00:00And right now we are two minutes away from the end of the trading day.
00:03Romain Bostic here with Katie Greifeld taking you through to that closing bell.
00:07It's a global simulcast.
00:08Tim Stenevich joins us now from the radio booth.
00:11Carol Masser is still away.
00:13Emily Grafaele fills in for today.
00:14Welcome to our audiences across all of our Bloomberg platforms, television, radio,
00:18our partnership with YouTube here on an eighth straight day of gains for the benchmark S&P 500.
00:24Yeah, looking like it's going to be an eighth straight day.
00:26There were some questions about what would happen earlier in the session.
00:30But still the S&P 500 up three tenths of one percent off its best levels of the day.
00:35I'm still watching oil, which is still rising today.
00:38More than ninety two dollars a barrel for WTI.
00:41Brent futures at more than ninety five dollars a barrel.
00:44Both of those up more than, you know, wow, it looks at that WTI up more than five percent,
00:48almost six percent and Brent up, Emily, four point six percent.
00:51And, you know, for a day that tech is doing so well, one asset class selling off is Bitcoin.
00:58The cryptocurrency really hasn't participated in the recent rally.
01:02Tim and I were just discussing how it's been a little bit on the backseat.
01:05Yeah, it's been interesting to see it sort of break apart from some of those asset classes
01:09and specifically those equities that it had been closely tracking.
01:13I couldn't tell you what exactly the narrative is in crypto right now,
01:16but that's Tim's job tomorrow at noon.
01:19I will say it's interesting to see what's going on with oil prices right now rising once again,
01:25not necessarily taking a dent out of this equity market, in fact, boosting the energy sector,
01:30which is just one of two sectors managing to climb today.
01:34Just a reminder, we are going to get some earnings after the bill.
01:37This from Hewlett Packard Enterprise.
01:39And, of course, at the tail end of this week, we get that big monthly jobs report here in the
01:44U.S.
01:44So two potential catalysts for this market is we get the closing bells in New York
01:49with the majority of stocks across this tape actually in the red.
01:52But the right amount of stocks and, more importantly, the right complexion of stocks are in the green.
01:56And so you're looking at record highs pretty much across the board.
02:00The Dow Jones Industrial Average adding about 47 points or a tenth of a percent.
02:03The S&P 500 closing out the day right around that 7,600 level, 20 points higher or a quarter
02:09of a percentage point higher.
02:10The Nasdaq Composite up about four-tenths of a percent.
02:13The Nasdaq 100 up six-tenths of a percent.
02:15The Russell 2000, Tim, sitting this one out lower by about a half of a percentage point.
02:20You know, we were talking with Matt Stuckey a few minutes ago over at Northwestern Mutual Wealth Management.
02:25He's chief portfolio manager for equities there.
02:30He talked about a lack of breadth, and that's kind of what we're seeing in today's session, too.
02:34And we've seen that over the last few months, I think it's fair to say.
02:37We did, even though we saw the S&P 500 move higher today, we saw more stocks lower than actually
02:42higher.
02:43213 stocks moved higher.
02:45290 stocks, Katie, fell.
02:47Well, that dynamic is even more dramatic when you take a look at the sector level.
02:51As I mentioned, you had just two sectors finish in the green.
02:55At least one of them was very important, information technology higher by about two-and-a-half percent.
03:00Energy, though, also higher on the day, about 1.9 percent as a sector.
03:05In terms of what performed the worst, utilities down 3 percent.
03:09Consumer discretionary down 2.6 percent.
03:12Real estate down 1.7 percent.
03:14So a lot of big moves to the downside at the sector level.
03:18But, again, you take a look at what gained today.
03:20That's what mattered.
03:21All right, well, speaking of what gained today, we've got to start with looking at NVIDIA and ARM.
03:26NVIDIA shares rising today, what, more than 6.2 percent?
03:30We'll go ahead and round that up, 6.3 percent today.
03:33ARM Holdings hitting a new intraday record today up at its best levels more than 20 percent, but closing 15
03:41.7 percent higher today.
03:42This after NVIDIA announced a new product that combines an ARM central processing unit, CPU, and a Blackwell generation graphics
03:50processor.
03:51We're talking about the RTX Spark Superchip.
03:54It'll debut in laptop and desktop computers from Dell and Lenovo.
03:58It'll run Microsoft's Windows for ARM operating system.
04:01Jensen announced this in Taiwan overnight.
04:04It'll allow for, you know, so-called AI PCs.
04:07We had a great chat with Ian King a little earlier.
04:09How much are these things going to cost?
04:10Oh, we don't know about that yet, but what we do know, and I guess also what we don't know
04:15is, like, what normal people will do with these AI PCs.
04:18Qualcomm's been talking about this for years, but what, you know, given what people do on computers right now and
04:25on their smartphones right now, you know, in the way they interact with LLMs.
04:28I love you bringing up Qualcomm, because I'd also like to point out that Cristiano Amon, the CEO of Qualcomm,
04:33was also on that same stage, and nobody's talking about them for some reason, because they basically have the same
04:37thing.
04:37At last check, they do, and at last check, shares of Qualcomm were down more than 8%, but I haven't
04:42looked in the last couple hours.
04:44Also, MGM Resorts International today, shares surging.
04:48This after we learned Barry Diller has made an offer for the remaining portion of MGM Resorts International he doesn't
04:52already own, finishing the day up more than 16%.
04:55The proposal is for the 74%, we'll call it, of MGM Resorts that it doesn't already own.
05:02It values the company at $18.8 billion, including debt.
05:06Diller believes the market, quote, materially undervalues the power and durability of MGM assets, which have real-world assets that
05:12AI cannot easily replicate or disintermediate, and exceptional digital growth opportunities.
05:18Once again, MGM Resorts up by 16% today.
05:20And finally, how about a little movie theater, AMC Entertainment, 22.5% higher today.
05:28We saw several movie theater stocks actually move higher today after a record box office weekend for the independent distributor
05:33of Backrooms, closing out the strong May lineup.
05:37AMC shares, they're heavily shorted.
05:39They said that after yet another strong weekend at the box office in May, they have seen the highest attended
05:45month of May going back to 2019.
05:46Have you seen this movie yet?
05:48I have not.
05:48I have not seen it.
05:49Emily, Grafeo, have you seen this movie?
05:50I have not seen any movies, Romaine.
05:52I know.
05:52Well, you have tiny kids.
05:53All you're watching are cartoons.
05:54I watched Marty Supreme on HBO Max a few years ago.
05:58How was it?
05:58With your children?
05:59It came out a while ago.
06:00It did come out.
06:01For me, that did not come out a while ago.
06:03I thought it was fun.
06:04Okay.
06:04Really?
06:05Yeah.
06:06Why?
06:06Yeah.
06:07I heard it was stressful.
06:08Well, that's all the movies from those guys.
06:10Yeah.
06:10Yeah.
06:10I don't, it's not fun.
06:11You should see Uncut Gems.
06:13It's a love story.
06:13Uncut Gems.
06:14That's still recovering.
06:15Yeah.
06:15Yeah.
06:16All right.
06:16I'm going to let Emily go.
06:17We'll go to the decliners.
06:18Similar theme to what Tim was just talking about here, starting with Intel.
06:23Intel lower as NVIDIA enters the PC market with a new chip.
06:27So a new chip that's weighing on shares of chip makers, Intel.
06:32It's also weighing on Qualcomm, as we had discussed.
06:35I picked Intel because it's a bigger market cap company, but Qualcomm did fall about 8%.
06:39Intel closing the day down about 4.6%.
06:42The shares were down about 10% in the last five days, almost $27 billion in market cap
06:49erased for Intel, though, just today.
06:51I'm also looking at shares of Rocket Lab.
06:54Shares of Spacelink stocks declined today.
06:57Rocket Lab down about 14.7%.
07:00This is all coming after a Blue Origin rocket exploded last week.
07:04So that trade in Spacelink stocks continuing into this week.
07:10The Jeff Bezos-backed firm Blue Origin's new Glenn rocket blew up on Thursday evening while
07:16undergoing a test on a Florida launch pad.
07:18And this, of course, is ahead of its plans for it to deploy satellites for Amazon's LEO,
07:23which is a rival network to Starlink.
07:25And then, finally, Ford shares dropping.
07:28Sorry, Romain.
07:28Yeah, sorry.
07:29We're getting earnings right now out of Hewlett-Packard Enterprise, crossing the wire.
07:32And the share is on fire, up about 15%.
07:34A lot of questions as to whether they would be participating, of course, in this AI boom.
07:39Net revenue in the most recent quarter up 40% to $10.7 billion.
07:44The street was looking for $9.7.
07:45So basically came in about $1 billion over that.
07:48Networking revenue was the star of the show.
07:50So $2.69 billion, that's up from about $1.1 billion the previous year here.
07:57So a huge acceleration in growth there.
08:00Adjusted EPS also beat $0.79 a share.
08:02The street was looking for $0.54.
08:04Here's your forecast.
08:05For the full year, the company says expected adjusted EPS, $3.35 to $3.45 a share.
08:10That's more than a dollar more than what it had previously guided for on both the top
08:15and low end of that range.
08:17It sees free cash flow of $3.5 billion for the full year, up from its previous guidance
08:22of $2 billion.
08:24So you get the story here.
08:26This is a company projecting a huge acceleration in growth.
08:30And you now see those shares accelerating up 24% in the after-hours trade.
08:34Yeah, just amazing.
08:35Let's talk about the shares a little bit more here.
08:37Because, I mean, heading into these results, today alone we saw HPE shares rise by more
08:43than 9% for the full year.
08:45For 2026, year to date, shares higher by 97% on a total return basis.
08:50There was this idea out there that maybe HPE Enterprise, maybe they faced a high bar after
08:56what we saw from Dell.
08:57But clearly, if that bar was set even higher, they seem to surpass that.
09:02At least take a look at the after-shares reaction here, higher by nearly 25% at this point.
09:08Okay, you guys are watching what's happening with Hewlett-Packard Enterprise.
09:11I'm watching what's happening after-hours with Credo Tech, which going into today's print,
09:17shares were up this year by close to 60%.
09:20Shares getting, I wouldn't say crushed, given what they've done this year, but still down
09:24double digits right now.
09:25Fourth quarter revenue coming in just above estimates at $437 million.
09:32But let's look at the first quarter outlook.
09:34Sees first quarter revenue, $465 to $475.
09:36That comes in above estimates of $460 million.
09:40Sees first quarter adjusted gross margin above estimates at 67% to 69%.
09:44The estimate was for 65%.
09:47I guess not enough for the high hopes that investors had going into this.
09:51Shares down about 12.5% in the after-hours.
09:54But again, this shares up significantly this year, close to 60%.
09:58All right.
09:59Well, given some of that back here in the after-hours trade, let's take a quick look at
10:02yields because that could become a bigger part of the broader market story.
10:05We saw after seven straight days of declines in benchmark treasury yields, we actually saw
10:11them rise today on the 10-year.
10:13You see only slightly there, up about two basis points.
10:15Similar story for the 30-year yield, which had been down for seven straight sessions.
10:19Your two-year yield, getting more of the action, that's up about three basis points.
10:23And obviously, a lot of that tied to that big move higher that we saw earlier today in
10:28oil.
10:28OK.
10:29Well, we'll see what oil does tomorrow.
10:30And we'll see what we get out of the latest when it comes to the conflict tomorrow.
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