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00:00About two minutes away from the end of the trading day on this Friday afternoon, Katie Greifeld and Isabel Lee
00:05in for Romaine Bostic and here to help take us through the closing bell.
00:09It's Global Simulcast. We're joined now by Carol Master and Tim Stenovic.
00:13We bring together all of our various audiences to talk about this drawdown in the S&P 500.
00:19Carol, we were just discussing whether or not this was sort of a delayed reaction to all of the hot
00:24inflation prints that we've gotten this week.
00:26Tim has been, like you've been saying over and over, it's like, why today did all of a sudden equities
00:31decide to react?
00:33Or why did bonds decide to react today?
00:35The global bond market, right? Like why today did they catch up with the news?
00:39I mean, maybe oil is, you know, a little part of the story, but we've seen these numbers before.
00:44Brent contracts to $109 a barrel.
00:47Is it because nothing came out of the U.S.-China?
00:51WTI, $105.60 a barrel.
00:53I mean, you could say maybe it's Friday. Maybe people don't want to hold risk into the weekend.
00:58But certainly we've seen plenty of Fridays where that isn't the case.
01:02But certainly some sheen coming off this rally, Isabel.
01:06Our guest earlier just said maybe people are waking up to the jet lag.
01:09So maybe there is that.
01:10And we had a note just come in minutes ago from Keith Lerner saying that this is a Teflon market.
01:15I mean, there are a few risks starting to stick, but maybe overall people are still optimistic.
01:19But, yeah, maybe they're just realizing and they decided to react once and for all.
01:23Well, when bond yields start to move up, you know, you start looking against that against other asset classes or
01:28investments
01:29or what you get in terms of a yield on the S&P 500.
01:33You start to, you know, kind of make these comparisons.
01:35So we'll see what investors do.
01:37Absolutely.
01:37We'll see, you know, if we get any truth socials, too, from the president.
01:40We know that he has cared about the bond market in his second term, but crickets so far.
01:45Meanwhile, we take a look at how we're closing on this Friday afternoon.
01:49The S&P 500 looks like we're going to finish about 1.2 percent lower.
01:53Remember this time yesterday we were talking about 7,500 on the big index.
01:57You can see that's closer to 7,400 today.
02:00The Nasdaq also down by about one and a half percent.
02:03The Dow down as well.
02:05The little guys also taking it on the chin as well with the Russell 2000 firmly in the red, Carol.
02:11All right.
02:11Let's go back to the S&P 500.
02:13You're just doing a refresh here on my Bloomberg.
02:15Most names in the index lower today.
02:17360 names in the S&P 500, guys, losing ground on this Friday.
02:22141 to the upside.
02:24And Isabella, two unchanged.
02:26Looking at the IMAP, it's mostly red.
02:28But you see pockets of green energy up by around seven-tenths of one percent.
02:32But the rest is really down.
02:34Tech is down by nearly two percent.
02:36Material is down by nearly three percent.
02:38Health is also down by one percent.
02:40And the list goes on.
02:41But definitely mostly red there on your screen.
02:43Yeah, a ton of red there.
02:44All right.
02:44So let's go to some of the gainers in today's session.
02:48And I'm going to go to the number one gainer in the S&P and the Nasdaq 100 today.
02:53And that is Dexcom.
02:54Ticker is DXCM.
02:56That stock up at its highs, more than nine percent today, but still finishing with a gain of about six
03:01and a half percent for the Friday trade.
03:03This is after the maker of continuous glucose monitoring devices gave a long-term growth outlook at its investor day
03:10that impressed analysts.
03:12You also had the activist investor, Elliott Investment Management, taking a stake in the company and struck a settlement that
03:17will put two independent directors on the board.
03:20That deal stipulates the two will collaborate to point those two new directors who will add board expertise in medical
03:26technologies and operations to help the company scale.
03:30So keep in mind, a little perspective here, the market cap for this company peaked above $63 billion back in
03:352021.
03:36It's declined since then and has about a $23 billion market cap today.
03:41And we've seen it cut its revenue outlook in recent years, citing some execution problems.
03:45We also saw a new CEO take over in January, the former CEO becoming executive chair.
03:51So they've had a lot going on.
03:52But nonetheless, this was a much more bullish day for DXCM in today's session.
03:57Let's flip it on over to, you know, those glucose monitors.
04:01I want to credit my co-host, who's just brilliant.
04:04Where is he?
04:05He's like, you've got to do DXCM and then you've got to do this next story because you've got to
04:09talk about ice cream because sometimes people who eat ice cream have to have these glucose monitors.
04:13I didn't say that part.
04:15Sounds like you did.
04:15I just thought it would pair nicely.
04:18It's like a fine wine.
04:20I'm going to get to pizza in a moment because you could also, you know, tie this together.
04:23Let's talk about Magnum ice cream.
04:25We did see this stock move up almost 11 percent here at the close, finishing just off its highs.
04:31The most since the stock's December listing.
04:33Reuters reported that the private equity firms, including Blackstone and Clayton Dubelier and Rice, are exploring potential bids for the
04:39company.
04:40Reuters citing people familiar with the matter, saying that the firms are monitoring Magnum's share price,
04:45waiting for summer sales before deciding whether or not to pursue bids.
04:49Company spokesmen declined to comment to Bloomberg.
04:52We should point out this record intraday rally coming after Unilever spun off Magnum ice cream in a triple listing
04:58in Amsterdam, London, and New York in December.
05:01But they own Ben & Jerry's.
05:03They own, I think, Klondike's.
05:06I'm more of a Froyo kind of gal.
05:08Are you?
05:09Nothing like original tart.
05:10No flavor.
05:11Puppies like Froyo, too.
05:12Wow.
05:13I'm just going to put that out there.
05:14All right.
05:15In keeping with this theme, you have some ice cream.
05:17Sometimes you have ice cream after pizza.
05:18Sometimes you have ice cream before pizza in my house.
05:21All right.
05:21So Papa John's, also higher in today's session, just up almost 6.2%.
05:25This is, again, Reuters.
05:27They've been working hard.
05:29Reuters reported investment firm Earth Capital working with the pizza chain's largest U.S. franchisee,
05:34who controls around 10% of its domestic restaurants to take the company private.
05:38Reuters cited three sources, which it did not identify.
05:41So, yeah, this is going on.
05:44So we'll see what happens with this one.
05:46Okay.
05:47I'm just hungry now.
05:49How about some socks?
05:50Okay.
05:51To eat?
05:51No, you can't eat these chips.
05:53But the Philadelphia Semiconductor Index off its worst levels of the day, but still closed
05:57down 4%.
05:58In fact, you had only four stocks in the socks actually move higher today.
06:05Skyworks, Corvo, Estera, and Qualcomm.
06:07Arm Holdings fell more than 8.4%.
06:10Nova fell 8.4%.
06:12You had Intel fall 6%.
06:14Look, the socks is still up this year, more than 60%, but a little bit of a give back in
06:21chip names today.
06:23Finally, well, not finally.
06:25Next, let's talk about Ford.
06:26After surging more than 21% in the last couple of days, Ford shares are taking a bit of a
06:32breather.
06:33Finishing down today by 7.5%.
06:36It's actually the most in more than a year.
06:38A bit of a cooling of the enthusiasm over Ford's potential to benefit from the boom in energy
06:43demand for AI.
06:44Remember, it was Ford's energy storage business and possible future tie-up with AI hyperscalers
06:49that led to this rally.
06:50Still, even with today's decline, Ford shares are still more than 11% higher since the close
06:54on Tuesday.
06:55That was the day before the rally started.
06:57And speaking of rallies fizzling, cerebrous systems, after yesterday's blockbuster IPO,
07:04I think we could call it, shares fell today by just about 10%.
07:08Still closing the day at about $280 per share.
07:11Remember, it was $185.
07:13That was the IPO price.
07:15And they did close higher yesterday by about 70%, Katie.
07:19All right.
07:19Well, let's take a look at the bond market, which was on fire in a bad way today.
07:23You can see that sell-off really taking place throughout the curve from the short end to
07:28the long end.
07:29You can see the 10-year yields rose by 11 basis points, a similar amount when it comes to the
07:3420-year treasury yield as well.
07:36For both the 10-year and the 30-year yield, we're looking at the highest levels in about
07:41a year here.
07:42The 30-year yield well above 5% at this point.
07:46The 10-year treasury yield just kissing about 4.6%.
07:51It's going to be interesting to see if this sort of sell-off momentum continues into next
07:56week or whether, again, this is just a risk-off sort of Friday.
08:00Don't want to be too long-headed into the weekend.
08:02But certainly some eye-catching moves and levels themselves.
08:07Yeah.
08:07No doubt about it.
08:08Also, eye-catching.
08:10You know, we talk so much about the $90 trillion great wealth transfer, that massive shift from
08:15the older generation as they pass on and pass it on to maybe their wives or their kids
08:20or their grandkids.
08:21Well, part of this massive wealth transfer also includes a lot of old cars, vintage cars,
08:28collectible cars.
08:29And we're calling it the vehicular spin on this great wealth transfer.
08:34Yeah.
08:34It's a lot of money.
08:35Well, Hagerty estimates that 12 million enthusiast vehicles will transfer to a new generation
08:40in the U.S. over the next 15 years.
08:41It represents about $570 billion worth of cars.
08:46If you think about it, passing a car on to another has deep implications.
08:50People describe their cars in this story.
08:53They inherited them.
08:54They're totems that mark important people in their life and certainly how they're remembered.
08:58And Alex Roy is somebody – Hannah has done a great piece for Bloomberg Business,
09:03with Hannah Elliott.
09:03You've got to listen to her podcast with Matt Miller.
09:05But she talks to a car enthusiast, Alex Roy, who – he's an entrepreneur too.
09:09But he talks about how he regrets selling his father's Cadillac and his mother's Porsche.
09:15So now he's going to hold on to this 1970 Citroën that his brother left behind to him.
09:21Wow.
09:21Well, I would certainly hang on to that.
09:23But speaking of wealth, another story on the terminal today.
09:27An anonymous bidder paid $9 million to have lunch with the likes of Warren Buffett,
09:33as well as Steph Curry, as well as his wife Aisha Curry.
09:36Of course, this is all for charity, but $9 million, this lunch, is apparently going to happen on June 24th.
09:44It's going to include the winner, again, anonymous, and seven guests as well.
09:49How come Steph Curry gets to go this year?
09:51I don't really know.
09:53How come it's gone down in price?
09:55Was it the last auction in 2022?
09:57An anonymous person spent a record $19 million to secure it?
10:01That is wild.
10:02And this is happening in Omaha instead of New York this time, right?
10:06Because it used to happen in New York.
10:07That is true.
10:08Maybe that was worth $10 million.
10:10What are they going to eat and where is this going to be?
10:12I'm guessing steak.
10:13And I want the transcript.
10:15I'm guessing steak, Coca-Cola.
10:18Salad.
10:18Yeah.
10:19Salad, maybe.
10:19Maybe some Seas candies for dessert.
10:22Delicious.
10:23Delicious.
10:23Yeah.
10:24Yeah, we'll see.
10:25But this annual lunch has been happening for, or Buffett has been routinely hosting some
10:31sort of lunch auction for more than two decades here.
10:34So the tradition continues.
10:36It's for charity.
10:37It's for charity.
10:38It's for good calls.
10:39Super sweet.
10:40Love it, love it that it continues on.
10:41Love it, love it, love it, love it, love it.
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