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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, taking you through to that closing bell.
00:07It's a global simulcast.
00:08We're joined now by Carol Masser, and there's also Tim Stenevich.
00:11So we welcome our audiences across all of our Bloomberg platforms.
00:15Television, radio, our partnership with YouTube.
00:18Carol, these boxes pop up for our TV viewers.
00:20I never knew who was going to be on it.
00:22Like, surprise!
00:22I mean, I'm here every day, but you too, I don't know.
00:24You're not here every day.
00:25I mean, I feel like one day Mike Bloomberg is just going to pop up on there.
00:28I hope so.
00:29That would be a lot of fun.
00:30That would be a fun conversation.
00:30I would totally love that.
00:32Hey, we might get another...
00:33What's the number that's soon in right now?
00:34I don't know.
00:35Let's ask him.
00:36Come on, let's go.
00:37No, I don't want to get into it.
00:38All right, so S&P 500, we are looking at, well, we're right now below 7,800.
00:43We were thinking we could see our first close on the S&P above 7,800.
00:47We'll see if we get there.
00:48But right now, it's still going to be a record, right?
00:51Yes, Carol Masser.
00:52Well, hey, come on.
00:53I'm just seeing if you're, you know, waiting over there.
00:54We got a minute to go.
00:56We got a minute to go, Isabel.
00:58You know, I should note, this is, we're only, we're not even halfway through the month.
01:02We're already up over 4% on the S&P 500.
01:04For this month.
01:05For this month alone.
01:06Yeah.
01:07Well, we're only halfway through the month.
01:09You don't care.
01:10I mean, it doesn't sound so boring.
01:11Come on, Isabel, help us out here.
01:13Yeah, Isabel, help me out here.
01:15We got data this morning again, and it showed inflation moderating.
01:18And I feel like investors are breathing a sign of relief.
01:21But we still have one more to monitor before the Fed meeting.
01:23So we can't be too complacent, I would say.
01:26All right.
01:26Well, we did get those two benign inflation reports.
01:29And at least for right now, that combined with earnings, giving investors a little bit of a window to move
01:34a little bit forward here with this bull market.
01:36A bull market that continues at pace.
01:38A bull market that, at least for the broad market, is going to end the day at a record high.
01:44The S&P 500 looks like it's going to close right around that 7,800 level.
01:49It takes a while for these numbers to settle.
01:51It looks like it'll be a tick or two below that.
01:52Doesn't matter.
01:53That's still a record high, up 50 points or 7 tenths of a percent on the day.
01:57The Dow adding about 70 points or about a tenth of a percent on the day.
02:01The Nasdaq composite up about 8 tenths of a percent.
02:04The Nasdaq 100 up about 1%.
02:06And the Russell 2000, just double check this.
02:09Yes, I believe it is a record high for the Russell 2000 as well, adding about two tenths of a
02:14percent here on the day.
02:16Wait, do you know?
02:17Are you confirming it?
02:18I'm 100% telling you the Russell 2000, Terrell Masser.
02:21I'm just checking.
02:22Closed at a record high.
02:22You got this incredible machine in front of you that tells you everything.
02:27All right, let's go to the S&P.
02:28All right, so Russell had a record.
02:29You've got the S&P at a record.
02:32I'm going to go back to the S&P 500 because you did have most names higher, Isabel, in today's
02:36session.
02:36About 319 to the upside, 183 lower this Thursday, and he had one unchanged.
02:42Let's take a look at the IMAP, Carol.
02:44So it's mostly green on the screen.
02:46Biggest gainers, of course, tech higher by nearly one and a half percent.
02:50Communication services also in the green by four tenths of one percent.
02:53You see some peppers of red there.
02:56I guess I'm wearing red.
02:58Energy is down two tenths of one percent.
03:00And materials also lower by one and a half percent.
03:02All right, well, speaking of materials, let's take a look at applied materials.
03:05The maker of equipment to make semiconductors out with this fiscal third quarter report.
03:10Sales, at least for its semiconductor business, did beat estimates at about $7 billion.
03:15Net sales, the total amount of sales for the company as a whole, 9.21 in the quarter.
03:20That's a slight beat over the average of street estimates.
03:23They were looking for about $9 billion.
03:25EPS in the quarter, a slight beat, $3.50.
03:28The street was looking for $3.42.
03:30But I can tell you right now, we need to dive a little bit deeper because what everyone wants to
03:34know is what that fiscal fourth quarter forecast looks like, whether this phenomenal growth we've seen for this company can
03:40actually continue.
03:40Well, I will say Gary Dickerson, the company's president and CEO, says that he's further raising our semiconductor systems revenue
03:46expectations for calendar 2026.
03:49They're confident that they'll grow faster than the market this year.
03:52Based on the increased demand visibility we're receiving from our customers, we expect another strong growth year for applied materials
03:58in 2027.
03:59All right, so I'm not quite sure.
04:02Forgive me, Romain, if you already said this, but AMAT does see fourth quarter net sales of $9.75 billion
04:07to $10.75 billion.
04:09This gets to Outlook.
04:11The estimate on the street is $9.62 billion.
04:13Interesting to see the stock.
04:14It is down about 4.6% in the aftermarket.
04:17Keep in mind it's up more than 100% year-to-date, Isabel.
04:20So it's just a little bit of perspective, but we'll look for some more headlines here to cross.
04:24I think it's, again, expectation versus reality.
04:27And maybe investors are just expecting more and more.
04:29We have the CFO saying that this is the 13th consecutive quarter of year-over-year gross margin expansion.
04:34So that is a lot.
04:35That's 13.
04:36I just want to just go back to that number, though, because that fourth quarter number, and I think you
04:40kind of understand,
04:41the idea here also is everyone's looking at that percentage growth number and whether that's actually coming down.
04:46And it does appear, I need to do the math, but when you look at that range of 9.75
04:50to 10.75,
04:51and this idea here of a company that had been enjoying some pretty healthy double-digit growth
04:56and the idea that that's always going to be hard to sustain into the new fiscal year,
05:00if this is the fourth quarter number, I guess my big question is what does the number for the full
05:05year up ahead
05:06actually start to look like?
05:07That's not in the release.
05:08I'm sure they'll be asked about it on the conference call.
05:10Yeah, no, absolutely.
05:12And, again, the stock not as low as it was, pairing some of the earlier loss,
05:16but still down about 2.1%, almost 3% here.
05:19So, yep, a lot of questions here.
05:20There's also going to be questions, I think, too, about CapEx
05:23and what the company is going to spend on investing.
05:27The company's senior vice president and CFO, Bryce Hill,
05:30saying that they're making additional manufacturing capacity investments
05:33to support projected demand through the end of the decade.
05:36So that's up through the end of the next few years, right, more than three years out.
05:40They're saying continued strong revenue growth in the second half of the calendar year,
05:44particularly in DRAM as well as leading-edge Foundry Logic and advanced packaging.
05:49All right.
05:49So we're going to keep an eye on this, look for a little bit more in terms of headlines
05:53and, obviously, the analysts' call.
05:55But, again, the stock we've seen a little bit under pressure.
05:57Hey, I'm going to go to some of the gainers in today's session.
06:01Here's one group, Sandisk, Western Digital, Micron, Seagate Technology.
06:05These were top in the S&P 500 and the NASDAQ 100.
06:09Sandisk alone was up 13.7%.
06:13You've got Western Digital up more than 7%.
06:16You've got Micron up more than 4%.
06:19And Seagate Technology up almost 5%.
06:21You did have Sandisk come out.
06:24The computer hardware and storage company jumping to a session high.
06:27It might even be a close high, but I have to check on that.
06:29After it announced its financial model for the years 2028 through 2030 at its 2026 investor day,
06:37Sandisk targeting the following as part of its outlook revenue growth in the mid to high teens during that period.
06:42Sees non-GAAP gross margins at about 80%.
06:45Targets non-GAAP operating margin of about 75%.
06:48It goes on and on.
06:49But, nonetheless, the whole sector we saw higher.
06:52I've got to mention Workday as well.
06:55Shares jumping intraday high of about 30% after a Royer's report that private equity firm Silver Lake is in
07:02talks to purchase the software provider.
07:05So, again, we saw this one moving dramatically.
07:08And then I'm just going to throw in Birkenstocks, just something different.
07:10And rallying after the footwear maker boosted its adjusted EBITDA forecast for the full year.
07:15And so we did see that one also up just shy of 12% in today's session.
07:19Okay, let's go to some of the decliners on the day today.
07:22Cisco system shares down 8.4%.
07:24The biggest decline going back to earlier this year, ticker CSCO.
07:30This after the company projected $7.5 billion in AI data center sales this fiscal year.
07:35That disappointed investors.
07:36We talked to Woo Jin-ho from Bloomberg Intelligence a little earlier.
07:38He said for him, he didn't think it was the AI data center sales outlook.
07:43He said it was more weakness in the product gross margin.
07:47But nonetheless, Cisco shares did fall today by 8.4%.
07:51I also want to talk a little about Hertz.
07:54Hertz shares just getting crushed today, down more than 16%.
07:57This after Pershing Square's chief investment officer, the firm has sold its stake in Hertz.
08:02Pershing lost confidence in Hertz's management after the firm announced a funding plan that, quote, we did not think was
08:09necessary.
08:09This is Ryan Israel over at Pershing Square saying that.
08:12The stock drop snaps a run up for the last six sessions after Wednesday's close.
08:18Hertz's stocks has seen some wild swings over the course of 2026.
08:22So some movement there, down 16%.
08:24And finally, let's talk ticketing and StubHub.
08:28StubHub shares falling after the company said earnings per share for the second quarter missed the average analyst estimate.
08:35The challenge here, Romain, was with the World Cup.
08:38The company's forecast for the full year underwhelmed.
08:41But I guess they had a lot of ticketing challenges for the World Cup.
08:44And people weren't able to get access to tickets that they somehow bought months in advance.
08:47And StubHub says it was an issue with FIFA, and now there are a lot of customers complaining about this.
08:52Yeah, I remember seeing all that online.
08:54I mean, who's to blame?
08:55Who knows?
08:56But obviously StubHub taking the blame, at least based on the reaction in the shares today.
09:01A quick look at yields.
09:02They are down across the board here, down about four basis points on the long end, five basis points on
09:08the short end.
09:08That benign PPI report following a benign CPI report, giving investors a little bit of hope here for a bit
09:15more of a bond rally.
09:17But keep in mind, we also had that 30-year auction today where the Treasury had to pay up its
09:21highest yield on a 30-year auction since 2001.
09:25And I just want to clarify, Sandisk not at a record high.
09:28That was back on June 25th when it was more than $2,335.
09:32I know.
09:32I knew you would come at me if I didn't mention something.
09:35I was going to correct you later.
09:35I do like to get it, as you like to do.
09:38Hey, here's a story that's on our radar.
09:39It's among the most read on the Bloomberg Terminal.
09:42Manhattan rents hitting $5,000.
09:45That is a record, while listings all but vanish.
09:48What was the story yesterday?
09:49Was it people paying $4,000 to get a peak on listings?
09:52Because of the broker fee issues, right?
09:54Before they actually are released?
09:54Yeah.
09:55So, I mean, it's so competitive out there.
09:57It comes against, I mean, this is the way it works, Isabel.
10:00It's supply and demand, right?
10:01So, a drop of supply, listing inventory in Manhattan plunged more than 39% year over year in July.
10:07Inventory in Brooklyn fell by 27% compared to last year.
10:11It is expensive out there here in New York.
10:13I have a lot of thoughts.
10:14We moved to Brooklyn and then-
10:16Welcome.
10:17Brooklyn.
10:17We are happy to have you.
10:18I'm a Brooklyn girly now.
10:19So, we were looking at an apartment and then we offered $100 above asking and we were beat
10:25by someone who offered $700 asking.
10:28$100?
10:29Yes.
10:29But we were beat by someone $700 a month for a month for a month for a romaine.
10:33Yes.
10:33For a month for a romaine.
10:34Maybe you and I are in a different tax bracket.
10:37Wow.
10:39No comment.
10:39Yeah.
10:39Maybe that pita-terre tax is going to bother you.
10:41Yeah.
10:41Are we going to talk about that?
10:42That's for a romaine.
10:43Can we talk about something I can relate to?
10:44What is this pita-terre tax thing?
10:45Apparently, it's back on.
10:46Yeah.
10:46Well, an appellate court.
10:47What's the mayor doing?
10:48Come on.
10:48Yeah.
10:49Appeals court said it's on.
10:50All right.
10:51Yeah.
10:51Get your checkbook out, romaine.
10:52Well, no.
10:53Actually, I'm putting it away.
10:54I had to write a check the other day for the first time.
10:56I was looking through the last time I actually wrote a paper check.
10:58Oh.
10:59Who are these people?
11:00Okay.
11:00We got to run.
11:01We have something important to do on this side.
11:03Tokenization.
11:04Something.
11:05Why not?
11:05Put it in the blockchain.
11:06I got a cramp just right now.
11:07Thank you very much.
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