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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.
00:06It's a global simulcast.
00:07Carol Master joins us in the radio booth.
00:10Lisa Mateo in today for Tim Stenevich.
00:12Welcome to our audiences across all of our Bloomberg platforms, television and radio,
00:15our partnership with YouTube, a big turnaround here on this Thursday for all of the major
00:20U.S. equity markets, Carol.
00:22Yeah, look at it.
00:22We're hovering near our highs of the session, another little iptick, uptick in the last few
00:28minutes of trading, but there is, you know, predominantly, it's a tech trade.
00:32It's an AI-related trade.
00:33It's not necessarily your usual suspects.
00:36And then, once again, you've got semiconductors, investors just in love with them, up more
00:40than 3% in today's session.
00:41Yeah, we're looking at the markets.
00:43It's a love affair.
00:44It's a love affair.
00:45What's not to love about chips?
00:47I love kinds of chips.
00:48And all the love going on, despite all the geopolitical news we've been covering, too.
00:52I mean, we look at the Dow, about two-tenths of a percent.
00:54So, yeah, we're seeing green across the screen, oil actually down about 2.5%.
00:59Yeah, and you can see that love also extending to the small caps.
01:03The Russell 2000 higher by about 1.3%.
01:05It probably helps that you do see a little bit of relief when it comes to the bond market
01:10yields down today.
01:11But, I mean, you think about where we are in terms of the outright levels of yields near
01:16the highs of the year, but not making too much of a dent in the stock market today.
01:20Hey, Lisa, have you ever been to Aritzia?
01:22Aritzia, that's my favorite store.
01:24Is it really?
01:26I did not know that.
01:26I go there with my daughter all the time.
01:28Well, guess what?
01:28They're going to report earnings after the bell.
01:30That's our little straggler here in the earnings season.
01:33As you get closer to these closing bells, we are going to see green across the screen
01:37for all of the major U.S. indices here on this Thursday afternoon.
01:41The Dow Jones Industrial Average, that's basically your laggard on the day.
01:44It's only up a mere 130 points or about a quarter of a percent on the day.
01:49The S&P 500 adds roughly 60 points or eight-tenths of 1%.
01:52The Nasdaq Composite up 1.3%.
01:55The Nasdaq 100 up 1.6%.
01:57S&P Midcats up 1.2%.
02:00Dow Transports up an even 2%.
02:02And the Russell 2000 Carol Masser up 36 points or 1.2%.
02:06All right, good stuff, Romain.
02:07Let's go back to the S&P 500.
02:09More than 300 names.
02:11Katie, higher in the Thursday trade.
02:13202 to the downside.
02:14None unchanged.
02:15Well, let's take a look at the sector level as well.
02:19More gainers than losers.
02:21Seven sectors finishing in the green.
02:23Information technology, that is the bright green slice on the circle in front of you.
02:27Higher by about 1.7%.
02:29Consumer discretionary financials also having a pretty good Thursday.
02:34In terms of what didn't perform, consumer staples down about 1.8%.
02:38Interesting results from Pepsi earlier in the day.
02:41Energy also off by about 1.6%, Carol.
02:44All right, so a lot of green on the screen in terms of gainers here.
02:47Let's go to the number one gainer in the S&P 500 and Nasdaq 100.
02:50We're talking about Lumentum Holdings, tickers L-I-T-E.
02:53That stock up 11% in today's session.
02:56It's an optical networking stock.
02:58It's more than doubled this year, up about 118% year to date.
03:02Rallying again, I should point out, 12% of the float is short.
03:05But it plays into that AI trade that was definitely in full force today.
03:09And I kind of feel like it plays into the meta news, which I want to go over to,
03:13because that stock was higher in today's session as well.
03:17You know, you're building AI data centers,
03:19and increasingly you've seen a shift from copper to optical networking photonics, if you will,
03:25or the interconnects within the AI data center.
03:27So Meta talking about the possibility of it increasingly leaning into data centers.
03:34And so I want to go over to that.
03:36So you just saw, again, the AI trade.
03:38Anybody connected, any of the components that go into data centers, definitely outperforming.
03:42Meta was up almost 5% in today's session.
03:45It is down on the year.
03:46Kurt Wagner of Bloomberg sitting down with Mark Zuckerberg.
03:49And Meta saying it needs all the computing power it can get.
03:52That's according to the CEO.
03:53He's also considering renting out some of Meta's AI infrastructure to outsiders.
03:58It's also developing plans for its own cloud business.
04:02And so that could include selling access to various AI models hosted on Meta's existing AI infrastructure
04:08or also selling access to raw computing capacity.
04:11So there's a lot of interesting stuff going on.
04:13Meta also unveiled a version of its AI model, MuseSpark 1.1.
04:17There's just a lot there.
04:18Great reporting by Kurt, but you did see Meta certainly outperforming.
04:22And then I've got to mention, excuse me, semiconductors rallying again today.
04:26Micron in particular, that one was outperforming up 4.5%.
04:30Company planning to increase its spending on new plants in the U.S.
04:33by $50 billion to $250 billion to help meet demand for its memory chips.
04:38So that's a look at some of the gainers.
04:40And you've got some earnings for me.
04:41Yeah, just real quickly, let's take a look at Ritzy.
04:43This is, of course, the Canadian apparel company out with earnings.
04:47EPS does beat at about 96 Canadian cents a share.
04:51The street was looking for 85 cents.
04:52Revenue would be at $951 million versus estimates of 923 margin expansion in the most recent quarter.
05:00And the company says that for the full year, it is expecting net revenue in a range of $4.6
05:07billion to $4.75 billion.
05:12The low end of that range is basically right on the nose of the average of analysts.
05:16And in U.S. dollars, Romaine, that is what?
05:19Well, about the same.
05:20I'm being very Romaine here.
05:22I'm being very Romaine here.
05:22You're not allowed to do that.
05:24Did you notice my lapel pin today, Carol Master?
05:27I know.
05:28That's very nice.
05:28Where'd you get it?
05:29You gave it to me.
05:30I know.
05:30You guys.
05:31You do something nice for me every now and then.
05:33I do.
05:33Every once and then.
05:34Every now and then.
05:34If I do it often, you're not going to like it as much.
05:36Sure thing.
05:37I'm just going to say, all right, Lisa, take it away.
05:39All right.
05:39On that Aritzia news, because I'm a big fan of them, let's go to some of the decliner.
05:43So we'll start with PepsiCo right now.
05:44So it was down about 3%.
05:47Consumers, basically, they pulled back in the second quarter.
05:50Gas prices rose.
05:51So that was kind of taking away from their spending.
05:53But it's not just PepsiCo, right?
05:54They're the maker of Doritos.
05:56They're the maker of Lay's.
05:57They're the maker of Gatorade on top of it.
05:58So they did see a 2% decline.
06:00That was in revenue, North American food business, some flat volume on top of it.
06:05The salty snacks.
06:06So they did see some signs of an initial rebound earlier this year.
06:10But the problem was it just wasn't enough.
06:12So even though they cut the prices earlier this year by as much as 15% in some brands,
06:18its CEO put it right out there and just said the consumer is worse than what we had anticipated.
06:22And it's driven mainly by gas prices.
06:25So that's it in a nutshell.
06:26I want to take you over to AstraZeneca right now.
06:29Those shares lower as well.
06:31It's that and also Ionis Pharma.
06:33So they basically, their gene silencer drug, it failed to help prevent heart problems in some patients.
06:39So AstraZeneca ADRs, they're down about 5%.
06:42We look at Ionis, they're down about 23% on top of that.
06:45So basically what the company is saying, they didn't reduce cardiovascular events or deaths from heart problems in a late
06:51-stage trial.
06:52So that was the issue, a successful trial.
06:54What that would have done?
06:55Well, it would have led to billions of dollars in more sales.
06:58That's what Jeffrey's analysts were saying.
07:00Astra had this ambition of more than $5 billion in sales of the drug.
07:04So we'll see what happens next.
07:06I want to end off with Costco.
07:08Tom Keene would be in his glory.
07:09Oh, my God, you love that store.
07:12He does.
07:14Rising gas prices lifts the same store of sales.
07:16But it was lower than March and April.
07:19So that's the issue there.
07:21So that's why their shares were down as much as 4%.
07:25And that's the issue.
07:26So June comparable sales missed Wall Street expectations.
07:28The stock may have also been feeling some pressure from Pepsi's.
07:32We just talked about that.
07:33Their numbers a little bit earlier.
07:35But management there, you know, they warned about the consumer.
07:37So we see it moving along.
07:39A quick check on yields after a couple of days where we saw them rise,
07:43falling across the curve here on this day, down about five basis points on the two-year yield.
07:48On your 30-year yield, the longer end of the curve, we're only down about two.
07:51So the volatility we see in the equity market, we continue to see that as well,
07:55at least from a day-to-day basis in the Treasury space.
07:58All right, let's go to some stories on our radar.
08:01The number of young Americans living with their parents is at a record high.
08:04Here's a number for you guys.
08:06Nearly a fifth of 25 to 34-year-olds live with their parents or grandparents.
08:11That is a record high per a recent analysis of census data by John Burns Research and Consulting.
08:17We know it's tough out there.
08:18We've done the stories, like graduates coming out, younger folks having a hard time finding jobs.
08:23I have a 24-year-old, so I know it's tough for him.
08:26Living at home?
08:26Living at home, and I think he's going to be at home for a while, depending on how things are
08:30going on.
08:30A mama's okay with it, but that's all right.
08:32Yeah, I mean, you think about all the different forces in the housing market, structural supply issues there,
08:38and then you have mortgage rates pretty high, and it seems like they're not coming down anytime soon.
08:43And at the same time, because of that shortage, I mean, prices are super high as well.
08:47It's just rough out there.
08:50Yeah, and we talk about some of these demographic shifts that are going on out there,
08:54and another one, and it actually brings us to another story that we were keeping an eye on on the
08:58TV side,
08:58and that involved CoverGirl and the idea that, you know, a few years ago,
09:02it seemed like everybody was going after the younger consumer, the Gen Z customers, if you will.
09:07But CoverGirl has actually had a nice little rebound by actually going after middle-aged women, you know,
09:12saying that basically, you know, women in their 40s, 50s, and 60s just offered a better value proposition,
09:17but also a way for them to differentiate yourself.
09:19If, you know, everybody's running in one direction, sometimes it pays to maybe veer off into your shape.
09:24You're not in your head there, Carol.
09:25Are you looking at me?
09:26Are you looking at me?
09:27Are you looking at me, remain?
09:29I mean, you know.
09:30Give me that back.
09:31I do see it, though.
09:32I do see it.
09:33It's like, on my feet is just a lot of, like, you know, about middle-aged kind of makeup,
09:37and that's kind of the hot thing.
09:38And you also know a lot more about those consumers.
09:42I mean, you think about brands really trying to capture the attention of Gen Z, of Gen Alpha,
09:47and then I don't even know what comes after that.
09:49I mean, you have a lot more data on what, you know, Gen X.
09:52Beta, Katie.
09:53Beta?
09:53Oh, that's a terrible name.
09:54Zoomers?
09:55Anyway, there's a lot more that is known about Gen X, so it makes sense.
10:00But in all seriousness, too, and we've been talking a lot here on this network about what's
10:04been going on in the retail space and some of the rebounds we've seen in companies like
10:08Levi and Abercrombie, et cetera, Gap, and the different strategies they're taking in terms
10:12of, you know, width demographic, where they see the most hope and the most long-term value.
10:17And there are some variants.
10:18It's not all just everyone going after the younger consumer.
10:21Yeah, I think, especially in the cosmetic space, it is super crowded and super competitive,
10:24and there's new entrants all the time.
10:26All right, good stuff.
10:27Looking good.
10:28All right.
10:28Don't look at me like that, Romain.
10:29I'm just telling you.
10:30I'm just telling you.
10:31I'm just telling you.
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