00:00And right now we are two minutes away from the end of the trading day.
00:03Romain Bostic alongside Katie Greifeld taking you through to that closing bell with a global simulcast.
00:08We're joined now by Carol Masser and Tim Stenevek.
00:11Welcome to our audiences across all of our Bloomberg platforms, television, radio,
00:14and our partnership with YouTube on what could potentially be another record-setting day.
00:21I knew you were going to say that.
00:22Carol Masser, did you see Carol's back?
00:24I know. I saw her walking around the newsroom earlier.
00:27It was like seeing the Yeti or something.
00:28What were you, like hiking through the Appalachian Trail or something for the last two weeks?
00:32Her badge still worked to get in the building, which is a good sign.
00:34Listen, it was a real break.
00:35I was actually out in Portland, Oregon, and I was officiating at my niece's wedding.
00:40I thought you were on a retreat.
00:41So if anybody needs to get married.
00:43Wait a minute. I didn't realize that.
00:45Are you like a priestess or something?
00:46Yes, something like that.
00:48I like to be just, you know, goddess or queen.
00:50That works for me.
00:51So we've talked about this rally that the S&P 500 is up, what, Katie, more than 20 percent, roughly,
01:00from those end-of-March lows.
01:03Right.
01:04Bitcoin.
01:05Right.
01:06Is flat.
01:07What's up with that?
01:07Over that same period of time.
01:09It's Bitcoin, so nobody knows.
01:11But, I mean, if you had to venture a guess, I believe you hosted an hour worth of crypto show
01:18today.
01:18So, I mean, what did your guess tell you?
01:21Well, they said there's still interest from institutional investors.
01:25And maybe this is retail-driven.
01:27I mean, look what strategy did.
01:28What does Tom King call it?
01:29Actually selling some Bitcoin.
01:31Bit dog.
01:31Bit dog.
01:32Yeah.
01:33Well, we'll see.
01:35How do you follow that?
01:36I will say that the strategy sales that you mentioned, certainly an interesting sign of the times.
01:41Haven't seen that for a couple of years.
01:43All right.
01:44Well, we get the clothing bells here in New York.
01:46No bells for Bitcoin, but that is lower on the day, back around that 67,000 level.
01:52Meanwhile, for the U.S. equity indices, it looked like most of them are going to finish in the green.
01:57You take a look at the NASDAQ on the far right of your screen for our television audience.
02:01It's only up about seven points, but just enough to give it a slight lead on the day.
02:05The NASDAQ 100, more meaningfully higher, up by five-tenths of a percent.
02:09The Dow up by a similar percentage.
02:10The S&P 500 closing at a record high, up 10 points or about a tenth of a percent.
02:15And the Russell 2000, that's actually your outperformer on the day, relatively speaking.
02:19A 26-point gain or about nine-tenths of one percent.
02:22All right.
02:22So back to the big caps.
02:23I'm going to go.
02:24S&P 500.
02:25Guys, almost an even split.
02:27258 names, Katie, in that index to the upside.
02:32244 losing ground and then one unchanged.
02:34So, yeah, there you have it.
02:36We actually saw a much more good breadth when you take a look at the sector level.
02:39Wouldn't necessarily know it by looking at the absolute gain of the S&P 500 today, but
02:44utilities higher by about 1.9 percent.
02:47Materials also higher by more than a percent.
02:50So, too, was energy.
02:51In terms of what was weighing us down, communication services as a sector down 2.6 percent.
02:58Google does fall into that category.
03:00Certainly a big weight on the sector and the index.
03:03Overall health care, consumer discretionary, and Staples also not having a great day.
03:08Just want to bring you some breaking news right now.
03:10This on Texas Instruments.
03:12We're now learning that the company is going to appoint a new CFO.
03:16We're learning that Julie Nett, if I have that name correctly, is going to be joining
03:20as CFO of the analog chip maker that is effective, Carol, on August 1st.
03:26The current CEO, Rafael Lazardi, will retire at that time.
03:30All right.
03:31Good to know.
03:31The stock in the aftermarket looks maybe like it was initially maybe a little lower, maybe
03:36no movement.
03:37Down about 2 percent right now.
03:38Yeah.
03:38Okay.
03:39So, good to know there.
03:40All right.
03:40Let's go to some of the individual gainers, if I may, in the trade.
03:44I'm going to start with HPE because that was certainly a standout.
03:48In fact, it was the number one gainer in the S&P 500, finishing the day up about 19 percent.
03:54It was up, folks, at its highs almost 37 percent in today's session.
04:00So, soaring by the most ever after the company gave an outlook for annual sales that topped
04:04Wall Street estimates.
04:05They cited massive growth in AI fuel demand for its servers and networking.
04:10Revenue will increase about 31 percent in the fiscal year ending in October and about
04:1410 percent in the year ending in October 2027.
04:18These are all estimates that are significantly higher than analyst growth expectations.
04:22So, just taking a look at the quarter that ended back in April, the company's revenue
04:27rose 40 percent in that quarter to 10.7 billion.
04:30Again, that was led by sales of servers, which jumped 33 percent to five and a half billion
04:35dollars.
04:36So, that AI trade certainly happening there.
04:38Let's go on to Marvell Technology.
04:41This was your number one gainer in the NASDAQ 100.
04:44This one, too, pretty much closing at its best levels of the session up about 32 percent
04:50today, soaring, surging to a record after NVIDIA's Jensen Wang predicted the semiconductor
04:55and networking company will be the next business to hit a $1 trillion valuation.
04:59More than five times its current market cap.
05:03The valuation, he said, will soar now that the age of, quote, useful AI has arrived.
05:08Again, this is Jensen saying this alongside Marvell CEO Matt Murphy.
05:13They were at the Computex trade show in Taipei.
05:16Keep in mind, NVIDIA does have a stake in Marvell, having taken a $2 billion stake in the
05:21company three months ago as part of a broader partnership.
05:24The stock is up about 233 percent year-to-date.
05:27And now for something that is not in the tech world, Victoria's Secret, at least not in the
05:34tech world yet.
05:35The stock is up about 47.5 percent, the most ever and to the highest ever, soaring after
05:40the company beat earnings estimates and they boosted their outlook, adding to signs of
05:44progress for the company's CEO, Hillary Super, who has been executing a turnaround plan.
05:49The company did raise its annual net sales guidance to as much as $7.13 billion and reported
05:54net sales of about $1.5 billion for the quarter ending May 2nd, so that all exceeded analyst
05:59estimates.
06:00Stock is up about 276 percent in the past 12 months alone, so yeah.
06:05Some of the gainers today.
06:06Let's look at some of the decliners.
06:08The underperformers, I want to start with Chairs of Alphabet, the parent company of Google.
06:13It's raising $80 billion through a package of equity offerings, including an investment deal
06:17with Berkshire Hathaway.
06:18Shares fell 3.9 percent today on that news.
06:22The company's going to use the funds to support its goals of AI spending plans, including building
06:26infrastructure to develop cutting-edge AI models.
06:30CapEx in 2027 expected to be significantly higher than the up to $190 billion it budgeted
06:35for 2026.
06:36Some estimates suggest they could reach $300 billion next year.
06:40Also, looking at shares of Fannie Mae and Freddie Mac today.
06:43They fell after President Trump appointed Bill Pulte as his acting director of national
06:48intelligence.
06:49Fannie down 5 percent.
06:50Freddie down 4.5 percent.
06:53The dual appointment sowing doubts that it will delay plans to start selling the government
06:57stake in the two companies.
06:59Romain, I know we got some earnings crossing.
07:01Yeah, Palo Alto Networks are rising in the after-hours trade.
07:05The company now reporting earnings crossing the wire right now.
07:08In the third quarter, the company reported adjusted EPS of 85 cents a share.
07:12That's a beat.
07:12The street was looking for 79 cents.
07:14Revenue was up 31 percent to $3 billion.
07:17That's a slight beat.
07:18Here's your forecast.
07:19This is for the fiscal fourth quarter, the current quarter that we're in.
07:22The company says look for adjusted EPS of 96 to 98 cents a share.
07:26The low end of that range is two cents higher than what the street was looking for.
07:30And it says on the revenue side, $3.35 to $3.36 billion.
07:34Again, the low end of that range above the average of analyst estimates.
07:38And you see the knee-jerk reaction there on your screen, up about 8 to 9 percent.
07:42Absolutely.
07:43Yeah, the stock is soaring after-hours.
07:45And expectations were high heading into this one.
07:48You think about Palo Alto Networks, higher by 61 percent on a total return basis year-to-date,
07:54heading into today's close.
07:55But there's a lot of excitement around cybersecurity names, how they basically fit into this AI landscape
08:02that we're seeing, especially as enterprise AI takes off and you have AI agents multiplying here.
08:09And you can see that some of these results that we're getting from Palo Alto certainly justify that bullishness,
08:15at least at first blush.
08:17Yeah, with AI comes needs for security, right?
08:20And so in the press release, the company's CEO, chairman and CEO, is saying the third quarter was a standout
08:26quarter for the company
08:27with accelerating organic bookings growth as customers turn to us to secure their AI deployments at scale.
08:33They say the latest advancements at the AI frontier have increased the level of urgency around cybersecurity
08:38and redefined the shape of the industry for the coming year.
08:41So, yeah, a lot of enthusiasm for a stock, Tim, that's already up 61 percent year-to-date, another almost
08:4612 percent bump in the aftermarket.
08:48All right.
08:49Well, another stock that's reporting, another company reporting, is Ulta Beauty.
08:52Looking at what's happening to Ulta in the after hours, shares up about 4 percent.
08:58The company sees fiscal year operating income growth between 6.5% and 9 percent.
09:02They saw 6 to 9 percent.
09:04Ulta Beauty still sees fiscal year net sales growth 6 to 7 percent, sees fiscal year EPS at $28.36.
09:14That's ahead of estimates that were $2,805 to $2,855.
09:18So a little changing of its fiscal year earnings per share guidance.
09:23Ulta still sees fiscal year comp sales 2.5 percent to 3.5 percent.
09:27The estimate was for 3.5 percent.
09:29Still shares up 4.7 percent in the after hours.
09:33And let's talk a little bit about GitLab as well, those results crossing the wire.
09:37In terms of the first quarter, adjusted EPS slightly beating expectations coming in at 23 cents.
09:43The estimate had been for 21 cents first quarter revenue.
09:47You're also seeing a beat there.
09:48In terms of the look forward, when it comes to full-year revenue, actually narrowing their forecasts a little bit.
09:55They see full-year revenue coming in between $1.11 billion to $1.12 billion.
10:01Previously, they had seen $1.1 billion to $1.12 billion.
10:08So again, narrowing their forecasts slightly.
10:11You can see the shares currently higher by about 11 percent after hours.
10:15Yep, and you continue to see Palo Alto Networks, it is up about 11, 12 percent here in the aftermarket
10:21following its earnings.
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