00:00We're about two minutes away from the end of the trading day on this Tuesday. Scarlett
00:03Fu and Isabel Lee here. And helping us take you through the closing bell, we've got a global
00:08simulcast. We're joined now by Carol Masser and Joe Doe. In for Tim Stenevic, bringing together
00:12our Bloomberg television, radio, and YouTube audiences worldwide to parse through the most
00:17crucial moments of the trading day. And Carol, it feels very similar to yesterday. Yields elevated,
00:22grinding higher. Equities this time down once again. But semiconductor stocks have turned
00:28around. They are now lower. Yeah. I mean, very much so. And I feel like once again, Joe and I
00:34spend some time talking along about what we're seeing globally. These long-term debt costs soaring
00:39to the highest in decades as we've seen bond prices slumping. But it's not just a U.S. thing,
00:44Joe. It is a global thing. It is a global thing. And it is inescapable. No matter how much you
00:48want
00:48to avoid AI, it is going to find you. And that's what we're seeing in today's trade for sure.
00:53I like what Scarlett told our guest earlier. Are we just marking time or is the market just
00:58in a holding pattern? Because there are so many that are up and coming from NVIDIA earnings to
01:02the Fed minutes tomorrow. But Scarlett also pointed out what Ediardeni said, which is we
01:06aren't pushing the panic button just yet, but definitely something to keep a close eye on.
01:10Yeah. The bond vigilantes are kind of just there waiting to pounce if and when they see the signal.
01:16All right. So as we get closer to the closing bell, no real surprise then that volume has dropped
01:20off as well. It is the middle of August. We've got a late Labor Day. Things are slowing down. And
01:25as
01:26Isabel pointed out, we're waiting for a couple of different catalysts, but we're not quite there yet.
01:30I guess NVIDIA's results will be the next big one for those looking at earnings because the retailer
01:34earnings don't move the market in quite the same way that a big cap chipmaker does. All right. There you
01:39have
01:39the closing bell. Let's run through the numbers right now. You have the S&P 500 closing down about
01:44three quarters of one percent. The down-dustral is holding up a bit better, lower by a quarter of one
01:49percent.
01:50And the Nasdaq Compton index down one and a third percent, dragged lower by those chipmakers. And
01:55it's small caps as well. They are showing weight weakness with the Russell 2000 closing lower by
02:011.3 percent, Carol. All right. That's a look at the major equity averages. Thank you, Scarlett. I'm
02:07going to go back to the S&P 500. It's a reminder that not everything was down, almost an even
02:11split
02:12here, Isabel. 226 names in the S&P 500 higher for the Tuesday trade. 273 to the downside, four unchanged.
02:21I like that even split. So let's now take a look at the IMAP. It's looking a bit more red
02:27because we have
02:28tech losing there by more than one percent. Some green shoots you're seeing, consumer staples and energy to
02:34no surprise, but the rest are in the negative territory. All right, guys, let's go to some of the individual
02:40gainers, if I may. Amalix Pharmaceuticals definitely caught my attention, ticker AMLX.
02:46Shares climbing a record 53 percent intraday, actually even more because this talked up almost
02:5264 percent here at the close. So quite a move. The drug developer said a late stage trial of its
02:57experimental drug met its primary endpoint as a treatment for patients who experience dangerously
03:04low blood sugar levels following bariatric surgery. So a kick to the upside in a big way.
03:09Keep in mind, the stock is up more than 160 percent year-to-date, about 13 percent of the float
03:15is short,
03:15but nonetheless, definitely a major bullish move in the Tuesday trade. Let's go on over to Targa Resources and
03:23ExxonMobil. Targa is the number one gainer in the S&P 500. That stock is up more than 7 percent.
03:31You saw ExxonMobil
03:32also up about 2.6 percent. Targa up after the energy company signed a new 20-year fee-based integrated
03:38midstream agreement with ExxonMobil subsidiaries covering gathering processing, NGL transportation,
03:46and fractionation across the Permian Basin through 2046. So talk about some visibility in a long-term
03:53contract. Targa, by the way, is up more than 60 percent year-to-date. ExxonMobil, not too shabby.
03:59Those energy names continuing to outperform this year. That one is up about 36 percent year-to-date.
04:05And then, courtesy of Tim, not here this week, Joanne, and we've been so happy to have you here,
04:11but Tim loves Duolingo. So I had to bring this one up.
04:14Shout out to Tim.
04:15Yeah, exactly. Stock rallying more than 7 percent. DA Davidson upgrading the language learning platform
04:20to buy from neutral, citing a turning point in acceleration of daily active user metrics.
04:25So price target set at 160 a share. Stock closed just below $140 a share. So you're looking at more
04:32than 20 percent upside, at least that, from the closing price before this call. So, yeah,
04:37outperformer. Joe, all yours.
04:39I've got decliners. I'm the downer for today. Klarna, the payments firm, fell by more than 20 percent after
04:44cutting its revenue expectations for the year amid foreign exchange pressures and weaker consumer
04:50spending in Germany, marking one of its biggest declines is going public last year. The company
04:55did also announce it's seeking a new CFO to be based here in New York and that its chief marketing
05:00officer is stepping down after nine years at the company. Citizens analyst wrote in a note to clients
05:05that, quote, the executive departures alongside the lowered second half guidance are driving more
05:10uncertainty around the outlook of the business in the coming quarters for investors. I'm also looking
05:15at meta shares, which fell Tuesday as Facebook parent heads to court for a landmark social media
05:21trial. This stock is down over the last three trading sessions and it has raised more than about $100
05:27billion in market value. Listen, the showdown involves a coalition of state attorneys general
05:34claiming that the company deliberately designed Facebook and Instagram to encourage compulsive
05:40use among young users and Forrester's principal analyst wrote. And this one's interesting. This
05:46trial is potentially the end of social media as we know it. Wow. That's a big statement. That's a big
05:52statement. We'll see. Yeah. Yeah. And Caterpillar, one of my favorites. I covered that for a number of
05:57years. It was the biggest decline. You have a soft spot for Caterpillar, don't you? I love I love
06:02construction and machinery. Biggest decliner in the Dow Jones. The blue chip company is known for its
06:06iconic yellow diggers and bulldovers, although it's an enjoyed unprecedented growth the last few years
06:11because of the AI trade, guys. Investors have boosted the stock as companies go after building
06:18more data centers and they purchase Caterpillar's power generation equipment. And the stock's getting
06:23in today just with the rest of the chips. So guess what? Caterpillar doesn't always just trade as a
06:27construction company. Yeah. It's an AI adjacent trade as well. All right. Let's take a look at the bond
06:32market because the focus, of course, is on the sell-off in bonds. It's halted for now in that
06:37yields are slightly lower, but they're elevated. Certainly looking at the 30-year yield, 5.28%,
06:44still sitting near the high since 2007. But you could see that yields have come down a little bit
06:49across the curve there. All right, guys. So there's the Kirkland food brand. There's gas. There's all
06:55these good things. There's Costco vacations. I had no idea that they were doing this. There's so much
07:01stuff that they sell. I have never been in a Costco. I'm just going to tell you. Wait, Carol,
07:06you haven't ever been. Oh, my gosh, Carol. You and me. I've never been to one either. I've never been.
07:11I've been dying to go. It just hasn't been one nearby. And I know. I feel like my life is
07:15not
07:16fulfilled and complete until I go into a Costco. Having said that, check this out. They're now
07:21looking, according to the Wall Street Journal, looking, Scarlett, to get into Medicare plans.
07:28Costco gets into everything. I mean, they're going to do this with a limited rollout of Costco
07:32branded Medicare plans in partnership with this nonprofit insurer called Scan Group. And they're
07:37only going to start in a couple of states and do this in small doses. But it just goes to
07:42show that
07:42Costco has these members who paid a membership fee. And they're very, very loyal customers. And they
07:48trust Costco to take care of all these different services, not just basically curate the products
07:55that they do buy. Joe is nodding vigorously. Joe, you're a Costco shopper?
07:58You're a Costco. You must be.
07:59Yes. And I just want my hot dog, okay?
08:02I see. Yes. Carol and I need to go on a field trip. Scarlett needs to take us. Maybe
08:07Joe can tag along. I asked Scarlett, what is the significance of this? And she said, no,
08:12this is a big deal. All I know is when Costco, when they were selling gold bars, that was what
08:16cost my attention.
08:17Oh, they sell diamond earrings. They sell everything.
08:18I would love that.
08:20No stone left unturned with Costco. It's incredible, guys.
08:24Nice one, Joe.
08:25No, I'm excited. And I think it really says a lot about what Costco sees as something that
08:30it can disrupt, that it can bring better practices to. Because Costco prides itself on its ability
08:35to vet everything. And it really limits what it sells in its warehouses. This is for Isabel
08:40and Carol, who have not gone to a Costco. You go in there, and there's maybe three different
08:44kinds of soap, as opposed to five different kinds of soap, or 15 different kinds of soap.
08:48You're a great ambassador, Scarlett.
08:49I know. You and Lisa Mateo, man.
08:52Oh.
08:53She, too, in the hot dogs. No, my family would come in with something, and I'd be like, oh,
08:57my God, like my sister or something. I'm like, where'd you get that? And they're like, Costco.
09:00And they would end up buying it for me. They were like my mules, you know, my Costco mules.
09:05I need a mule.
09:07Is that crazy? That is crazy. My understanding, though, the new Medicare products will not come
09:11with a Costco membership thrown in. Not allowed under federal rules.
09:16Oh, I see. I see. I see. Okay.
09:17Start talking Medicare, and there are some rules.
09:20Yeah.
09:20All right, guys. Yes, Isabel, you and I, Joe and Scarlett, are going to take us a little
09:25field trip.
09:26A little field trip.
09:27I will join Carol's family group chat, so I can also ask them to buy my products.
09:30They do. Wine. They're always like, look what I got.
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