And right now we are two minutes away
from the end of the trading day. Roma
Bostic here with Scarlet Fu taking you
through to that closing bell with the
global simalcast. It starts now. Tim
Stenc in the radio booth. Isabelle Lee
by his side. Carol Masser has the day
off. Welcome to our audiences across all
of our Bloomberg platforms including our
partnership here on YouTube as we focus
in on the biggest story of the day. Tim
Cinec and of course that is the nuptules
between Travis Kelce and Taylor Swift.
>> I knew you were going to say that. You
know, there's always a Bloomberg angle
to a story like that.
>> Oh, yeah. We will have it.
>> Yeah, we have it. Taylor Swift turns her
engagement into another media coup
written by none other than our media
reporter, one of our media reporters,
Hannah Miller.
>> It's all about how they did it on
Instagram. And that's where they go.
>> That's my coverage. That's the extent of
my coverage. Isabelle,
>> that's what you've been focusing
>> of the story. I know. I know you're all
over it.
>> I think another business angle could be
the size of the ring and whether it's
labrron or whether it's a natural
diamond. That definitely is of interest
to the viewers and to my friend group.
My group chats are all lighting up.
>> I feel like we're going to get an answer
to that sooner than an answer to what
happens at the Federal Reserve with Lisa
Cook. Her fate, especially as her lawyer
plans to challenge the firing by
President Trump.
>> Yeah, and thanks for bringing this back,
Scarlet Fu, because we talk about a
market that, you know, I think we call
came in today expecting more of a
sell-off in equity markets and of course
a lot more eruptions in the bond market.
We did not quite get that. You did see a
steepening of the yield curve, of
course, with uh the yields on the
shorter end of the curve moving lower,
longer than the curve moving higher. And
as far as stocks go right now, guys,
right around session highs,
>> is the market essentially saying, "We're
not buying into this notion that the Fed
independence is threatened." Romain,
>> uh I I would think that they're maybe
buying not so much into the idea of
independence, but they're buying into
the idea that one way or the other, not
a whole lot is going to change at the
Fed. the idea that they are expecting
rate cuts. They think they're going to
start in September. And at least based
on what we know now, Lisa Cook's not
going anywhere. So maybe it is just the
status quo. The S&P 500 moving higher by
about 27 points on the day, closing up
4/10en of a percent. The Dow Jones
Industrial Average up 3/10en of a
percent. The Nasdaq indices, both the
Composite and the 100, each up about
4/10en of 1%. And your outperformer on
the day, that will be the Russell 2000,
19 points higher or 8/10en of 1%. In the
S&P 500, pretty much an even split of
stocks that moved higher and lower with
a slight higher number going to stocks
that moved higher. 258 to the upside
today in the S&P 500, Scarlet 243 to the
downside.
>> All right, let's take a look at the IMAP
as well. And you'll see a pretty big mix
of uh sector performances. What's
notable, of course, is that the bigger
sectors are in the green, led by
industrials, financials, and healthcare.
Industrial is the only group gaining
more than 1%. On the downside, you do
see some red slices there. Consumer
consumer staples losing half of 1%.
REITs losing about a third of a percent
and communication services just
marginally lower right now.
>> All right, I want to talk about one of
the most actively traded stocks and it's
going to have to wait because we got
some earnings coming out. Roma.
>> Yeah, Octa, the software company
reporting earnings right now. The
knee-jerk reaction. The shares to the
upside by about 6%. A beat on the bottom
line. 2QEPS 91 cents a share. The street
was looking for 84 cents. Revenue in the
quarter coming in at $728 million. The
street was looking for roughly about
$697. And here's your guidance for the
current quarter, the third quarter. The
company says it sees revenue in the
range of 728 to 730 million. The low end
of that range above the average of
analyst estimates. EPS a range of 74 to
75. The street was looking for 75 cents
on average. And for the full year, the
company guiding for EPS of $3.33 to
$3.38.
Uh, and that does appear to be a bump
higher from its previous guidance. So,
basically a beat and a raise here.
>> A beat and a raise. And also margins are
also expanding at least adjusted
operating margin, 28% versus 23% a year
ago. And within the businesses, Tim, I'm
looking at professional services, uh,
which is the smaller part of its
business, uh, up 21% year-over-year,
coming in at $17 million. the
subscription revenue business, which of
course is more consistent because it's
recurring revenue. Uh $711 million that
is up 13% year-over-year, also better
than anticipated.
>> And we should point out, I mean, while
this is a relatively small company, $16
billion market cap, there's a lot of
focus on it ahead of Nvidia, which
reports about 24 hours from now. Of
course, Octa with a big presence or at
least trying to have a big presence in
the AI space and a lot of concerns and
questions uh Isabelle and uh Tim uh
about exactly whether that spend is
going to continue at its current pace.
>> Octaare is moving between gains and
losses up about 1.1% in the after hours
right now. We will be glued to Nvidia
tomorrow in our special coverage too on
Bloomberg television and radio. Back to
some of the big movers in today's
session. I want to start with Echoar.
Shares surged as to to a record most
ever at one point in the day. Ended up
closing out the day. Uh up 70% today. Uh
this as the company said it's agreed to
sell Spectrum licenses to AT&T for about
$23 billion in an allcash transaction.
AT&T said the acquisition of this
spectrum will strengthen the company's
ability to deliver 5G and fiber services
across the US. Echoar, for its part,
will continue to operate in the US
market as a hybrid mobile network
operator under its Boost brand. Also,
keep an eye on what happened with shares
of Lily today to the upside of 5.9%.
This after news that its experimental
obesity pill helped patients lose 9.6%
of body weight in a trial. So, instead
of a shot, yes, it could be available in
a pill at some point in the future.
Patients who were given the highest dose
of the pill lost around 21 pounds and
saw significant improvements in blood
sugar levels. According to the company,
shares higher today by close to 6%. And
finally, keep an eye on stocks in the
defense sector today, particularly
Lockheed Martin, which moved to the
upside about 1.7%. This after commerce
secretary Howard Lutnik suggested
earlier on CNBC that the US government
is looking at the defense sector for
potential stakes in companies. Allah
Intel. The secretary did signal out
Loheed Martin saying the company makes
much of its revenue because of the US
government and is quote basically an arm
of the US government.
>> Let's now look at decliners consolation
brands. We have the sh sh sh sh sh sh sh
shares down by nearly 4%. That's after
bank of America downgraded the company
to underperform on weaker beer trends.
So more noteworthy is the fact that the
bank holds the only sell equivalent
ratings. So they cut their price target
to a street low of $150. That's from
$182. So the stock saw pressure and it's
down by 3 and a half%. Up next is Kurig
Dr. Pepper. Shares are also down by 6
and a half%. That's after HSBC
downgraded the stock to a hold from buy.
This comes after the JDE Pete purchase
announcement on Monday. So the price
target is cut to $30 from $42. The
analyst there said that the unwind of
the 2018 Kurig and Dr. Pepper merger
comes at a quote high acquisition cost.
And lastly, we're looking at Salesforce.
It's also down by 1 and a.5%.
Oppenheimer cuts its price target to
$315.
All right, let's just jump here on
earnings. We have earnings from MongoDB
and I'm going to pull them up right now.
We do see uh for the second quarter,
this is the quarter that ended. The loss
per share was 58 cents uh which was
smaller, more narrow than what analysts
had in versus last year I should say,
which was 74 cents a share. Adjusted EPS
uh was a dollar versus the consensus
estimate of 65. In terms of the revenue,
it's uh 591.4 million. Analysts were
looking for 554. The outlook for the
full year, 2.34 billion to 2.36 billion.
That is an upgrade from the previous uh
forecast which was uh at least 2 and a4
billion to 2.29 billion. Full year
adjusted EPS according to MongoDB also
goes to $3.64 from $3.73. That is a
notable upgrade from the previous
estimate of at most $312.
And you can see the stock responding
here up 12 and a half% right now uh in
after hours trade.
>> Kind of interesting to see some of these
uh mid and smaller software companies
getting a bid here in the after hours
trade. A lot of concerns of course
heading into those earnings out of
Nvidia tomorrow. The idea that uh some
of the spending that had been flowing
into some of these identity uh uh
security companies, some of the cloud
providers like Box and of course MongoDB
that we would see some weakness there.
But the earnings coming in right now and
at least for the current quarter and the
guidance for the next quarter seems to
be holding up on MongoDB. Fox also
reporting a beat and a raise there here
on a day where there is a big focus a
big focus right now on corporate
fundamentals with Nvidia up ahead in
about 24 hours. But of course right now
everybody obsessing uh over the Fed and
what may come next. We saw the
steepening of the curve today. A lot of
concerns here that yeah we may end up
with a doubbish Fed no matter how much
this shakes out. But of course this also
could be a Fed potentially that could
end up maybe not being as prepared to
fight inflation longer term. And that's
a big part of the reason why you're
looking at the long end of the curve
moving in the opposite direction.
>> You know, one thing that Tim pointed out
that I thought was really interesting
was uh Loheed Martin and the defense
companies rising after Howard Lutnik,
the US commerce secretary, uh suggested
that the government is looking at the
defense sector for potential stakes in
companies. What I'm not clear on is why
this is seen as a good thing for the
company, why the defense shares would be
rallying because it's not just Loheed
Martin. We also saw uh RTX and General
Dynamics uh gain ground as well. Well,
there's there are a lot more questions
than there are answers at this point. I
think maybe there's uh expectations or
at least in some cases wagering that
there could be some support from the US
government for some of these companies.
After all, in some of these cases, the
US government is the biggest uh customer
of these companies. But I think it opens
up a bigger question about the role of
of the United States and the role of
government in private corporation. And I
think that if you were to look at a
traditional Republican view of free
enterprise, it would not include a 10%
stake in Intel, for example, or it would
not include funds going to a minor like
MP materials. But the president and his
cabinet have really made clear this is a
new era when it comes to uh the
corporate world.
>> Also, it raises the question, would
partial government ownership really
strengthen national security planning or
risk distorting market competition and
pricing in the sector? And we were
talking about this earlier, Tim. What
influence will the government gain on
company strategy and religious
management decision-making if they take
a significant stake in companies like
Loheed Martin or Intel?