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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 Isabel Lee.
00:05Katie Reifeld is off on the day.
00:08We're taking you through to that closing bell at the Global Simulcast.
00:11Carol Masser and Tim Senevic join us now.
00:13Welcome to our audiences across all of our Bloomberg platforms, television, radio,
00:16our partnership with YouTube here for our hydration break as we take you to the closing bell.
00:22Carol.
00:22No joke, man.
00:23It's hot out there.
00:24And then there's the smoke and the air conditions.
00:26It's kind of a meh.
00:27Right over her head, Tim.
00:29Sometimes I just choose to ignore you, okay?
00:32I thought it was good.
00:33I thought it was good.
00:34Thank you, Tim.
00:35I'm a World Cup fan.
00:36What can I say?
00:38Oh, God.
00:39You know, Isabel, these bros, man, sticking together.
00:42That's what happens.
00:43Yeah, you know me and Tim.
00:44Bros.
00:44Yeah.
00:44We're just in the dressing room talking sports all day.
00:47Should I wear the blue suit or the gray?
00:49Which tie do you like?
00:50No, I have Romain tie my ties for me.
00:52Do you really?
00:53Oh.
00:53Romain, really?
00:54I don't wear ties.
00:54You don't wear ties.
00:55It's very cute.
00:56Is it my turn?
00:57Yeah.
00:58I do want to get serious a little bit because there's still the question about what happens
01:02and what is happening in the Middle East.
01:04The Wall Street Journal outwit this story just in the last 20, 25 minutes about the president
01:10reporting that the president is leaning toward expanding U.S. military operations in Iran.
01:16Expanded U.S. efforts in Iran could include ground forces, according to the Wall Street
01:20Journal.
01:20There's talk about Karg Island, though the president has not made a final choice on the next steps
01:25in Iran.
01:25So this is still part of the market backdrop and certainly the energy backdrop, too, Romain.
01:31Yeah.
01:32And we were just talking about an hour ago when we started our show, the close oil prices,
01:36oil futures are relatively flat on the day.
01:38Now, both WTI and Brent up about 1 percent.
01:43WTI back above 80 bucks a barrel.
01:46Brent crude back above 85.
01:49Meanwhile, we get the closing bills in New York for equity prices.
01:52And we have a mixed bag here, green across the screen for most of the major indices, with
01:57a couple of notable exceptions.
01:58The Dow Jones Industrial Average, higher by 150 points or three-tenths of a percent.
02:02The S&P, higher by 29 points or four-tenths of one percent.
02:06The Russell 2000 unchanged on the day.
02:08But I want you to take a look.
02:09The NASDAQ composite, up about six-tenths of a percent on the day.
02:13We don't have it on the screen there.
02:15But the NASDAQ 100 is in the red, Carol.
02:17It's down about three-tenths of a percent.
02:19And that's largely because of, once again, a bit of a sell-off in the chip space.
02:23Yeah, right?
02:24It just, the swinging when it comes to those semi-names continues.
02:29And again, actually, we got some earnings from me.
02:32Yeah, let's get right to it.
02:33We heard from Delta Airlines last Friday.
02:35It was a relatively bullish earnings report.
02:38United Airlines now crossing the wire for the second quarter.
02:41The company says that adjusted EPS did beat $1.99 a share.
02:45The street, on average, was looking for $1.85.
02:48Revenue, operating revenue, just above analyst estimates, at about $17.7 billion.
02:55Available seat per miles did beat, as did some of its CapEx numbers.
03:00Revenue per passenger miles, relatively in line with estimates at about $72.7 billion.
03:06And here's the guidance.
03:07The company, Carol and Tim, they say, and Isabel, say that adjusted EPS,
03:11for the full year, will go up.
03:13It will be $9 to $11 per share.
03:17And it previously saw a range of $7 to $11 per share.
03:22So basically raising the low end of that estimate from $7 to $9 per share.
03:26The street, on average, looking for about $10.51.
03:29Yeah, I'm looking at oil, like the oil commentary from Scott Kirby in this,
03:34because what United says is based on oil prices as of yesterday.
03:40United expects nearly $6 billion in added fuel expense for full year 2026 compared to the expectation at the start
03:46of the year.
03:46In the second quarter, fuel expense was up $2.3 billion, or 84% year over year.
03:51The company recovered approximately half of this increase.
03:54In the third quarter, the company expects to recover about 80% to 90% of the increase.
03:58And 100% by the fourth quarter yields up 12% during the quarter.
04:02So strong demand.
04:03But, you know, this business is so sensitive to fluctuations in oil and jet fuel prices that, you know,
04:13you see a lot of movement one way or the other when there are big moves in the market.
04:17Yeah, and kind of telling that they were willing to narrow their range for EPS guidance,
04:22but not actually raise the high end of that here.
04:25So that might actually say a lot more than what they actually said.
04:29Yeah, also just breaking it down, premium revenue up 16% compared to the second quarter of 2025.
04:35Revenue from basic economy up 11%.
04:37Loyalty revenue up 11%.
04:39Cargo revenue up 23%.
04:41They say closing demand remained robust with contracted business revenue up 27% in the quarter.
04:47The economy cabin continues to recover with unit revenue up 12%,
04:51marking two consecutive quarters of positive growth.
04:53But still looking at the stock down about 2.8% here in the after hours.
04:59Year-to-date, though, the stock is up about 8%, Isabel.
05:02Let's take a look at the IMAP now.
05:03So we saw kind of a split screen with the S&P ending higher and the NASDAQ ending lower.
05:08And when you look at the IMAP, it's looking mixed.
05:10The biggest gainers, tech higher by 3 tenths of 1%.
05:14Financials, of course, after the blockbuster earnings season,
05:17when six out of six really saw beats higher by 7 tenths of 1%.
05:21Down energy, you're seeing it lower by 5 tenths of 1%.
05:24And materials lower also by 2 tenths of 1%.
05:27I do want to go back to United Airlines and to Starlink,
05:30because as these airlines are increasingly investing in connectivity for their customers,
05:36United is certainly one to watch because it does have this deal with Starlink.
05:39If you've flown on a United Express flight in recent months, you've experienced Starlink.
05:45These are the smaller airplanes, the regional jets, Romaine.
05:48I don't know if you've done this, maybe.
05:50The connectivity, it's like faster than when you're at home or on the ground.
05:54I flew on one of these planes just a couple days ago.
05:56The company's saying that customer satisfaction scores on flights with Starlink are twice as high as on other United flights.
06:04And it's free for United Mileage Plus customers.
06:08It's a big investment that United is making, but it's a way for them to differentiate from other airlines.
06:13And now they're saying they're going to get it to their entire fleet in the next couple of years.
06:17And this has been a big question that I've asked a lot of the airline analysts that we have on,
06:20is what is the differentiation, at least between the big three, United, Delta, and American here in the U.S.?
06:25And it really is about the in-cabin experiences.
06:27It's funny you mentioned that United, of course, provides that for free.
06:32We should point out one of their competitors doesn't unless you're part of their rewards program.
06:35So there is a disparity there.
06:37And I think you're starting to see a lot of these companies pay a lot closer attention to what they're
06:41offering in there
06:42to try to justify, let's just face it, some of the elevated prices for those seats.
06:47I'm smiling because I have no brand loyalty.
06:49I just go to Google and then the cheapest flights, that's what I book.
06:53So my points and my reward system, they're all over the place.
06:56I have almost zero.
06:57But I guess that's the price I pay for being this loyal.
07:00All right, guys.
07:01J.B. Hunt, a trucker, a trucking company, out with their earnings.
07:06Let's go through the numbers.
07:07Second quarter EPS, that's a beat.
07:08$1.91 a share.
07:10The estimate on the street was for $1.74.
07:13Second quarter revenue also coming in better than forecast by the street, $3.5 billion.
07:18The street estimate was for $3.25 billion.
07:21Second quarter intermodal revenue, that too is a little bit higher, $1.75 billion versus an estimate of $1.6
07:28billion.
07:29And second quarter dedicated revenue, $921 million.
07:32Estimate on the street was $897.3.
07:34Stock is up 2.2%.
07:35You know, we love to see the transportation sector, what is going on.
07:41Commentary is also always so important because it's a great read on the economy.
07:44Well, speaking of commentary, Shelly Simpson, the president and CEO of J.B. Hunt, talking about cost discipline in a,
07:50quote, dynamic environment.
07:53She said, Shelly Simpson, president and CEO, also saying that market conditions are continuing to evolve.
07:59The company remains focused on creating long-term value for our shareholders, delivering valuable solutions to our customers while maintaining
08:04discipline around return on capital.
08:07So, discipline, cost discipline, a dynamic environment, market conditions evolving.
08:14And this gets to the idea, too, that we had this sort of a big trucking recession, and then that
08:18kind of shook out a lot of players, and that benefited the folks, of course, who did survive.
08:22And, of course, there's an economic story that underpins it all as well, Tim and Carol, and this idea here
08:27that if the consumer is still spending, but also the idea that a lot of these truckers, trucking companies, they've
08:33been making a lot of money, not on the consumer side, but on the industrial side.
08:36There's been a huge ton of activity with regards to manufacturing that has to be shipped around the country, and
08:41J.B. Hunt and some of its peers have been big beneficiaries of that.
08:44And now you're looking at shares of J.B. Hunt climbing 2% after they top estimates in post-market.
08:50So it's really going to be interesting to hear what their commentary will be, because to Carol's point, it's going
08:54to be in the weeds of the economy.
08:56And I feel like the banks, their earnings, they were great.
08:59They were blockbuster, rock star, as Anastasia Amoroso earlier said.
09:01But this is a different sector of the economy, and it's still interesting to hear what they will be seeing.
09:07Yeah, it's interesting.
09:08And as you said, I mean, the stock's on fire this year.
09:11It's up about, I think, 46% year-to-date, and again, getting another bump to the upside.
09:16But things like airlines, too, I just keep thinking about how they are increasingly, it feels like, catering to a
09:21wealthier customer and offering more choices, if you will, for a wealthier passenger.
09:29And so great reads on the economy, but maybe increasingly a sector of our economy.
09:34Well, yeah, and you saw that, right?
09:35I mean, you don't think it.
09:37I mean, Ed Bastian, that interview he gave with Lisa Abramowitz a couple of days ago, he kind of made
09:42it clear.
09:42I mean, that's where they're moving, right?
09:44It's expand business class, expand first class, and try to milk as much as you can out of those folks.
09:49Yeah, exactly, exactly.
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