And right now we are two minutes away
from the end of the trading day. Roma
Bostic here with Scarlett Fu taking you
through to the closing bell with the
global simalcast. It's already started.
There's Tim Sten again in the radio
booth. Emily Grafo by a side. Carol
Masser has the day off. Welcome to our
audiences across our Bloomberg platforms
here on a big test for the equity rally.
Tim.
>> Yeah, I mean a big test but I think it's
fair to say that the you know the tech
tech companies don't always go up. Roma
and that's exactly what we're seeing
today. Wow.
>> That's what we're seeing with the NASDAQ
Composite on the downside. Look at that.
Down 1.5%. The S&P 500 taking a hit down
to the tune of 610 of 1%. It's being
dragged down by mega cap tech companies.
>> Bitcoin also doesn't always go up. Uh
try convincing the uh crypto fans of
that. But we are seeing Bitcoin down
about 3% right now and Ether falling
even more than that as well. I know that
was a lot of red arrows that Tib was
just showing us. But within the S&P 500,
351 stocks rising, only 150 declining.
So when you look at the S&P equal
weighted index, it's notable that it is
up about 310 of 1%.
>> Yeah, I like the glass half full uh
thing there, Scarlet. And also gets to
this idea of Dow transports up more than
a percent on the day with some of those
transport stocks getting a bit. And I
just want to point out too, we talk
about tech stocks being on the back
foot. Not all tech stocks. You take a
look at the NASDAQ 100 and the number
one gainer there on a percentage basis.
Intel up 7% of course after yesterday's
4%
>> that that's uh you know a singular story
though. I think it's fair to say you're
going to have to wait for my gainers to
hear why.
>> Did I step on your toes?
>> If you haven't been staying tuned deep
>> tease. What's Emily got? Can I step on
her toes?
>> All right, let's
>> don't do it.
>> All right, let's walk you through the
closing bells here in New York. A bit of
a pullback for some of the major indices
here on this Tuesday afternoon. Maybe
just a little bit of profit taking.
Maybe a rethink of the rally, maybe
concerns about valuations, or maybe
concerns about the Fed. The Dow Jones
Industrial Average is going to end the
day relatively unchanged after spending
a good portion of the day in the red.
It's going to close higher by roughly
about 7 points. The S&P 500 is down more
than 30 points or about 6/10 of 1%. The
Nasdaq Composite down about 1 and a
half% on the day. Similar move lower for
the Nasdaq 100. And the Russell 2000
dropping about 18 points on the day or
8/10en of 1%. Hey, Scarlet making a
really good point earlier about the
number of stocks higher in the S&P 500.
It really speaks to the mega cap tech
nature of these companies. That is it a
market cap weighted index. We did have
356 stocks advance in the S&P 146 on the
downside despite the fact that it closed
down 610 of 1%.
>> Yeah, but when you look at the IMAP and
you look at the size of the different
sectors, there's a reason why the S&P
500 closed down. Even though there are
seven sectors in the green and only four
in the red, the ones that are in the
red, tech, biggest sector in the S&P
500, right? A third of the S&P.
Communication services makes up about
10% of the S&P 500. Consumer
discretionary makes up 10 and a half%.
Those are your leading decliners. And uh
communication services and tech each
down more than 1%. REITs, consumer
staples, and utilities, some of your
smaller sectors, they're leading the
gains today. Well, speaking of gains, I
do want to start with Intel shares
surging after SoftBank agreed to buy $2
billion of the company's stock, up 7% at
the end of the day today. Analysts see
this news as positive, but continue to
see a number of questions surrounding
the company's prospects. Uh, Commerce
Secretary Howard Lutnik was on CNBC
earlier today. He confirmed discussions
between the US and Intel for the
government to take a stake in Intel, but
he cast the plan as a bid to convert
Chips and Science Act grants into
equity. So, as Carol always says, the
devil is in the details and we'll wait
to see those details. Also, Palo Alto
Networks going uh rising in today's
trade. The company reported stronger
than expected annual forecast. The
company seeks to provide customers with
a bundle of AI enabled cyber security
products to fend off attack shares
higher today by 3%. PaloAlto Network CEO
said, quote, "In this new era, security
is no longer a bolt-on and that an
integrated best tobe platforms deliver
superior security outcomes." According
to him, and how about a little media
merger news on this Tuesday, I'm
watching what happened with shares of
Tegna today because NextStar Media Group
agreed to buy Tegna for $3.5 billion in
an allcash takeover. Investors certainly
liked that, up 4.3%
throughout the day. today. The deal
values Tegna at $22 a share, trading
just shy of that, but it is a 44%
premium to the company's stock price on
August 8th. And including debt and
transaction fees, it fa uh values Tegna
at $6.2 billion. Emily.
>> All right. Well, tech stocks were
certainly amongst the biggest decliners
of the day. Oracle was one of them that
I chose to highlight. It fell about 6%.
It was the biggest drop since April.
trading volume was also about 77% above
the average for uh the time of the
market close. We got news a few days ago
that uh their longtime chief security
officer, one of the highest ranking
women in the cyber security industry is
leaving the company as part of a recent
reorganization. Perhaps that's weighing
on the shares a little bit today. Mary
Anne Davidson, she joined Oracle in
1988.
Additionally, when it comes to Oracle
specific news, Bloomberg News recently
reported that they're cutting jobs as
the company takes steps to control costs
amid heavy spending on AI
infrastructure. So, we talk a lot about
this AI theme and spending, but here it
is. Maybe there was too much money and
investors are taking note of that. I'm
also watching shares of Viking
Therapeutics. This was a big drop today
after the company's experimental obesity
pill disappointed investors in a
mid-stage study. You look at the shares
closing down 42%.
Uh obviously a lot of companies here
racing to make those weight loss uh
pills. Vikings pill did h help patients
lose up to 12.2% of their body weight
according to a statement from Viking,
but almost a third of the patients
dropped out of the trial in just three
months. It seems like investors hanging
on uh to that. And then finally, I
finished with a company you guys may
have heard of, Nvidia. Uh trading volume
was about 21% above the 20-day average.
It was leading losses uh in the market
today, and it was actually the biggest
full day drop since April 21st for uh
this chip company. It was down almost
4%.
>> All right. And we should uh point out,
too, not all day activity was in the
equity market. We did see activity in
treasuries coming off three straight
days of actual price declines. We saw an
increase in treasury prices across the
curve, pushing yields down all across
the curve of just about one basis point
on the short end and three basis points
uh when you get out to your 10 and
30-year yields. This may come as no
surprise to our viewers and listeners
who live in New Jersey, but New Jersey
Transit, when you look at the other
commuter rails in the tri-state area,
including the Metro North and the Long
Island Railroad, it's actually the worst
in terms of reliability, and it's by a
long shot. An analysis of real-time data
shows that it's less reliable than the
Metro North and Long Island Railroad and
riders face significant service
disruptions at six times the rate of
other commuters. Katie one I mean,
excuse me, Emily.
>> Wow.
>> One in every 18 New Jersey transit
trains was delayed by at least 15
minutes.
>> Yeah. Well, Katie's the New Jersey girl.
I'm the Connecticut girl, so this is
kind of a win here uh for for for my
state. For an average commuter, um, they
had a bad commute roughly every two
weeks versus once every three months or
more if you're going to New York, um,
and Connecticut versus Katie going to
New Jersey.
>> I feel bad because Carol should be here
to defend her state. I mean, she she's
the New Jersey commuter. Uh, I know one
of our producers commutes here from New
Jersey and it has to take the New Jersey
transit and um is constantly texting us
from uh, you know, wherever he's stuck
saying, you know, it's going to be
another hour. It's going to be another
half hour. I'll get there when I get
there. So, I feel for them. Um, I'm on
the Metro North, which is, uh, got
pretty good timely arrivals. But, you
take the subway, remain, right? You're
good.
>> Me? No, you can cut down.
>> He doesn't do public transit except you
even know me. Um uh speaking of which uh
you know there are other stories out
there guys and more important stories
than than your gripes about your uh you
know pedestrian commutes there. Leubu
>> Labubu
>> has taken over the world
>> and now it's taken over the
profitability of PopMart. PopMart
actually just reported earnings and its
revenue jumped 200%
year-over-year. Net income jumped 400%
year-over-year. Of course, PopMart makes
a lot of uh various uh dolls and
trinkets and tokens, if you will, but uh
nothing, at least in recent memory, has
been as successful as a lab margins.
>> Yeah.
>> 400% jump in net income. 200% jump in
revenue. How long does this last?
>> I would have expected more.
>> Really?
>> Yeah. That's it.
>> What are the What are the tariffs on
these? Leubu is labubu the plural
>> or do I say labuboo?
>> It's labubai.
>> Labubai. But but it gets to this idea
too. I mean we talk about this these you
know how something that really has no
value whatsoever to anyone but it just
yeah it's just my opinion. But but but
the way it just takes over you see these
things everywhere now. Uh you can't even
buy them when they come on to market.
Scalpers just pick them up and you know
then they resell them for you know two
three times what they paid here. This is
the craze. Tim Stenovic.
>> Yeah I heard you have an entire room in
your apartment dedicated to just your
Lubu con collection.
>> I do. It's called the bathroom.
>> Is that true?
I've actually only seen one of these,
but maybe I'm just not looking up from
my phone enough.
>> I can't wait for the, you know,
crossover when we get the Lubu movie,
you know, video games.
>> I mean, look, we all know how this ends.
We were around for the Beanie Babies,
you know, 25 years ago. So,
>> yeah. I got a closet full of those.
>> Exactly.