result.
08:27All right, let's get to some of the other decliners on the day today.
08:31Doximity shares taking a hit.
08:33This is the healthcare software firm.
08:35You may have used the firm to communicate with doctors remotely, in fact,
08:39maybe send them messages or even do remote appointments.
08:42Shares down 23% today.
08:45Gave a full-year forecast.
08:46It was weaker than expected.
08:47AI investments pressuring the company's earnings.
08:49J.P. Morgan lowered its price target, as did Goldman Sachs, Truist, Wells Fargo, BMO, RBC, Mizuho, among others,
08:56also lowered their price targets.
08:58And finally, shares of Wolverine Worldwide, known for those Wolverine 10,000-mile boots, Katie,
09:04but also Chacos, Saucony, Merrill, Sweaty Betty as well.
09:10Shares fell by 2% today.
09:12The footwear and apparel maker reported first-quarter profits and revenue that topped Wall Street estimates,
09:16though it issued what Bloomberg Intelligence called a, quote, cautious outlook.
09:20Wolverine Worldwide shares down 2%.
09:22And, of course, that follows Birkenstock yesterday.
09:25That big wipeout that we saw for their shares down about 13%.
09:30But let's talk about the bond market.
09:32I'm going to do my best Romaine Bostic impersonation here because you take a look at what happened in yields
09:38today,
09:38a little bit of divergence, but really a quiet day overall.
09:41We know that it's been a very dramatic time in the bond market.
09:45We saw that big sell-off yesterday, especially at the long end.
09:49But pretty quiet today.
09:50You could call that unchanged, but the absolute levels that we're talking about,
09:53I mean, nearly 4.5% for the 10-year Treasury yield, above 5% for the 30-year yield.
09:59It's pretty amazing, Carol.
10:01Yeah, quite a switch, right?
10:03And it just talks about the kind of inflationary concerns and expectations of what the Fed is more likely to
10:09do,
10:10an increase versus maybe a cut.
10:12You're not going to find that conversation in the equity market right now.
10:15No.
10:16It's really kind of weird, right?
10:17Is Romaine back tomorrow?
10:19No, no.
10:20But I will have a friend tomorrow.
10:21Okay.
10:21Okay.
10:22Well, you always have a friend with us.
10:23That's true.
10:24Not to worry.
10:24Thank you, guys.
10:25You're welcome.
10:26Welcome.
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