00:00And right now we are two minutes away from the end of the trading day.
00:03Romain Bostic here taking you through to that closing bell.
00:06It's a global simulcast.
00:07Tim Senevic is off.
00:09Carol Masser is off.
00:11Katie Greifeld is off.
00:13We're the only ones working.
00:14Welcome Alexis Christophorus.
00:16Carol and Isabel Lee here.
00:18It's just us three here as we count you down to those closing bells.
00:22Welcome to our audiences across all of our Bloomberg platforms,
00:24television, radio, our partnership with YouTube.
00:27Alexis, Isabel, it's great to see you.
00:29And I really thank you for filling in for Tim and Carol today.
00:32I guess just kicking their feet up today on what is a pretty volatile day in U.S. markets.
00:37It is.
00:37Well, we figured we'd keep you a little company, Romain.
00:39Didn't want to leave you out there in the cold all by your lonesome.
00:42But as you can see on the screen, everybody, a down day, at least for equities,
00:46even the Russell 2000, percentage-wise, the biggest loser there, down more than one and a third percent.
00:51But I'm looking at Bitcoin.
00:52I don't know about all of you.
00:53I know we've got the after the bell.
00:54I love Bitcoin, Alexis.
00:55But come on, Bitcoin now below 65.
00:57Or it's about $65,300.
01:00Okay.
01:02Yeah.
01:03I mean, Bitcoin, it's still an important risk sentiment.
01:05So it's important to look at that.
01:07But I'm just looking at how markets have spent much of the year expecting inflation to cool.
01:10But, you know, inflation has still remained stubbornly elevated.
01:13So are investors finally going to accept that rates may stay higher for longer?
01:17I mean, I don't know.
01:17Yeah, I mean, and this is obviously one of the big stories of the day.
01:21Of course, overnight, we saw a lot of issues going on in the Middle East that raised, of course, oil
01:26prices.
01:26It raised interest rates on the benchmark 10-year Treasury.
01:30A lot of questions about what's going on in the private capital space as well.
01:34And that really put a bit of a chill on this market, which, as you point out, had been on
01:39a phenomenal run with the S&P.
01:41We're just hitting a record high yesterday, coming off of nine straight weeks of gains.
01:45As you point out, we do get some earnings after the bell that maybe potentially could change risk sentiment,
01:50though the weightings, of course, might not change the trajectory.
01:53And that includes a big earnings report out of Broadcom as well as CrowdStrike.
01:58The Dow Jones Industrial Average losing about 600 points on the day, down about 1.2 percent.
02:03The S&P down 55 or seven-tenths of a percent.
02:05The NASDAQ down about nine-tenths of a percent on the day.
02:09And the Russell 2000, Alexis and Isabel, down about 38 points or 1.3 percent on the day.
02:16And we've also got some of our winners and gainers today.
02:21I was actually taking a look at Ulta because that stock actually took a hit today.
02:25It was down about 5 percent, reported first-quarter results that beat the street, but shares fell.
02:31Some are saying that investors are focused on the modest increase to the company's full-year earnings guidance.
02:35So, again, I think an example of a company where the bar was so high, it just couldn't jump over
02:39that hurdle.
02:40Because for all intents and purposes, Ulta's report was pretty solid, Isabel.
02:44It really makes you think that consumer sentiment is near historic lows, but the stock market is at record highs.
02:48So how do you reconcile those two very different stories?
02:51I mean, we're also seeing delinquencies across credit cards, auto loans, and mortgages.
02:54And at what point does it become a broader market concern than, like, maybe just a financial household story?
03:00All right.
03:01Let's take a look at some of the gainers and decliners here.
03:03Let's take a look at the IMAP, giving you a sense here of the individual sectors in the S&P
03:09500 here on this Wednesday afternoon here.
03:12You did see a bump up in the energy index.
03:14That is the big bulk of the green there as a group up about 1.5 percent, largely because of
03:19that bump up in oil prices.
03:21You saw also in the green, consumer staples.
03:24Also in the green, health care.
03:25Also in the green, materials.
03:27Of course, not the type of sectors you want to see.
03:29A bit of a defensive complexion with tech.
03:31The big red section of that circle there, down about 1.5 percent.
03:36Okay, so even if I'm seeing red on the screen, there are still some bright spots.
03:40I want to talk about the gainers.
03:42Maybe let's first discuss Medtronic, ticker MDT.
03:44Shares ended the day higher by 5 percent.
03:46This is a medical devices maker.
03:48They reported revenue for the fourth quarter.
03:50That's her past expectations.
03:51Analysts noted that the 2027 adjusted EPS guidance will be in focus during the earnings call.
03:56City said that revenue guidance exceeded expectations.
03:59EPS growth consistent with prior commentary.
04:02Let's also now go next to Minimet, M-M-E-D.
04:05Shares are up by nearly 16 percent.
04:08This is a diabetes device maker.
04:10So they reported fourth quarter net sales and a CGM attachment rate that surpassed expectations.
04:14Minimet also said it plans to commercialize dual glucose ketone sensors with Abbott.
04:20So I always look at diabetes stuff because for my family, it's a matter of when you get it, not
04:26if.
04:27But anyway, moving on.
04:28Last is Navitas and VTS.
04:30Shares are up by nearly 20 percent.
04:32This is a semiconductor manufacturer.
04:34So lots of good news for this company.
04:36It has two buys, five holds, and one sell.
04:38There are a few things that we're watching here in the after hours of trade.
04:41Waiting earnings out of Broadcom, the chip maker, as well as CrowdStrike.
04:45We're also waiting potentially for an updated S1 filing out of SpaceX.
04:49Meanwhile, we are getting earnings out of five below.
04:52This is the discount retailer that had actually been rallying pretty hard into this earnings print.
04:56The company is saying that in its fiscal first quarter, comp sales were up, a phenomenal comp sales were up,
05:02by 23 percent.
05:04The street was looking for 18 percent.
05:05Net sales, 1.29 billion.
05:07The street looking for 1.22 billion on average.
05:10Adjusted EPS also beating that $2.22 a share.
05:14But here's your guidance going forward.
05:16The company is saying is look for comp sales on the full-year basis of 6 percent to 8 percent.
05:22The low end of that range is basically on the nose of what the street was expecting.
05:26Net sales of $5.4 billion to $5.48 billion, which is a little bit wider than what they had
05:32previously guided for here.
05:34And adjusted EPS of $8.65 to $9.05 a share.
05:37So basically what you're looking at is a beat and raise quarter.
05:40But remember, this is a stock that had rallied pretty hard into the earnings print here.
05:44So you see those shares down about 8 percent.
05:46We'll dive a little bit deeper to see whether there's something else going on underneath the surface there, Alexis.
05:50All right.
05:50I'm going to stick with the theme of down right now and give you some decliners on the day.
05:55I spoke about Ulta just a couple moments ago.
05:58One who shined a light on global payments.
06:00That stock in regular trading was down more than 8 and a third percent.
06:04So some are saying that the stock's decline due to some street commentary suggesting second quarter estimates might need to
06:11be revised downward.
06:12But some analysts say those worries are overblown.
06:15Mizuho Security sees the sell-off on global payments as overdone.
06:19They're recommending investors use it as an opportunity to buy on weakness.
06:23The analysts there are saying there's no reason to believe 2Q guidance should be changing.
06:27They point to the fact that global payments CFO affirmed the outlook just a couple of weeks ago.
06:32And also, let's take a quick look at Palo Alto Networks as we wait for Broadcom's earnings to hit here
06:37after the bell.
06:38Palo Alto down more than 5.5 percent in regular trading despite the cybersecurity software maker providing delivering or rather
06:46delivering strong quarterly results the prior evening.
06:49This next day move may seem a bit odd given that the company did exceed expectations.
06:55All right.
06:55We've got Viva out with earnings.
06:58Let's see what Romaine's got for us.
07:00All right.
07:00Well, let's actually go to CrowdStrike here.
07:01We're the cybersecurity company where expectations are high after those earnings out of Palo Alto Networks yesterday.
07:06The company, I'm going to actually start with the forecast here because this does appear to be moving the stock.
07:10The company says expect revenue for the full year of $5.9 to $5.96 billion.
07:15That's a slight nudge up from its previous guidance of 5.87 to 5.93.
07:21So not a whole lot of movement there.
07:22Similar story with regards to its adjusted EPS number, 488 to 496.
07:26The previous guidance was 478 to 4.90 here.
07:30For the most recent quarter, they did beat, but only by about three cents a share on the bottom line
07:34for EPS in its most recent fiscal quarter.
07:37And on the revenue side, a slight beat there, $1.39 billion.
07:40The street was looking for $1.36 billion there.
07:43So maybe not enough juice there to accommodate the run-up that we had seen in those shares down about
07:487% here in the after-hours trade.
07:50Maybe.
07:51And also, it could be that Palo Alto sank today because, I mean, it is up 50% year-to
07:56-date.
07:56So maybe some investors are taking a little money off the table.
07:58So maybe some investors are taking a little money off the table.
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