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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.
00:08Carol Masser joins us now alongside Bailey Lipschelton today for Tim Stenevich.
00:12Welcome to our audiences across all of our Bloomberg platforms, television, radio,
00:17a partnership with YouTube.
00:19A wild day in equity markets and really cross-asset markets.
00:23Carol Masser here is a market, of course, having to grapple with the rise,
00:28the re-rise of geopolitical risk.
00:29Yep, on again, off again, that peace accord, on again, off again, that war between the U.S. and Iran.
00:34Yeah, we saw oil prices definitely go up, and that boosted a lot of names in the energy space.
00:38Having said that, I think it's kind of interesting in the last few minutes of trading
00:42to see the S&P and NASDAQ 100 move up towards its best levels of the day,
00:47up about 100 points now on the NASDAQ 100.
00:50Yeah, and the big drivers to the upside, NVIDIA up 20 points, Broadcom up 10 points.
00:55Interestingly enough, though, we are seeing these chip stocks back in vogue,
00:58but we are seeing a bit of weakness, or at least from a points perspective,
01:01underperformance for the likes of Microsoft and Google.
01:03Yeah, it's going to be interesting to see, you know, how long that chip outperformance.
01:08Last, when we sort of flip back, we've been talking a lot about this pair trade that has developed
01:12when it comes to the hyperscalers, to the chip stocks.
01:15It feels like they've been trading leadership for the past couple weeks.
01:18Have to imagine that's going to continue.
01:20Absolutely. And, of course, we talk about everything going on in the cross-asset space
01:24with that rise in oil prices and the rise in yields, which, of course, I don't know,
01:28maybe that changes the calculus for how some of the people look at valuations.
01:31I guess my question is, were people really looking at valuations on some of these names, Carol?
01:35It doesn't feel that way.
01:37They seem to be willing to jump on board.
01:39It doesn't really matter.
01:41All right. Well, we get the closing bells in New York, and let's just face it,
01:44it could have been a lot worse.
01:45All of the major indices today open in the red, some of them very deep in the red,
01:49and all of them are going to finish well off the lows of the day.
01:53The Dow Jones Industrial Average, among the worst performer, down about 580 points, or about 1.1%.
01:59The S&P 500, which had been down as much as 1%, is going to close the day only down
02:04by about three-tenths of 1%,
02:0674.4857 to be precise.
02:08The NASDAQ Composite and the NASDAQ 100, each which were deep in the red earlier in the session,
02:13both finishing in the green, up about two-tenths to three-tenths of a percent.
02:17And the Russell 2000, Carol, that's going to end lower by about nine-tenths of 1%.
02:22All right. So just shy of 1% there on the Russell.
02:25Hey, let's go back to the S&P 500.
02:27Katie, most names in that average, almost 400 to the downside today, a little bit more than 100 to the
02:34upside.
02:34So you definitely saw more of a risk-off trade, and it was just some big names, a few names
02:39maybe just altering that index.
02:40And that is exactly the story that you see when you take a look at the circle, which shows the
02:46sector performance.
02:47Information technology, that is the big green slice that you see there, higher by about 1.4% as a
02:53sector.
02:53You also saw energy, as expected, rise as well, also a gain of 1.4%.
02:58But when you look at all that red, the worst performer on the day as a sector, it's interesting.
03:04It was actually materials down 2.5%, but financials not too far behind, down about 1.9%.
03:10Overall, Carol, nine sectors in the red, just two in the green.
03:13Yeah, and financials, of course, we'll start to get a read on them next week with big bank earnings.
03:17Let's go to some of the individual gainers in today's session.
03:20You know, kind of a no-brainer.
03:22I had to talk about some of the energy names.
03:24You had Chevron, that name rallying in a big way, up just about 1.1%.
03:30It was up as much as 2.6% earlier in the session.
03:33Occidental, another major player there, up as much intraday, 6%, finishing the day with a 3.7% gain.
03:41But this, of course, has to do with increased tensions between the U.S. and Iran, attacks going back and
03:46forth.
03:46President Trump saying the war isn't necessarily still on, but, you know, it doesn't sound like they're moving closer to
03:54resolving it.
03:55So reigniting that geopolitical risk premium in prices.
03:58We did see oil prices above $80 a barrel for both WTI and Brent, so certainly playing out in the
04:03energy patch.
04:04I'm going to go over to the chip names.
04:06Broadcom, we saw that one.
04:08It was a top performer in, I think, both the S&P and the NASDAQ 100 throughout the trade today.
04:15Earlier this morning, Apple saying its chip agreement with Broadcom will exceed $30 billion, not too shabby.
04:22The deal will involve manufacturing more than 15 billion chips in the United States, supporting hundreds of jobs.
04:27And Apple will help Broadcom upgrade its production facility, specifically in Colorado.
04:31The partnership will include $1.5 billion investment in that Broadcom plant in Fort Collins, Colorado, to build advanced radio
04:39frequency components for wireless chips.
04:41So, anyway, getting some more numbers around that, and that looks pretty impressive.
04:45And then I'm going to go to a name that Bailey brought up to me earlier and our team this
04:50week, TerraWolf.
04:51Ticker is WULF, and it's up about 13%.
04:55Morgan Stanley raising its price target on the data center operator following the Anthropic lease deal.
05:02Maintains an overweight price target raised to $72 from $66.50, stock closing just below $23 a share.
05:09The analyst, Stephen Byrd, sees the Anthropic deal as attractive with high equity value creation.
05:15Stocks up more than 90% year-to-date, 27% of the float is short.
05:18Just a little perspective there.
05:20Just a little bit.
05:21Carol, on a day where almost 400 members in the S&P 500 are in the red, you would think
05:25I would have more to choose from.
05:26But, well, look, nonetheless.
05:27He was whining a little bit earlier.
05:29You were.
05:29I'm really complaining.
05:30It's my personality.
05:31But as you mentioned, energy outperforming.
05:34So that has weighed on airlines, cruise lines, as well as hotels.
05:38So looking at that airline index, as you can see, down 1.8%.
05:42Every member of the index in the red.
05:45Worst performer, American Airlines down 4%.
05:47Alaska down more than 3%.
05:48I'm going to call out the fact that United and JetBlue both underperforming, obviously, higher costs as it relates to
05:54oil, as it relates to jet fuel, impacting their bottom line.
05:58It seemed like we were finally getting out of worries around higher ticket prices for consumers here in the U
06:05.S. and around the world.
06:05It does not seem to be the case.
06:07And I want to stay on that topic and look at Norwegian Cruise Lines, ticker NCLH, ended the day down
06:131.9%.
06:14Not a huge drop, but was down at one point more than 4%.
06:17Investors kind of rethinking what this ultimately could mean.
06:20Norwegian Cruise Lines very much exposed to a wealthier clientele and also a clientele that typically travels around the world,
06:27so not necessarily catering to the U.S. consumers.
06:29So certainly something to keep an eye on.
06:31And, Carol, my favorite stock, because I covered the IPO, SpaceX, ticker SPCX, down 0.8%.
06:39Main thing to call out, three days consecutively down, down 8.5%, has been in the red since it was
06:44added to the NASDAQ 100, only up about 9.8% from that IPO price.
06:49So a little bit of consternation going on over at the house of Elon Musk.
06:54It's a shame the street isn't bullish on this name.
06:56We'll take a look at the yield space here real quickly.
06:59Basically a parallel shift once again for a second straight day, a little bit more modest of a shift today,
07:03up about two basis points across the board.
07:06But we should point out that the moves that we've seen over the last couple of days in the Treasury
07:09space having a big impact on equities, we saw that reflected in the downdraft in financial stocks.
07:14And you actually saw that reflected in what is now, I believe, a three-day loss that we're seeing in
07:19homebuilders.
07:20All right.
07:20So, hey, thank you so much for that, homebuilders, because, listen to this, everybody, low birth rate risks creating a
07:26U.S. housing glut.
07:28You heard that right, over the coming decade.
07:30A new era may be dawning in which a shortage of buyers, not homes.
07:33Katie, you know nothing about that.
07:34It's a defining feature.
07:36It's a new white paper out from Mortgage Bankers Association.
07:39You've been looking at properties, right, or looking for a home?
07:41I'm someone who's currently pregnant and literally trying to close on a house right now.
07:45Did you write this story, Katie?
07:46Is this you?
07:47I wish there was a housing glut right now.
07:51But over the next decade, I mean, Carol, as you pointed out in our chat, that sounds great if you're
07:57a buyer.
07:58Correct.
07:59You're a seller not so happy.
08:01Yeah.
08:01Right?
08:01As someone who has owned a house for a few years and is already thinking about what I could afford
08:06in the future, it's pretty doom and gloom, I will say.
08:09Over in West Orange, the one thing that does stand out, are we going to get mortgage rates still stuck
08:14around 6.5%?
08:16Katie, I don't know what you're thinking about when you're talking to your loan broker, but not great for the
08:21bottom line compared to where things were a few years ago.
08:24It's not so much thoughts as just, you know, screaming and static.
08:28And don't scream, you've got a baby in your belly.
08:30Well, don't worry.
08:30Maybe in the next 10 years, Katie, thank you for you and Bailey.
08:34Meanwhile, you know, back here in New York City, I know a lot of our viewers are haters on Zoran
08:39Mondami, but he's actually trying to make some improvements to the transit system, but this time with buses.
08:43I'm not sure how I feel about this.
08:45So he wants to give city buses more dedicated lanes, like priority lanes is what he's calling them, which basically
08:52means I can't drive in those lanes, which I thought we already have these here.
08:55I thought we did, too.
08:56Yeah, I feel like half the avenues in New York are now like one lane of traffic while it's just,
08:59you know, the buses and everybody else gets the others.
09:01So apparently he's going to expand this, and the idea is they're going to be faster, I guess, in theory.
09:06It's actually called Next Stop Fast Buses Better Service, which I don't know.
09:11It's great branding.
09:12Whoever got paid for that, congratulations.
09:13Yeah, I don't know.
09:14I feel like they could have come up with something snappier.
09:16It's like how many McKinsey consultants does it take to screw in a light bulb?
09:19Is it going to be faster?
09:20That's the hope here.
09:21I mean, the goal is to cut riders' travel times by up to six minutes on about 50 priority routes
09:28here.
09:28Down from what?
09:29I mean, from a gazillion minutes, probably.
09:32There are a lot of these priority bus lanes, but I feel like it's not really enforced.
09:37I feel like I see people.
09:38Well, they put cameras on their buses now that give you tickets.
09:41But then people will get around them by lifting up their trunk, if they park in the lane, just lift
09:45up their trunk.
09:46I have to try that.
09:46But it's also traffic signals that prioritize buses, expanded all-door boarding, and investments in new buses and amenities to
09:53improve service.
09:54I don't even know what that means.
09:55I would love—is that an iPad?
09:57Are we, like, watching TV on these buses?
09:59I don't know.
10:00It'd be kind of cool.
10:00I've got to ride one of these buses one day.
10:02Oh.
10:03Are they clean?
10:03Oh, yeah.
10:04You're going to say no to the limo and going to get on a bus?
10:07Yeah.
10:07I rode the subway the other day, Carol.
10:09That's good.
10:10I did.
10:10I was, yeah.
10:11Well done, Romain.
10:12Well done.
10:13Yeah.
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