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00:00And right now we are two minutes away from the end of the trading day.
00:03Romain Bostick here with Isabel Lee taking you through to that closing bell.
00:07It's a global simulcast.
00:08Tim Senevic joins us from the radio booth.
00:10Christine Aquino in today for Carol Master.
00:12Welcome to our audiences across all of our Bloomberg platforms
00:15as you parse the most crucial moments of the day.
00:18Tim, a bit of a holding pattern for stocks.
00:20Mixed day here with the S&P and the Nasdaq in the red, the Russell 2000 in the green.
00:24Yeah, we'll see what happens tomorrow when we get CPI and Thursday when we get PPI.
00:29But I think you're right, a little bit of a holding pattern.
00:31It's a Tuesday in August, so maybe we're the only ones at the office today
00:35and everybody's at the beach.
00:36But we are still seeing at least oil make moves today.
00:41WTI futures up about 1.6% as are Brent futures.
00:46WTI about $83 a barrel.
00:48Brent just shy of $90 a barrel at $89.16.
00:51I do wish that I was on the beach myself, but I'm here in the freezing studio beside Romain.
00:56Romain takes no offense to that comment.
00:58I'm so happy to be here.
01:00We did talk to Wells Fargo Osung Kwan, who said that CPI is the last hurdle before big semis.
01:05Big semis meaning NVIDIA and Broadcom.
01:07So he is really looking out for that.
01:09I mean, CPI will really shed light on whether we're seeing energy-related inflation pressures cool.
01:16Yeah, well, speaking of inflation pressures, Isabel, I mean, I was keeping an eye on a bond market today.
01:21It yields lower across the board by about one to two basis points across major tenors.
01:26But, you know, remember, there are still rate hikes very much priced into the curve, including for the September meeting.
01:31There's about over a 50% chance that we're going to get a rate hike in September, at least according
01:35to market pricing.
01:36But if it's up to Kevin Warsh, it's a little bit more up in the air.
01:39And we're also going to get earnings here, a big focus on earnings with Continuum, Firefly, Kava, CoreWeave, Supermicro, and
01:45Momentum set to cross the wire momentarily with red across the screen here on this Tuesday afternoon.
01:50The Dow and the S&P each down about three-tenths of a percent on the day.
01:54The Nasdaq composite losing about six-tenths of a percent on the day, while the Russell 2000, that's the flip
01:59side here, in the green, up ten points or three-tenths of one percent.
02:03In the S&P 500, peeling back the layer there, we did see, even though the S&P moved ever
02:07so slightly lower today, we did see more stocks move higher in the index.
02:12277 to the upside, 225 stocks in the S&P declined today.
02:16And now we're taking a look at IMAP, and it's mostly red on the screen, which isn't a surprise.
02:21As markets ended lower, you have tech down by nearly – oh, actually, tech is just flat.
02:26Its financial sits down by three-tenths of one percent, materials lower, communication services lower, and maybe energy is one
02:32of the two bright spots there, up by seven-tenths of one percent.
02:35Well, as we await some of these earnings, let's take a look at some of the stocks that moved higher
02:39today.
02:39I want to start with a couple alternative asset managers, KKR and Apollo, those both moving higher.
02:44KKR to the tune of seven percent today.
02:46Apollo up 6.3 percent.
02:49These were among the firms that outperformed financial peers after NVIDIA tapped some Wall Street investment firms for that $500
02:56billion funding commitment.
02:58Apollo, Blackstone, BlackRock, Brookfield Asset Management partnering with NVIDIA to source $500 billion in financing for AI infrastructure.
03:06The coalition also includes Goldman Sachs and KKR.
03:10Also, I'm watching what's going on with Riot Platform.
03:13Speaking of AI infrastructure, shares were up as much as 22 percent.
03:17Oh, wow.
03:18I thought you were in a wow.
03:18What happened?
03:19I don't know what happened.
03:20I mean, maybe a little bit of the air came out of this balloon, but it was still higher by
03:244.3 percent today.
03:26This was a Bitcoin mining company that now has pivoted to AI infrastructure.
03:31Weren't we all once Bitcoin mining companies?
03:32Sorry?
03:33Weren't we all once Bitcoin mining companies?
03:34We were all.
03:35And maybe once we will all be AI infrastructure companies.
03:38Wonderful.
03:38That's the question.
03:39A $9.1 billion deal with Anthropic.
03:44That is for 191 megawatts of computing in Riot's Rockdale, Texas campus.
03:50It's expected to generate $9.1 billion in revenue, but it goes through June of 2048.
03:55That is a commitment.
03:56What are you guys going to be doing in June of 2048?
03:58June of 2048?
03:59Yeah.
03:59Okay, yeah, I can't do the math that quick, but you average out that $9 billion for the next 20
04:06years?
04:07Yeah, I guess.
04:08That's what the calculator says.
04:09Okay.
04:10Maybe that's why the stock went from up 20 percent to only up 4?
04:13Maybe.
04:14Maybe people saw the fine print.
04:16Okay, so speaking of maybe looking backward a little bit, we are talking about bending spoons.
04:22The stock was up 4 percent today, also up higher earlier in the session.
04:26Oh, well, yeah.
04:26This is, Romain, this is all the stuff you and I used to use.
04:30Yes, used to.
04:31Back in the day.
04:32Yes.
04:33You know, Vimeo.
04:34AOL.
04:35AOL.
04:36Evernote.
04:37Those sorts of things.
04:38Is MySpace in there somewhere?
04:38They're kind of creating this private equity-style roll-up.
04:41I think my MySpace page is floating around.
04:41What's that?
04:42Nothing.
04:43Okay.
04:43I'm like Carol Master now.
04:44Nothing.
04:44Okay.
04:45Mizuho hiked its price target ahead of the company's first earnings report.
04:49This was a second consecutive session for the company, the stock moving higher today.
04:54It hit an all-time high earlier.
04:55We'll see what earnings say.
04:57But this has performed pretty well since that IPO.
05:01I do have a source who had an AOL email, and that was shocking to me and gave me a
05:06heart
05:06attack.
05:07Do we have any decliner today?
05:08Well, yeah.
05:10Let's take a look at what is down today.
05:12Let's start with Beyond Me.
05:13I mean, big declines there.
05:15Stock's down more than 20 percent.
05:16That is the biggest decline since October.
05:18We know, of course, that the board has elected for a one-for-30 reverse stock split of its
05:24common stock.
05:25That's probably what's pressuring those shares as well.
05:27And remember, we saw a second quarter decline in their net revenue.
05:31And analysts are recognizing that it is slowly improving its business.
05:35It's just proving to be slower than expected here.
05:38So, a lot of red on the screen for Beyond Me today.
05:41A little bit of red on the screen right now for Lumentum.
05:43Actually, the share is oscillating between gains and losses.
05:46The maker of optical equipment used in a lot of this technology build-out.
05:51Providing its quarterly update here.
05:53Revenue in the most recent quarter does look like it came in above average.
05:57Adjusted EPS also beating the average of street estimates.
06:00$3.23.
06:01That's your bottom line number.
06:02The street was looking for $2.97.
06:05But here's the guidance for the current quarter.
06:07This is the fiscal first quarter.
06:09The company says net revenue will be in a range of $1.23 to $1.28 billion.
06:13The street was looking for $1.15 billion.
06:15So, it looks like for the most recent quarter, it did beat on most of the key metrics.
06:19And at least right now on the revenue guidance.
06:21So, going forward, it also does appear to be coming in above what the street was looking for.
06:25I'm going right to that press release for any commentary we can get around these numbers.
06:29The company's president and CEO, Michael Hurston, saying that Lumentum is positioned at the heart of a secular industry shift.
06:35Talks about AI compute workloads increasing in both speed and bandwidth.
06:38Data center architects are turning to optical links as a primary means of connectivity.
06:44The company also says increasing demand for ultra-high-power CPO lasers, an initial order for ELS modules, as well
06:51as our breadth of NPO engagements, are the first signs that optics are starting to penetrate in rack connectivity.
06:57Romain.
06:57All right.
06:58There's a lot of words there.
06:59I'm not sure I understand most of them.
07:01Dr. Romain.
07:02Well, let's take a look at Supermicro.
07:04Of course, this company builds and sells all these AI servers out there.
07:07A company, of course, that has gone through some fits and starts.
07:10The share is up about 8% in the after-hour trade.
07:12The gross margin coming in above estimates, 17.6%.
07:16EPS, above estimates, $1.70 versus $1.59 that the street was looking for.
07:21Net sales, $11.12 billion.
07:23That's a slight miss.
07:24The street was looking for $11.26 billion.
07:27Still digging around here for any sort of forecast.
07:30But it does appear, at least on the bottom line, it beats.
07:32And that was a key metric here.
07:34People were really looking more towards profitability.
07:36Remember, this is a company that provided us with a pre-announcement about three weeks ago saying that its revenue
07:41would be at the lower end of its previous range here.
07:44So all around here, it looks like they're relatively coming in with what the street was looking for.
07:49Yeah, shares of Supermicro up about 7% in the after-hours.
07:53Looking for some commentary, the company's founder, president, and CEO says,
07:57As demand accelerates, we are improving profitability through a richer enterprise customer mix and broader adoption of our optimized data
08:04center building block solutions architecture.
08:06Combined with continued investment in tech leadership, manufacturing scale, and global compliance.
08:12That's key there, global compliance.
08:14We are enabling customers to deploy AI infrastructure faster and more efficiently.
08:18Shares of Supermicro up 9% in the after-hours.
08:21This has been a volatile stock, though, over the last few months.
08:22You can see the net sales forecast for the first quarter, guys, $14.5 to $15.5 billion.
08:28The street, on average, was looking for $12 billion.
08:31So guiding well above street estimates.
08:33Maybe what's helping also is the new orders climbing to more than $60 billion, and that comes amid a backlog
08:38of demand for its servers outfitted with NVIDIA chips.
08:40Every time I think of an AI story, NVIDIA always finds its way there.
08:44It really is at the epicenter of this whole AI craze.
08:47Yeah, I mean, very interesting, Isabel.
08:49That was definitely a strong point that a lot of analysts were anticipating, right, that backlog.
08:54Very much an indicator of just the sheer demand for anything AI-related or anything involved in this AI supply
09:02chain.
09:02I mean, when we got their preliminary guidance, you know, analysts were viewing it as positive.
09:08And clearly, today's beat really just affirming the story here for Supermicro and its role in the AI trade and
09:14build-out moving forward.
09:15Well, speaking of the AI trade, have you ever heard of a company called EROC, ticker E-R-O-C?
09:20The share is up about 15% in the after-hours trade.
09:23Distributed power systems is its game and now a partnership when it comes to Anthropic.
09:30This, according to a report from Barron, saying that Anthropic will buy about 470 megawatts of power equipment from EROC.
09:37Don't necessarily have the terms of that.
09:39But, obviously, anything that you see, Anthropic, OpenAI, NVIDIA, touching or investing in, of course, gets a pretty strong bid.
09:46All right, we got numbers from Lumentum, Supermicro, and a couple others.
09:50We're still waiting on CoreWeave, Kava, Firefly, Aerospace, and some more.
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