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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.
00:06It's a global simulcast.
00:08Carol Masser and Tim Stenevich join us now.
00:10Welcome to our audiences across all of our Bloomberg platforms, television, radio,
00:14our partnership with YouTube.
00:16A rebound from yesterday here with a big bump from NVIDIA, Apple, quite a few others,
00:21but a big drag down by IBM, Microsoft and some of the software companies.
00:26Yeah, absolutely.
00:27The churn a little bit among some of those well-known names.
00:31Having said that, you know, you're still seeing some outperformance when it comes to tech names.
00:36You've got, what, the NASDAQ 100, Tim, right now up about 1.2%.
00:39Yeah, I think people are still concerned about what's happening out of the straight-of-form moves.
00:43I mean, Katie, it's leading to higher oil prices.
00:45Just in the last half hour, we heard that the U.S. military says it started more Iran strikes today.
00:51That was at 3 p.m. Eastern time.
00:53Once again, we're seeing oil prices higher.
00:55Yeah, absolutely.
00:56You take a look at, Brent, trading around $85 a barrel here.
01:00And it does kind of make the case that maybe the inflation figures that we got this morning
01:04that are leading to a bump when it comes to the equity market, that drop-down in yields,
01:10maybe that already looks stale when you think about what we're seeing on the geopolitical front,
01:14but still certainly fueling quite a rally in the bond market.
01:18And we talk about that rally in the bond market, pushing yields on the two-year down about 10 basis
01:23points,
01:23if you can believe it here.
01:25So a lot of people not buying into the idea, at least today here, that the Fed is going to
01:29hike rates anytime soon.
01:30I don't know if this ends up being a Goldilocks situation for Kevin Warsh, who we saw on the Hill
01:34earlier today.
01:35He could be as hawkish as he wants in terms of his commentary.
01:37But as far as moving rates right now, it does look like they're going to be pinned where they are
01:42for a while.
01:43We get the closing bells here in New York.
01:46Green across the screen for all of the major U.S. indices.
01:48The Dow Jones Industrial Average, that's your relative laggard on the day,
01:52only up about 30 points or just a little bit less than a tenth of a percent.
01:56The S&P 500 is going to add about 29 points or four-tenths of one percent.
02:00The NASDAQ Composite up nine-tenths of one percent.
02:02The NASDAQ 100 up 1.1 percent.
02:05And the Russell 2000, Carol, adding about 12 points or four-tenths of one percent.
02:09All right, you finished with small caps.
02:11I'm going to go back to the big cap names, the S&P 500.
02:14204 names in the S&P 500 higher today, Katie.
02:18296 to the downside.
02:20And you've got about three unchanged.
02:22You take a look at the circle, which measures our sector performance.
02:25You have six sectors in the green, and it's information technology leading the way.
02:29Look at that bright green slice.
02:31Higher by about 1.3 percent.
02:33Also a good day.
02:34Four communication services higher by about 1.1 percent.
02:37In terms of what didn't perform today, it's pretty interesting.
02:40Health care down about 1.9 percent as a sector.
02:43That is your biggest drop to the downside.
02:46Consumer staples also off by about 1.4 percent, Carol.
02:49All right, guys.
02:50Let's get to some of the individual gainers.
02:51I'm going to start with a bunch of the financial names because we definitely saw, what, five big banks
02:55reporting earnings, three of them rallying in today's session.
03:00Let's take a look at J.P. Morgan.
03:01It was up 2.5 percent.
03:03Goldman Sachs soaring today, up 9 percent.
03:06B of A also moving to the upside, just shy of 2 percent here at the close.
03:11I mean, Wall Street traders coming out on top as the biggest U.S. banks reported record
03:15results from their equities divisions.
03:17J.P. Morgan chasing Goldman, achieving personal bests in new industry highs.
03:21We've seen the AI boom and constant repositioning by clients have driven the success of some
03:26of the biggest trading desks at some of these banks, despite concerns about war and inflation.
03:30So, again, J.P. Morgan bagging its highest quarterly profit ever.
03:34Goldman Sachs trouncing its own Wall Street stock trading records.
03:37That stock, as we just mentioned, soaring.
03:39It's also looking to raise at least $8 billion from a high-grade bond sale.
03:43And B of A's stock traders notched a record during the second quarter, benefiting from that
03:47market volatility.
03:48It's investment bankers, too, capitalizing on some deal-making resurgence.
03:53And then I'm just going to go over to the chip makers.
03:56They give it, they take it away, they give it again.
03:58It's kind of our new favorite parlor game, watching semiconductors.
04:02The socks today, as a whole, up about 2.5 percent.
04:07We had all 30 down yesterday.
04:09I think we have 26 to the upside today in the index.
04:14And then I just want to mention AMD, because some outperformance there, up about 2.5 percent.
04:19Some street calls there, KeyBank Capital raising their target on AMD to $7.25 from $5.30.
04:27Stock closing at $5.48 and change, maintaining an overweight, writing that strong AI data center
04:32demand is driving chip momentum.
04:35And so KeyBank expects AMD capacity next year to support unit growth of more than 50 percent.
04:41B of A also raising the firm's price target to $6.20 from $5.50 and keeping a buy rating
04:46on this year.
04:46So the good stuff continues.
04:48There's also Bloomberg Intelligence out and just kind of being pretty upbeat about a lot
04:53of names in the chip space.
04:55Okay, those are the...
04:55You just mentioned SK Hynix, too, Carol.
04:57A big rebound there in those EDRs, up 27 percent at the close.
05:01Oh, how did I miss that one?
05:02I don't know.
05:03That was my gift to you, Romain.
05:04I don't know.
05:05Tim, don't miss anything.
05:06My gift to you are some stocks that move lower.
05:10Lucid Group, the EV maker, only sells a few thousand cars a year, as Ed Ludlow reminded
05:15us a little earlier today, down 16 percent.
05:18The company, as Ed and David Welch report, is working with restructuring advisors to turn
05:22around its struggling business.
05:23It's confirmed it's working with Alex Partners.
05:26The company has dismissed rumors, though, that it's considering bankruptcy as, quote,
05:29completely false and said it is sufficient liquidity to carry its operations well into
05:33next year.
05:34Look at that chart there, if you're watching on TV, you can see shares fell very sharply
05:39just before 2 o'clock today, down as much as 57 percent before pairing declines to close
05:4516 percent lower.
05:45It's like diving, like on a reef, cliff diving.
05:49Yeah.
05:49I mean, there are a lot of different images that that shows.
05:53It's evocative.
05:54Once again, Lucid Group down more than 16 percent.
05:57Another company, Romain, you mentioned this.
05:59Shares of Software Makers fell.
06:01All thanks to what we heard from IBM early this morning.
06:04IBM shares, how's this for a superlative?
06:06Falling the most going back to 19, at least 1968.
06:10Shares down about 25 percent throughout the day and staying there.
06:13The company came out with preliminary second quarter sales.
06:15It fell short of expectations.
06:17It said the miss is due to customers shifting their spending to chips and servers amid these
06:22AI-fueled shortages.
06:23Arvind Krishna, the CEO, said the company failed to predict that its customers would shift
06:28their spending from IBM's products to servers, storage and memory purchases.
06:31I love the 1968 thing because that's basically all as far back as the data.
06:34After 1968, the Bloomberg terminal just breaks down.
06:37But I was looking it up.
06:38It's funny.
06:38I didn't realize they went public like in 1915 or something.
06:41Is that where you were born?
06:42Yeah.
06:43Thank you, Carol Masser.
06:44You're welcome.
06:44But anyway, fun fact there, Tim Stenevich, who I was speaking to.
06:50All right.
06:51Let's talk a little bit.
06:52Very briefly, Citi shares fell today.
06:54The company's plans to spend more on tech and AI could help whittle down headcount in
06:58the second half of the year.
06:58Shares fell by 5.3 percent, just one of the five big banks to report today.
07:03Carol mentioned some of the others.
07:05And finally, I want to end with Yum Brands.
07:07Shares fell after The Washington Post reported that federal and state health officials are
07:11investigating whether Taco Bell, it's owned by Yum Brands, whether those restaurants
07:14played a role in the recent U.S. outbreak of gastrointestinal illness caused by a parasite
07:19that contaminates fresh produce.
07:21Separately, Taco Bell removed some ingredients at select restaurants as a precaution amid an
07:26outbreak of a parasite that causes severe diarrhea.
07:29Shares of Yum Brands down a little more than 2 percent today.
07:32All right.
07:33Let's take a quick look at yields.
07:35We talk about the volatility in equity markets, but we continue to see that volatility in the
07:39treasury space as well.
07:41We saw the yield on the two-year GOAT down about nine basis points here on the day.
07:47A bit of buying coming back in to the short end of the curve, largely based on that relatively
07:53cool CPI report.
07:55All right, guys, let's get to some stories on our radar.
07:59This one definitely caught Tim and my attention.
08:01Passengers falling asleep, spilling drinks, dropping food, vomiting.
08:05Hey, come on.
08:07Wow.
08:07It's like the L-I-R-O.
08:09Giving birth in self-driving taxis, complicating the rollout of robo-taxi.
08:14I love this part.
08:16People are so drunk, they're forgetting to close the door.
08:19So, like, the operators have to get to nearby gig workers to, like, close the doors.
08:25Carol, what's happening to Carol?
08:26This is crazy.
08:27This was written for you, Carol.
08:29I love how much you love it.
08:30Hey, hey.
08:31I took a flight on Sunday, and we were getting off the plane, and I walked by a guy who
08:37was
08:37still in his seat, completely asleep, and I was thinking to myself, when are they going
08:42to, you know, tap this guy and tell him we've arrived, because it had been about 15 minutes.
08:47I can only imagine what's happening in these robo-tax.
08:50Well, to that point, I mean, I feel like this is just public transportation problems.
08:54You know, you have to imagine passengers across every mode of transit are falling asleep
08:59and spilling drinks and vomited.
09:01But it's become an issue for the first responders, because people walk by and they see somebody
09:05pass out, and then they call 911 or something like that, and then, you know, the first responders
09:09come, and they say, no, it's just some idiot taking a nap or, you know.
09:12We actually have a stat on that in the Bloomberg story.
09:15Only about 3% of such calls require transporting the passenger to a hospital.
09:20But, yeah, those calls are definitely happening.
09:22Have you been in one of these, Carol?
09:24Are you kidding?
09:25Are you kidding?
09:26I'm in love with Waymo's.
09:27I am in love.
09:28Anytime I'm in a city, I try to take them as much as possible.
09:31And how many times have you passed out drunk in one?
09:35Romaine, when you want to relax in your chauffeured SUV on the way home, what do you have your
09:39driver put on?
09:41My driver?
09:42Bloomberg Radio.
09:43A little Sade, a little Bloomberg Radio.
09:45Depends.
09:46If it's the morning show.
09:47You actually get into a Waymo, it feels like in a spa.
09:50It's so nice.
09:50The car is immaculate.
09:52It's really quiet.
09:53Nobody talks to you.
09:54Katie, do they have these in New Jersey?
09:56The loveliest time was when, you know, my senior producer got into one of them in front
10:01of her hotel and it couldn't figure out how to get out of the hotel driveway because there
10:04were so many cars and pedestrians and she was basically stuck there for like 20 minutes.
10:08There was that amazing story about Waymo's getting like, just congregating on a specific
10:13cul-de-sac and just getting in a doom loop and going in circles.
10:17It looks like we're safe for now.
10:18Can I just say, this is a first, I think, that we've done a closing bell where we've
10:22said both vomit and diarrhea.
10:24Hey, there's always tomorrow.
10:26There is always tomorrow.
10:27Something to look forward to.
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